To be able to apply for a credit card, you’ll need to be at least 18 years old. However, even if you meet this age requirement, your eligibility will be considered on a case-by-case basis, with providers looking at your credit report and income to determine whether or not they are happy to offer you credit. If you’re under 21 and seeking credit, our experts have compiled a guide of options and tips.
If you’re under the age of 21, it’s unlikely you’ll have borrowed before and you will have a limited credit history as a result. This means lenders won’t be able to see whether you’re good at managing and repaying credit and they may be more reluctant to offer you a credit card. Similarly, you might not be earning a regular income yet, which means lenders might have further concerns about your ability to repay your debt.
If you want to know more about your credit score, it’s free and easy to access your credit score and report online with a number of companies, including Finder.
Although it’s harder to get a credit card if you’re under the age of 21, it’s not impossible. Before applying, there are a number of steps that are worth carrying out to build your credit score and increase your chances of success. We explain more below.
One of the first steps you should take is to get visibility of your credit record through a free online service. Your credit record is essentially your financial history and will indicate to lenders how reliable you are as a borrower. Whenever you apply to open a credit card or store card or take out a loan or mortgage, the bank or provider will check your credit report to determine if you’re a good candidate to lend money to.
If you’ve never borrowed before, your credit score is likely to be low. This will also be the case for someone who has borrowed in the past but has missed repayments or defaulted on their debt.
By checking your credit report yourself, you’ll be able to see where your credit score sits and how likely you are to be accepted for a credit card. If your credit score is low, don’t panic, there are steps you can take to improve it. These include correcting any mistakes on your report and making sure you’re registered on the electoral roll.
It’s also sensible to open a bank account if you don’t already have one and see whether you can get an overdraft. Managing this responsibly will help you to build credit, as will paying any bills, including your mobile phone contract, on time each month.
When choosing your first credit card, you’ll need to consider what you are planning to use your credit card for. Are you planning to use it to help spread the cost of your purchases? Are you looking to earn rewards? Will you be using your card overseas? Once you’ve decided, you’ll need to compare credit cards and look at:
Before you make an application in full, you should always use an “eligibility checker”. Most banks or card providers now use free eligibility checkers which will give you an indication of how likely you are to get accepted for a particular credit card.
Because they use a “soft search”, this won’t leave a mark on your credit file for other lenders to see and it won’t impact your credit score. This means you’ve got nothing to lose by using one. You’ll simply get a better idea of the cards you are likely to get accepted for.
In comparison, if you apply for a credit card without using an eligibility checker, a “hard search” will be carried out and this can affect your credit history.
Comparison sites can check your eligibility with multiple card issuers in one go, saving you a lot of hassle.
Check eligibility for a range of cardsThe best credit card to get at 18 is simply the cheapest credit card you can get accepted for. If you can get accepted for a credit card with a low-interest rate or even one that offers an interest-free period for a number of months, this is likely to be the best credit card for you.
Unfortunately, you’re unlikely to get accepted for these cards if you have little to no credit history. So one option that’s definitely worth looking at is a credit builder credit card. These are designed for those looking to improve their credit score over time.
Generally, these types of cards have a low credit limit and a high interest rate so you’ll need to pay off your bill in full every month. Your provider will regularly monitor your payment history and your credit limit may be raised over time if you prove you’re a responsible cardholder.
These cards rarely have many benefits or extras, but could pave the way for you to progress to a mainstream or low-rate credit card in the future if your credit score improves.
Full guide to credit building cards
Alternatively, if you’re in further education, you could consider a student credit card. These are credit cards for young adults in part-time or full-time education who are unlikely to have a sizable credit history. However, they will often require you to have a student bank account with the same provider.
All you need to know about student credit cards
Some of the best student credit cards can be found below:
Before you apply for a credit card, you need to think about exactly what you plan to use it for and be sure that you only ever spend what you can afford to pay back.
If you have yet to build up a credit history, you’ll most likely have to apply for a credit card with a high interest rate and low credit limit. It’s crucial that you stay within this credit limit and aim to pay off your balance in full each and every month. Do this and you could see an improvement in your credit score within 6 to 12 months.
Bear in mind that if you’re late with a monthly repayment or you miss it completely, you will be charged a fee and this could have a negative impact on your credit rating. You must pay off at least the minimum monthly amount each month, ideally more.
Beginner’s guide to credit cards
| Response | % of responses |
|---|---|
| PayPal Credit | 7.94% |
| PayPal | 7.94% |
| Other | 15.89% |
| Debit card | 35.98% |
| Credit card | 21.96% |
| Buy now, pay later (e.g. Klarna & Clearpay) | 10.28% |
The best age to get a credit card is when you fully understand how they work and can use one responsibly. This means only ever spending what you can afford to pay back, and doing your best to pay off your balance in full each month to avoid building up debt.
Building up a credit score sensibly and carefully over time can stand you in good stead later on in life when you apply for additional credit products including a mortgage.
This will depend on whether you’ve been able to build up a credit history. If you haven’t, you might still be looking at credit builder cards or student credit cards. But if your credit rating has started to improve, perhaps because you’ve used an overdraft responsibly, and you also have a regular source of income because you now have a job, you might qualify for a credit card that offers 0% on purchases for a set time or even rewards such as cashback.
You can check your eligibility for a selection of cards using a comparison site. This won’t impact your credit score and can save you time and hassle.
If you don’t qualify for a mainstream credit card, you might get offered a credit builder credit card, or could apply for a student credit card if you’re in further education (this would be from the same bank that provides your student current account).
If you want to build up a credit history and improve your credit score, there are several steps you can take:
Alternatively, some prepaid cards can also help you to build your credit score. The big advantage of prepaid cards is that no credit checks are carried out, making them easier to get accepted for. If you choose a credit builder service on your prepaid card, the provider will effectively lend you a year’s worth of monthly fees for you to repay over 12 months. If you do this on time, your credit score will go up.
Another option is to use a credit building service such as LOQBOX or Pave. With LOQBOX, you set up a direct debit to save a regular amount each month. These are then treated as finance repayments which are reported to a credit reference agency.
Similarly, Pave is a personal finance management app that connects your bank accounts and, for a monthly fee, works with you to improve your credit score.
CreditLadder is a tool that can help you show your timely rent payments in your credit file.
Top 10 ways to improve your credit score
LOQBOX offers a cost-free 12-month savings plan designed to improve your credit so that you can get approved for more products and lower rates.
If you do qualify for a credit card, it’s crucial that you use it sensibly to ensure your credit score improves over time. To do this, follow the tips below:
If you’re under 18, you won’t be able to get a credit card. By law, anyone under the age of 18 cannot enter into their own credit agreement.
As an under 18 year old, your two options are:
Credit card options for teens under 18 years old
Boasting fee-free spending overseas and few fees, the Zable Credit Card (formerly known as the Level Credit Card) is refreshingly simple if you’re willing to set up a CPA.
Bip promises a “new kind of credit”, offering accessible credit without the need for a card.
All credit cards benefit your credit history when you use them correctly, but these picks aim to support you on your journey to better credit.
Find out how much you need to earn each year to apply for a credit card and compare low income options here.
Enjoy one rate on all your transactions with this credit builder issued by Capital One.
thinkmoney’s card for bad credit, issued by Capital One, has one interest rate for all transactions.
Learn how the Marbles’ credit-builder card compares with other popular cards for rates, credit limits, eligibility criteria and more.
Get to grips with 118 118 Money’s zero-free credit card for those with a less-than-perfect credit history.
If you’re looking for a credit card but have a bad credit rating, use this guide to compare alternatives to credit cards and regain control over your finances.
