Can You Get a Credit Card at 12? Here’s What to Know
Explore credit card eligibility for minors. Understand age requirements, avenues for early financial experience, and building a strong foundation for future credit.
A 12-year-old cannot obtain a credit card due to current regulations. Credit cards are financial tools designed for adults, with specific age requirements preventing minors from independently holding accounts. This article clarifies why a 12-year-old cannot get their own credit card and explores alternatives for learning responsible financial management.
Understanding Credit Card Eligibility
In the United States, individuals must be at least 18 years old to apply for and obtain a credit card in their own name. This age requirement aligns with the legal concept of contractual capacity, meaning individuals must be of legal age to enter into binding agreements.
The Credit Card Accountability Responsibility and Disclosure Act of 2009, known as the Credit CARD Act, regulates credit card issuance to young adults. This federal law specifies that applicants between 18 and 20 years old must demonstrate independent income or have a co-signer. This prevents issuing cards to young people without repayment means. For anyone under 18, such as a 12-year-old, these requirements mean they cannot legally open a credit card account.
Options for Minors to Use Credit-Like Products
While a 12-year-old cannot directly obtain a credit card, they can gain experience with credit-like products through adult involvement. A common approach is becoming an authorized user on an adult’s existing credit card account, typically a parent or guardian. As an authorized user, the minor receives a card with their name on it for purchases.
The primary cardholder remains solely responsible for all charges, including those by the authorized user. This arrangement introduces the minor to credit card functions like spending limits and payment cycles, without placing legal debt responsibility on them. Some issuers report authorized user activity to credit bureaus, potentially helping the minor build credit history. However, reporting is not universal and depends on issuer policies and the primary cardholder’s responsible account management. Many issuers allow authorized users as young as 13, with some having no minimum age.
Foundations for Future Credit Building
Beyond authorized user status, other financial tools and practices can help a 12-year-old build a strong foundation for future credit. Opening a savings account teaches the principles of saving money and understanding earned interest. Using a debit card connected to a checking account allows minors to manage their own funds and track spending, reinforcing the idea of using money they already possess rather than borrowed funds.
Learning about budgeting and basic money management principles at an early age prepares individuals for financial independence. These experiences, like tracking income and expenses or setting financial goals, cultivate responsible habits. This foundational knowledge sets the stage for prudent financial decisions when they become eligible for their own credit products.