In the United States, the minimum age to get a credit card is 18 years old. However, if you are under 18 and want to get a credit card, you can become an authorized user on a credit card account held by a parent or guardian. As an authorized user, you will be able to use the credit card and make purchases, but the primary account holder will be responsible for making the payments. This can be a good way for teens to build credit and learn how to use credit responsibly before they are old enough to get a credit card on their own.
In the United States, the minimum age to get a credit card and be the primary cardmember is 18 years old. However, if you are under 18 and want to get a credit card, you can become an authorized user on a credit card account held by a parent or guardian. While getting a credit card before age 21 may not be so easy.
How to get a credit card before 18
To get a credit card before the age of 18, you will need to become an authorized user on a credit card account held by a parent or guardian.
As an authorized user, you will be able to use the credit card and make purchases, but the primary account holder will be responsible for making the payments. This can be a good way for teens to build credit and learn how to use credit responsibly before they are old enough to get a credit card on their own.
To become an authorized user, the primary account holder will need to contact the credit card issuer and request that you be added to the account. You may also need to provide personal information, such as your name, date of birth, and Social Security number.
Keep in mind that as an authorized user, you will be responsible for any charges you make on the credit card. If you do not make payments or if the primary account holder defaults on the credit card, it can negatively impact your credit score. It is important to use credit responsibly and make on-time payments as an authorized user.
In addition to becoming an authorized user on a credit card account, another option for getting a credit card before the age of 18 is to use a prepaid credit card.
A prepaid credit card is a type of payment card that is loaded with a specific amount of money. You can use the prepaid credit card to make purchases, pay bills, or withdraw cash from an ATM, just like a regular credit card. However, you can only spend the amount of money that is loaded onto the card.
Prepaid credit cards can be a good option for teens who want to learn how to use credit responsibly and manage their money. They can also be a good alternative for those who do not qualify for a regular credit card due to a lack of credit history or a poor credit score.
However, it is important to be aware that prepaid credit cards may have fees, such as activation fees, maintenance fees, or ATM fees. It is important to compare different prepaid credit cards and understand the fees associated with them before choosing one.
How to get a credit card ages 18 to 20 years old
Under the Credit CARD Act of 2009, those between the ages of 18 and 20 may be required to have a cosigner or provide proof of income or regular allowances in order to be approved for a credit card.
However, even with these requirements, it may still be challenging for those in this age group to get approved for a credit card, especially if they have no credit history or a limited credit history. In these cases, a secured credit card or a credit card specifically designed for students may be a good option.
If you are between the ages of 18 and 20 and want to get a credit card, you will have more options than if you are under 18. You can apply for a credit card on your own without a cosigner. However, if you have no credit history or a limited credit history, you may be required to open a secured credit card or may be offered a credit card with a higher interest rate and fees.
To increase your chances of getting a credit card with good terms, you can take steps to build your credit. This includes:
- Opening a secured credit card or a credit card for students
- Making on-time payments on all your debts
- Keeping your credit utilization low (this means not using too much of your available credit)
How to choose your first credit card
When choosing your first credit card, there are a few factors to consider:
- Credit limit: Choose a credit card with a credit limit that you can handle. If you have a low credit limit, it can be tempting to max it out quickly, which can hurt your credit score.
- Interest rate: Look for a credit card with a low interest rate, especially if you think you will carry a balance from month to month, which we never recommend doing. A high interest rate can make it more expensive to borrow money.
- Fees: Avoid credit cards with high fees, such as annual fees or balance transfer fees. These fees can add up quickly and make it more expensive to use the credit card.
- Rewards: If you are planning to use your credit card for everyday purchases, consider a credit card with rewards. This could be cash back, points, or miles that you can earn for every dollar you spend.
Good options for your first credit card
There are many credit cards that are good options for your first credit card, depending on your needs and credit history. Here are a few options:
Capital One Quicksilver Secured Cash Rewards Credit Card
The Capital One Quicksilver Secured Cash Rewards Credit Card is a secured credit card that offers unlimited 1.5% cash back on all eligible purchases. It has no annual or hidden fees and no foreign transaction fees. This credit card is a good option for those with no credit history or a limited credit history.
