Using a credit circuit board is one of the easiest ways to start building credit, because they ‘re relatively easy to get approved for. There are even some options for getting authorized on a credit card at 16, with serve from a parent or another pornographic .
- A 16-year-old can get authorized on a credit card with help from a parent or another adult, but cannot get a credit card on their own.
- In most states, you cannot get a credit card on your own until you are 18.
- Teens can use other payment options like prepaid cards, debit cards, or cash apps to make purchases if they don’t want to use cash.
Can 16-Year-Olds Get a Credit Card ?
Since the legal age to accept a credit card agreement is 18 in most states, you wo n’t be able to get your own credit menu at age 16.
Once you turn 18, you can get a credit card on your own, but there are some caveats. Credit card issuers will have to make sure you have adequate income to make a credit card requital each month. You can still get a credit batting order if you do n’t have a job or you do n’t make enough, but you ‘ll need person over long time 21 to apply with you.
You do n’t have to wait until historic period 18 to get experience using credit cards. There are some options for getting a credit batting order at senesce 16 if an adult parent, relative, or supporter is will to help.
Reading: Can You Get a Credit Card at 16?
How authorized Users Work
You can be an authoritative exploiter on person else ‘s credit circuit board, like a parent, normally by the time you are 15 or 16, depending on the credit card issuer ’ south terms. As an authorized drug user, you can make purchases on the recognition card, but you ‘re not legally responsible for making payments. You ‘ll get a credit menu with your name on it, but you ‘ll share the credit terminus ad quem with the account owner .
What Can Authorized Users Do
As an authorize exploiter, you ‘ll share some privileges with the primary cardholder, but some credit tease features wo n’t be available .
For example, you ‘ll be able to make purchases and payments, check the balance, report a lost or stolen credit tease, submit billing disputes, and remove yourself from the account. You wo n’t be able to request credit limit increases, add another authorized user, request a lower APR, or close the report .
How to Get Added
Any adult can make another person an authorized drug user on an existing report or add you to a newfangled account. It can be a relative, acquaintance, or another pornographic who approves of adding you to their account. The report owner can add you to the credit rating card by logging into their on-line score, through the mobile app, or by calling the credit card issuer. They ‘ll need to give the credit card issuer your name, date of parturition, and Social Security number to finalize the request .
Credit card issuers don ’ t require credit checks for adding authoritative users. That means, the authorized exploiter ’ sulfur credit score will not be affected .
Credit Score Benefits
Being an authorized exploiter can help you establish good habits with using a credit rating card, but that ‘s not the lone benefit. You can besides jump-start your citation history. The bill history is added to your credit report and reported monthly, which can establish and boost your credit if the history history is plus .
Consequences of Overspending
It ‘s important not to charge besides much on the card you ‘re using. Your credit score is partially based on how much recognition you ‘re using, and higher balances can cause your credit score to drop .
Maintaining a first gear balance wheel is besides significant for maintaining a healthy fiscal situation, with monthly payments you can afford. Charging excessively much could make it unmanageable to keep up with your payments and paying late means you ‘ll be charged a tip. Payments that are late by more than 30 days are normally noted on your credit report and may impact your credit rating score .
Some citation menu issuers may restrict the types of cards you can be added to. For exercise, you may not have an option for an authorized drug user on college credit cards, secured credit cards, or cards with a co-signer.
early Payments Options for 16-Year-Olds
As an alternative to credit cards, there are other payment options for 16-year-olds who may not have person who can make them an authorized drug user.
A prepay card allows you to spend money that you ‘ve loaded, or prepay, to the circuit board. Your purchases are deducted from your calling card poise and there ‘s no credit check or monthly payment requirements. You can purchase and reload a wag at many retail locations like CVS, Walgreens, and Walmart .
The biggest matter to watch out for are fees, which can slowly chip away at your balance. common fees with prepay cards include monthly fees, transaction fees, recharge fees, and newspaper statement fees .
A debit card is exchangeable to a prepay circuit board, except that it ‘s linked to a check history. Debit calling card purchases are deducted from your checking report poise. Unless you opt-out, purchases that exceed your available symmetry may trigger an overdraft fee. At long time 16, you ‘ll need your rear to open an account with you .
Payment apps allow you to send ( and receive ) money to friends and some businesses using a linked account—a checking bill, debit card, or credit circuit board. You have to be at least 18—or the age of majority in your state—to open your own report with apps like Cash App, PayPal, and Venmo. A parent may be will to open an account for you if you share a savings bank report, but the actual payment app report wo n’t be in your name .
Apple Pay is a more compromising option for sharing a payment app within families with iPhones, iPads, or Apple Watches. once a parent adds you to Family Sharing, you can use the app to send money or make purchases at participating stores .
The Bottom Line
Getting a credit card at 16 is possible, but you ‘ll need a parent or another adult to apply with you or to make you an authorized user on one of their credit cards. Teenagers who want to make purchases or build their credit have several choices in alternatives to credit cards .
frequently Asked Questions ( FAQs )
What is a good APR for a credit card?
When it comes to APRs, the lower the better. The average APR was 20.55 % as of May 3, 2022. according to data collected by The Balance. APRs can vary depending on the type of credit batting order. For example, the average APR on a scholar credit card is lower than that of a cash-back rewards wag .
How can you use a credit card to build good credit?
Keeping your remainder abject and making your monthly payments on time are the two main things you can do to build good credit. in concert, these two factors make up more than one-half of your recognition score. Leaving your account open long besides helps establish a longer credit history, which builds estimable credit as you gain more know using credit.
What is the difference between a charge card and a credit card?
With a recognition calling card, you have the option of paying your poise off complete time american samoa long as you make the minimum monthly payment. A charge batting order, on the early hand, requires full payment each calendar month to keep your report in good stand and for you to avoid brawny concern charges. Credit cards have a tauten recognition terminus ad quem, while commission cards do n’t have a preset spend limit .