A credit card is often considered the first and most important step in building credit history. Americans over 21 have a better chance of getting credit cards with decent rewards offers if they have a good credit history. Depending on the card issuer, parents can sign up teens younger than 18 to be authorised users.
In the United States, 18-year-olds are allowed to apply for a credit card. However, parents may allow their children to be authorized users if they’re younger than 18. Credit CARD Act of 2009. 18-20 year olds must have a cosigner, or show proof of regular income to be approved for a credit card.
While a credit card may seem empowering, remember that power also comes with responsibility. Cardholders who are first-time should exercise caution when purchasing with a creditcard. Do not buy anything that cannot be paid in cash. To avoid interest, pay the full balance each month. To avoid late fees and protect your credit history, pay the bill on-time every month. Responsible use of credit cards will help you avoid paying fees for their convenience and security.
How to get a credit card if you’re between 18 and 20 years old
This age group may include college students, trade school graduates, or people who are already earning a living. A credit card is useful for everyday purchases as well as earning cash back. These cards are easier to approve for than those with poor credit histories.
Secured Credit Cards
When a cosigner is not available, secured credit cards can be a great option. The security deposit, which is usually at least $500, must be paid to the issuer. This will increase the card’s credit limit. The secured card functions in the same way as regular credit cards. Cardholders can use the card to make purchases up until the credit limit, and must repay the balance each month. The security deposit will be returned to the cardholder once the balance is paid off, including interest and any fees.
Register to become an Authorized User
It is easy to become an authorized user and get a credit card fast without filling out lengthy applications. An authorized user usually gets a credit card with their name on it. Ask your family member, friend, parent or guardian to add you to their account. Some card issuers may charge a fee for adding authorized users.
The primary cardholder is responsible to pay off both cards. To avoid overspending or late payments, make sure you have a spending plan and payment plan in place with your primary cardholder. Before you take on the risk, ensure that the card issuer reports any authorized user activity to credit bureaus. Remember, young card users are trying to build credit towards better cards.
Get a student credit card
Students aged 18-22 years old have little credit history and student credit cards are specifically designed for them. For college students who are looking for a credit card, Discover it(r), Student Cash Back is a good option. The card comes with a 0% intro APR for purchases for six months. After that, the standard variable purchase rate of 13.24% – 22.24% applies. You will also get 5% cashback on your everyday purchases at various places every quarter, such as Amazon.com, grocery shops, restaurants, gas stations, and when you use PayPal. This is up to the quarterly maximum once you activate. You also get unlimited 1% cashback on all purchases, and a $0 annual fee.
Find a cosigner
For credit cards to be approved, applicants aged 18-20 must provide proof of income or a cosigner (like a parent or guardian). This information is used to guarantee that the cardholder can pay their bills on-time and to determine the credit limit for the new cardholder.
Cosigners should have a clean credit record and a high chance of approval. Cosigners have equal legal and financial responsibility for paying off any balance on any card. Cardholders who fall into debt will have a negative impact on their credit scores. Both the cosigner and the cardholder will be affected. Therefore, both sides need to be responsible and refrain from overspending. Some banks do not allow cosigners for credit cards.
How to get a credit card if you are at least 21 years old
Prospective cardholders over 21 years of age can apply for credit cards on their own, regardless of their income. Older applicants also have more options for credit cards, particularly if they are able to apply on their own. Although cosigners are not required, they can be helpful if an applicant has low credit scores or wishes to have a high-end card that offers additional benefits, perks, and rewards potential.
The best credit cards offer the highest rewards. Look for cards that have no annual fees and offer generous cash back rewards like Chase Freedom Unlimited(r). Chase offers 1.5% in points you can redeem for travel or cash.