At what age can you have a credit card in the USA?

Before starting your management for a new credit card, it is recommended that you know At what age can you have a credit card in the USA? Below we explain what are the age ranges required by the issuers. In addition to what are the best credit card options for teenagers in this country.

Those under 18 years of age can only obtain a credit card through an adult account, while those between 18 and 21 years of age must meet specific requirements in order to obtain their own credit card. Those who can’t get a credit card have other options that offer conveniences similar to those of a credit card.

Young people under the age of 18 cannot get a credit card in their own name, but they can be added as authorized users on their parent’s or another adult’s credit card account. While many credit card companies allow authorized use at any age, others require authorized users to be a minimum age, typically 15 or 18 years old.

In most cases, the primary cardholder can add an authorized user by providing the user’s name and social security number to the credit card company. This process can be done online or over the phone.

At what age can you have a credit card in the USA?

As we have already mentioned before, those under 18 years of age cannot apply for a credit card independently in the United States. Legally, they are only allowed to be added as authorized users on an adult’s accountUsually one of their parents. In addition, there are certain provisions that depend on the card issuer chosen.

Then, as provided by the major US card issuers, details the age restrictions, if any, for adding an authorized user to a card. Provisions are also included to establish a spending limit for the user.

card issuer Minimum age Can you set a spending limit?
Citi Group None Just the “Costco Anywhere” card
chase None No
Bank of America None No
Capital one None No, but you can cancel the card at any time
American Express fifteen Yes
Synchrony 18 No
Wells Fargo None No
Barclay’s None No

Authorized users receive their own credit card with their name on it, but are not legally responsible for paying any debt charged to the card. That responsibility rests with the primary cardholder.

To minimize any possibility of misunderstandings or family problems, it is important that the main user and the secondary user agree on the way in which the credit card can be used, what can be purchased with it and how much can be loaded each month. To help strengthen these agreements, Some credit card issuers allow Primary cardholders set spending limits for authorized users.

A great benefit for authorized users is that credit card payment history will be included in their credit reports.. Most major card issuers report authorized user accounts to at least one of three major credit bureaus: experience, equifax Y TransUnion. That can help an authorized user build a good credit history, as long as the primary cardholder makes monthly payments on time and doesn’t overcharge.

Something important to know is that if the main user is late in payments, it harms the credit of the authorized or secondary user.

In those cases, an authorized user can call the credit card company using the phone number on the back of the card and request that it be withdrawn from the account.

Credit card options for 18-21 year olds

Young adults can receive a regular credit card on their own or with the help of a co-signer. They can also choose from three types of cards that are particularly suitable for first-time cardholders.

A regular card on your own

People between 18 and 21 years of age can have a credit card in their name in the USA if they have proof of individual income. This in accordance with the standards set forth in the Credit Card Accountability and Responsibility Act of 2009. In an effort to reduce credit card debt among youth, the law requires credit card companies ensure that young applicants have the means to pay their bills.

Most issuers require applicants ages 18-21 to indicate the amount of their salary on the credit card application. Wells Fargo goes one step further and requires additional documentation of income, such as deposit receipts, pay stubs or tax returns.

A normal card with a co-signer

Another way for adults between the ages of 18 and 21 to get a credit card is to have a co-signer, that is, another adult who is at least 21 years old.. The co-signer must have a good credit history to increase the chances of being approved.

Unlike an authorized user, both consignees are jointly responsible for payment and both can charge the card. Both must use the card responsibly because payment history is reported to each signer’s credit reports.

Even more than with authorized cards, consignees should agree on how to use the card. For example, about the purchases that can be made and about the amount that can be charged each month. This requires ongoing communication between the two parties.. To cancel a jointly-owned card, issuers typically require permission from both consignees.

Good options for a first credit card

There are three types of cards that are well suited to young people who are using them for the first time:

  • The secured credit cards they are good for those with little or no credit history. They require a security deposit to open the account.
  • The student credit cards for young adults with a limited credit history and income. They typically offer limited rewards and have higher interest rates, but there are no fees.
  • The retail credit cards They are also easier to obtain than a regular credit card. However, they tend to have lower credit limits and higher interest rates. Many of them cannot be used outside the issuing store.

Alternatives to credit cards for young people

If getting a credit card or being an authorized user aren’t viable options, there are two other types of cards available to young adults. Both have advantages similar to those of credit cards, but require funds to be deposited in advance. None of them help build a credit history.

Debit cards

Young adults can get a Visa or MasterCard branded debit card that can be used to make cash payments or to complete online transactions.

However, debit cards require a checking account, and most banks do not allow anyone under the age of 18 to open a checking account without an adult joint owner. Another consideration is fees. Checking accounts include various fees: monthly maintenance fee, overdraft or non-sufficient funds fees, out-of-network ATM fees, wire transfer fees, paper statement fee, and cashier’s check and money order fees. Fees typically range from $15 to $35.

Prepaid cards

Prepaid cards are easier to get than debit cards because there is no background check. But many prepaid cards require an adult over the age of 18 to obtain the prepaid debit card, and those between the ages of 13 and 18 can become registered users of the card.

Drawbacks of prepaid cards include limits on the amount of cash that can be loaded, withdrawal limits, and a lack of federal protection for deposits. Prepaid cards also include fees, but do not allow you to charge more than the amount deposited.

now that you know At what age can you have a credit card in the USA? and you know the alternatives that are available in this country, you will be able to carry out your request successfully.

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