How Old Do You Have to Be to Get a Credit Card?
Understand the age requirements and pathways to getting a credit card, with key insights for young adults building financial independence.
Credit cards enable individuals to borrow funds for purchases and manage spending. They also play a significant role in establishing a credit history, which is a record of how debt is managed. A positive credit history is important for future financial endeavors, such as securing loans for a home or car, or renting an apartment. Understanding the age requirements and regulations for obtaining a credit card is a fundamental step in personal finance.
Minimum Age Requirements
To obtain a credit card in the United States, an individual must be at least 18 years old. This age aligns with the legal capacity to enter into a binding contract, which a credit card agreement represents. While reaching this age permits an application, card issuers also require applicants to demonstrate an independent ability to make payments. This involves having sufficient personal income or assets to manage the credit extended. Without this repayment capacity, even an 18-year-old may not qualify for a credit card in their own name.
Options for Young Adults
For young adults who meet the minimum age requirement but have limited credit history or independent income, several pathways exist to acquire a credit card and begin building credit. Becoming an authorized user on another person’s account, such as a parent’s, is a common approach. The authorized user receives a card linked to the primary account, and their activity, including timely payments by the primary cardholder, can be reported to credit bureaus. While the primary cardholder remains responsible for all charges, this arrangement offers a supervised introduction to credit use.
Student credit cards are another option, designed for individuals enrolled in higher education. These cards feature more lenient eligibility criteria, though applicants still need to be at least 18 years old and provide proof of enrollment and income. A secured credit card offers an alternative for those with no credit history or a lower credit score. With a secured card, a cash deposit acts as collateral, usually equaling the credit limit. This deposit reduces risk for the issuer, making approval more accessible, and responsible use helps build a positive credit history as payments are reported to major credit bureaus.
Specific Regulations for Under 21
The Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 introduced specific provisions impacting credit card applicants between the ages of 18 and 20. Under this federal law, individuals in this age group cannot obtain a credit card unless they can demonstrate independent income to make payments. If they cannot meet this independent income requirement, they must have a co-signer who is 21 or older and can repay the debt.
The CARD Act also implemented restrictions on credit card marketing practices directed at young consumers. It prohibits credit card issuers from sending pre-approved offers to individuals under 21 unless they opt-in to receive such offers. The law limits the ability of credit card companies to offer gifts on or near college campuses to induce students to apply for cards. These regulations aim to protect young adults from taking on credit card debt they may not be prepared to manage.