What Age Can you Get a Credit Card to Help a Minor Credit Score?
Updated: Feb 11
Many parents ask what age can you get a credit card for a child? It's no secret that credit cards are a convenient way to pay for purchases. But what is the minimum age you have to be in order to get a credit card? In this blog post, we will explore what the legal age is for getting a credit card and what other restrictions might be in place. We will also discuss some of the benefits of having a credit card at a young age!
Table of Contents:
What is the minimum age you can get a credit card in the United States?
Back in the old days, you had to be 21 years old to get a credit card.
Today you have to be 18 years old. Yes, that’s right. You don’t even have to be 21 anymore! That was an older law that no longer applies.
The Credit CARD Act of 2009 changed the rules about who could get a credit card and what kind of conditions could be placed on them.
One of the goals of this act was to make it easier for young people to start building their credit history early.
So if you’re 18 years old or older, go ahead and get a credit card!
How does this age limit vary from country to country around the world?
In the United States, the minimum age to get a credit card is 18 years old. In Canada, the minimum age is 16 years old. In Australia, the minimum age is 18 years old. And in the United Kingdom, the minimum age is 18 years old.
There are some countries where there is no set minimum age limit for getting a credit card. For example, in Singapore, the minimum age is 21 years old, but there are no laws that state this. In France, there is no set minimum age limit either, but it is advised that people be at least 18 years old before they apply for a credit card.
It seems like most countries have a similar age requirement when it comes to getting a credit card. Due to the responsibility that comes with having a credit card, most countries believe that people need to be of legal age before they can apply. It is important to remember that the minimum age limit for getting a credit card may vary depending on your country. Be sure to do your research beforehand!
What are some benefits of having a credit card at a young age?
Everyone knows the importance of building credit early in life. Unfortunately, what age can you get a credit card is not that simple and straightforward. There are many factors determining what age can you get a credit card including what type of card it is if there’s an adult co-signer or guarantor involved and who the issuer is.
There are several credit-building programs that allow individuals to build credit at a young age. For example, the American Express “Blue” card is available for consumers as young as 13 years old. The Blue card allows users to start building a credit history by reporting their credit activity to the three major credit bureaus - Experian, Equifax, and TransUnion. This can help improve your credit score over time.
Other cards that are available for people under 21 years of age include the Capital One “Young Adult” card, the Discover it “Student” card and the Citi ThankYou Preferred “For College Students” card. The minimum age to apply for these cards is 18 years old.
Each issuer has different eligibility requirements so be sure to check what age can you get a credit card with each one before applying.
There are many other types of cards that accept applicants under 21 years of age as well such as prepaid debit cards and secured credit cards. Prepaid debit cards allow users to load cash onto them which can then be spent wherever these types of payments are accepted just like a traditional bank account.
Building good credit is important at any age and it’s never too early to start!
Are there any risks associated with getting a credit card at a young age?
No, there are no risks associated with getting a credit card at a young age. In fact, there are many benefits to having a credit card when you're young.
One of the biggest benefits is that you can start building your credit history early. Good credit history will help you get approved for loans and other types of financing in the future. Having good credit will also help you get better interest rates on loans.
Another benefit is that it can be easier to manage your finances because there are no late fees or over-limit fees when using a credit card responsibly (on time).
Using a credit card for everyday expenses like gas, food, and entertainment helps track what you're spending money on and can help you stay within your budget.
If you're responsible with your credit card, it can be a great way to build good financial habits that will last a lifetime. So, if you're interested in getting a credit card, there's no reason to wait! Talk to your credit professional today about what type of card would be best for you.
If you're not sure how to use a credit card responsibly, be sure to read our blog post on "Controlling Your Debt: Easy Steps to Take for Life Success." It's full of great tips!
How can parents help their children build good credit histories at an early age?
There are a couple of ways. One is to add your child as an authorized user on one of your credit cards. This will help them build a credit history, and you can help monitor their spending. Another way is to get them a secured credit card. A secured credit card is a good way for young people to start building credit because they have to put down a deposit, which then becomes their credit limit.
No matter what option you choose, it's important to start early so your child can have a good credit history by the time they're ready to apply for a mortgage or car loan. And remember, always pay your bills on time! Late payments can damage your credit score.
If you decide to add them as an authorized user on one of your cards, be sure that it's being reported properly by the issuer. Many issuers do not report authorized users unless there is activity on the account from those users themselves (not just what happens with the primary cardholder). So, if you're looking to help your child build credit, be sure to ask the issuer about this before adding them.
And finally, remember that building good credit takes time and patience. It's not something that happens overnight. But by following these tips, you can give your child a good foundation for healthy credit history.
What are some tips for teaching children about responsible use of credit cards?
Help them under the difference between bad debt and good debt. For example, what you pay for your home mortgage is considered “good debt” because it allows you to build equity. By contrast, running up credit card bills on things that depreciate in value (such as clothes) or what you could easily afford with cash is “bad debt.”
Teach them the importance of having a rainy day fund to cover unexpected costs. Credit cards should only be used as a last resort when you don’t have the cash on hand to cover what you need.
Make sure they understand that if they use a credit card irresponsibly, it could damage their credit score and make it difficult for them to get approved for a loan in the future.
Credit scores and data points like age and credit history are used by lenders to determine how risky it is to lend money to someone. The lower your score, the higher the interest rate you will likely pay on a loan. So it’s important to keep your score as high as possible by using credit cards responsibly.
Start early! The sooner kids learn about responsible credit card use, the better. It can be a tricky subject to teach, but it’s worth it for your child’s financial future.
With a credit card, you have the power to make purchases and pay them off over time. You can earn rewards points or cashback on your purchases as well as build up a good credit history at an early age which could lead to lower interest rates when it's time for you to apply for other forms of financing such as mortgages, car loans, student loans, etc. The minimum age requirement varies from country to country around the world but in all cases, children need permission from their parents before they are able to get one. Parents should talk with their kids about responsible use of credit cards and how this will affect things like borrowing eligibility later in life. We recommend checking out Self Lender if you're 18yrs old and want to start building credit.