What Is the Minimum Age for a Credit Card?

Credit cards allow individuals to make purchases on credit and manage spending. Understanding eligibility requirements is an important step for anyone considering one. Among various factors, age is a primary consideration for credit card issuers.

The Minimum Age for Card Ownership

In the United States, an individual must be at least 18 years old to open a credit card account. This age aligns with the general legal capacity to enter into contracts. Reaching 18 does not automatically guarantee credit card approval. The Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 significantly changed the landscape for young adults seeking credit.

The CARD Act introduced specific protections for consumers under 21 years old. Under the CARD Act, individuals aged 18 to 20 generally need to demonstrate an independent means to repay any debt incurred or secure a co-signer. These rules were established to protect young adults from accumulating excessive debt and to promote responsible credit practices. Before the CARD Act, credit card companies often marketed aggressively on college campuses, leading to students incurring significant debt.

Specific Requirements for Young Adults

For individuals aged 18 to 20, meeting the independent income requirement is the main path to obtaining a credit card without a co-signer. Independent income refers to funds the applicant controls and can use to repay debt. Examples of acceptable independent income sources include wages from employment, self-employment income, and investment income. Scholarship or grant money that remains after tuition and educational expenses are paid can also be considered, as can regular allowances from parents or guardians if those funds are controlled by the applicant.

If an applicant aged 18 to 20 cannot demonstrate sufficient independent income, they may need a co-signer. A co-signer is an individual who agrees to share legal responsibility for the debt on the account. This means if the primary cardholder fails to make payments, the co-signer is legally obligated to cover the outstanding balance, and their credit history will also be affected by the account’s activity. While co-signing offers a path to credit, many major credit card issuers have reduced or eliminated the option to apply with a co-signer. Once an individual turns 21, the independent income or co-signer requirements no longer apply, allowing them to apply for credit cards based on their own creditworthiness and income.

Alternative Paths to Credit Access

For individuals who do not meet the age or income requirements for a traditional credit card, several alternative methods exist to begin building a credit history. One common approach is becoming an authorized user on another person’s credit card account. As an authorized user, an individual receives a card and can make purchases, but they are not legally responsible for the debt. The primary cardholder remains solely responsible for payments, and if the account is managed responsibly with on-time payments and low balances, the authorized user’s credit report can benefit, helping to establish a positive credit history.

Secured credit cards offer another way to build credit, especially for those with little to no credit history or who cannot meet income requirements for unsecured cards. These cards require a cash deposit, which serves as collateral and sets the credit limit. The deposit helps mitigate risk for the issuer, making secured cards more accessible. Consistent on-time payments and responsible use of a secured card are reported to the major credit bureaus, which can help improve an individual’s credit score.

Student credit cards are also available, designed for college students, often featuring more lenient eligibility criteria. While these cards are tailored for students, the independent income rule still applies to applicants under 21. Students typically need to provide proof of enrollment in a college or university, in addition to meeting age and income criteria. These cards can be a valuable tool for students to establish credit, provided they are used responsibly by making timely payments.