I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.
See all posts Frank GogolHow Old Do You Have to Be to Have a Credit Card?
Updated on March 12, 2024
Written by
Written by
Reviewed by
Rohit Mittal
Reviewed by
Rohit Mittal
Rohit Mittal is the co-founder and CEO of Stilt. Rohit has extensive experience in credit risk analytics and data science. He spent years building credit risk and fraud models for top U.S. banks. In his current role, he defines the overall business strategy, leads debt and capital fundraising efforts, leads product development, and leads other customer-related aspects for the company. Stilt is backed by Y Combinator and has raised a total of $275M in debt and equity funding to date.
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At a Glance: To obtain a credit card, you must be at least 18 years old, although meeting the age requirement doesn’t guarantee approval. If you’re under 18, you can become an authorized user on a parent’s or guardian’s credit card to start building credit. As an authorized user, you’re not obligated to pay the balance. Consider starter credit cards like Journey Student Rewards from Capital One, Discover It Secured Credit Card, or OpenSky Secured Visa Credit Card to build credit responsibly. Make payments on time, manage your spending, and keep credit utilization between 10% and 30% to establish a good credit score.
People love credit cards, mainly because they are a great way to make a purchase when you don’t have enough money. They’re also amazing for building credit if you’re responsible. But not everyone has access to this type of card, and this is because they may not be old enough to obtain it, in the first place. If you’re planning to get a credit card, it’s essential to take your age into consideration and make sure you qualify before spending time looking for lenders. But how old do you have to be to have a credit card? Let’s find out!
How Old Do You Have to Be to Get a Credit Card?
In order to get a credit card, you first need to make sure you’re of age to do so. The age when you can finally apply for a credit card is 18 years old. But even when it comes to age, it is not guaranteed you will obtain a card just because you turned 18. There are still some other requirements that you have to meet in order to be suitable for a credit card.
This is because if you are younger than 21 and have a bad credit history or no history at all, you will be asked for evidence that you can pay your bills independently. This proof includes investment income or regular employment, for instance.
If you want to make sure you increase your chances to obtain a credit card after turning 18, you can apply with a co-signer. Your co-signer could be a legal guardian, parent, spouse, or anyone who is older than 18 and has the capabilities to pay a credit card bill.
Before rushing to apply with a co-signer, though, you need to be aware that doing so means that both you and the person helping you out will be responsible for the regular payments. You need to understand that from the moment you get the credit card, both of you must be careful with it and make sure the balance is always paid off. It applies even if you are the only person using the card.
Thus, secured credit cards are a better option because they are easier to obtain. You have to make a security deposit that helps set the credit limit of the card, which is what makes the approval much easier. It’s possible to get this card by yourself when you turn 18.
What If You’re Under 18?
When you’re younger than 18 and you want to build credit, it can be quite disappointing for you to learn that you have to be 18 to get the card. However, if you really want to start building credit nonetheless, you have the option of becoming an authorized user on your parent’s credit card. The same can be done with a card belonging to a guardian or another member of your family. Once again, your age will be in play, but only when it comes to some issuers. In general, people aged 13-16 can become authorized users.
Now, it is important to bear in mind that being an authorized user is not the same as being a co-signer. A co-signer is someone who has access to the credit limit and the account and has to pay the card balance in case the owner refuses or fails to do so. An authorized user, on the other hand, is someone who is not obliged to pay the balance.
Credit issuers often report on the situation of authorized users to credit bureaus. So, you will be able to build a credit score this way. At the same time, this can be a bit detrimental too if the main cardholder isn’t a responsible person and doesn’t pay off the balance on time. It may end up affecting your credit score negatively.
What Are the Best Starter Credit Cards?
If your interest is simply to build your credit history so you can use its benefits later on, you should look into a starter credit card.
A starter credit card will help you build your credit score. But to do so, you must find something that will be easy to manage. An ideal option would be a card that has no annual fees or a card that comes with features that match your spending habits. Of course, you will still have to make sure you pay off the full balance monthly.
To get you started, here are some of the best starter credit cards that you may want to look into:
Journey Student Rewards from Capital One
This card is amazing, as it has no annual fee and it comes with an additional 0.25% cashback if you pay off your bill on time. It is especially ideal for students because it helps boost the credit score through on-time payment rewards. On top of the cashback, you might also qualify for a monthly $5 and thus up to $60 annually in statement credits for select streaming subscriptions. This will, of course, apply when you pay bills on time. It is a wonderful card for students who are new to building credit.
Discover It Secured Credit Card
The Discover It Secured Credit Card is also a great pick for people who are new to credit cards. It has no cashback rewards, but it also has no annual fee. To increase your chances of getting it, you may have to pay a small cash deposit if you don’t have any credit history or have very little.
The first late payment comes with no late fees, but afterward, you will pay up to $40. You can make deposits as low as $200, and every month, you can get FICO score access for free.
OpenSky Secured Visa Credit Card
What’s great about this card is that it reports your payments to the three big credit bureaus, thus helping you build credit. It doesn’t need a credit check, so if you have a bad credit history or little history, it’s ideal. It has an annual fee of $35, and it doesn’t have rewards. You will also have to make a cash deposit in the beginning, but it also allows you to get a line of credit of up to $3,000.
How to Start Building Credit
To build credit, you need to start using your credit score. However, this means that you need to be responsible for it and always make your payments on time. Otherwise, your credit score will be negatively affected.
Also, you should always spend only as much as you will be able to handle in payments later. If you spend too much, you can get into huge card debt that will be difficult to pay. It’s also essential to keep the credit utilization between 10% and 30%.
Moreover, it’s best to not apply for multiple credit cards because a credit check will be done by the issuer each time, which could drag down your score.
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Conclusion
People have to be 18 to be able to apply for a credit card. However, even then, you may need a co-signer for some cards. Make sure you do lots of research before applying for a card and that you are sure you’ll be able to pay the balance on time every month.
Frank Gogol
I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.