What Is the Average Age of a First-Time Credit Card Holder?

Credit cards are a common tool in personal finance, offering convenience for transactions and a way to build financial history. Understanding when individuals typically acquire their first credit card helps navigate financial milestones.

Current Average Age

Many Americans obtain their first credit card by age 25. Roughly three out of four individuals in the United States have acquired a credit card by this age. Surveys indicate the average age consumers believe someone should get their first credit card is 22. While individuals can legally obtain a credit card at 18, many enter the credit bureau data system between ages 18 and 20, representing the largest share of new entries.

Factors Shaping the Age

Several influences contribute to the age at which individuals typically obtain their first credit card. The legal minimum age to apply for a credit card is 18. However, for applicants aged 18 to 20, the Credit CARD Act of 2009 requires proof of independent income. Without this verifiable income, individuals under 21 often need a co-signer over 21. Once an individual reaches 21, credit card issuers may consider household income for eligibility.

Parental influence often plays a role in early credit exposure, as individuals under 18 can be added as authorized users on another person’s credit card account. The minimum age for an authorized user varies by issuer, with some allowing individuals as young as 13 years old, while others have no specified minimum. This allows younger individuals to begin building a credit history. Financial literacy and education also shape the timing of credit card acquisition, as a greater understanding of credit management can lead to more responsible card use. Financial education programs are sometimes offered by credit card companies as part of their marketing strategies.

Broader economic conditions can also influence when individuals seek their first credit card. Economic downturns or periods of high inflation may lead younger adults to rely on credit cards for essential expenses. Conversely, such conditions can also make lenders more cautious, potentially affecting access to credit for new applicants. Credit card companies actively market to younger demographics, employing strategies such as attractive rewards programs, social media campaigns, and influencer partnerships.

Variations and Trends in Age

The average age of first-time credit card holders can vary across different demographic groups. For example, individuals residing in wealthier areas are more likely to open a credit card as their initial credit account compared to those in lower-income areas, who might first use retail cards or other types of loans. Educational attainment also correlates with credit card ownership, with a higher percentage of individuals holding a bachelor’s degree or more having credit cards. Furthermore, differences exist across racial and ethnic groups regarding credit card access and ownership rates.

Historical trends reveal shifts in the average age of first credit card acquisition. Before the Credit CARD Act of 2009, a higher percentage of individuals received their first credit card before turning 21. The Act’s provisions, which included stricter requirements for those under 21, contributed to a decrease in credit card issuance to this age group. Consequently, between 2010 and 2013, student loans surpassed credit cards as the most common initial credit experience for many young borrowers. More recently, while older generations tend to have more credit cards on average, younger consumers, particularly Generation Z, are opening new credit card accounts at an increasing rate, indicating an ongoing evolution in how and when individuals engage with credit products.