Is it possible to get a credit card at 17?
Quick insights
- At 17, individuals cannot yet obtain a credit card in their own name, but there are ways to start building credit through alternative means.
- The age requirement for a primary credit card holder is 18, but teens can become authorized users on a parent's account or may be eligible for secured credit cards once they turn 18.
- Turning 18 may mean you are eligible to apply for your own credit card and further establish your credit history.
Turning 17 is a milestone filled with new opportunities and responsibilities, including the chance to start laying the groundwork for your financial future. While you might not yet qualify for a credit card in your own name, there may be ways you can build credit. Let's navigate these options and discover how you can begin your credit journey today.
Can minors get a credit card at 17?
Although minors cannot legally own a credit card independently until they turn 18, they can become authorized users on a parent's credit card or another primary account holder’s credit card. This arrangement allows them to use the card with permission, offering a practical way to learn about financial management while benefiting from the primary account holder’s credit history. Parents may want to consider setting clear expectations and monitor account activity to ensure responsible usage, as the primary account holder is ultimately responsible for the account's balance and making payments.
Requirements and considerations
Understanding the requirements and considerations is important for teens and parents when considering credit card options. Here are some key points to consider:
- The minimum age to apply for a credit card independently is usually 18, but becoming an authorized user may not have specific age requirements. Policies vary by issuer, so checking with the credit card company can be a way to help understand their terms.
- Consent from the primary account holder is typically required for minors to be added as authorized users, allowing the primary account holder to guide spending habits and maintain control over the account.
- Authorized users are not responsible for the debt, but misuse can affect family relationships and financial standings. Discussing expectations and responsibilities upfront may help prevent misunderstandings.
- Some credit card issuers have a minimum age for authorized users, while others do not. You can verify these details with the specific issuer.
Building credit early
Starting to build credit early provides a foundation for future financial success. Becoming an authorized user on a parent's credit card is one straightforward method, allowing teens to benefit from the primary cardholder’s credit history.
Another option is a secured credit card, which requires a cash deposit as collateral. With parental guidance, teens who are at least 18 can use a secured card for small purchases and pay off the balance each month, which may help establish a positive payment history. Approaching college age, student credit cards also become viable options, offering lower credit limits and educational resources. Note: Chase does not offer secured or student credit cards.
Pros and cons of being an authorized user
Becoming an authorized user on a parent's credit card can be a strategic move for teens aiming to build credit early. It offers benefits like credit history development and spending control under parental supervision. However, there are also challenges such as dependency on the primary user’s credit activity and potential misuse of the card. Understanding these pros and cons can help families make informed decisions about whether this approach aligns with their financial goals.
Pros
Becoming an authorized user provides several advantages:
- Credit history development may occur without direct debt responsibility. Teens may gain a head start when they apply for credit independently in the future.
- Spending control is maintained under parental supervision, promoting responsible use. This oversight helps teens learn the importance of budgeting and financial discipline.
- Parents can guide financial habits and set expectations for responsible credit use. This guidance is valuable in teaching teens about financial responsibility.
- Authorized users may benefit from the primary account holder’s positive credit history. A well-managed account can help with the teen’s credit as well.
Cons
While there are benefits to becoming an authorized user, there are also potential drawbacks:
- Dependency on the primary user’s credit activity can impact the authorized user's credit profile. If the primary cardmember manages credit poorly, it could negatively affect the teen's credit history.
- Potential misuse of the card by the teen can lead to family conflicts or financial strain. Clear communication and setting boundaries can help prevent misunderstandings.
- An authorized user may not build an independent credit history, as their activity is linked to the primary account. This means their credit activity is not entirely their own until they have their own account.
Additional considerations for parents and teens
When exploring credit options for teens, parents may want to consider weighing the potential benefits against the risks. Open discussions about financial goals and expectations may help align understanding and promote responsible financial behavior. Setting clear spending limits and regularly monitoring credit activity could help prevent overspending and teach budgeting skills. Understanding how credit card usage affects credit scores can help emphasize the long-term benefits of maintaining a healthy credit score.
Becoming an authorized user at 17 may provide a year of valuable experience and credit history. Once teens reach the age of 18, they are usually eligible to apply for their own personal credit card. Starter cards like Chase Freedom Rise® can be a useful option for a first credit card. Freedom Rise has a low annual fee and offers cash back on everyday purchases, which may be a helpful way to build credit responsibly.
The bottom line
While obtaining a credit card at 17 isn't directly possible, becoming an authorized user can provide a practical way for teens to begin their credit journey. By exploring alternative options and focusing on financial education, teens can start to build a foundation for future financial success. Once teens reach 18, they can usually apply for their own credit cards, using the financial habits and credit history they’ve built as stepping stones to greater financial independence.
