Credit cards can be great financial tools, but if you’re not an adult, you won’t be able to get one on your own just yet. Getting credit cards for teens is possible, but teens will likely need to be an authorized user before their 18th birthday.
Credit cards give you access to a revolving line of credit. With each swipe of the card, you’re borrowing money from the card issuer. You’ll have a maximum credit limit, which is how much you can borrow, and you can reuse that line of credit over and over again.
Credit cards offer flexible repayment options. When you use the credit card for a purchase, you can repay the entire balance, in moderate chunks or with minimum payments over a few months. However, balances that roll over to the next billing cycle are charged interest.
The best way to manage a credit card is to spend only what you can pay back quickly to avoid interest altogether. Credit cards have notoriously high interest rates, and credit card debt can quickly become a problem if left unchecked.
Yes, but your exact age matters. To get a traditional credit card on your own, you must be at least 18 years old. So, to be clear, minors can’t get a credit card on their own, but 18- and 19-year-old teenagers can.
However, teens aged 13, 14, 15, and so on, may become authorized users on an adult’s account if the bank allows it. An authorized user gets their own card, and both users access the same line of credit. Many banks allow teenagers to be added as authorized users on their credit cards, including Bank of America, Chase, Discover and Step.
The Step cards can be a great way for teenagers to build credit history and financial experience.
9.6 Excellent
| Minimum deposit required | N/A |
|---|---|
| Annual fee | $0 |
| Minimum credit score | New / limited credit |
| Minimum deposit required | N/A |
|---|---|
| Annual fee | $0 |
| Minimum credit score | New / limited credit |
Blue Cash Everyday® Card from American Express
Debit cards are not a line of credit, unlike credit cards. Debit cards are linked to a deposit account, typically a checking account. When you use the debit card, it “debits” money from that account, meaning you are spending your own funds, not borrowing from the bank.
Since debit cards don’t involve borrowing money, they’re typically considered a safer introduction to banking for teenagers than credit cards. Credit cards involve borrowing, interest and risk of credit score damage — features that debit cards won’t have at all.
There are plenty of debit cards for teens, including Greenlight, Chase First Banking and Current Teen Banking.
Similarly to credit cards, minors can’t typically get a debit card on their own. In most states, an adult is required to open a deposit account with the minor as a joint owner.
Consider these points carefully before you give your teenager a credit card under your name.
Even if you’re an adult, applying for a credit card may be tricky until you’re 21. There’s a minor stipulation for 18-, 19- and 20-year-olds. The Credit Card Accountability, Responsibility and Disclosure Act (CARD Act) requires that they provide proof of income to show their ability to repay the card’s payments, or have a cosigner who is at least 21 years old. Once they’re 21 years old, the co-signer requirement is lifted, though lenders are still required to ask for proof of income for anyone before approving a line of credit.
Getting your teen on the path to a credit card can be a great way to help them financially prepare for the future. However, before you make them an authorized user on an account, be sure they have proper financial supervision and understand how credit cards work.
There’s no legal age requirement for authorized users on credit cards, so financial institutions are free to set their own. If your bank allows it, you can add a 13-year-old as an authorized user on your existing credit card. Some banks, such as Bank of America, Chase and American Express, allow minors as young as 13 to be authorized users.
A 14-year-old can’t get their own credit card at Chase, but they can become an authorized user on an adult’s credit card. Chase accepts authorized users as young as 13.
Many parents add their children as authorized users on an existing credit card. However, to make sure they receive credit history, check the bank’s or credit union’s reporting practices. Learn more about building credit.
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