Can You Get a Credit Card at 16?

There are several credit cards you can get if you are a high school student and you are at least 18 years old. But until you are 21 years old, you need to either have a proof of steady income that demonstrates your ability to pay back the debt, or have a co-signer who is at least 21 years old on the application. For the latter, the co-signer agrees to assume responsibility for your account, meaning they’re liable for any of your unpaid debt.… read full answer

These requirements are mandated under the Credit Card Act of 2009. Its intent is to prevent teenagers and young adults from running up credit card debts they can’t pay back. So, if you’re under 21 and have the income or a co-signer, you have a number of credit card options to help you begin building credit.

As student credit cards are limited to those enrolled in college, you can choose a traditional credit card designed for people with limited credit. An alternative would be a secured credit card. They’re easier to get than unsecured credit cards, and typically don’t come with any fees. But you will have to put down a security deposit to open the account. The amount of the deposit determines your credit limit and is fully refundable when you close the account in good standing.

Here are some good high school credit cards:

• Capital One QuicksilverOne Cash Rewards Credit Card: 1.5% cash back on all purchases. $39 annual fee.
• Bank of America® Customized Cash Rewards Credit Card for Students: 1 - 3% cash back, depending on the type of purchase. $0 annual fee.
• Capital One Platinum Credit Card: Eligible for increased credit limit when you pay your bill on time for the first 6 months. $0 annual fee.
• Citi® Secured Mastercard®: Minimum $200 deposit required. $0 annual fee.

If you still don’t have an income or a co-signer, you can sign on to another person’s existing credit card account as an authorized user. You’ll receive a card with your name that’s linked to the primary cardholder. You’ll be able to use the primary cardholder’s good credit history to help build your own. The drawback is, if the primary cardholder’s credit score takes a dive, yours will also take a negative hit.

The simple answer is that you can’t get a credit card under 18. The more complicated answer is that you can still build credit, just not with an account that’s in your own name. You’ll have to ask a family member to be an authorized user on their credit card account. This will allow you to make purchases, assuming the primary accountholder decides to give you a card. And it will help you … read full answerbuild credit, as long as they pay the bills on time.

Here’s how to get a credit card under 18 (and other options):

• Become an authorized user: If you know someone else who has a credit card (like your parent) you can become an authorized user on their credit account. You’ll get your own card that’s connected to the cardholder’s account, and any purchases you make will show up on their statement. The cardholder is also responsible for paying. This is a great way to build credit, although you won’t build it as quickly as you would with your own card.
• Take out a loan. Credit-builder loans are sometimes available to people under 18 who have a cosigner (someone with established credit who takes responsibility if you default). But it will be more difficult than getting a loan at age 18.
• Just use debit. You can’t build credit with debit cards, but they can make everyday spending more convenient. And there’s no need to worry about going into debt because you’ll be spending the money from your checking account, not borrowing anything.

You’ll definitely need to wait until you’re 18 to get a credit card account in your own name. But being an authorized user is still a very useful way to build credit and practice using a credit card responsibly. Then, once you turn 18, you’ll already have some credit history and may be eligible for better offers right off the bat. And you can track your progress with WalletHub’s free daily credit score updates.