How old do you have to get a credit card

How old do you have to get a credit card?

Early credit building can be beneficial in several ways. It is one of the best ways to establish credit and improve your credit score by using a credit card responsibly.

But have you ever thought about How old do you have to get a credit card? How can you get a credit card if you’re too young to apply yourself? Here are some important things to know about credit card age requirements for people who are still building their credit or are new to credit. 

Most people consider obtaining a credit card the first and most important step in building their credit history. Those who already have a credit history and are over 21 have a better chance of getting a credit card with decent rewards. In some cases, parents can also enroll teenagers under 18 as authorized users, depending on the card issuer.

U.S. law states that people must be 18 years old to get their credit card, but parents can authorize teenagers younger than 18 as authorized users, depending on the bank or card issuer. To be approved for their first credit card, 18- to 20-year-olds must either have a cosigner or prove income or regular allowances.

 A first credit card comes with responsibilities, no matter how empowering it may seem. If you are a first-time cardholder, make sure you are extra careful when using your credit card. Avoid purchasing things that you cannot pay for in cash. Avoid paying interest on the balance of your credit card each month. You can ignore late fees by paying your bills on time every month. Credit cards should not be able to charge fees for convenience and security when used responsibly.

How to Get a Credit Card If your 18 or 20-years old

Most people applying for a credit card at this age are either in college, in trade school, or already working. The benefit of owning a credit card is that you can make everyday purchases and earn rewards such as cashback. If you’re a first-time cardholder, you might want to look for secured cards or student credit cards – these will be easier to get approved for than those with little to no credit history.

Get a Secured Credit Card

When there is no cosigner available, secured credit cards make sense. Applicants must pay a deposit (usually $500) to the issuer to qualify for the card, which becomes the credit limit. As with a regular credit card, a secured card allows its holder to make purchases up to its credit limit and must pay off the balance each month. Cardholders who close their accounts and pay off their balances in full (including interest and fees) will receive a refund of their security deposit.

Get a Student Credit Card

Bank created the credit cards specifically for 18 to 22-year-olds student who likely has a limited credit history. If you are a college student looking for your first credit card, Discover it® Student Cash Back is a good choice. 

You’ll get 0% APR for the first six months on purchases, then 12.99% – 21.99% Variable APR for the following 12 months, and 5% cashback on everyday purchases at places like Amazon.com, grocery stores, restaurants, and gas stations if you pay with PayPal, up to the quarterly maximum. As a bonus, you will earn unlimited 1% cashback on all purchases, and there is no annual fee.

Become an Authorized User

Obtaining a credit card quickly without having to fill out a long application is possible when you become an authorized user. It is common for authorized users to get their credit cards. If your parent, guardian, friend, or another family member is comfortable adding you as an authorized user, ask them to do so. Credit card companies sometimes charge a fee to add authorized users.

You are responsible for repaying both cards if you are the primary cardholder. To prevent overspending and late payments, making a spending and payment plan with the primary cardholder is important. It is crucial to check whether the card issuer is reporting authorized user activity to credit bureaus before taking on this risk – young users of credit cards are most likely trying to build credit toward better cards.

Get a Cosigner

A credit card application for someone aged 18 to 20 requires either a cosigner (like a parent, guardian) or proof of income or employment. Accordingly, the issuer has the assurance that the cardholder will have the capability to pay their bills on time, and they can determine the credit limit.

Cosigners should have a good credit history with a good chance of being approved. It is equally important for the cosigner to pay off the card’s balance in full. It is important for both the cardholder and cosigner to avoid overspending because falling into debt will negatively affect credit scores. Credit cards with cosigners may not be available at all banks.

Also Read: Aspire Credit Card: Types And Features complete information

Can You Pay For A Money Order With a Credit Card?

Bottom Line

If you become an authorized user on your parent’s account, you can get your first credit card at a young age. However, the minimum age to apply for your credit card is 18. Young adults between 18 and 20 must have a cosigner (which not all banks allow) or proof of income to qualify. Over 21-year-olds can apply for a card without any assistance.

When applying for a credit card, always enter the correct information. All applications require personal information such as social security numbers, annual income, and mailing addresses. It may be imposed a fine or prison sentence on an individual who falsifies critical information, such as income.

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