Obtaining a credit card at 18 can be quite frustrating since banks may view you as a danger if you don't have a long credit history. It's not impossible, though, and you may start your financial adventure off right by signing up as an authorized user or applying for a secured credit card. Your good credit, which you've been building since you were 18 years old, will eventually get you your excellent credit history. So if you want to know more about how to get a credit card at 18 and the best ways to establish credit at 18, keep reading!
Can I Apply For a Credit Card at 18?
Yes, you can apply for a credit card at 18. The minimum legal age to apply for a credit card is 18. However, the majority of credit card issuers will ask you to present proof of income in order to demonstrate your ability to independently pay your payments if you are under 21 and have a poor credit history or no credit history at all.
Why Should I get a Credit Card at 18?
You should get a credit card at 18 because it will improve your credit history. The amount of time you've had credit accounts in your name is one of the most crucial aspects in building good credit (after making on-time payments and maintaining a low total debt load). Lenders in the future want to know that you can maintain good credit for a long time.
In fact, according to recent data, Baby Boomers or Gen Z make up the majority (83%) of those with a flawless 850 credit score. Studies reveal that the oldest credit card account is 34 years and 10 months old, and the average age of his credit card accounts is 10 years and 11 months.
How Does getting a Credit Card at 18 Help in Credit Building?
There are numerous benefits of having a high credit score. Here are the most common ones:
- The lowest rates on loans and credit cards will be available to you.
- It may also affect how much your auto and home insurance will cost.
- The top rewards credit cards can be available to you if your credit score is excellent.
- And most interestingly, if your employer asks to see your credit report, having a strong credit history enhances the likelihood that you'll receive that job or promotion if you have performed well in all rounds including interviews.
To avoid being credit invisible(having no credit history at all), opening a credit card is essential. You lack a track record demonstrating your capacity to borrow money if your credit is invisible. According to the Consumer Financial Protection Bureau, about 26 million Americans, or about one in ten adults, are credit invisible.
Best Ways to Get a Credit Card at 18
Here is a list of the best ways of getting a credit card at 18:
- Apply For Secured Credit Card
- Become a Registered User
- Get a Student Credit Card
- Find a Co-Signer
Let’s get into the details of different ways of getting a credit card at 18!
- Apply For Secured Credit Card
When a cosigner is not available, one of the best ways to establish credit at 18 is to get a secured credit card. The issuer will require applicants to pay a security deposit (often at least $500), which serves as the card's credit limit. Similar to a traditional credit card, a secured card allows the cardholder to make purchases up to the credit limit but requires that the balance be paid in full each month. The security deposit will be reimbursed if the cardholder closes the account and settles the total debt (including interest and fees).
- Become a Registered User
One of the best ways to establish credit at 18 is to obtain a credit card quickly without having to complete a drawn-out application to become an authorized user. A credit card with the authorized user's name on it is frequently issued to the authorized user. Request the addition of yourself as an authorized user from a parent, guardian, friend, or another family member who feels comfortable doing so. Adding authorized users may incur a minor fee from some card issuers.
Keep in mind that both cards must be paid off by the principal cardholder. To prevent overspending and late payments, make sure to create a spending and payment plan with the principal cardholder. Before assuming the risk, be sure the card issuer discloses permitted user activity to credit bureaus. Keep in mind that for young credit card users at 18, building credit for better cards is a key objective.
- Get a Student Credit Card
Students between the ages of 18 and 22 who typically have little to no credit history are the target audience for student credit cards. For college students looking to obtain their first credit card, Zolve Azpire Credit Builder Card is a reliable choice.
This card offers cash back on everyday purchases at different locations each quarter like Amazon.com, grocery stores, restaurants, gas stations, and when paying with PayPal, up to the quarterly maximum once activated, and 0% intro APR on purchases for 6 months. Additionally, there is no yearly charge and you can automatically get timely cashbacks.
- Find a Co-Signer
To be approved for a credit card, applicants between the ages of 18 and 20 must have either a cosigner—such as a parent, guardian, or other family member—or documentation of their employment or income. This information establishes the new cardholder's credit limit and assures the issuer that they will be able to make on-time payments on their debts.
Verify that the cosigner has a solid credit history and a good possibility of being accepted. Keep in mind that a cosigner is equally liable, both legally and financially, for any card's outstanding balance. Both the cardholder and the cosigner's credit scores will suffer if the cardholder goes into debt. Therefore, both parties must exercise restraint and refrain from overspending. Cosigners are not permitted on credit cards by all institutions.
Which are the top Credit Builder Cards to get at 18?
The ideal first credit card for you will be determined by a variety of elements, such as whether you are just beginning your credit journey or already have some credit history, as well as characteristics like your willingness to pay an annual fee and your work position. These are some of the best credit builder cards to get at 18:
- Zolve Azpire Credit Builder Card
- Petal® 1 “No Annual Fee” Visa® Credit Card
- Tomo Credit Card
- Avant Credit Card
- Capital One Quicksilver Secured Cash Rewards Credit Card
Getting your first credit card can be very liberating, but remember that with power comes responsibility. First-time users should exercise particular caution while using their credit cards to make purchases. Purchases that cannot be made in cash should not be made. Every month, pay off the entire debt to avoid incurring interest, pay your bills on time to avoid late fees and safeguard your credit history. By using convenient and best credit cards like Zolve Azpire Credit Builder Card responsibly, you can prevent yourself from extra annual charges and get benefit from excited cashbacks.
Frequently Asked Questions(FAQs)
What is the best way to build credit at 18?
The best way to build credit at 18 is to get a good credit builder card that reports to credit bureaus, this process will help you in building your good credit history.
How to get a credit card when you turn 18?
After turning 18, you can apply for credit with proof that you have the ability to pay. You can opt for a credit builder credit card or a secured credit card.
Can you get a credit card at 18?
Yes, as per law anyone with age 18 and beyond is eligible to get a credit card. Although, it's hard to get a credit card at 18 because credit card companies ask for proof of your independent income.
How to apply for a credit card at 18?
You can apply for a credit card at 18 by filling out an online application form easily with basic important documents like age proof, income proof, etc.
Can you have a credit card under 18?
In the U.S., the minimum age to apply for a credit card is 18, however, depending on the card issuer, parents may choose to add teenagers under the age of 18 as authorized users. According to the Credit Card Act of 2009, 18 to 20-year-olds must have a cosigner or provide proof of their income or regular allowances in order for their application for their first credit card to be accepted.
