How Old Do You Have to Be to Get a Credit Card?

Credit cards offer convenience for purchases and help establish a credit history. Understanding the requirements for obtaining a credit card, particularly age-related rules, is important for consumers. Age is a primary factor in the United States when applying for credit.

Understanding the Minimum Age Requirement

In the United States, the federal minimum age for an individual to apply for their own credit card is 18 years old. However, the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 introduced specific provisions that affect applicants under 21. This legislation aims to protect young adults from accumulating excessive debt.

For individuals aged 18, 19, or 20, obtaining a credit card generally requires demonstrating independent income. The income must be sufficient to reasonably make the minimum payments on the account. Alternatively, an applicant under 21 years old may qualify if they have a co-signer who is 21 or older and possesses sufficient income. Many major credit card issuers, however, no longer allow co-signers for new applications.

Ways to Obtain a Credit Card

Several pathways exist for individuals to acquire a credit card and begin building a credit history.

Authorized User

One common approach is becoming an authorized user on another person’s credit card account. As an an authorized user, an individual receives a card to use, but the primary account holder remains responsible for all payments. This arrangement allows the authorized user to benefit from the primary account holder’s good payment history, which can help them establish their own credit profile. The primary account holder’s responsible credit habits are important, as their account activity is typically reported to credit bureaus for both parties.

Student Credit Cards

Student credit cards are specifically designed for college students and often feature more lenient eligibility criteria. These cards may have lower income requirements compared to standard credit cards, recognizing that students might have limited employment. Eligibility typically requires enrollment at an accredited higher education institution. Student cards can help individuals begin establishing a credit history while pursuing their education.

Secured Credit Cards

Secured credit cards offer another avenue for building credit. These cards require a cash security deposit, which typically serves as the credit limit for the card. The deposit minimizes risk for the card issuer, making approval more accessible. With responsible use, including consistent on-time payments, secured cards can eventually “graduate” to unsecured cards, at which point the security deposit is returned.

Co-signed Credit Cards

Applying for a co-signed credit card is an option for individuals who may not meet income requirements on their own. A co-signer, typically an older family member or trusted individual, agrees to share legal responsibility for the debt. This means the co-signer is obligated to make payments if the primary cardholder defaults.

Building and Maintaining Good Credit

Responsible management is important for building and maintaining a strong credit history, as credit scores are significantly influenced by how credit is used.

Make On-Time Payments

Making on-time payments is the most important factor influencing credit scores. Even a single payment delayed by 30 days or more can negatively impact a credit score. Setting up automatic payments can help ensure payments are consistently made by the due date, avoiding late fees, which typically range from $25 to $35.

Keep Credit Utilization Low

Keeping credit utilization low is another important practice. Credit utilization is the amount of credit used compared to the total available credit, expressed as a percentage. Financial experts generally recommend keeping this ratio below 30%, as a lower percentage indicates responsible credit management. A high utilization ratio can negatively affect a credit score, even if payments are made on time.

Understand Your Credit Limit

Understanding the credit limit is also important. A credit limit is the maximum amount a lender allows to be spent on a credit card. While a higher credit limit can improve the credit utilization ratio if balances remain low, it is important to avoid exceeding this limit, which can lead to fees or negative impacts on credit. Consistently managing credit within defined limits demonstrates financial prudence.

Avoid Unnecessary Fees

Avoiding unnecessary fees also contributes to responsible credit use. Beyond late payment fees, other common charges include annual fees, cash advance fees (often 2% to 5% of the amount borrowed), and foreign transaction fees (typically 1% to 3% of the purchase). Paying the full balance each month avoids interest charges. Regularly checking credit reports from the major credit bureaus helps monitor progress and identify any potential errors.