At What Age Can You Get a Credit Card?

Credit cards are a prevalent financial instrument, offering convenience for purchases and a means to manage expenses. Understanding the age requirements for obtaining a credit card is a fundamental step for individuals embarking on their financial journey. These requirements are rooted in legislation designed to protect consumers and promote responsible credit use.

The Legal Age for Credit Card Applications

In the United States, the minimum age to legally enter into a credit card agreement independently is 18. This age aligns with the legal age of majority in most states, signifying an individual’s capacity to engage in binding contracts. The Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 governs this, aiming to ensure those signing up for credit are recognized as adults capable of understanding the responsibilities involved.

Credit Access for Minors (Under 18)

While individuals under the age of 18 cannot apply for their own credit card, they can become an authorized user. An authorized user is someone added to an existing credit card account by the primary cardholder, typically a parent or guardian. This arrangement allows the minor to use the card for transactions, receiving their own physical card linked to the main account.

The primary cardholder retains full responsibility for all charges made on the account, including those by the authorized user, and is solely liable for making payments and managing the account balance. Many card issuers allow authorized users as young as 13, and some have no minimum age requirement.

Applying for a Credit Card as a Young Adult (18-20)

Individuals aged 18, 19, or 20 are legally considered adults, yet the CARD Act imposes specific conditions on their ability to obtain a credit card independently. These young adults must demonstrate sufficient independent income to make the required minimum payments on the credit card account. This provision ensures young consumers can manage their debt obligations without relying on others.

If an applicant in this age group does not have sufficient independent income, the CARD Act allows them to obtain a credit card with a co-signer. The co-signer must be at least 21 years old and possess the financial capacity to repay any debts incurred. Both the primary applicant and the co-signer are equally responsible for the debt. Student credit cards, often with lower limits, and secured credit cards, which require a cash deposit, are options for this age group to help establish credit.

Initiating Your Credit History

Obtaining a credit card, whether as an authorized user or through an independent application, serves as the starting point for establishing a credit history. A credit history is a comprehensive record of an individual’s borrowing and repayment activities. This record is compiled by the three major nationwide credit bureaus: Equifax, Experian, and TransUnion.

Once a credit account is opened and activity begins, such as making purchases and consistent, on-time payments, this information is reported to the credit bureaus. This reporting helps build a credit profile over time, reflecting financial responsibility. Developing a positive credit history early on is beneficial, as it forms a foundation that can influence future financial opportunities, including securing loans for vehicles or homes, and even renting an apartment.