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

Credit cards offer a convenient way to manage expenses and build a financial history, which can be beneficial for future financial endeavors like securing loans or mortgages. Many individuals wonder about the minimum age requirements to obtain a credit card and how the application process works.

Understanding the Age Requirement

To apply for a credit card in the United States, an individual must be at least 18 years old. This age requirement is set by the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009, which protects young consumers from accumulating excessive debt.

For applicants between 18 and 20 years old, the CARD Act mandates that they must either demonstrate independent income sufficient to make the required minimum payments or have a co-signer who is 21 or older and has the means to repay the debt. Independent income includes verifiable sources such as wages from employment, scholarship funds, or grants. Lenders require proof of this income.

Credit Card Options for Young Applicants

Young individuals seeking to establish credit have several options, even if they do not meet the independent income criteria for a standalone credit card.

Authorized User

One common pathway is becoming an authorized user on another person’s existing credit card account. As an authorized user, you can make purchases, and your activity might be reported to credit bureaus, helping to build a credit history. However, the primary cardholder remains solely responsible for all charges.

Co-signer

Another option involves a co-signer, typically a parent or guardian, who agrees to share legal responsibility for the credit card debt. The co-signer’s creditworthiness is evaluated alongside the applicant’s, and they are equally liable for any outstanding balances. This arrangement allows younger applicants to qualify for a card they might not otherwise obtain.

Secured Credit Cards

Secured credit cards present an alternative for building credit, particularly for those with limited or no credit history. These cards require a security deposit, usually equal to the credit limit, which acts as collateral. This deposit reduces the risk for the lender, making approval easier while allowing responsible payment behavior. After a period of timely payments, some issuers may transition the account to an unsecured card and refund the deposit.

Student Credit Cards

Student credit cards are specifically designed for college students, often featuring lower credit limits and benefits tailored to student life, such such as rewards on everyday purchases. Lenders offering student cards understand that applicants may have limited income or credit history. These cards often have more lenient income requirements compared to standard unsecured cards.

Navigating the Application Process

Applying for a credit card involves providing personal and financial information to the issuer. Common details requested include your full name, date of birth, Social Security number, contact information, employment status, annual income, and housing information, such as whether they own or rent.

Lenders perform an income verification process to confirm the reported income. This can involve requesting pay stubs, tax returns, or bank statements. For applicants under 21, this verification is stringent to comply with CARD Act requirements.

Credit card issuers also evaluate an applicant’s credit history. For those with a limited or “thin” credit file, lenders will assess other factors, such as banking relationships or the presence of a co-signer. Responsible use of options like authorized user status or secured cards can help create a positive credit footprint.

Applications can be submitted online, in person at a bank branch, or through the mail. Many online applications provide an instant decision, while others may require a few days for review. If approved, the card is typically mailed within 7 to 10 business days.