How to Get a Credit Card as a Teen

Credit cards offer a pathway for young individuals to begin establishing financial responsibility and building a credit history. While obtaining a credit card might seem challenging due to age and income considerations, specific avenues are available that align with regulatory guidelines. Understanding these options and requirements can help teens navigate the process effectively.

Eligibility Requirements for Teen Applicants

Generally, individuals must be at least 18 years old to open a credit card account in their own name. Federal regulations require applicants under 21 to demonstrate independent income or have a cosigner to repay their debt. This income can stem from various sources, including wages from a job, allowances, or even residual amounts from scholarships after covering educational expenses. Student loans or child support, however, typically do not qualify as income for credit card applications.

Parents can facilitate a teen’s access to credit through alternative methods if the teen does not meet the independent income requirement or is under 18. Becoming an authorized user on a parent’s existing credit card account is a common approach. The teen receives a card linked to the parent’s account, and the parent remains solely responsible for the debt incurred. This arrangement can help the teen build a credit history, as the account activity may be reported to credit bureaus under their name.

Another option involves a cosigner. A cosigner is typically an adult, often a parent, who shares legal responsibility for the debt with the teen. If the teen defaults on payments, the cosigner is obligated to make them, impacting both individuals’ credit histories. This shared responsibility ensures that the issuer has a reliable party to collect payments from, fulfilling the income requirement.

Available Credit Card Options

Authorized user cards provide a practical way for teens to gain exposure to credit and establish a credit history. The primary cardholder adds the teen to an existing account, and the teen benefits from the primary cardholder’s positive payment history.

Secured credit cards present another viable option, especially for individuals aged 18 and older who may have limited or no credit history. These cards require a security deposit, which typically becomes the credit limit for the card. For instance, a $200 deposit might provide a $200 credit limit. This deposit acts as collateral, reducing risk for the issuer and making it easier for applicants to qualify. Secured cards can serve as a stepping stone to building credit, as responsible use, such as on-time payments, is reported to credit bureaus.

Student credit cards are specifically designed for college students and often feature more lenient eligibility criteria than traditional unsecured cards. While they cater to students, the general age and income requirements still apply; applicants must be at least 18 years old and demonstrate sufficient income or have a cosigner if under 21. These cards may offer student-specific rewards and lower credit limits, making them a suitable tool for learning credit management. Many student cards do not require an established credit score for approval, recognizing that students are often new to credit.

Applying for a Credit Card

Applicants will need to gather specific personal and financial information before starting. This includes:
Social Security Number
Proof of identity (e.g., driver’s license or passport)
Proof of address (e.g., utility bill)
Income details (e.g., recent pay stubs or bank statements)
Primary cardholder’s information (if applying as an authorized user)
Cosigner’s details (for a joint application)

Credit card applications can generally be completed online, which often leads to a quicker decision, or in person at a bank branch. When filling out the application form, it is important to provide accurate and truthful information, particularly regarding income, as this is a key factor in the approval process. Reviewing all entered details before submission helps prevent delays or potential denials.

After submission, an automated system often processes the application, leading to an instant approval or denial in many cases. Some applications may enter a “pending” status, requiring further review by a human underwriter, which can take several business days.

If approved, the card issuer will inform the applicant of the credit limit and annual percentage rate (APR). The physical card typically arrives by mail within one to two weeks. Should an application be denied, the issuer is generally required to provide a reason, allowing the applicant to understand the basis for the decision and consider alternative card options or address any underlying issues.