Getting a Credit Card Under 21: Income Rules and Your Options

Independent guide - not affiliated with or endorsed by any card issuer, bank, card network or credit bureau. For your own account, contact your issuer through its official website, app or the number printed on your card.

You can get a credit card at 18 in the United States, but if you are under 21 the issuer must see that you have an independent ability to make the minimum payments, or you need a cosigner, guarantor or joint applicant who is at least 21. This rule comes from the Credit CARD Act of 2009 and is set out in Regulation Z, 12 CFR 1026.51(b).

What the under-21 rule says

For a consumer under 21, a card issuer may open a credit card account only with a written application and either:

• financial information showing that you have an independent ability to make the required minimum periodic payments, or
• a signed agreement of a cosigner, guarantor or joint applicant who is at least 21, with financial information showing that person can make the payments.

"Written application" includes online applications. The point of the rule is that a young applicant's card should be based on money they can actually rely on, not just on household income they cannot access.

What counts as independent income

Issuers ask for your income on the application and decide how to evaluate it under their own policies and the regulation. Income that is generally yours to use, such as wages from a job, regular earnings from self-employment, or money you receive and control, is the kind of income applicants under 21 list. Be accurate: overstating income on a credit application can be treated as fraud. If you have little or no income, the options below are more realistic.

Option 1: become an authorized user

A parent or another adult can add you as an authorized user on their card. You get a card in your name, but they remain responsible for the bill. If the issuer reports authorized users to the credit bureaus, the account's history can help you start a credit file. Agree on spending rules up front, and see our guide to authorized user credit cards.

Option 2: a cosigner or joint applicant

The rule allows a cosigner, guarantor or joint applicant aged 21 or over. Fewer issuers offer cosigned cards than in the past, so check before applying. A cosigner is fully liable for the debt, and late payments can affect both of you.

Option 3: a student or secured card in your own name

If you have some independent income, a student card or a secured card can be a good first step. A secured card asks for a refundable deposit, which often becomes your credit limit. Compare options in best credit cards for students and best first credit card.

Credit limit increases before 21

The rule continues after you open the card. If you opened the account on your own income, the issuer may not raise your limit before you turn 21 unless you then have an independent ability to make the minimum payments on the higher limit, or a cosigner, guarantor or joint applicant aged 21 or over agrees in writing to assume liability. If a cosigner was used to open the account, that person must agree in writing to take on liability for the increase.

Building good habits from the start

1. Pay the full statement balance every month to avoid interest; see how the grace period works.
2. Keep balances low compared with your limit.
3. Set up autopay for at least the minimum so you never miss a due date.
4. Check your credit report once a year; our guide on how to check your credit report shows how.

For the bigger picture, read how to build credit from scratch.

Common mistakes young applicants make

• Applying for several cards at once. Each application usually means a hard inquiry, and several in a short time can make a thin credit file look riskier. Apply for one suitable card and wait.
• Listing household income you do not control. For applicants under 21, the question is your independent ability to pay. List your own income accurately.
• Treating the limit as spending money. A first card is a tool for building a payment record. Small, regular purchases paid off in full work best.
• Ignoring the due date. One payment 30 days late can stay on your credit report for years. Autopay for at least the minimum removes that risk.
• Choosing a card for the rewards alone. No annual fee and simple terms matter more for a first card than points.

What to bring to the application

Have your Social Security number or, where the issuer accepts it, an ITIN, your address, your income and its source, and your monthly housing payment if you have one. Students without a Social Security number should read student cards without an SSN. If you are declined, the issuer must tell you the reasons or how to request them, which helps you decide what to improve before applying again. Our guide to applying for a credit card and getting approved covers the process step by step.

Sources

• eCFR: 12 CFR 1026.51 (ability to pay, consumers under 21)