Can You Get a Credit Card as a Teen?
If you’re a teen, you’re probably wondering if you can get a credit card. The answer is yes. You just have to be careful and responsible when using them.
Can Teenagers Get a Credit Card?
The answer to this question depends on where you live, as credit card age requirement protocols may differ from one place to another. In the United States, the Credit CARD Act of 2009 has a provision stating that anyone under 21 cannot apply for a credit card unless they have an independent means of repaying the debt (i.e., parents can’t apply for them). As experts at SoFi point out, “when you’re under the age of 21, you may face additional requirements when applying.”
However, many states have passed legislation allowing minors to get credit cards if they are over 16 years old and have parental consent. These restrictions vary by state; some states allow minors between 16 and 18 years old to apply with their parents’ permission, while others restrict minors under 21 from applying at all—even with parental approval.
How Do Authorized Users Work?
One of the main benefits of having an authorized user is that they’re not responsible for the debt, which means you can rack up all sorts of purchases without worrying about your parents or other adults cutting off your ability to use their accounts. But there are a few catches to this. For starters, authorized users can’t use their own cards independently; they need permission from the primary account holder in order to make any purchases with their cards. They also cannot make changes to accounts (like requesting increases), get rewards, or change credit limits on their own – those are privileges reserved only for those who have their own card under them.
How Can Authorized Users Help?
The most obvious benefit to having a child be an authorized user on your credit card is that it helps them build their credit. Anytime you make a purchase using the card, your credit score will improve as well. They can also use the card to make payments and build up their own history of responsible payment behavior.
Because you are letting your teenager use your card, there are some downsides as well. You may not feel comfortable giving out all of your personal information or letting someone whom you don’t know very well access such important information (such as where you live). The main thing to consider is whether or not this is something that will work for both of you in the long term.#
What are Credit Score Benefits?
- Parents: If you’re a parent, getting a credit card can help your child develop good habits and make responsible decisions by teaching them how to pay off debt.
- Teens: The only way to build credit is by using credit. When you have a teen with no experience using money responsibly, it’s best to give them an opportunity to practice so they don’t end up in debt later in life.
- Authorized Users: If you don’t qualify for your own card but want to be able to build up your own credit score, becoming an authorized user on someone else’s account can help you do just that!
Other Payments Options for Teenagers
If you are not old enough to get a credit card, you can still pay for things with cash and check. If you’re over 18 and have a decent credit history, you could also try using a debit card or even a cashback credit card (which allows you to get some of your money back).
You can also use PayPal as an alternative payment method if it’s available in your area. PayPal is an online payment system that lets people send money safely and securely online using their existing bank accounts.
You may have wondered if you could get a credit card as a teen, but now that you know the answer is yes, why not do it?