Key takeaways
- The minimum age to get a credit card is 18 years old.
- Card applicants under 21 years old need cosigners or proof of income to show issuers they can repay their balances.
- If you’re between ages 18 and 21, you could apply for a secured credit card or student credit card — or become an authorized user on someone else’s account.
- Using your first credit card responsibly can help build your credit history and establish a good credit score.
Building a credit history is crucial for young individuals, and starting early is advantageous. Acquiring a credit card before the age of 21 requires some additional steps, but it is possible.
If you are new to credit, it is essential to understand the process before applying for a credit card, including the age requirements.
How old do you have to be to get a credit card?
To be a credit card holder, you must be at least 18 years old, the legal age for entering into contracts. However, individuals under 21 must have a cosigner or demonstrate financial stability to independently repay credit card debts, as mandated by the 2009 Credit CARD Act.
How to get a credit card at 18
If you are between 18 and 21 and cannot qualify for a traditional unsecured credit card, consider applying for a secured credit card. Secured cards require an initial deposit equal to the credit limit, catering to those with limited or poor credit history.
Responsible usage, such as timely payments, can establish a positive credit history and potentially lead to a refund of the deposit. Additionally, student credit cards are an option for students under 21, with lower income requirements and tailored rewards.
How to access a credit card before you’re 18
If you are under 18, becoming an authorized user on someone else’s credit card account is a viable option. This allows you to have your credit card linked to the primary cardholder’s account, with the primary cardholder responsible for payments.
Being reported as an authorized user can impact your credit score positively, but negative activities on the account can also have adverse effects.
Credit card options and requirements by age
| Cardholder age | Options available to access credit |
|---|---|
| Under 18 years old |
|
| 18 to 20 years old |
|
| 21 year old and up |
|
Signs that you’re ready for a credit card
If you are over 18 and considering a credit card, several signs indicate readiness:
- You earn enough income: Having a stable income source to pay off balances demonstrates readiness for a credit card.
- You pay bills on time: Timely bill payments indicate the ability to manage credit card payments.
- You have a budget: Budgeting for expenses, debt repayment, and savings prepares you for responsible credit card use.
- You understand interest: Knowing how credit card interest works is crucial to managing balances effectively.
- You’ve researched credit basics: Understanding credit card terms and statements is essential for responsible card usage.
How to start building credit
Once approved for a credit card, responsible usage is key to building credit. Factors influencing credit scores include payment history, credit utilization ratio, credit age, credit mix, and new credit inquiries.
Spending within means, paying off balances in full, and maintaining a low credit utilization ratio are recommended. Waiting at least six months before applying for another card can aid in building a positive credit history.
The bottom line
The minimum age to get a credit card is 18, with additional requirements for individuals under 21. Initiating credit card usage at 18 opens doors to financial opportunities for building a strong credit score, provided the card is used responsibly.
Whether opting for a starter credit card, a secured card, or becoming an authorized user, establishing a credit history early can lead to various credit card benefits. Responsible usage is crucial to avoid negative impacts on credit scores and debt accumulation.