At What Age Can You Get a Credit Card?

Credit cards are a fundamental tool for establishing a financial track record. Understanding the age requirements to obtain a credit card is a key step for individuals beginning their financial journey. These requirements are set by federal regulations and issuer policies, helping individuals determine when and how they can access credit.

Understanding the Minimum Age

In the United States, an individual must be at least 18 years old to independently apply for and open a credit card account. This age aligns with the general legal age for entering into contracts. However, the Credit CARD Act of 2009 introduced specific provisions that impact young adults aged 18 to 20. Under this federal law, individuals in this age group must demonstrate independent income sufficient to make minimum payments on the credit card debt, or they must have a co-signer.

While co-signers were once a common pathway for those without sufficient independent income, many major credit card issuers no longer allow them, making proof of income a primary hurdle for applicants under 21. Once an individual reaches 21 years of age, the restrictions requiring independent income or a co-signer are lifted. At this point, applicants can include household income to which they have a reasonable expectation of access, such as a spouse’s income, when applying for a credit card.

Credit Cards for Minors

Individuals under the age of 18 cannot legally open a credit card account in their own name. However, there are established methods for minors to gain access to credit and begin building a credit history. The most common and accessible option is becoming an authorized user on an existing credit card account belonging to a parent or other trusted adult. As an authorized user, the minor receives a card linked to the primary account and can make purchases.

While authorized users can use the card, they are not legally responsible for the debt incurred; the primary cardholder retains full responsibility for all payments. This arrangement can be beneficial as the account’s payment history may be reported to the authorized user’s credit reports, helping them establish a credit file. It is important for the primary cardholder to manage the account responsibly, as any late payments or high balances could negatively affect both their credit and the authorized user’s developing credit history. A joint account, where both parties share equal legal responsibility for the debt, is rarely available for minors.

First Credit Card Options for Young Adults

For young adults aged 18 and older seeking their first credit card, several options cater to those with limited or no credit history. Student credit cards are specifically designed for college students and often feature more lenient approval criteria. Applicants typically need to be at least 18 years old and enrolled in an accredited higher education institution, though some issuers may verify student status.

Secured credit cards present another viable pathway for young adults to establish credit. These cards require a cash deposit, which typically serves as the credit limit and acts as collateral for the card issuer. For instance, a deposit of $200 might result in a $200 credit limit. The deposit minimizes risk for the issuer, making secured cards more accessible to individuals with no credit history or those looking to rebuild credit. With responsible usage, secured cards can often transition to unsecured cards, and the deposit is refunded.

Key Considerations for Building Credit

Once a credit card is obtained, responsible usage is important for building a positive credit history. Making on-time payments is the most significant factor influencing credit scores, accounting for a large portion of the score calculation. Consistently paying bills by the due date demonstrates reliability to lenders. Failing to do so can result in late fees and a substantial drop in credit scores, which can remain on credit reports for several years.

Maintaining a low credit utilization ratio is another important aspect of credit building. This ratio represents the amount of credit used compared to the total available credit. Experts recommend keeping credit utilization below 30% to positively impact credit scores. High utilization suggests a greater reliance on borrowed funds and can signal increased risk to lenders. Regularly checking credit reports, which can be done for free annually from each of the three major credit bureaus, helps monitor credit health and identify any inaccuracies.