How Old Do You Have to Be to Get a Credit Card on Your Own?
Find out what it takes to get a credit card independently, including age rules, application steps, and options for those starting out.
Credit cards offer convenience and help establish a credit history. Understanding the age requirements for obtaining a credit card independently is important for managing finances. The process involves meeting age criteria and demonstrating financial capacity.
Age Requirements for Credit Cards
In the United States, an individual must be at least 18 years old to legally enter into a contract, including a credit card agreement. This is the minimum age for applying for a credit card in one’s own name. However, obtaining a credit card independently is more complex for applicants under 21 due to federal legislation.
The Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009 impacted credit card access for young adults. This act requires individuals aged 18 to 20 to demonstrate independent income sufficient for minimum payments or have a co-signer.
Many major credit card issuers no longer offer the co-signer option, making proof of independent income a common requirement for those under 21. These restrictions cease once an applicant reaches 21 years of age.
Essential Information for Applying
A primary requirement for applicants under 21 is proof of independent income, demonstrating the ability to repay borrowed funds. This income can stem from various sources, including wages from full-time, part-time, or seasonal employment, self-employment earnings, and certain benefits like scholarships or grants accessible for living expenses.
The reported gross annual income helps card issuers assess an applicant’s capacity to manage debt and determine an appropriate credit limit.
Beyond income verification, applicants need to provide identification and contact details. A government-issued photo ID, such as a driver’s license or state ID, is required to confirm identity. A Social Security number (SSN) or Individual Tax Identification Number (ITIN) is also necessary.
Current contact information, including a physical street address, phone number, and email address, is standard. Bank account information may be needed for setting up payment methods for the credit card account.
The Credit Card Application Process
Once information is prepared, the application process begins. This involves selecting a credit card that aligns with one’s financial situation and goals, such as student cards or secured cards. Applications can be submitted online through the issuer’s website or in person at a bank branch.
During the application, individuals input their personal, financial, and contact details into the form. Ensure all information is correct to avoid delays or denials.
After submitting, the issuer conducts a review, including a credit check. Approval or denial time varies, but decisions are typically received within minutes for online applications or a few business days. Upon approval, the credit card is usually mailed within 7 to 10 business days.
Alternatives for Underage Applicants
For individuals who do not meet the age or income requirements for an independent credit card, several alternatives exist to build financial experience and credit history. One common option is becoming an authorized user on another person’s credit card account, typically a parent or guardian.
As an authorized user, one receives a card linked to the primary account and can make purchases, but the primary cardholder remains solely responsible for all payments. This arrangement can help an authorized user build credit history, provided the primary account is managed responsibly with on-time payments and low credit utilization.
Another alternative for those aged 18 to 20 lacking sufficient independent income is to apply with a co-signer, though many major card issuers no longer support this option. If a co-signer is permitted, they must be at least 21 years old and possess the financial capacity to repay the debt if the primary applicant does not.
Secured credit cards offer a pathway to building credit, particularly for those with limited or no credit history. These cards require a cash deposit, which serves as the credit limit, mitigating risk for the issuer. While secured cards can be easier to obtain, the age and income rules for independent application still apply.
Finally, debit cards provide a way to manage money and make purchases using one’s own funds without incurring debt. They serve as a practical tool for financial management for those too young for credit cards.