When Can You Legally Get a Credit Card
There are two ways to access a card before the age of 18: you usually need access to income, and if you have a flimsy loan or no credit history at all, you may struggle to get approved. But some cards offer benefits to students. Applicants between the ages of 18 and 20 must have one of two things to be approved for a credit card: a co-signer (such as a parent, guardian or other family member) or proof of employment or income. This information assures the issuer that the cardholder can pay their bills on time and determines the new cardholder`s credit limit. But before you apply for a credit card, it`s a good idea to check your credit scores so you know where you stand. Becoming an authorized user is an easy way to quickly get a credit card without having to fill out a lengthy application. An authorized user often receives their own credit card with the name of the authorized user. Ask a parent, guardian, friend, or other family member who can add someone to their account to add you as an authorized user. Some card issuers charge a small fee to add authorized users. As exciting as a first credit card can be, remember that with power comes responsibility. New cardholders should be especially careful when making purchases with a credit card.
Don`t buy anything that can`t be paid for in cash. Pay the entire balance each month to avoid interest. Pay the bill on time each month to avoid late fees and protect credit history. Avoid allowing a credit card to charge fees for its convenience and security when used responsibly. If you can`t prove a source of income like a job, you`ll need to have a cosigner on the card or ask to be an authorized user on a friend or relative`s credit card. Here`s a quick guide to important information for first-time loan applicants, including the minimum age to get your own credit card. Make sure the cosigner has a decent credit history with a good chance of approval. Keep in mind that a co-signer has the same legal and financial responsibility to pay off a card`s balance. If the cardholder goes into debt, it has a negative impact on the credit rating of the cardholder and co-signer, so both parties must be responsible and avoid overspending. Not all banks allow co-signers on credit cards. It is possible to get your first credit card at a young age by becoming an authorized user on a parent`s account, but the legal age to apply for your own credit card is 18. Applicants over the age of 21 can apply for a card themselves without assistance.
Having an emergency card available at a young age can be helpful in an emergency. Be sure to discuss a responsible spending plan to avoid problems. Here are some options to keep in mind if you want to start building loans, but run into hurdles like your age, income, or credit history along the way: New cardholders at this age can be students, business schools, or already working for a living. Having a credit card handy is not only useful for making everyday purchases, but also for earning rewards like cash back. New cardholders should look for cards like student credit cards, secured cards, or cards designed for people with little or no credit history – these will be approved more easily. When you start with credit, it can be tempting to post your newly available funds. However, it is important to spend only within your means so as not to get into debt on your credit card. If you only use your credit card for purchases that you know you can cash out at the end of the month, keeping your credit usage (how much of your available balance you use) below 30% and paying your credit card bill on time and complete are some of the most important things you can do to keep your credit score high. But have you ever wondered how old you have to be to apply for a credit card? And if you`re too young to get a credit card yourself, are there other options? Here are a few things you should know about credit card age requirements and options for people who are new to credit or still working on their scores. Another option to consider is a student credit card.
While you may need to provide proof of independent income if you`re under 21, student cards typically have lower credit requirements, higher credit approval rates for thin credit reports, and limited income and rewards specifically for students. Student cards make home lending at a young age very accessible, but keep in mind that restrictions can be severe if you`re not 21. If you`re considering this approach in your credit journey, here are our picks for the best credit cards for students. OpenSky offers a solid way to rebuild credit without the need for a credit check or bank account. However, you will have to pay at least $200 for the security deposit. Building a strong credit history is one of the most important tasks in a young person`s life, and the sooner you start, the better. However, the minimum age for most card issuers is 18, so getting a credit card before the age of 21 isn`t always easy. When the time comes, you may want to consider switching to a credit card, which can earn rewards for spending responsibly.
From cash back credit cards to travel credit cards and more, there are reward cards for all kinds of lifestyles. You usually need to be at least 18 years old to open your own credit card. Before you turn 18, you`re usually too young to make contracts. And that can include things like credit card agreements. Restrictions on self-employed or co-signer income decrease at age 21. In practice, many young adults – for example, full-time students – will wait until they are at least 21 years old before applying for a credit card in their name. If you`re not old enough to apply for a credit card — or if you`re a parent trying to create a credit history for a child under 21 — the best option is often to make the young adult an authorized user on a parent`s or other credit-good credit account account. You can use a secured credit card. The difference between a secured credit card and an unsecured credit card is that with a secured credit card, you leave a cash deposit for the amount you want as credit to the card. This money serves as collateral in case of default. As an authorized user, the young adult can carry and use a card, but is not responsible for payments.
Nevertheless, being an authorized user can help them build their own credit history. This is sometimes referred to as credit grafting. Card issuers determine how old the teen must be to become an authorized user. Some do not specify it, while others set it at 13 or 15 years. Many loan issuers report authorized users to credit reporting agencies, which means your credit score will likely benefit from being an authorized user. Simply put, if the primary cardholder themselves has poor credit habits, such as a history of late or missed payments or high credit usage, their decisions can negatively impact your credit score. Chauncey grew up on a rural farm in Northern California. At 18, he ran away and saw the world with a backpack and a credit card and discovered that the true value of a point or a mile is the experience it allows. He remains more comfortable on a tractor, but has learned that opportunity is where he finds it, and discomfort is more interesting than complacency. In recent years, several “alternative credit cards” have appeared on the market, promoting non-traditional underwriting guidelines to assess creditworthiness. While these cards can be good options for those with little to no credit, you still need to meet income requirements as you would with traditional credit card issuers. They do not require deposits.
Assuming the credit card issuer reports authorized user activity to credit reporting agencies, you can be added to a card as an authorized user to start building a credit history and learn how to manage a credit card. Student credit cards are for people who have not yet accumulated a credit history. They are generally easier to qualify than regular credit cards and often have lower credit limits, but may have higher interest rates. Can credit card companies know if you`re lying about an application? Always enter the correct information on a credit card application. Personal information such as Social Security numbers, annual income, mailing addresses, etc. is usually required for each application. Misrepresentation of critical information such as income is punishable by fines or imprisonment. Der 18. The anniversary opens the door to several new financial opportunities with loans. Whether you`re applying for one of the best starting credit cards, collecting money for a secured card, or asking to be an authorized user on someone else`s account, make sure you use your balance responsibly and make timely payments.