Do You Have to Be 18 to Have a Credit Card?

Credit cards are financial tools offering convenience for purchases and establishing a credit history. Many people wonder about the specific age requirements for obtaining a credit card and how these rules impact younger individuals.

The Core Age Rule for Credit Cards

Individuals must be at least 18 years old to independently apply for and hold a credit card in their own name. This age requirement stems from the legal principle of contractual capacity, which dictates that a person must be of legal age to enter into a binding contract. A credit card agreement is considered a legally binding contract between the cardholder and the issuing financial institution.

The Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 solidified these requirements, particularly for applicants under the age of 21. The CARD Act established protections to ensure young adults are not issued credit cards without a demonstrated ability to repay debt.

Accessing Credit Before Age 18

While the 18-year-old age restriction applies to independent credit card applications, individuals under this age can gain access to a credit card and begin building a credit history. The most common method involves becoming an authorized user on another person’s existing credit card account.

As an authorized user, the individual receives a card linked to the primary account and can make purchases. The authorized user is not legally responsible for the debt; the primary cardholder retains full responsibility for all charges and payments. This setup can be beneficial if the primary account holder manages the credit responsibly, as payment history may be reported to credit bureaus under the authorized user’s name.

Requirements for Independent Credit Card Applications

Once an individual reaches the age of 18, they become eligible to apply for a credit card independently, but additional criteria beyond age must be met. Applicants under 21 years old must demonstrate an independent means to repay the debt, typically by providing proof of sufficient personal income rather than relying on shared household income. Lenders assess an applicant’s income, employment status, and existing debts to determine their ability to manage new credit.

For young adults new to credit, establishing a credit history can be a challenge due to lack of prior borrowing experience. Financial institutions offer products to help individuals build credit. Student credit cards, for example, are tailored for college students and often have more lenient approval requirements. Another option is a secured credit card, which requires a cash deposit that typically acts as the credit limit. This deposit minimizes lender risk and allows the cardholder to demonstrate responsible credit behavior, with activity often reported to credit bureaus.