How Old Do You Have to Be to Have a Credit Card Under Your Parents?

Credit cards are financial tools that allow individuals to borrow funds up to a certain limit for purchases, with the expectation of repayment, often with interest. For younger individuals, directly obtaining a credit card presents challenges due to legal age requirements and income considerations. This often leads to parents exploring options to involve their children in credit management, primarily through authorized user accounts or, less commonly, joint accounts, to help them navigate personal finance responsibly.

Becoming an Authorized User: Age and Process

An authorized user is an individual permitted to make purchases using another person’s credit card account. They are not legally responsible for the debt incurred; the primary cardholder is fully accountable for all charges. Becoming an authorized user helps a young person begin understanding credit. Many credit card issuers do not have a strict minimum age for authorized users, with some allowing individuals as young as 13 or 16, and others having no specified age requirement.

To add an authorized user, the primary cardholder typically contacts their credit card issuer, providing the child’s name and sometimes their Social Security Number. The legal contractual age of 18, generally required to open one’s own credit account, does not usually apply to becoming an authorized user. If the primary account is managed responsibly with on-time payments and low credit utilization, the authorized user’s credit history can benefit, as this activity may be reported to major credit bureaus. However, not all issuers report authorized user activity for minors, so confirming this policy with the card company is advisable.

Understanding Joint Credit Card Accounts

A joint credit card account differs significantly from an authorized user arrangement because both account holders share equal legal responsibility for all debt incurred. Both individuals are fully liable for the balance, regardless of who made the purchases. If one party fails to make payments, the other joint account holder is still obligated to repay the entire debt, and negative activity can affect both individuals’ credit scores.

To open a joint credit card account, both individuals must typically meet the legal age of majority, which is 18 in most U.S. states. While joint accounts offer shared access and responsibility, they are less common, with many major card issuers no longer offering them. Shared financial responsibility requires trust and communication between account holders for responsible management.

Other Financial Tools for Young People

Beyond credit cards, other financial products can help young individuals manage money and establish financial literacy, often with parental guidance. Debit cards are linked directly to a bank account, allowing spending only of available funds and thus avoiding debt. A checking account for a minor can be opened as a joint account with a parent or guardian when the child is between 13 and 17 years old. Individuals aged 18 or older can generally open an account independently. Savings accounts often have no age requirements for opening with a parent.

Secured credit cards help young adults build credit. These cards require a cash deposit, which typically serves as the credit limit. Individuals must generally be at least 18 years old to apply for a secured credit card; while a parent might assist with the security deposit, the account is in the young adult’s name. Student credit cards are designed for young adults, typically 18 or older, who may have limited or no credit history. These cards often feature lower credit limits and help students establish their own credit profile through responsible usage.