What Age Can You Start Building Credit (Plus How to Do it)

This post may contain consort links. You can find the full moon disclosure here


What age can you start building credit, and how would you do it? Specific help with building your teen’s credit.

What age can you start building citation ?
teen boy with orange credit card at laptop, text overlay "what age can you start building credit? plus the options you have to do so" This is a question that used to basically not exist when I was a adolescent. In fact, the merely argue why I started establishing credit in my early-mid 20s was because I had taken out student loans .
But we ’ ra sort of in a different populace than from when I was a adolescent .
now, your recognition mark and credit report routinely get pulled by :

  • Potential employers (credit history/report only, not your credit score)
  • Your new landlord
  • Your insurance company
  • Utility service providers

If your adolescent is going to be heading straight into the “ real global ” – meaning, they ’ ll be getting their foremost apartment and starting a full-time job right after graduating high school – then helping them establish some credit nowadays might be a beneficial strategy .
Let ’ s prima donna into what long time they can get a credit calling card, how to build credit early, and other bits you should credibly know .

How Old do You have to be to get a Credit Card?

According to the Credit Card Act passed in 2009, your adolescent must be at least 21 years previous to get a credit card by themselves .
Except, if they either get a cosigner over the historic period of 21, or submit a written application that shows they have “ autonomous means to make the minimum periodic requital on the debt based on the terms and conditions of the lend ” .
That enables them to get a credit poster at 18 .
Your adolescent can verify income using docs like :

  • a pay stub
  • tax returns
  • commission checks
  • investment statements

so, the youngest a person can get a accredit wag is 18, and in most cases, not until they are 21 years of age .
Wondering how it is, then, that a young person can start building citation ? Keep read .

Can a Minor have a Credit Score? What about a Credit Report?

You may be surprised to learn – as I was – that a minor can have a accredit score and credit report .
specially since we now know that they can not open a credit card until at least 18 years of historic period, and likely, until they ’ rhenium 21.

But it does happen in a few very specific circumstances :

  • Your child is listed as an authorized user on your credit card account
  • Your child is a victim of identity theft (and the person is using the child’s information to obtain a loan)
  • Your child created a store credit card with their name, but falsifying other information on the application

Remember that a credit score is different from a credit reputation ( and your credit report will not have your score on it ). A credit report lists out the history and current information on your credit usage and loanword history. Your recognition sexual conquest is calculated using information from the citation report card .
You can find out if your own child has a credit report – and what it says – in two ways :

  • Over the age of 13: You can request any credit reports through your child for free using AnnualCreditReport.com, once every 12 months.
  • Under the age of 13: You’ll need to fill out forms and mail in specific documents for each of the three big credit reporting bureaus – TransUnion, Equifax, and Experian.

besides note that the Federal Trade Commission ( FTC ) recommends that you pull your child ’ s credit report by the long time of 16. That means, you can see if there are any crimson flags and address them before it interferes with their young adult finances .

How to Build Credit Early

Since a adolescent can not get their own credit poster, you might be wondering, how are they supposed to start building their credit early on ?
Glad you asked .
There are two ways your adolescent can build their credit early :

  1. Adding a minor as an authorized user to your credit card
  2. Taking out a credit-builder loan (they must be at least 18)

How Old do You have to be to be an Authorized User on a Credit Card?

Did you know that adding your adolescent as an authoritative drug user doesn ’ metric ton mean they actually have to use the tease to start building citation ?

You don ’ metric ton even need to give your adolescent the card in order for them to start establishing accredit .

# mindblown .
Adding your adolescent as an empower user means they get their own branch citation poster with their name on it, that is immediately tied to your citation calling card account. Their credit rating report or credit mark is not pulled when considering whether or not they get approved .
And that ’ sulfur because you are 100 % financially responsible for anything that they do with the circuit board ( not all credit batting order issuers allow authorized users to make payments, for case ) .
touch : some credit menu issuers allow you to put a spend limit on an authorized drug user ’ s poster, thus decidedly ask about this .
not only that, but both of your recognition scores can be affected by each other. Meaning, an authorized exploiter ’ s credit score can actually increase OR decrease, depending on the primary cardholder ’ s account management ( and frailty versa ) .
sometimes, parents get perks for adding an authorized drug user. For exemplar, recently, Amex cardholders were given 20,000 bonus points when they added an authorized drug user .

Credit Card Issuer Minimum Age Requirement for Authorized User Do they report authorized user activity to credit bureaus?*
American Express 13 yes
Bank of America No minimum age requirement yes
Barclays 13 yes
Capital One TBA TBA
Chase No minimum age requirement yes
Citi No minimum age requirement (except for the Costco credit card, with a minimum age requirement of 18) yes
Discover 15 yes
U.S. Bank No minimum age requirement yes
Wells Fargo No minimum age requirement yes

*you want to check the specific report of each credit card issuer, as some alone report for certain ages. For exemplar, Chase and Wells Fargo only report information for authorized users if they ’ re 18 or older .

How Old do You have to be to get a Credit Card with a Parent?

Your adolescent can get a credit batting order with a parent in three different ways :

  • Authorized User on a parent’s card
  • Card of their own with their parent as the Cosigner
  • Joint Account Holder with the Parent

The minimal historic period requirements to become an authorized exploiter are listed in the section above .
To get a card of their own with a cosigner, or to be a joint report holder, a adolescent has to be at least 18 years old .

Will a Prepaid Debit Card Build Credit for My Teen?

You ’ ve likely seen prepay debit cards for teens .
If not, my reviews are :

While these can make capital solutions for your family money arrangement, and to teach kids/teens about fictile, you should know that they will not help your child establish a credit history .

Psst : here ‘s a hybrid scheme for how to use both a Prepaid Debit Card and a credit card ( as an authorized exploiter ) .

In summary, your child can start building credit as a adolescent, so long as you allow them to be an authorize user on your credit card, your credit history is good, and that credit calling card issuer reports the information to the credit chest of drawers ( for people of their historic period compass ). If you ’ re distillery uncertain, then you ’ ll want to call the count on the bet on of your citation card and ask them these questions specifically .

informant : https://www.peterswar.net
Category : Finance

Related Posts

How to Calculate Credit Card Interest Rates

interest rates are one of the ways to work out how much it will cost you to use your credit card, along with other charges and fees….

What debt collectors can & cannot do

If you are dealing with a debt collector, you have protections under the law. A debt collector must not mislead, harass, coerce or act unconscionably towards you….

Can You Afford a New Home? How to Determine Your Homebuying Budget

Can You Afford a New Home? How to Determine Your Homebuying Budget As with any major purchase, determining what you can afford before you look for a…

Why Did My Credit Score Drop?

Why Did My Credit Score Go Down When Nothing Changed? sometimes your mark does change based on factors outside of your control, but most times your behavior…

Why Do I Owe Taxes To The IRS & How To Avoid Them

Are you wondering why you owe indeed much in taxes this year ? Want to make certain you never owe a big tax bill – or any…

The 5 reasons why your credit score might suddenly drop

Select ’ s editorial team works independently to review fiscal products and write articles we think our readers will find useful. We earn a perpetration from affiliate…