To qualify for the Capital One Quicksilver Secured Cash Rewards Credit Card, you will need to put down a refundable $200 security deposit to get a $200 initial credit line. This credit card also offers the opportunity to earn back your security deposit as a statement credit when you use the card responsibly, such as making payments on time.
The Capital One Quicksilver Secured Cash Rewards Credit Card has a high APR, so it is important to pay off your balance in full each month to avoid paying interest.
This credit card also comes with $0 Fraud Liability, meaning you will not be responsible for unauthorized charges. Additionally, it allows you to monitor your credit score with CreditWise from Capital One. It is free for everyone.
Overall, the Capital One Quicksilver Secured Cash Rewards Credit Card is a good option for those looking to build credit and earn cash back on everyday purchases.
U.S. Bank Cash+® Visa® Secured Card
The U.S. Bank Cash+® Visa® Secured Card is a secured credit card that has a $0 annual fee and offers high rewards potential for a secured card.
To qualify for the U.S. Bank Cash+® Visa® Secured Card, you will need to make a cash deposit that will serve as your credit limit. It has a $300 minimum security deposit and a maximum of $5000.
With the U.S. Bank Cash+® Visa® Secured Card, you can earn 5% cash back on on your first $2,000 in combined eligible purchases each quarter in two categories you choose, 2% cash back on eligible purchases in your choice of one everyday category (such as gas stations, grocery stores, and restaurants) and 1% cash back on all other eligible purchases. This can add up to significant rewards if you use the credit card frequently.
However, it is important to be aware that the U.S. Bank Cash+® Visa® Secured Card has a high variable APR and foreign transaction fees of 3% of each foreign transaction. It is important to pay off your balance in full each month to avoid paying interest.
This credit card also allows you to choose your payment due date and is a good option for those looking to build credit and earn rewards on everyday purchases.
Discover it® Student Cash Back
The Discover it® Student Cash Back is a credit card specifically designed for students. It offers 5% cash back on rotating bonus categories after enrollment and a first-year cash-back match. This credit card has a low 1% base reward rate and no credit score is required to apply.
To qualify for the Discover it® Student Cash Back, you must be a student and have a limited credit history. The 5% bonus cashback rate is limited to $1,500 per quarter in spending and the bonus categories must be activated quarterly. This credit card allows you to earn 5% cash back on everyday purchases at different places each quarter, such as Amazon.com, grocery stores, restaurants, and gas stations, up to the quarterly maximum when you activate. You will also earn unlimited 1% cash back on all other purchases automatically.
Overall, the Discover it® Student Cash Back is a good option for students looking to earn cash back on everyday purchases and build credit. Its first-year cash-back match can also be a great way to earn even more rewards in the first year of using the credit card.
Citi® Secured Mastercard®
The Citi® Secured Mastercard® is a secured credit card that has no annual fee and requires a $200 minimum security deposit. It has a low ongoing APR compared to other secured cards, making it slightly cheaper if you carry a balance.
One of the advantages of the Citi® Secured Mastercard® is that it has a lower minimum security deposit compared to some other secured credit cards, which may make it more accessible for those with limited funds. However, it should be noted that this credit card does not offer any rewards or additional benefits, which may be a drawback compared to other cards in its category.
It is also worth noting that there are a few competing secured cards that offer better rates and benefits with fewer fees. If you are considering the Citi® Secured Mastercard®, it may be worth comparing it to other secured credit cards to determine which one is the best fit for your needs.
How to build credit for teens
Building credit as a teenager can be challenging, but it is important to start building a good credit history as early as possible. Here are a few steps you can take to build credit as a teenager:
- Open a credit card: As mentioned above, you can open a secured credit card or a credit card for students to start building credit. Make sure to make on-time payments and keep your credit utilization low.
- Get added as an authorized user: If you have a parent or guardian with good credit, you may be able to get added as an authorized user on their credit card. This will allow you to build credit by using their credit card and making on-time payments.
- Use a credit-builder loan: A credit-builder loan is a small loan that is specifically designed to help build credit. You borrow a small amount of money and make payments on it over a set period of time. As you make on-time payments, it will help build your credit score.
- Pay your bills on time: Paying your bills on time, including your credit card bills, utility bills, and rent, is important for building credit. Late payments can have a negative impact on your credit score.
By following these steps, you can start building credit as a teenager and set yourself up for financial success in the future.
