How to Apply for a Credit Card Under 18

A credit card serves as a financial tool allowing individuals to make purchases on credit, meaning they borrow money from a bank or financial institution with the agreement to repay it later. These cards are widely used for everyday transactions, online shopping, and managing unexpected expenses, providing a convenient alternative to cash or debit cards. Beyond immediate purchasing power, responsible credit card use helps in establishing a credit history. This history is a record of how an individual manages borrowed money, influencing their ability to secure loans for larger purchases like a car or a home in the future.

Age Requirements for Credit Cards

In the United States, federal law generally dictates that an individual must be at least 18 years old to independently obtain a credit card. This age requirement is a direct result of the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009. The CARD Act introduced various consumer protections, including specific provisions for younger applicants.

The CARD Act prevents credit card issuers from granting new accounts to anyone under the age of 21 unless they can demonstrate independent income sufficient to repay the debt or have a co-signer who is at least 21 years old. This regulation means that individuals under 18 typically cannot apply for a credit card in their own name, as they would not meet the independent income criteria and the co-signer provision primarily applies to those aged 18 to 20.

Becoming an Authorized User

The most common and accessible method for individuals under 18 to gain access to a credit card involves becoming an authorized user on another person’s account. An authorized user receives a card linked to the primary cardholder’s existing account, allowing them to make purchases. The primary cardholder, however, retains full legal and financial responsibility for all charges incurred on the account, including those made by the authorized user.

To add an authorized user, the primary cardholder typically needs to provide specific identifying information about the minor to the credit card issuer. This information generally includes the minor’s full legal name and date of birth. Some issuers may also request the minor’s Social Security Number or address to facilitate credit reporting, which can help the authorized user begin building a credit history. It is important for the primary cardholder to understand that their credit history will reflect the activity of the authorized user.

The process for a primary cardholder to add an authorized user is often straightforward, typically done online or by contacting the issuer. Once the authorized user is added, a physical credit card with their name printed on it is usually mailed to the primary cardholder’s address. The authorized user can then use this card for purchases, subject to the primary account’s credit limit and any spending limits the primary cardholder may set.

Secured Credit Card Pathways

Secured credit cards offer another potential pathway to credit for individuals, though direct access for minors is generally not possible due to age restrictions. A secured credit card requires a cash deposit, which serves as collateral for the credit limit. This provides a controlled environment for building credit.

A parent can apply for and obtain a secured credit card in their own name. The application process for a secured card involves submitting basic personal and financial information and providing the required security deposit, which can range from approximately $50 to $500 or more, depending on the issuer and desired credit limit.

Once the parent has established the secured credit card account, they can then add the minor as an authorized user to this specific secured card. This approach allows the minor to use the card for purchases, benefiting from the controlled spending environment of a secured card while still potentially contributing to their early credit history. The parent would manage the account, ensuring timely payments are made from the security deposit or other funds, and thereby guiding the minor in responsible credit use.