How To Get Credit Cards For 16 Year Olds

Banking & Finance

Have you ever wondered if credit cards are available for 16-year-olds? Believe it or not, there are several compelling reasons for your adolescent to obtain a credit card.
As your kid enters adulthood, prudent credit card usage may set the road for a financially solid future.

Regardless of your age, owning a credit card can become a significant responsibility that you must be prepared to shoulder.

By stressing appropriate spending and timely payments, you may assist your adolescent in developing credit at an early age.

You’ll have a variety of alternatives to examine depending on your teen’s age. While the minimum age for credit card eligibility is 18 years old.

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Teenagers under the age of 21 will have a more difficult time applying for their first credit card if they do not have a stable source of income.

Credit cards for 16-year-olds without a source of income, on the other hand, can be added as authorized users to their parent’s or guardian’s credit card accounts.

 

Credit: How It Works

 

Before we discuss credit cards for 16-year-olds, it’s critical to understand how credit works.

Before enrolling your parent as an authorized user on your card, spend some time familiarizing yourself with the fundamentals of credit cards and credit ratings, as well as the influence of the former on the latter.

Ascertain that you understand why you should always pay the whole balance on your account, never pay late, and maintain a low credit use percentage.

If you require training wheels, inquire as to whether your parent owns a Barclays credit card (like the Upromise Mastercard, which helps you save for college).

Barclays is one of the few credit card providers that allows consumers to establish spending limitations on individual transactions for authorized users.

As long as you are 16 years old, it will also record your activity to credit bureaus, assisting you in building credit.

Credit Card Age Restrictions

 

If you are under the age of 18, that is, 16 years old, you cannot obtain a credit card. However, you may become an authorized user; more information on this below.

Even if you are above the age of 18, the Credit CARD Act of 2009 requires you to show proof of independent income or a cosigner over the age of 21.

Due to the fact that the majority of card issuers do not accept cosigners, you must normally be at least 18 years old and have money from a job or scholarship to qualify for your own starting credit card.

 

How to Apply for Credit Cards as a 16-Year-Old

As a sixteen-year-old, the only method to obtain a credit card is to become an authorized user on another adult’s card. For the purpose of simplicity, let us assume that is one of your parents.

All major credit card companies accept approved users who are at least sixteen years old. Many of them have no minimum age criteria, which means that you may become an authorized user whenever your parents deem you ready.

As an authorized user, you’ll obtain your own credit card, complete with your name and address, but with the same number as your parent’s credit card.

While you will be allowed to use the credit card to make purchases (with the approval of your parent, of course), you will not be legally accountable for the charge.

Simply ensure that you understand whether your parents expect you to cover the majority or all of your expenses and that they will receive a comprehensive accounting of everything you spend.

How Authorized User Status Affects Your Credit

 

You probably don’t have a credit report as a 16-year-old since you haven’t taken out credit yet.

When your parent registers you as an authorized user, the credit card company notifies the credit bureaus, which generates a credit report.

If your parent’s credit card is in excellent standing, meaning they have a low balance and pay their bills on time, adding you as an authorized user will almost certainly help you increase your credit scores.

That is why it is important to become an authorized user on the card of a responsible adult.

Additionally, you should verify that your parent’s credit card issuer discloses the activity of minor authorized users to all three main credit agencies.

While American Express and Wells Fargo both accept authorized users under the age of 18, they will not record your activity to the credit bureaus until you reach the age of 18.

 

The Best Credit Card For Teens Over the Age Of 18

While credit cards are not available to 16-year-olds, those aged 18 and beyond can obtain a decent credit card. Several of the greatest are included here;

Secured Discover it Credit Card:

The Discover it Secured Credit Card features one of the most generous rewards systems available for secured cards.

Each quarter, you’ll receive 2% cashback at Gas Stations and Restaurants on up to $1,000 in combined transactions, and 1% cashback on all other purchases.

Even better, Discover will double the cash back you earn throughout your first year as a cardmember.

Your security deposit will decide your credit line, allowing you to tailor your budget to your teen’s purchasing patterns.

