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

Credit cards provide a convenient way to manage expenses and can be a valuable tool for building a financial history. Understanding the age requirements and associated conditions for obtaining a credit card in the United States is crucial. The rules governing credit card eligibility are designed to ensure applicants possess a certain level of financial maturity and ability to manage debt.

Minimum Age for Credit Card Applications

To open a credit card account as a primary applicant in the United States, an individual must be at least 18 years old. This age requirement stems from contract law, which dictates that individuals must be of legal age to enter into binding agreements, including credit card contracts. The ability to legally commit to repayment terms is a fundamental aspect of credit card issuance.

This baseline age of 18 years was reinforced by federal legislation. The Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 introduced specific protections and requirements for young adults. While the Act confirmed 18 as the minimum age for opening an account, it also established additional conditions for applicants under the age of 21, aiming to prevent excessive debt among younger consumers.

Requirements for Applicants Under 21

The Credit CARD Act of 2009 imposes distinct requirements for individuals under 21. These rules aim to ensure that young applicants have a verifiable means of repayment. Specifically, an applicant under 21 must demonstrate an independent ability to make the required minimum periodic payments or have a qualified co-signer.

To satisfy the independent means requirement, applicants must show sufficient independent income. This income typically includes earnings from a job, wages, salaries, or regular investment income. Sources like student loans or financial aid for education that are not direct income generally do not qualify as independent income for this purpose. The income must be verifiable and consistent enough to cover potential credit card payments.

Alternatively, an applicant under 21 can have a co-signer on the account. The co-signer must be at least 21 years old and possess sufficient income and creditworthiness to guarantee the debt. A co-signer accepts joint legal responsibility for the credit card balance, meaning they are equally liable for any outstanding debt if the primary cardholder fails to make payments. While this option exists, some major credit card issuers have reduced their offerings of co-signed accounts.

Alternative Ways for Young Adults to Access Credit

For young adults who may not meet the independent income or co-signer requirements, or for those under 18, alternative methods exist to access credit and begin building a financial history. Becoming an authorized user on an existing credit card account is one common approach. A parent or guardian can add a young person, even a minor, as an authorized user.

As an authorized user, the young person receives a card linked to the primary account and can make purchases. However, they are not legally responsible for the debt incurred on the account; the primary cardholder retains full liability for all charges. Many credit card issuers allow authorized users to be as young as 13, while some have no minimum age requirement. This arrangement can help a young person understand credit card usage and, in some cases, contribute to building their credit history as the account activity may be reported to credit bureaus.

Another viable option for young adults, particularly those with limited or no credit history, is a secured credit card. These cards require a cash deposit, which typically serves as the credit limit for the account. For example, a $200 deposit would generally result in a $200 credit limit. The deposit acts as collateral, reducing the risk for the issuer.

Secured credit cards function much like traditional credit cards in terms of usage and reporting to credit bureaus. By making on-time payments and keeping balances low, users can demonstrate responsible credit management. After a period of responsible use, typically six to twelve months, many issuers review the account and may offer the option to transition to an unsecured card, at which point the security deposit is returned.