Can Minors Have Credit Cards and What Parents Need to Know

Having a credit card can be a valuable tool for minors, but it's essential for parents to understand the implications and responsibilities that come with it.

In the US, minors can apply for credit cards, but it's often tied to their parent's credit history and account. This means that if a minor has a credit card, their parent's credit score will likely be affected if the minor doesn't make payments.

Some credit card companies offer credit cards specifically designed for minors, which can help teach them financial responsibility and management skills. However, these cards often come with restrictions, such as lower credit limits and limited features.

Parents need to carefully consider whether a credit card is right for their child and what kind of card would be most beneficial for them.

Some credit card issuers set a minimum age for authorized user credit cards, while others do not. We've got the details on who's eligible and who's not.

American Express requires authorized users to be at least 13 years old. Barclays also has a minimum age requirement of 13 years old. U.S. Bank sets the bar at 13 years old as well. On the other hand, Bank of America, Capital One, Chase, and Wells Fargo do not have a minimum age requirement for authorized users.

Discover, however, requires authorized users to be at least 15 years old.

The minimum age to apply for a personal credit card is 18, but even then, most young adults need a cosigner unless they have regular income to cover payments.

You can help your child build credit earlier by making them an authorized user of your card, but only if you're confident they appreciate the accountability associated with using a credit card.

The legal age to apply for a credit card is 18, and most credit card companies have their own minimum age requirements for adding an authorized user.

American Express sets a minimum age of 13 years old for authorized users on their credit cards.

Bank of America, Capital One, Chase, and Wells Fargo have no minimum age requirement for authorized users.

Discover requires authorized users to be at least 15 years old.

Some credit card issuers, like Bank of America, Capital One, Chase, and Wells Fargo, don't have a minimum age requirement for authorized users, which means you can add a minor to your account if you'd like.

In contrast, American Express, Barclays, Discover, and U.S. Bank require authorized users to be at least 13 years old, or 15 years old in the case of Discover.

Here's a quick rundown of the minimum age requirements for some popular credit card issuers:

To get a credit card under their own name, your teen has to be at least 18 years old. This is a hard and fast rule, so make sure your teen meets this requirement before applying for a credit card.

If your teen is under 18, their only option is becoming an authorized user on one of your accounts. This means you'll need to check with your creditor to see if they have an age limit for underage authorized users.

Even if your teen is over 18, they will still need proof of income to qualify for most credit cards. This can come from a job, scholarships, or other methods.

To get a credit card, your teen needs to meet certain requirements. They must be at least 18 years old to get a credit card in their own name.

If your teen is under 18, they can become an authorized user on one of your accounts, but some creditors have an age limit for underage authorized users, so be sure to check with your creditor.

In addition, if your teen is under 21, they will need proof of income to qualify for most credit cards, which can come from a job, scholarships, or other methods.

Here are the steps to follow to get a credit card for your teen:

Remember to teach your teen the importance of paying off the balance in full before the grace period expires and to always read and understand the terms of their card.

Getting a credit card can be a big responsibility, but with the right guidance, your teen can learn valuable lessons about managing money and credit. To get started, your teen has to be at least 18 years old to get a credit card under their own name.

If your teen is under 18, they can become an authorized user on one of your accounts, but check with your creditor first to see if this is an option. Some creditors have an age limit for underage authorized users, so it's essential to check ahead of time.

Even if your teen is over 18, they may still need proof of income to qualify for most credit cards. This can come from a job, scholarships, or other methods, so encourage your teen to explore their options.

To help your teen learn about money management, consider opening a checking account. This will give you monitoring power over the account and allow your teen to practice balancing their budget and tracking spending.

Here are some key banking terms to teach your teen:

Once your teen has mastered the basics of keeping track of money in the bank, you can consider introducing a credit card.

It's essential to teach kids about credit card usage and creditworthiness as part of their financial education. Having a credit card of their own can help children learn that their actions have consequences.

