Can a 12-Year-Old Get a Credit Card?

A credit card offers a line of credit for purchases, differing from a debit card which accesses bank funds directly. Many use credit cards to build a credit history, beneficial for future financial endeavors like loans or mortgages.

Credit Card Eligibility Age

In the United States, an individual must be at least 18 years old to legally obtain a credit card in their own name. This age requirement stems from the legal principle of contractual capacity, meaning a person must be considered an adult to enter into a binding financial agreement. The Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 further specifies rules for young adults seeking credit.

For applicants between 18 and 20 years old, the CARD Act requires them to demonstrate independent income sufficient to make credit card payments. This income might come from a job or an allowance, but it cannot include income from family members or others to which they do not have a reasonable expectation of access. Without sufficient independent income, individuals in this age group may need a co-signer, though many major card issuers no longer permit co-signers.

Financial Tools for Minors

While a 12-year-old cannot get a credit card independently, several financial tools allow minors to manage money and make purchases under supervision. Debit cards linked to a parent’s or guardian’s account are a common option. These cards allow minors to spend only the funds available in the linked bank account, preventing debt accumulation. Many banks offer teen or student checking accounts that require an adult joint account holder, often for individuals as young as 13 or 14.

Prepaid cards offer another alternative, functioning similarly to debit cards but not directly linked to a bank account. Parents load a specific amount of money onto these cards, which the minor can then spend. These cards often come with parental controls, allowing adults to monitor transactions, set spending limits, or even lock the card.

Becoming an authorized user on a parent’s or guardian’s credit card is also a viable option for minors. The authorized user receives a card and can make purchases, but the primary cardholder remains legally responsible for all charges and payments. While many issuers allow authorized users under 18, some set a minimum age. This arrangement can teach responsible spending habits under adult guidance.

Establishing Credit as a Young Adult

Upon reaching 18, individuals can begin to establish their own credit history, which is important for future financial opportunities. Student credit cards are designed for young adults enrolled in higher education and often have more lenient approval requirements than standard cards. Applicants typically need to show proof of enrollment and, if under 21, independent income. Some student cards may also allow for a co-signer, though this is less common with major issuers.

Secured credit cards provide another pathway to building credit, especially for those with no credit history. These cards require a cash deposit, which typically serves as the credit limit and collateral for the issuer. The deposit minimizes risk for the lender, making secured cards easier to obtain. Responsible use, including on-time payments, is reported to credit bureaus and helps build a positive credit profile.

Continuing as an authorized user, even after turning 18, can contribute to credit building if the primary cardholder manages their account responsibly and the issuer reports authorized user activity to credit bureaus. The payment history of the primary account can appear on the authorized user’s credit report, potentially adding years of positive history. However, the authorized user is not legally obligated to pay the bill, and their credit can be negatively impacted if the primary cardholder mismanages the account.