Underage credit cards are a real thing. They’re not as common as they used to be, but if you ask nicely and play by the rules, you can get a credit card when you’re under 18 years old. But, credit cards come with credit card fees.
Nearly every credit card on the market (except for a few secured cards) requires applicants to be at least 18 years of age. It means teens can wait until they turn 18 and apply for a credit card, or they can get their prepaid debit card.
- You may wonder if you can get a credit card as an authorized user. The short answer is yes. But it’s important to understand what being an authorized user means:
- As an authorized user, you won’t have your own credit card. Instead, the account owner will add you to their account and let you use it as if it were yours for purchases.
- For this arrangement to work, the account owner must have good credit and make all payments on time so that creditors don’t report any late payments or other negative information about him back onto your credit report. If he fails to do this consistently over time, then his bad behavior could negatively impact both of your scores — even though either of you did not actually cause it!
- If you’re under 18, your credit card issuer may charge you a fee for having an underage card.
- The fees can be as high as $75 or more per year.
- Fees are usually charged monthly or annually, not on a per-transaction basis.
Financial planners like SoFi say, “The typical fee for credit card processing in 2022 is 1.40% to 4.35% for transactions.”
One of the best ways to start building a credit history is by using credit cards before turning 18. You can use this card and have it sent to your parent’s house, or you can have them activate a prepaid debit card with money on it and then use that.
This way, there’s no risk in case someone steals your information because they won’t be able to access any actual funds. Credit cards are also an excellent way of learning how to manage money as well as shop around for whatever you need or want without having to worry about saving up for something first.
If you’re asking whether getting a credit card is possible if you’re under 18, the answer is yes. While most cards require applicants to be at least 18 years old, some exceptions exist. For example, you can become an authorized user on someone else’s credit card account or apply for a prepaid debit card.
The key thing to remember is that these options aren’t as safe as traditional credit cards and often come with high costs and fees that could affect your ability to build good financial habits early on in life—so it may not be worth the hassle!