How Old Do You Need to Be to Get a Credit Card?
Uncover the real-world requirements for young adults seeking a credit card, from age and income to strategies for establishing financial independence.
Credit cards help manage personal finances, allowing individuals to make purchases, pay bills, and build a financial history. Access to credit is beneficial for securing loans and renting an apartment. Understanding the requirements for obtaining a credit card is a key step in financial management. These tools help establish creditworthiness, a significant component of financial well-being.
Minimum Age and Legal Requirements
In the United States, individuals must be at least 18 years old to apply for a credit card in their own name. This age requirement is mandated by the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009. This federal law protects consumers, especially young adults, regarding credit card practices. The CARD Act stipulates that applicants under 21 must demonstrate independent income or have a co-signer to be approved. This ensures young individuals can responsibly manage their credit obligations.
Meeting Eligibility Beyond Age
Beyond the age requirement, credit card issuers consider an applicant’s ability to repay debt. For individuals aged 18 to 20, income must be independent, coming directly from their own sources. This can include wages, scholarships, or grants. For applicants 21 and older, a broader definition of income applies, including household income or shared income from a spouse or partner.
Another pathway for young applicants is through a co-signer, typically a parent or guardian, who shares legal responsibility for the debt. However, many major credit card issuers no longer offer this option. An alternative is becoming an authorized user on another person’s existing credit card account. An authorized user can use the card but is not legally responsible for the debt, and this can help build credit history if the primary cardholder manages the account responsibly.
Credit Card Options for Young Applicants
For young adults new to credit, specific types of credit cards are more accessible. Secured credit cards require a cash deposit, which serves as the credit limit. This deposit acts as collateral, reducing risk for the issuer and making these cards a viable option for those with limited or no credit history. Secured cards are effective tools for establishing a positive credit history when managed responsibly.
Student credit cards are another option, tailored for college students. These cards often feature lower income requirements and may offer rewards programs relevant to student spending habits, such as cash back on specific categories. Student cards are easier to qualify for compared to traditional credit cards.
Steps to Apply for a Credit Card
Once an applicant understands the eligibility criteria and selects a suitable credit card, the application process involves several steps. Necessary documentation includes government-issued identification, Social Security number, and details regarding income and housing costs. Providing accurate income information is essential, as misrepresentation can lead to serious consequences.
Applications can be submitted online, in-person at a bank branch, by mail, or over the phone. Online applications are the quickest method, often providing an instant decision. After submission, the issuer reviews the application, checking credit history and verifying income, which may result in a temporary “hard inquiry” on the applicant’s credit report. If approved, the card issuer will provide details about the credit limit and interest rate; if denied, a letter explaining the reasons will be sent.