Although you must be 18 to sign a credit card agreement, it might not always be simple to be approved for a credit card before turning 21. This post will discuss ways to apply for a credit card if you’re under 21 as well as indicators that you might be ready for your first credit card:
Navigating the world of credit can be tricky, especially when you’re under 18 But don’t worry, young financial warrior, we’ve got your back! This guide will break down everything you need to know about getting a credit card as a 17-year-old, from the legal hurdles to the sneaky workarounds Buckle up, it’s gonna be a wild ride!
Spoiler alert: You can’t technically get your own credit card until you’re 18. But that doesn’t mean you’re out of luck. We’ll explore all your options, from becoming an authorized user to rocking a debit card like a boss.
The Legal Lowdown: Why 18 is the Magic Number
Until you turn eighteen, you are not considered an adult by the law. That implies that you cannot lawfully enter into any contracts, including credit card agreements, which is surprising. Bummer, right? But there’s a good reason for this. Credit cards are strong financial instruments, and using them wisely calls for a certain amount of comprehension and maturity.
Sneaky Workarounds: How to Get a Credit Card Before 18
Okay, so you can’t get your own credit card. But that doesn’t mean you can’t access one. Here are a couple of sneaky workarounds that might just do the trick:
1. Become an Authorized User
This is like borrowing your parent’s car, but with a credit card. Basically, someone with an existing credit card can add you as an authorized user. This means you’ll get your own card linked to their account, allowing you to make purchases and build credit history.
But remember, with great power comes great responsibility. If you mess up, it’ll affect their credit score, not just yours. So, use this option wisely and make sure you can handle the responsibility.
2. Get a Secured Credit Card
Think of this as a credit card with training wheels. You’ll need to make a security deposit, which acts as your credit limit. Use the card responsibly, and you’ll build credit history and eventually get your deposit back.
For young adults who want to start building credit but haven’t yet established a reliable financial history, this is a great option. Just be sure the card you select has low fees and a fair interest rate.
The Waiting Game: What to Do Until You’re 18
So, you’re stuck waiting until your 18th birthday to get your own credit card. But don’t just twiddle your thumbs! Here are a few things you can do to prepare:
1. Build a Budget
Learning how to manage your money is crucial before you even think about a credit card. Create a budget that tracks your income and expenses, and stick to it like glue. This will help you develop healthy financial habits and avoid getting into debt.
2. Get a Debit Card
A debit card is like a prepaid credit card. You can use it to make purchases, but you’re only spending the money you have in your account. This is a great way to learn how to use plastic responsibly and avoid overspending.
3. Become Financially Savvy
Read books, articles, and blogs about personal finance. Talk to your parents or a financial advisor about managing money. The more you know, the better prepared you’ll be to handle a credit card responsibly when you finally get one.
The Bottom Line: Patience is a Virtue
Getting a credit card as a 17-year-old might seem like an impossible dream. But you can position yourself for financial success if you have a little perseverance and preparation. Remember, it’s all about building a solid foundation and using credit responsibly.
Keep learning and remaining focused, and you’ll become an expert credit card user quickly!
How can I use a credit card before I’m 18?
There are two ways to have access to a card before youre 18:
If you’re under 18 and you want a card, you can get one by adding yourself as an authorized user on someone else’s card. This person is usually a parent or legal guardian. Some issuers have minimum age requirements for becoming an authorized user. You will receive a credit card as an authorized user, but the primary cardmember is in charge of your credit card expenses. If the credit card issuer notifies the credit bureaus of authorized user activity and the cardholder is making on-time balance payments, then being an authorized user can start the process of building a positive credit history.
You could also get a prepaid card, which isnt a credit card. Activity on it isnt reported to credit bureaus, so it wont help build credit. You can still use a prepaid card to make in-person and online purchases just like you would with a credit card, but it isn’t linked to a credit line. Instead, the card is prepaid ahead of time. Remember that using a prepaid card won’t help you establish credit because it isn’t reported to the credit bureaus.
At what age can you get a credit card?
To sign a credit card contract, you must be at least eighteen years old. However, because of the Credit Card Accountability Responsibility and Disclosure Act of 2009, it is difficult to obtain an unsecured credit card before the age of twenty-one. Youll need to show proof that you have a steady source of income to qualify.
You will need a cosigner on the credit card or request to be added as an authorized user to a friend’s or relative’s credit card if you are unable to provide proof of income, such as employment.
How to Navigate Your First Credit Card: Teen’s Edition
FAQ
Can a 17 year old get an unsecured credit card?
What is the youngest age to get a credit card?
Can a 17 year old get a credit card with Chase?
Can you get discover at 17?
Can a 17 year old open a credit card?
But otherwise, unless you are legally emancipated, you probably can’t open a credit card at age 17 with a credit card issuer. According to Experian, some of the top credit card issuers don’t have a technical minimum age requirement or allow you to open a card as young as 13, 15, or 16, in some cases.
How do I get a credit card if I’m under 18?
If you want a card and you’re under 18, you can have access to a card by becoming an authorized user on someone else’s card (typically a parent or legal guardian). Some issuers have minimum age requirements for becoming an authorized user.
Can a 17 year old build credit?
But those approvals may also look at your credit and income, which could make it hard to get approved before turning 18. To start building credit at 17, you would need to be listed on a credit-related account like a credit card or loan.
Can you get a credit card at a young age?
It’s possible to get a 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. 18- to 20-year-olds must apply with a co-signer (which not all banks allow) or with proof of income.