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

Credit cards serve as a widely used financial tool, offering convenience for purchases and a mechanism for building a financial history. Understanding the regulations surrounding their acquisition, particularly age-related restrictions, is important for anyone considering applying. These rules are in place to ensure consumers can responsibly manage credit, and they significantly influence who can obtain a credit card.

Age Requirements and Early Access

In the United States, the minimum age to open your own credit card account is 18. This aligns with the age at which individuals are considered old enough to enter into legal contracts. However, for those under this age, or for young adults who do not yet meet all the requirements, there are alternative ways to establish a credit history.

One common method for individuals under 18 to gain experience with credit is by becoming an authorized user on another person’s credit card account. An authorized user is granted permission to use the primary cardholder’s account and receives a card in their own name. While authorized users can make purchases, they are not legally responsible for the debt incurred; the primary cardholder remains solely liable for all payments. This arrangement can be beneficial for building credit history, as the primary account’s positive payment activity may be reported to credit bureaus for the authorized user. Many major credit card issuers allow authorized users to be added as young as 13 or 15 years old.

Specifics for Young Adults (18-20)

Special regulations apply to individuals aged 18-20 who wish to apply for their own credit card. The Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act) mandates that applicants under 21 must demonstrate independent payment ability or have a co-signer over 21. This law was enacted to protect young consumers from unmanageable debt.

When proving independent income, young adults can include earnings from employment, regular allowances, and even scholarships and grants. However, they generally cannot count income from a parent or another person unless they have a reasonable expectation of access to those funds and are 21 or older. The income must be sufficient to cover the minimum payments on the credit card account. Many major card issuers no longer permit co-signers, making independent income a primary requirement for this age group.

Broader Approval Criteria

Beyond age-specific regulations, credit card issuers consider several other factors when evaluating applications. A key factor is the applicant’s credit history, which provides insight into their past borrowing and repayment behavior. Lenders examine credit reports from Equifax, Experian, and TransUnion to assess creditworthiness.

Credit scores, such as FICO or VantageScore, summarize credit risk and are used by issuers to determine repayment likelihood. While a good credit score improves approval odds, it does not guarantee approval. Issuers also evaluate an applicant’s income stability and their debt-to-income ratio, which compares gross monthly income to total monthly debt payments. This assessment ensures the applicant can afford the new card’s minimum payments, as required by federal law. Other considerations include the length of credit history, payment history, credit utilization rate, and recent hard inquiries on the credit report.

The Application Process

Once an individual meets the necessary age and financial criteria, applying for a credit card involves standard steps. Applications can be submitted online, in person, by phone, or through mail. Online applications often provide a near-instant decision.

The application form requests personal information, including full legal name, date of birth, address, and Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). Applicants must also provide details about their gross annual income and employment status. This information allows the issuer to assess an applicant’s financial capacity. After submission, approval or denial may be immediate or follow a review period. Applying for a credit card results in a “hard inquiry” on your credit report, which can slightly lower your credit score, though its impact generally lessens over a few months.