How old do I need to be to get a credit card? Like any other debt, credit cards are risky if they are not used and managed wisely. This is why card issuers do not hand them to everyone without checking their age. You must be at least 18 years old in order to get your own credit card, according to Foxbusines.
Can I get a credit card if I am 18 years old?
When you are under 18 years old, you can get access to a credit account by becoming an authorized user for other credit cards. This is how it works. A person who has a credit account will add you to his/her account. This will give you access to their credit account and you can pay some of the bills on the card if you choose to.
As an authorized user, you will not be responsible for the account activities. The original owner will take responsibility for the account.
Becoming an authorized user is one of the many ways to build your credit without having a credit card. Your contribution to the account activities must be reported to the credit reporting companies(Equifax, TransUnion, Experian) in order to receive these benefits.
The account owner and authorized user must have terms of how to use the account. Without a mutual understanding of the account usage, the original account owner could end up in financial troubles.
Can I get a credit card if I am under 21?
It is possible to get your own credit card if you are between 18- 21 years old. Many factors will come into play when deciding your creditworthiness. For example, it would be easy to get a credit card if you have a credit history. This is because your credit history will help lenders in understanding your payment history, whether or not you miss payments, how much credit you use out of your credit limit, etc.
Usually, people who are under 21 do not have a credit history to prove their creditworthiness. For this reason, it will be difficult to access they handle debt. As a result, it will be difficult for you to get a credit card if you are between 18- 21 years old.
One of the easiest ways to get a credit card when you are under 21 is to use a co-signer.
Use a co-singer if you are under 21 years old
Since it will be almost impossible for you to get a credit card if you are under 21; you can use a co-signer. Your co-signer will be your parent or a guardian.
The co-signer will be used to prove that you are a genuine borrower. However, your approval rate will depend on your co-signer’s credit history. If they have a very good credit score and a credit history, you could be accepted easily.
Your credit card issuer will hold responsible your co-signer whenever you fail to make your payment.
If you don’t want to use a co-signer, you can apply for student credit cards or secured credit cards. A student card could be a great choice for students.
On the other hand, if you are under 21 but not a student, you can use a secured card. For secured credit cards, you will deposit money on your account and use the card based on how much you deposited. In other words, your credit limit will most likely be the total amount you have deposited.
Why is it difficult to get a credit card when you are under 21 years old?
Credit cards come with responsibilities. As a result, there are age restrictions on credit card applications. If you are under 18, you will not qualify for your own card.
On the other hand, if you are between 18-21 years old, you can get a card. However, it will be difficult for you to qualify. Some companies require you to have a co-signer on your application. Your co-signer will take responsibility for the card if you fail to meet its financial obligations.
The following are some of the reasons it is difficult to get a credit card when you are under 21.
- You don’t have a credit history
- You are too young to be trusted for credit
- You don’t have a co-signer
- You are not stable in terms of income and career-wise
Getting a credit card after 21 years old
When you turn 21, the age restriction will no longer apply. However, there are still chances that you will be denied for the card.
Your approval will depend on your income and credit history.
For example, if you are 21 and not employed, your card application will be turned down.
This is because you cannot pay off a loan without working.
At the same time, if you are 21 with no credit history, it will be difficult to get your application accepted. Moneylenders will need to know how financially responsible you are. The only way they can do it is to run a hard pull on your credit report.
Without credit, you will not have a credit report, and therefore, there is no way they will know your payment history, for example.
This is why the first credit you will get could only be based on trust and you will probably have a small credit limit.
Related article: 14 reasons you will be denied for a credit card.
