Can a 17-Year-Old Get a Secured Credit Card?

A secured credit card requires a security deposit, which typically serves as the credit limit, and can be a valuable tool for establishing or rebuilding credit. This article will clarify the rules regarding age restrictions for credit cards and explore the available options.

Understanding Secured Credit Cards

A secured credit card operates with a cash deposit from the cardholder, which acts as collateral for the credit line. This deposit usually matches the card’s credit limit, reducing the risk for the card issuer and making secured cards more accessible to individuals with limited or no credit history.

The primary function of a secured credit card is to help cardholders build a positive credit history. Issuers report payment activity to the major credit bureaus, such as Equifax, Experian, and TransUnion. Consistent on-time payments and responsible credit utilization can gradually improve a cardholder’s credit score. The security deposit is refundable, typically returned when the account is closed or upgraded to an unsecured card, assuming all balances are paid.

Age and Eligibility for Credit Cards

The minimum age to open a credit card account in one’s own name is 18 years old. This age aligns with the legal age for entering into contracts, including credit card agreements. For applicants aged 18 to 20, additional requirements apply due to the Credit CARD Act of 2009.

This federal law mandates that individuals under 21 must either demonstrate independent means to repay the debt or have a co-signer who is at least 21 years old. Even for secured cards, the legal age for contractual obligations remains 18. Therefore, a 17-year-old cannot independently apply for and obtain a secured credit card.

Options for Underage Individuals

While a 17-year-old cannot open a credit card independently, options exist to begin building credit or gaining experience. One common approach is to become an authorized user on an adult’s existing credit card account. The primary account holder can add the minor, and typically, the account’s payment history will be reported to the authorized user’s credit report, helping them establish credit.

The primary cardholder must manage the account responsibly, as their payment behavior directly impacts the authorized user’s credit history. Another less common option is for some financial institutions to allow a minor to be a joint account holder with an adult on a credit card. In such cases, both parties share equal responsibility for the account, including debt repayment.

Applying for a Secured Card

Applying for a secured credit card involves several steps for individuals who meet age and income requirements. Applicants should research different secured card options, comparing features such as security deposit requirements, potential fees, and credit reporting practices. Most secured cards require a refundable security deposit, typically ranging from $200 to $500, which often sets the credit limit.

Applicants generally need to provide personal information, including their name, address, Social Security Number, and income details. Applications can often be submitted online, though some issuers may offer in-person or mail options. Upon approval, the security deposit must be funded, after which the card is issued, allowing the cardholder to begin building credit through responsible usage.