The Best Student Credit Cards

Numerous credit card issuers provide a student version of their popular entry-level cards, albeit they do not sell credit cards to anyone under the age of 16.

If you are 18 years or older, you may be eligible for a student credit card. This is a fantastic approach for kids aged 18 and older to qualify for credit cards with enhanced rewards schemes.

Student credit cards operate similarly to standard credit cards, with smaller credit limits but a greater acceptance rate for people with no credit history.

Bear in mind that student credit cards are only available to two- or four-year college students, not to middle or high school students.

The majority of student credit cards also provide rewards tailored to students’ purchasing habits.

As a result, college students should only use their credit cards for necessary expenditures like textbooks and dorm supplies.

We’ve compiled a list of our favorite student credit cards based on their rewards rate and card advantages.

Investigate it Student Cash Back: Discover offers an unlimited cashback match. At the conclusion of your first year, Discover will automatically double all cashback you’ve earned.

Thus, you may convert $50 in cashback to $100. Alternatively, convert $100 to $200. There are no minimum or maximum expenditure requirements. Nothing more than a dollar-for-dollar match.

5 percent cashback on daily transactions at different locations each quarter, including Amazon.com, grocery shops, restaurants, and petrol stations, plus 1 percent limitless cash back on all other purchases when you pay with PayPal, up to the quarterly maximum when you join.

Bank of America Travel Rewards Credit Card for Students: Earn 25,000 bonus points online after spending at least $1,000 in the first 90 days of account creation. Earn 1.5 points on all purchases of $1 or more.

Deserve EDU Mastercard for Students: After your first purchase with your new Deserve EDU Mastercard, you’ll receive one year of Amazon Prime Student (a $59 value).

Earn limitless cash back at 1% on ALL transactions when you use your Deserve EDU Mastercard. Once accepted, you’ll begin earning rewards on all future purchases.

If you are at least 18 years old and a college student, now is an excellent time to apply because there are several opportunities available.

Whether you’re looking for travel benefits or cash back, these credit cards may also help you build credit from scratch.

How to Get Your Teenager a Credit Card

If you are a teenager and at least 18 years old, you may qualify for a credit card; however, credit cards for 18-year-olds are not available without being an authorized user.

Depending on their age and income, your kid may be eligible for a credit card without the assistance of a parent or guardian.

They will be allowed to submit an application in their own name.

However, if your kid is under the age of 18 or does not have a source of income, it is advisable to enroll them as an authorized user on your current credit card.

Simply contact your card issuer to add an authorized user to your card, keeping in mind that you’ll want to verify any minimum age requirements or extra costs.

Your teen will then have their own card with their name on it.

Submit an Application for a Traditional Credit Card

Teens aged 18 and older may apply for a typical credit card without the assistance of a parent or guardian, but they must demonstrate proof of income.

Credit card firms’ requirements were strengthened in 2009 by the Credit CARD Act, which required applicants under the age of 21 to establish their ability to make payments.

As a result, adolescents will be required to show evidence of income, such as a W-2 document from their work.

Bear in mind that the Credit CARD Act of 2009 prohibits minors without a source of income, such as a part-time job, from obtaining a credit card.

Any permission, even if it is received on a regular basis, will be disregarded.

How to Establish Credit as an Adolescent

It is never too early to begin thinking about credit building. Obtaining your first credit card, whether it is your own or an authorized user, involves a significant amount of dedication.

With solid credit practices, your credit score will progressively improve over time. Here are some pointers to assist you in establishing credit with your first card:

Always make timely and complete payments. At the end of each month’s payment cycle, you’ll want to ensure that you pay your credit card bill.

Otherwise, interest will collect on your balance, lowering your credit score.

Never spend more than you can afford to repay. Credit cards are not fictitious money, and you are personally liable for each transaction.

The average household owes over $8,000 in credit card debt, which accumulates when payments are missed.

Maintain a low credit usage rate; credit utilization is the percentage of available credit that you utilize compared to the total available credit.

It is suggested that you should not exceed 30% of your credit limit. If your credit limit is $500, you should avoid charging more than $150 until you have paid off your amount in full.

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