Discussing credit card usage with your child can help them understand the importance of making on-time payments and keeping a low credit utilization rate. This can be done by setting limits on how much an authorized user can spend.

No child should get a credit card without oversight, especially when they're first learning how to use it. Giving your child a credit card can provide plenty of potential benefits, including teaching them good credit habits.

Teenagers can learn valuable lessons about credit card usage and financial responsibility with a credit card. These lessons can be taught by setting limits on how much an authorized user can spend and stressing the importance of making on-time payments.

Having a credit card can help children understand that their actions have consequences, such as repaying what they owe over time. This can help them develop positive financial habits.

It's essential to teach your teen good credit habits, such as making on-time payments and keeping a low credit utilization rate. This can help them build their credit now and handle credit responsibly throughout their lives.

Adding your child as an authorized user on your credit card can be a great way to help them build credit without the full responsibility of managing the account.

Most credit card issuers allow cardholders to add their teens as authorized users, and some even allow it before they enter high school. In fact, 17% of children aged 8 to 14 had a credit card, according to a 2019 survey by T. Rowe Price.

By being an authorized user, your child can benefit from your positive credit history and start building their own credit profile. This can be especially helpful when they turn 18 and apply for a credit card in their own name.

To avoid giving your teen access to your full credit limit, consider applying for a new credit card with a low limit and making them an authorized user on that card instead.

Secured and student credit cards can be a good option for teens who aren't enrolled in college. Secured credit cards require a security deposit, often equal to the card's credit limit, which can be provided by you or your teen.

Secured credit cards can help your teen build credit, but make sure the credit issuer reports card activity to all three major credit bureaus. This is crucial for credit score building.

After a certain number of on-time payments, the card issuer may upgrade your teen's secured card to a partial or fully unsecured version.

Secured credit cards can be a good option if your teen isn't enrolled as a college student. They require a security deposit as collateral, which is often the card's credit limit.

You or your teen will need to put up this deposit. This deposit serves as the card's credit limit.

Secured credit cards can help your teen build credit, just like unsecured credit cards. But make sure the credit issuer reports card activity to all three major credit bureaus.

After a certain number of on-time payments, the card issuer may automatically upgrade your teen's secured card to a partial or fully unsecured version of the card.

The Discover It Student Chrome is a great option for students who want to earn cash back on their purchases. It offers 2% cash back on gas station and restaurant purchases, up to $1,000 in combined purchases each quarter, and 1% cash back on all other purchases.

One of the best features of this card is the Cashback Match program, which doubles the cash back you earn in the first year. This means that if you earn $100 in cash back, Discover will match it, giving you a total of $200.

The Discover It Student Chrome also has no annual fee, which is a big plus for students on a budget. And, you don't need a credit score to apply, as long as you're a student.

Here are some key benefits of the Discover It Student Chrome:

Giving your child a credit card can provide plenty of potential benefits worth considering. This includes teaching them financial responsibility and how to manage debt.

No child should get a credit card without oversight, especially when they’re first learning how to use it. This oversight is crucial to ensure they use it responsibly.

It's also worth noting that giving your child a credit card can be an opportunity to instill good financial habits from a young age.

Giving your child a credit card can be a valuable learning experience, teaching them the cost of credit and how to use it wisely. This can help them develop good financial habits early on.

Credit card companies have designed credit cards specifically for teenagers, allowing them to learn about the credit system. This is a deliberate strategy by credit card companies to lure in young customers.

With a credit card, you can teach your kid valuable lessons about money management, responsibility, and the impact of credit on their future financial situations. This can be a great way to prepare them for independent living.

Teenagers who work and spend their own money are the target market for credit card companies, which is why it's essential for parents to help them understand the risks and benefits of credit.

Giving your child a credit card can be a double-edged sword. You'll have to deal with any problems that arise when your child or teenager has their own credit card, such as a kid running up a huge balance on something frivolous.

You'll also have to worry about your child spending too much out with friends, or charging a bunch of non-refundable online purchases to your card.