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In a nutshell
While federal law keeps most people under 18 from getting a credit card, it’s still possible.
- Laws require consumers to be 18 to 21 years old to get their own credit card.
- Lenders are more likely to approve young consumers for secured cards and student cards.
- Younger consumers may become authorized users on an adult's card account to access credit at an earlier age.
At what age can you get a credit card?
The Card Act of 2009 requires consumers to be 21 years of age to get a credit card. However, some 18-year-olds may qualify if they can prove they make enough money to repay credit card debt. In this instance, the young adult would apply in the same manner as an older adult and provide the information needed for a credit decision.
How to get a credit card at 18
If an 18-year-old can prove they earn enough income, they can apply for a credit card. Getting approved for a card at this age can be tricky, though. For the best chances of approval, you should look for cards marketed to students, as these have lower requirements. Note, however, that this kind of card can also have high fees, so read the terms and conditions and make sure you understand what you are signing up for.
If the traditional credit card route doesn't work, even with a student card, you have some other options.
Secured credit cards
Secured credit cards are designed for consumers with less-than-excellent credit and welcome applicants with a low or even no credit score.
Qualified applicants need to provide a security deposit when they apply, which can cost $100 or more. Typically, the lender sets the credit line to be the same amount as the deposit; a higher deposit equals a higher credit line.
Secured cards can also have higher interest rates and, in some cases, additional fees. If possible, avoid carrying a balance from month to month, and use these as a steppingstone to more affordable credit.
Chime Credit Builder Visa® Credit Card
Chime Credit Builder Visa® Credit Card
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Cosigner
If you are old enough to get a credit card but can’t get approved, you can ask a trusted adult to cosign. This makes that adult responsible for payments if you can't make them. Asking for a cosigner is a big request, but it may be a good way to establish credit when you are newly employed or lack a long credit history.
Authorized user
If a trusted adult or guardian is willing, they can add you to their own credit card account. The lender will then send you your own card.
If you become an authorized user, you’ll get all the benefits of the card account with none of the responsibility. If the lender reports activity to the credit bureaus, activity from both users shows up on the credit report, which can help boost your credit profile quickly.
How to build credit as a young adult
Credit cards have become an attractive tool for establishing a credit history. As young people age, credit scores can be important for purchases such as a car or house, or even qualifying for lower-cost car insurance.
Sign up for a credit card
To build credit as a young person, you can either open a credit card in your own name (if qualified) or be added as an authorized user on a credit card or line of credit. As long as you use the credit responsibly, and the credit activity gets reported to the credit bureau, your credit should improve over time.
Being added as an authorized user can build up your credit, but only if the owner of the account uses the card responsibly. If the primary user is irresponsible with the account, however, it will be reported negatively for both the primary user and the authorized user. This could end up damaging your credit.
Report other payments
Credit cards aren't the only way to establish credit. Young consumers can also ask for certain eligible bills to be reported. Some apartment managers, for example, report rent payments to credit agencies. It's also common for cellphone companies to do this. Ask each business if they can report credit history to see if you qualify.
Learn good money management skills
Whether or not a younger person has a credit account, financial literacy can go a long way to building good habits later. Things to learn when younger include:
- Creating a budget.
- Making a spend, save, give plan.
- Learning how to invest in assets, such as CDs, bonds or stocks.
- Finding ways to cut costs and spend less overall.
Even with long-term plans like saving for a house or retirement, it pays to think about them early. If a trusted adult isn't available to help teach these skills, free course providers such as Khan Academy have made them available to all.
Credit card alternatives for teens
Credit cards aren't the only way to pay for things. In fact, debit cards are still extremely popular and make up 29% of payments (compared to 31% for credit cards). Many banks offer checking accounts for students as young as 14, and these accounts come with debit cards.
Why consider a debit card? Unlike credit cards, debit cards don’t lend money or charge interest. You can only spend money you have in your account. In addition to keeping young consumers out of debt, debit cards help establish good money habits and can be part of a larger financial literacy program. Cards often come with mobile apps to help users monitor and manage spending, as well as create short and long-term savings goals.
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While most young adults need to be at least 18 years of age to get their own credit card, it's possible to become an authorized user on a parent's account. No matter what age the credit journey begins, responsible credit use and timely payment of other bills can build the foundation for a lifetime of good money habits.
Frequently asked questions (FAQs)
What is the youngest age to get a credit card?
In the U.S., only teens aged 18 and up can get a credit card account in their own name, and only if they can get approved. Unless you can show independent income, you may not qualify for a card until age 21.
Teens may be eligible for a card if an adult adds them as an authorized user on the adult's account. The teen could then use the card, but the adult would be ultimately responsible for all charges.
Can a 16-year-old get a credit card?
While 16-year-olds cannot apply for their own credit card account, they can be added as authorized users on a parent or guardian's credit account. They will be provided with a card featuring their name, but the account continues to be the responsibility of the primary account holder.
What is the best credit card for an 18-year-old?
18-year-olds have many of the same credit needs as older adults and should look carefully at a potential credit card's terms and conditions before choosing one. Things to look for include annual fees, interest rates and whether or not the card requires a security deposit. The goal of a credit card at this age should be to build solid money habits and a responsible attitude toward credit. Any card that can do that without costing too much in fees can be a good option.
How can a teenager start building credit?
Teenagers usually need access to credit before they start building it, but they need to be 18 to apply for their own credit accounts. Being added as an authorized user on a parent or guardian's credit account is one way to have credit activity reported to the credit bureaus. Just be sure that the card company actually reports credit for an authorized user, because not all of them do.
Are there any credit cards with no income requirement?
Most credit cards, even for those with bad credit, ask about income on the application. You are unlikely to get approved with an income of $0. For the best approval odds, list the totals for all types of income, including part-time jobs, side hustles and earnings from investments. The more stable your income, the more likely you'll be to get that card approval.
AP Buyline’s content is created independently of The Associated Press newsroom. Our evaluations and opinions are not influenced by our advertising relationships, but we might earn commissions from our partners’ links in this content. Learn more about our policies and terms here.