How old do you have to be to get a credit card?

3 min. read

Published Aug 27, 2024

Getting a credit card is an important step in learning to manage your finances, and for teens, it’s one that comes with a few pitfalls and several advantages. As kids can't open their own credit card account until they turn 18 and will need to prove independent income until they're 21, adding your child to your credit card account can help foster an understanding of credit, finances and debt that will prepare them for adult life. That said, having a credit card is a big responsibility, so here’s what you need to know.

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At what age can you get a credit card?

You need to be 18 to apply for a credit card. Most credit card providers also require you to be in employment and earn a minimum amount (this varies from provider to provider).

Understand the difference between a credit card and a debit card

What's important for kids to understand before even considering getting a credit card is that while a debit card essentially represents the cash a person owns, a credit card is borrowed money. It’s effectively a loan from the bank or credit card company that must be paid back within a certain time.

Is there any way to access a credit card when you're younger than 18?

The only way to get a credit card under 18 years of age is to be added as an authorised or second card user on a parent account. If your child is added this way, they will be issued with a card, but you will be responsible for what they spend, all fees, and making sure that the account is paid on time.

Getting added as an authorised user

If you want to add your child to your credit card account, you need to contact your provider for details. Aside from having access to credit, the benefit of becoming an authorised user is that it creates the opportunity for your child to learn about managing a credit card account and responsible spending and borrowing.

Adding your child as an authorised user on your credit card may not help them establish a credit history. This is because many banks and providers (but not all of them) will not report authorised users under 18 to the major credit bureaus, but it’s always worth checking with your own provider. If they do, there are potential drawbacks for both of you. A badly run credit card account will affect your child’s credit score, and if your child doesn’t use your account responsibly, it will affect your credit score.

When should my kids get a credit card?

Deciding at what age your teen should get a credit card will depend on them and their circumstances. For example:

They know how to stick to a budget. Knowing how to budget should always come before borrowing. This is because a credit card can feel like "free" money, even though it’s a loan. Meaning if you spend too much, you will get into debt, that's why it's important to know how to stick to a budget before applying for a card.
They can afford to pay the money back. Credit cards are borrowed money, so they need to make sure to pay back all the money they borrow. If they miss payments, they’ll likely have to pay late-payment charges. Setting up a direct debit can help them keep on top of their credit card payments each month.
They earn a regular income. They are less likely to qualify for a credit card if they can't show that they can pay it back. A regular income paid into their bank account will demonstrate that they can afford their repayments. They must earn enough to meet the minimum payments at least.
Are they registered to vote? Registering to vote is one of the easiest ways to boost a person’s credit score and makes it more likely that they will be accepted for a credit card.

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How can I help my child build their credit?

Adding your child as an authorised user on your credit card can offer some benefits, but it won’t help them develop a credit history (see above).

However, it will teach them crucial money management lessons that will help when they start building their credit history. Talk to your kids about credit reports and ratings, encourage good savings habits that will limit their reliance on credit and introduce your child to how borrowing and interest work.

What are the benefits of a child having a credit card under 18

While there can be some advantages to a child having a credit card under 18, it's important to note that this is a complex decision, and it's crucial to weigh giving a child a card against the risks. Potential advantages are:

Financial education: Having a credit card can serve as a tool for teaching financial responsibility. It provides an opportunity to educate a child about budgeting, spending wisely, and understanding credit.
Emergency situations: A credit card can be useful in emergencies when immediate funds are needed.
Convenience for online buys: A credit card can be convenient for making online purchases.
Parental Oversight: You can use credit cards with spending limits and monitor your child's transactions closely. This allows you to track spending, set limits, and provide guidance on responsible financial habits.

How can I teach my child about credit before they get a credit card?

When it comes to teaching your child about credit, the most important aspect to explain to your child is that credit is not free money. Not only does it have to be paid back, but you will pay back more than you borrow (this is known as interest). What’s more, there are fees, such as the annual fee charged for having the card, and late payment fees when you forget to pay.

Teaching the importance of a good credit score

It’s also important to teach your kids that building a good credit score will give them important financial advantages. Having a credit card as an adult and using it properly can help your credit score, which gives you access to more lenders, lower interest rates and more negotiating power when looking to buy a house or make a big purchase. Over 18s with a credit card can build a good credit score by not borrowing too much, not using their cards right up to the credit limit, and paying their bills on time. All of this shows lenders that they are reliable borrowers and can handle credit responsibly.

What are the alternatives to credit cards for under 18s?

You might be asking, at what age can you get a debit card for your child? Most high street banks will give a cash card (ATM only) or debit card linked to a child’s bank account from 11 years old (varies from bank to bank). These cards won’t allow a child to go overdrawn and have the same facilities as all debit cards, without any fees. Unlike credit cards, a credit check is not required.

A prepaid debit card is another alternative. These have many benefits: your child can have a GoHenry card from the age of six, and they come with a child and parental app that allows you to set spending limits and monitor spending as well as set up saving pots.

A prepaid kids' debit card like GoHenry is also a safe alternative to a credit card. It can give your child responsibility for their money without the risks associated with taking out credit. While they get financial independence and money lessons, you can support them along the way and help them to stay on the right financial path.

How can GoHenry help?

GoHenry's mission is to make every kid smart with money, so our kids’ debit card is packed with great features that help kids safely and securely learn about money management. In-app Money Missions make learning about money fun and engaging with videos and quizzes covering everything from earning and saving to responsible spending. Parents can support their kids via the parent app by setting flexible parental controls and receiving real-time spending alerts whenever kids use their GoHenry card.

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