Getting a credit card is a rite of passage for many. Having a card early in life lets users build their credit history and amass reward points. Although Americans can have credit cards before turning 21, it’s not a guarantee. Determining what age can you get a credit card is essential for people who want to establish good credit as soon as possible.
What age can you get a credit card?
Cardholders must be at least 18 years old to get a credit card. This is thanks to the Credit Card Accountability Responsibility and Disclosure Act, known as the CARD Act of 2009. The CARD Act safeguards consumers by imposing regulations on the issuance of first-time credit cards. These regulations require issuers to verify applicants’ ability to repay charges, often through proof of income.
In some cases, parents can add children as authorized users to their accounts. This provides a fantastic way for teens to establish good credit.
What to know about getting a credit card before 21
While it’s difficult to get a credit card if you’re 18 to 20 years old, it’s not impossible. Becoming a first-time cardholder may be necessary, especially if you’re responsible for paying your bills.
The main challenge to getting a credit card before 21 is proving your income. The CARD Act requires the ability to prove independent income. It doesn’t allow applicants to consider income from family members or friends as their own. In short, income must come from a job you perform. Once you reach 21, this restriction is eliminated.
Thankfully, there are some options for people under 21. A secured credit card is one choice, though you must still prove income. You may also want to consider a student credit card as there are no annual fees but they operate like a standard credit card. Asking a parent to co-sign a credit card for you is another possibility, but many major banks don’t offer this as a choice.
In most cases, the best choice to get a credit card before 21 is by having a parent add you as an authorized user to one of their cards. Assuming they have solid credit, this is a superb way to build good credit.
➤ SEE MORE:Guide to adding children as credit card authorized users
How teens can start building credit
While the credit card age requirement does present a hurdle to establishing a credit history, it’s possible to overcome this challenge. These are reliable ways you can start building credit before 21.
Get added as an authorized user: Being added as an authorized user gets reported to credit agencies. This results in credit utilization, payment history, and age of the account being reported for you, which are all major factors in credit scoring. Many major banks allow for authorized users as young as 13 years old.
Apply for a secured credit card: While applicants still have to prove income, a secured credit card could be a good choice. A deposit is required upfront, but a secured card allows users to have positive actions reported to agencies, which can be beneficial to their credit score.
Payback loans: Student loans are a necessary evil for many college students. Payments are reported to credit reporting agencies, so being timely with them is an ideal way to establish good credit.
How to choose the right first credit card
Becoming a first-time card applicant can be overwhelming. Fortunately, it’s not as difficult as it might seem. While there is no one best card for everyone, knowing a few basics can help you get your first credit card.
Know your options: Beyond secured cards, there’s a wealth of rewards credit cards to select from, including cash-back and points and miles cards. You may find that your favorite retailer has a card option. Research what’s available and pick a card you like.
There are fees and high interest rates: Credit cards can be rife with fees and exorbitant interest rates. Paying an annual fee, for example, isn’t necessarily bad, but don’t pay one if the card doesn’t fit your needs. Furthermore, paying your bill in full each month is the best way to avoid interest.
Know your spending habits: What do you spend the most on, and where do you spend it? This information may direct you to a card to receive maximum benefits. Combine this with staying on budget to avoid unnecessary debt.
Know your goals: Credit cards can be an awesome tool to use, but you must determine your goals. Are you merely wanting a card to pay bills, or are you a travel enthusiast who wants to maximize your earning potential? Knowing your goals can help direct you to the best possible card.
➤ SEE MORE:CardRatings’ top picks for the best credit cards
Frequently asked questions
Getting a credit card is necessary for young adults who want to build credit. These are common questions many have before getting their first card.
Can you get a credit card at 17?
It’s not possible to get a credit card as a 17-year-old. While it’s feasible to be added as an authorized user through most banks as a young teen, that’s the extent of it. Interested applicants must wait until turning at least 18 years old before applying, assuming they can provide proof of income.
Can I add my 13-year-old to my credit card?
Yes, it is possible to add a 13-year-old as an authorized user to a credit card. Some banks allow authorized users as young as 13 years old. For example, American Express allows authorized users at 13, Chase has no minimum age requirement, and Discover allows authorized users at 15 years of age.
The bottom line
Determining how old you have to be to have a credit card is a question many young adults ask themselves as they begin to manage their finances independently. Having access to credit is often necessary to pay bills, and establishing good credit is important for future needs. Getting a credit card before turning 21 is achievable, but it will take some work to accomplish.
