At What Age Should You Get A Credit Card? (2024)

FAQs

At What Age Should You Get A Credit Card? ›

The bottom line. You have to be at least 18 years old to apply for a credit card of your own; however, card applicants under 21 have to apply with a cosigner or proof of income. Even with the additional requirements, turning 18 opens the door to new financial opportunities that can help you build a strong credit score.

While you can sign up for your first credit card at 18, it's best to wait until you have confidence in your ability to pay off your balances on time and in full, while also balancing other financial obligations like rent, utilities, tuition, transportation and groceries.

Give Them a Credit Card Under Your Guidance

Although many parents may be doubtful that a credit card can help their teen, with the proper precautions in place it can promote financial responsibility and maturity.

Consider yourself in “good” shape if your credit score is above the average for people in your age group. Given that the average credit score for people aged 18 to 26 is 680, a score between 680 and 690 (the average for people aged 27 to 42) could be considered “good.”

Building your credit at 18 may improve your ability to rent an apartment, get car insurance, and qualify for loans. Eighteen is the age you become eligible to open your own credit card account. You can learn how to build credit at 18 by learning what mistakes to avoid, like paying your bills late and overspending.

Financial experts recommend young people start building credit as soon as possible. A good time to apply for a credit card is when you turn 18, since that's the minimum age requirement for opening your first card. College student credit cards are a smart choice for students looking to establish credit.

Kids younger than 18 can't open their own credit card. But they may be able to become an authorized user on someone else's credit card account. An authorized user is someone a cardholder has permitted to use their account.

You may be able to help your teen build their credit before they're 18 by adding them as an authorized user on your credit cards. That's if the card issuer reports information to the credit bureaus and the credit bureaus include that information on credit reports.

The minimum age to get a debit card with a checking account at a bank or credit union is 18, but kids as young as six can get a debit card when opening an account with a parent. Debit cards have age limits because opening a bank account is a legal agreement, and minors cannot enter into contracts.

Credit cards often offer better fraud protection

With a credit card, you're typically responsible for up to $50 of unauthorized transactions or $0 if you report the loss before the credit card is used. You could be liable for much more for unauthorized transactions on your debit card.

Is a 900 credit score possible? ›

Highlights: While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.

Making on-time payments to creditors, keeping your credit utilization low, having a long credit history, maintaining a good mix of credit types, and occasionally applying for new credit lines are the factors that can get you into the 800 credit score club.

For a score with a range between 300 and 850, a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent. Most consumers have credit scores that fall between 600 and 750. In 2023, the average FICO^® Score^☉ in the U.S. reached 715.

There is an increased debt risk, especially if you are not disciplined with your spending and budgeting. Your credit score may take a hit, especially if you apply for two cards at the same time or within a short period of time.

You must be 18 or older to get a credit card in your name. Borrowers between 18 and 20 must prove they have independent income to get approved for a credit card. Primary cardmembers may be able to add individuals younger than 18 as authorized users to their credit card account.

However, the criteria for a good APR varies widely, depending on the card category. At the bottom, you'll find low interest credit cards that offer an average APR of 18%. And while these cards don't generally come with rewards or many benefits, you'll get a great interest rate in exchange.

Children under the age of 18 are not allowed to enter into credit card agreements, but many card issuers will allow minors to become authorized card users. Some issuers have minimum age requirements, that necessitate authorized users must be at least 13 or 16 years old.

Building credit for your child will help them establish a positive credit history and empower them to borrow for big purchases later in life. The good news is your child doesn't have to be 18 to start building credit. Get on the path to establishing credit for your child and help them secure a strong financial future.

The average age of a first-time credit card holder is around 21 years old, with most people getting their first card shortly after high school. WalletHub did a survey of college students and found that the majority got their first card within the first two years of college.

Anything less than two years is considered a short credit history. Once you have established between two and four years of credit, lenders will better understand how well you manage your credit accounts. A credit age of five years will raise your score as long as you've been managing your accounts well.