What Age Can You Get a Credit Card?
Unlock credit card eligibility and learn how to responsibly establish your financial future, regardless of your age.
Credit cards offer a convenient method for making purchases and can be a useful tool for managing personal finances. Accessing a credit card requires meeting certain criteria, which often include age, income, and credit history. Understanding these requirements is a first step for anyone considering applying for a credit card.
Age Requirements for Credit Cards
In the United States, the legal age to enter into a contract, including a credit card agreement, is generally 18 years old. However, the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act) introduced specific regulations affecting individuals under the age of 21. This law requires credit card issuers to verify that applicants under 21 either have sufficient independent income to make payments or have a co-signer who is at least 21 years old and agrees to be responsible for the debt.
The CARD Act aimed to protect young consumers from accumulating excessive debt by limiting easy access to credit. For applicants aged 18 to 20, “independent income” refers to earnings from a job, wages, tips, or self-employment. It can also include regular allowances, scholarships, or grants that exceed educational expenses, provided these funds are directly accessible and verifiable.
Applying as a Young Adult
Young adults seeking a credit card, especially those under 21, have specific avenues to consider for approval. One primary method involves demonstrating sufficient independent income. This can be proven through documents such as pay stubs, tax forms, or bank statements showing consistent deposits from employment or other qualifying sources. For students, the portion of scholarships or grants remaining after tuition and educational expenses can also be considered income.
Another option is to apply with a co-signer, typically a parent or guardian, who is at least 21 years old and has a strong credit history. A co-signer agrees to share legal responsibility for the credit card debt, meaning they are obligated to make payments if the primary cardholder defaults. While co-signing can help a young applicant qualify, it carries significant risk for the co-signer as any missed payments will affect their credit score.
Becoming an authorized user on another person’s credit card account is a third strategy. An authorized user receives a card linked to the primary cardholder’s account and can make purchases. However, the authorized user is not legally responsible for the debt; the primary cardholder remains solely accountable for all payments. This arrangement can help a young individual begin to build a credit history, provided the primary cardholder manages the account responsibly and the card issuer reports authorized user activity to credit bureaus.
Building a Strong Credit History
Establishing and maintaining a positive credit history is important for long-term financial health. A good credit history is valuable for obtaining future loans, mortgages, renting property, and influencing insurance rates.
Building credit involves consistent management of credit accounts. Paying bills on time is the most significant factor influencing credit scores. Keeping credit utilization low is also important, meaning the amount of credit used relative to the total available credit. It is recommended to keep credit utilization below 30% of the total credit limit.
For those new to credit, secured credit cards and student credit cards can be effective tools. A secured credit card requires a cash deposit, which often serves as the credit limit. This deposit reduces risk for the issuer, making these cards more accessible for individuals with limited or no credit history. Student credit cards are designed for college students, often featuring lower credit limits and sometimes tailored rewards, providing an entry point to establish credit.
Regularly monitoring credit reports is important. Individuals can obtain a free copy of their credit report annually from each of the three major credit bureaus. Reviewing these reports helps ensure accuracy, identify any potential errors, and track progress in credit building.