What Age Can You Open a Credit Card?

A common inquiry for many individuals beginning their financial journey centers on the age requirements for obtaining a credit card. Federal regulations establish specific age-related criteria for credit card eligibility, ensuring applicants possess financial maturity and capacity to manage debt.

Understanding the Minimum Age

Individuals must be at least 18 years old to open a credit card account in their own name. This age aligns with the legal contract age, allowing individuals to enter into binding agreements. While 18 is the minimum age, the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 introduced additional requirements for those under 21.

For applicants aged 18 to 20, the CARD Act mandates they demonstrate independent income sufficient to make minimum payments. This income can stem from wages, scholarships, grants, or allowances. Income shared within a household or funds not directly accessible by the applicant cannot be included as independent income for those under 21.

Pathways for Young Adults to Obtain Credit

For young adults who may not meet the independent income criteria or are under the age of 18, several avenues exist to begin establishing a credit history. One common method involves becoming an authorized user on another person’s credit card account, often a parent or guardian. As an authorized user, an individual receives a card linked to the primary account, allowing them to make purchases. This arrangement can help build credit history as the account’s payment activity may be reported to credit bureaus, without the authorized user having legal responsibility for the debt.

Another option, primarily for those aged 18 to 20 who lack sufficient independent income, is to apply with a co-signer. A co-signer shares legal responsibility for the debt, meaning they are obligated to make payments if the primary cardholder defaults. While co-signing can aid in approval, many major credit card issuers no longer permit co-signers for credit cards, making this option less widely available than it once was.

Secured credit cards offer a pathway for young adults to establish credit. These cards require an upfront security deposit, which sets the credit limit. The deposit acts as collateral, reducing risk for the issuer and making approval more accessible. By making timely payments, individuals demonstrate responsible credit behavior, which is reported to credit bureaus and helps build a positive credit history.

Key Information for Application

Before applying for a credit card, applicants need to gather specific personal and financial information. Essential personal identification includes your full legal name, date of birth, and current physical address.

Applicants will need to provide a Social Security Number (SSN) or, in some cases, an Individual Taxpayer Identification Number (ITIN). Income information, including source(s) and annual gross amount, is required. This allows the credit card issuer to assess your ability to repay any credit extended.

The Application Process and What to Expect

Once all necessary information has been gathered, submitting a credit card application is straightforward. Applications can be submitted online, in person at a bank branch, or by mail. Online applications provide the quickest initial response.

Following submission, the credit card issuer will review the application, which involves performing a credit check for applicants with existing credit history or assessing income for those new to credit. The decision timeline can vary, with some online applications receiving an instant approval or denial. Some applications may enter a “pending” status, requiring further review by the issuer, which can take a few days or up to several weeks. Federal regulations require issuers to provide a decision on an application within 30 days. Possible outcomes include approval, denial, or a request for additional information to complete the assessment.