How Old Do You Have to Be to Apply for a Credit Card?

Applying for a credit card involves several eligibility factors, with age being a primary consideration. Federal regulations and issuer policies set specific age-related guidelines, alongside financial criteria. Understanding these requirements is essential for anyone seeking to obtain their first credit card.

Minimum Age for Credit Card Applications

In the United States, individuals must be at least 18 years old to enter a credit card agreement. This age aligns with the legal capacity to sign contracts. While 18 is the minimum age to apply, additional requirements apply to those between 18 and 20 years old.

Federal regulations stipulate that applicants aged 18, 19, or 20 must demonstrate an independent ability to make minimum payments on the credit card debt. This means their income must be verifiable and solely their own, such as wages from a job, scholarships, or regular allowances. Income that is not independently accessible, like a parent’s income, cannot be used for applicants in this age bracket. Upon reaching 21 years of age, these specific restrictions on independent income are lifted, allowing applicants to include income to which they have a reasonable expectation of access, such as shared household income.

Accessing Credit Before Age 18

Individuals under 18 cannot apply for a credit card as a primary cardholder due to legal restrictions on entering contracts. However, minors can gain access to credit and begin building a financial history by becoming an authorized user on another person’s credit card account. An authorized user receives a card linked to the primary cardholder’s account, allowing them to make purchases.

While the authorized user can use the card, the primary cardholder retains full legal responsibility for all charges and timely payments. This arrangement can be beneficial for the minor, as the account activity, if reported to credit bureaus, may help establish their credit history. The minimum age to be an authorized user varies by credit card issuer, with some allowing individuals as young as 13 or having no specified minimum age.

Meeting Financial Requirements for Approval

For individuals aged 18 and over, meeting certain financial requirements is necessary for credit card approval. A primary factor is demonstrating a sufficient income to make timely payments on the credit card. Acceptable sources of income can include wages, salaries, tips, and earnings from self-employment. Other forms of income, such as scholarships and grants (after tuition is paid), regular allowances, investment returns, and trust fund distributions, may also be considered.

In situations where an applicant has insufficient income, a co-signer may be an option, though many major credit card issuers no longer permit co-signers for credit cards. A co-signer legally agrees to be responsible for the debt if the primary cardholder fails to pay, which can impact their own credit if payments are missed.

Another avenue for individuals with limited or no credit history, or those who may not meet traditional income requirements, is a secured credit card. These cards require a cash deposit, which serves as the credit limit and acts as collateral for the issuer. This deposit reduces the risk for the lender, making secured cards more accessible and providing a structured way to build a positive credit history through responsible use.