What Do You Need to Get a Credit Card at 18?

Securing a credit card at 18 marks a significant step towards financial independence and establishing a credit history. A credit card, when used responsibly, can be a valuable tool for managing finances, making purchases, and building a foundation for future financial endeavors like buying a car or a home.

Eligibility Requirements and Necessary Information

To acquire a credit card at 18, the primary requirement is meeting the legal age for entering into contracts. However, federal law, the Credit CARD Act, imposes additional considerations for applicants under 21. These individuals must demonstrate an independent means of repaying debt.

Income for credit card applications for those under 21 typically includes personal earnings from a job, as well as regular allowances or even scholarships and grants that exceed tuition costs. It is important to note that income from other individuals, such as parents, cannot be solely relied upon unless it is consistently deposited into the applicant’s account and they have independent access to it. If an independent income source is not sufficient, some card issuers may permit a co-signer, who would be jointly responsible for the debt. However, many major card issuers no longer allow co-signers, making independent income a more common pathway for young applicants.

Beyond age and income, applicants need to provide specific personal information. This includes a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) for identity verification and credit reporting purposes. A valid government-issued identification, along with current address and contact information, is also necessary. Some applications may also request details about housing costs and employment status.

Common Credit Card Options for Young Adults

Given the limited or non-existent credit history common among 18-year-olds, certain credit card types are more accessible. Secured credit cards are a common starting point, requiring a cash deposit that typically acts as the credit limit. This deposit minimizes risk for the issuer, making approval more likely for those with no credit history or lower credit scores. As with traditional cards, secured cards report payment activity to major credit bureaus, allowing for credit building through responsible use. Upon responsible management, the deposit is usually refundable, and some secured cards may even transition to unsecured cards over time.

Student credit cards represent another tailored option for young adults, specifically designed for college students. These cards often feature more lenient approval criteria compared to general unsecured cards, recognizing that students may have limited income or credit history. Applicants for student cards usually need to provide proof of enrollment in a two- or four-year college or university, in addition to meeting age and income requirements.

Becoming an authorized user on another person’s credit card account offers an indirect method of building credit. The authorized user receives a card linked to the primary account, and the account’s payment history can appear on their own credit report. This can positively impact the authorized user’s credit score, provided the primary cardholder manages the account responsibly, making on-time payments and maintaining low credit utilization. It is important to remember that the primary cardholder remains solely responsible for all charges and payments on the account.

Submitting Your Credit Card Application

Once the necessary information is gathered and a suitable card option is identified, the next step involves submitting the application. Most credit card applications can be completed conveniently online through the issuer’s website. This digital process often involves selecting the desired card, accurately filling out the online form with personal and financial details, and then reviewing the information before submission. The online method is popular due to its speed and ease of access.

Alternatively, applications can be submitted in person at a bank branch. This approach allows for direct interaction with a bank representative who can guide the applicant through the paperwork and answer any questions. Regardless of the submission method, the application process typically involves a credit check, which results in a “hard inquiry” on the applicant’s credit report. This inquiry can temporarily affect a credit score, so it is advisable to apply for cards for which one is likely to qualify.

After submission, applicants may receive an immediate decision, especially with online applications. In other instances, the application might go into a “pending” status, indicating that the issuer requires more time for review or additional information. Issuers are generally required to provide a decision within 30 days of receiving a complete application, though many decisions are rendered much faster, often within minutes or a few business days.

Initial Steps After Card Approval

Upon credit card approval, the physical card will typically arrive in the mail within one to two weeks. The first action after receiving the card is activation, which can usually be done online through the issuer’s website or mobile app, or by calling a designated phone number. Some issuers may also allow activation at an ATM. It is advisable to activate the card promptly, as some issuers may close inactive accounts after a certain period.

After activation, setting up online account access is a practical step. This allows for convenient management of the card, including viewing statements, tracking transactions, and making payments digitally. Understanding the credit card statement is also crucial. This monthly document details the previous balance, new purchases, payments made, fees, interest charges, the total balance, and the minimum payment due along with its due date.

Making payments on time is paramount for responsible credit management. Payments can typically be made online through the issuer’s portal, via mail, or sometimes in person at a branch. Consistently paying the full statement balance by the due date helps avoid interest charges and builds a positive payment history. This consistent, on-time payment behavior, coupled with keeping credit utilization low (the amount of credit used compared to the total available credit), are the primary mechanisms through which a positive credit history is established and a credit score is built over time.