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

A credit card allows individuals to borrow funds for purchases, which must then be repaid to the issuer, often with interest. Understanding the requirements for obtaining a credit card is a foundational step in navigating personal finances.

Understanding the Minimum Age

The Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 established regulations to protect consumers, particularly young adults, regarding credit card access. A key provision mandates individuals must be at least 21 years old to obtain a credit card independently. The rationale was to shield young adults from accumulating excessive debt before establishing sufficient financial maturity and stable income.

The Act does provide pathways for individuals under 21. An applicant between 18 and 20 years old can qualify if they demonstrate independent income sufficient to make required payments. The CARD Act requires card issuers to consider an applicant’s ability to repay the debt. Historically, an applicant under 21 could apply with a co-signer, typically a parent or guardian. However, many major credit card issuers have largely phased out this practice, making independent income the primary route for those under 21.

Credit Card Access for Younger Individuals

For individuals under 21 who may not meet independent income criteria, alternative methods exist to access credit and establish a credit history. One common approach is becoming an authorized user on another person’s credit card account. As an authorized user, an individual receives a card linked to the primary cardholder’s account and can make purchases.

The primary cardholder remains solely responsible for all payments and account management. This arrangement allows the authorized user to potentially build a positive credit history, provided the primary account holder manages the account responsibly. Conversely, irresponsible use by the primary cardholder can negatively impact the authorized user’s credit profile.

Another viable option is a secured credit card. This type of card requires a refundable cash deposit, which typically serves as the credit limit and acts as collateral, reducing risk for the issuer. Secured credit cards function much like traditional credit cards; users make purchases and are expected to pay monthly bills. Consistent on-time payments and keeping the balance low with a secured card can help build a positive payment history, reported to major credit bureaus. Over time, responsible use can lead to qualifying for an unsecured credit card and the return of the initial deposit.

Applying as an Independent Adult

Once an individual reaches 21, requirements for applying for a credit card shift, allowing broader considerations regarding income. Applicants can include personal earned income from employment and any income to which they have a “reasonable expectation of access.” This can encompass sources like a spouse’s income, allowances, gifts, trust fund distributions, scholarships, grants, and retirement or Social Security benefits.

Credit card issuers assess an applicant’s ability to repay debt, with income being a significant factor. Individual issuers determine their own income criteria, often considering the applicant’s debt-to-income ratio. A higher income generally improves approval chances and can lead to a higher credit limit.

The application process typically involves providing personal details such as full name, Social Security number, date of birth, and address. Applicants also provide financial information, including total annual income and employment details. Most applications can be completed online, and some issuers offer pre-qualification tools that indicate approval odds without impacting one’s credit score. Upon submission, a decision may be immediate, and if approved, the physical card is typically mailed within a short timeframe.