How to Get a Credit Card as a Kid

Minors cannot independently obtain a credit card due to legal age requirements. However, they can access card-based transactions under adult supervision. This arrangement allows an adult to maintain financial responsibility while providing younger individuals an opportunity to learn about managing finances.

Understanding Age Restrictions for Credit Cards

Federal law sets specific age requirements for credit card ownership. A person must be at least 18 years old to apply for and hold a credit card account in their own name. This age aligns with the general legal age for entering into contracts.

For applicants aged 18 to 20, the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 imposes further restrictions. Individuals under 21 must demonstrate the ability to make independent payments or secure a co-signer who is at least 21 and has the financial capacity to cover the debt. These regulations aim to prevent young adults from accumulating excessive debt without clear repayment means. Income for these applicants must be their own, such as from a job, and generally cannot include income from another household member.

Card Options Involving Minors

Minors can use card-based transactions under adult responsibility. One common method is becoming an authorized user on an adult’s existing credit card account. As an authorized user, the minor receives a card linked to the primary account holder’s credit line, but the adult maintains sole legal responsibility for all charges and payments. This arrangement can help a minor learn about responsible spending and, if the issuer reports authorized user activity to credit bureaus, potentially begin building a credit history.

Another less common option is a joint account. In a joint account, both individuals share equal legal responsibility for the account’s debt and management. However, most major credit card issuers do not offer joint credit card accounts, and they are typically not available for minors due to the shared legal liability. If available, both parties would be fully accountable for all transactions and payments.

For young adults aged 18 and older, a secured credit card can help establish credit. A secured card requires a cash deposit, typically $200 or more, which acts as collateral and usually sets the credit limit. While a minor cannot open a secured card, an 18-year-old can apply, potentially with parental support for income requirements or, less commonly, with a co-signer. This card type helps individuals with limited or no credit history build a positive credit profile through responsible use.

Beyond credit cards, alternatives like debit cards or prepaid cards offer transaction capabilities without incurring debt. Debit cards draw directly from a linked bank account, while prepaid cards are loaded with funds in advance. These options provide a way for minors to manage money digitally and make purchases, but they do not contribute to building a credit history, as they are not forms of credit.

Applying for and Activating Cards for Minors

To add a minor as an authorized user, an adult typically contacts the credit card issuer directly. This can be done online through the primary cardholder’s account portal, via a mobile app, or by calling customer service. The primary cardholder provides information about the minor, such as their full name, date of birth, and sometimes their Social Security Number. A credit check is not performed on the authorized user.

Once the request is processed, the issuer mails a card with the authorized user’s name to the primary cardholder’s address. Upon receipt, the card usually needs activation, which can be done online or by phone following the provided instructions. The primary cardholder retains full responsibility for all transactions made by the authorized user and for ensuring timely payments.

For young adults (18 and older) pursuing a secured credit card, the application process is similar to an unsecured card, but includes a security deposit. The applicant completes an application, providing personal and income information. If approved, they submit the security deposit, which often dictates the credit limit, before the card is issued.

After the deposit is made and the card arrives, it must be activated. The deposit can typically be paid via bank transfer, money order, or personal check, depending on the issuer’s policies.