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

A credit card allows individuals to borrow funds up to a predetermined limit for purchases. It offers convenience for transactions and is important for establishing a credit history. A strong credit history is valuable for future financial endeavors, such as securing loans for a home or vehicle.

Minimum Age and Legal Requirements

To open a credit card account in your own name, you must be at least 18 years old. This age aligns with the legal age for entering into contracts. However, for individuals between 18 and 20 years old, specific federal regulations apply due to the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009.

The CARD Act of 2009 introduced protections for young consumers, requiring credit card issuers to verify an applicant’s ability to repay debt. For those under 21, there are two primary ways to qualify for a credit card. An applicant must either demonstrate independent income sufficient to make the required minimum payments or have a co-signer.

Independent income generally includes wages from employment, scholarships, grants, or regular allowances deposited into an account in the applicant’s name. The income must be verifiable, often through pay stubs, tax returns, or a letter from an employer.

A co-signer, typically a parent or guardian, must be at least 21 years old and possess sufficient income and creditworthiness to assume responsibility for the debt if the primary cardholder fails to pay. While co-signing can help a younger applicant qualify, it carries significant risk for the co-signer, as it could negatively impact their own credit. Many major credit card issuers have reduced or eliminated co-signing options, making proof of independent income the more common path for younger applicants.

Building Credit Before Direct Eligibility

For individuals who do not meet the eligibility criteria for an independent credit card, alternative strategies exist to begin establishing a credit history. These methods can help lay a foundation for future credit opportunities.

One common approach is becoming an authorized user on another person’s credit card account, such as a parent’s. As an authorized user, you receive a card and can make purchases, but the primary account holder remains solely responsible for making payments. The primary cardholder’s responsible payment behavior can positively influence the authorized user’s credit report. However, if the primary cardholder manages the account poorly with late payments or high balances, it could negatively affect the authorized user’s credit.

Secured credit cards offer another viable option for establishing credit. These cards require a cash deposit, which typically serves as the credit limit for the card. This deposit acts as collateral, reducing the risk for the card issuer. Regular, on-time payments on a secured card are reported to credit bureaus and can help build a positive credit history, potentially leading to eligibility for an unsecured card over time.

The Application Process

Once an individual is ready to apply for a credit card, the process generally involves providing specific personal and financial information. Applications can typically be submitted online or in person at a bank.

Applicants will need to provide their full legal name, current address, date of birth, and Social Security Number or Individual Taxpayer Identification Number. Detailed income information is also required, including annual gross income and employment status. Some applications may also ask for monthly housing expenses, such as rent or mortgage payments.

After submitting the application, the credit card issuer will review the provided information. The decision on an application can range from immediate approval to a denial, or a request for additional information. If approved, the physical credit card is typically mailed to the applicant.