What Age Can You Get a Credit Card?

Credit cards serve as a tool in personal finance, offering a convenient way to manage expenses, make purchases, and build a financial history. Many individuals seek to obtain a credit card to establish creditworthiness, which can be beneficial for future financial endeavors like securing loans or mortgages. Understanding the specific requirements and pathways to acquiring a credit card is a first step for anyone considering this financial product.

Minimum Age Requirements

In the United States, the legal age for entering into a credit card contract is 18. Additional conditions apply to young adults, particularly those under 21, due to the Credit CARD Act of 2009.

The Credit CARD Act of 2009 introduced provisions to protect young consumers. For individuals under 21, credit card issuers are prohibited from granting new accounts unless the applicant can demonstrate an independent means of repaying the debt or has a co-signer over 21 who agrees to be financially responsible. This aims to prevent young adults from accumulating unmanageable debt.

Independent income refers to earnings the applicant can demonstrate as their own. This includes wages, salary, regular allowances, scholarships, or grants exceeding educational expenses. For applicants aged 18 to 20, only their individual income is considered, meaning they cannot rely on a parent’s or spouse’s income for qualification unless they are over 21.

Pathways to Obtaining a Credit Card

Several pathways exist to obtain a credit card. One common option is becoming an authorized user on another person’s credit card account. An authorized user receives a card and can make purchases. While the authorized user can build their own credit history through the primary account’s responsible use, they are not legally responsible for the debt incurred. The primary cardholder remains fully liable for all charges.

Another avenue, though less common for credit cards than for loans, is having a co-signer. A co-signer applies for the card with the primary applicant and guarantees repayment of the debt. If the primary cardholder fails to make payments, the co-signer is legally obligated to cover the missed amounts or the total balance. Most major credit card issuers, however, do not allow co-signers for credit cards, though exceptions might exist for specific products like student credit cards.

Secured credit cards offer a solution for those with limited or no credit history. These cards require a cash deposit, which becomes the credit limit. This deposit acts as collateral, providing security for the issuer in case of non-payment. Secured cards function much like traditional credit cards, and responsible use, including on-time payments, can help establish or rebuild a credit score. The deposit is refundable upon closing the account, provided the balance is paid in full.

Student credit cards are designed for college students, often featuring more lenient approval requirements due to limited credit history. These cards have lower credit limits and may offer rewards tailored to student spending habits, such as cash back on specific categories. While they aim to help students build credit, they still require applicants to demonstrate an ability to make payments, often considering various forms of income relevant to students.

Finally, traditional unsecured credit cards are the standard pathway for individuals aged 21 and over, or for those under 21 who have sufficient independent income to meet payment obligations. These cards do not require a security deposit and are approved based on the applicant’s creditworthiness, income, and other financial factors.

The Credit Card Application Process

Once an individual determines the appropriate type of credit card, the application process involves providing personal and financial information. Applicants need to provide their full legal name, current address, date of birth, and Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). Information regarding income source and amount, as well as employment status, is also required to assess the applicant’s ability to repay.

Applications are submitted online, often providing the quickest response. Some applications result in an instant decision, while others enter a “pending” status, requiring further review by the issuer. Credit card issuers are federally mandated to provide an approval or denial notification within 30 days of receiving a completed application.

Following approval, the physical credit card is mailed to the applicant. The delivery timeframe ranges from one to two weeks after approval. Many issuers also provide instructions for activating the card upon receipt, involving an online portal or a phone call. Some providers offer instant access to a virtual card number, allowing immediate use before the physical card arrives.