What Age Can You Get a Credit Card?

A credit card can be a valuable financial tool, offering convenience, purchase protection, and the opportunity to build a credit history. Understanding eligibility requirements is important, especially for young individuals. Establishing a positive credit history early can significantly impact future financial endeavors, from securing loans to renting an apartment. This article outlines legal age restrictions and available options for credit card access.

Minimum Age Requirements

In the United States, the federal minimum age to obtain a credit card in your own name is 18 years old. This aligns with the age at which an individual can typically enter into legal contracts. However, the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 introduced specific provisions for applicants under the age of 21.

Under the CARD Act, individuals aged 18 to 20 must demonstrate an independent means of repaying the credit extended. Alternatively, a co-signer who is at least 21 years old and has the ability to repay the debt can assume responsibility for the account, though this option is now less commonly offered by major issuers. These regulations were implemented to protect young consumers from accumulating unmanageable debt without a clear ability to repay it.

Pathways to Obtaining a Credit Card

For individuals who may not yet meet income requirements or are under 18, several pathways exist to begin building a credit history. One common approach is becoming an authorized user on another person’s credit card account, often a parent’s. An authorized user receives a card linked to the primary account, allowing them to make purchases, but the primary cardholder remains solely responsible for all charges and payments. This can help the authorized user establish a credit history, as account activity, including on-time payments, may be reported to credit bureaus for their credit profile.

Another option is a secured credit card. These cards require a cash deposit which serves as collateral and usually sets the credit limit. The deposit mitigates risk for the issuer, making these cards more accessible. Secured cards function like traditional credit cards, and responsible use, including on-time payments, is reported to credit bureaus, helping to build a credit score.

Student credit cards are specifically designed for college students. These cards often come with lower credit limits and may offer rewards tailored to student lifestyles. Applicants typically need to provide proof of enrollment in a higher education institution.

Responsible Credit Card Use

Once a credit card is obtained, understanding how to use it responsibly is important for establishing a strong financial foundation. A credit score, such as a FICO score, is a numerical summary of an individual’s creditworthiness, heavily influenced by their payment behavior. Lenders use these scores to assess risk when evaluating applications for loans or new credit.

Making on-time payments is the single most impactful factor in a credit score, accounting for 35% of a FICO score. Even a payment more than 30 days late can significantly reduce a credit score and remain on a credit report for up to seven years. Paying at least the minimum amount due by the statement’s due date is necessary to avoid late fees and negative reporting to credit bureaus.

Keeping credit utilization low is another important aspect, influencing 30% of a FICO score. Credit utilization refers to the amount of credit used compared to the total available credit. Keeping this ratio below 30% demonstrates responsible credit management. Regularly checking credit card statements for errors or unauthorized transactions is also a prudent practice to safeguard financial well-being.