Can You Get a Credit Card at 17? Here’s How

Credit cards play a significant role in modern personal finance, offering convenience for purchases and serving as a tool for building a financial history. Many young individuals, including 17-year-olds, often wonder about accessing this financial instrument. Specific regulations govern who can obtain a credit card and under what conditions. This article will clarify the possibilities and limitations for 17-year-olds seeking to engage with credit cards.

Eligibility Requirements for Credit Cards

In the United States, individuals must be at least 18 years old to apply for their own credit card. This age requirement stems from the legal principle that one must be an adult to enter into binding contracts, which a credit card agreement represents. Therefore, a 17-year-old cannot independently apply for a credit card.

Further restrictions apply to young adults under the age of 21 due to the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009. This federal law mandates that credit card issuers cannot grant a new account to anyone under 21 unless they can demonstrate an independent means to make payments or have a co-signer. While co-signers are permitted, many major issuers no longer offer this option. These provisions were designed to protect young consumers from accumulating debt they cannot afford.

Using Credit as an Authorized User

The most common method for a 17-year-old to use a credit card and begin building a credit history is by becoming an authorized user on another person’s account. An authorized user receives a card linked to the primary account holder’s credit line, allowing them to make purchases. The primary cardholder retains ultimate responsibility for all charges and payments made on the account.

This arrangement can be beneficial for the authorized user, as the account’s payment history, credit limit, and age can be reported to credit bureaus under their name. This positive reporting can help establish a credit file and potentially contribute to a higher credit score over time, provided the primary account holder manages the account responsibly with on-time payments and low credit utilization. Conversely, if the primary cardholder makes late payments or carries high balances, it could negatively impact the authorized user’s credit report. Many credit card issuers allow minors as authorized users, with some having no minimum age requirement, while others set it at 13 to 16 years old.

Preparing for Independent Credit

Even before becoming eligible for their own credit card at age 18, a 17-year-old can take steps to prepare for independent credit. Developing an understanding of basic financial concepts like budgeting and saving is foundational. Learning to track income and expenses and distinguishing between needs and wants are essential skills for responsible money management.

Establishing a banking relationship by opening a checking or savings account can also foster financial responsibility. While these accounts do not directly build credit, they demonstrate an ability to manage funds. Understanding how credit scores and credit reports function is another important preparatory step, as these will be central to future financial endeavors. When turning 18, options like secured credit cards become available. These require a cash deposit as collateral and can serve as effective tools for building credit history.