Can I Get A Credit Card At 17?
Last updated 08/14/2024 by
Benjamin LockeEdited by
Andrew LathamSummary:
Obtaining a credit card at 17 has unique challenges, but options like becoming an authorized user, using secured cards, and parental involvement can help teenagers start building their credit early and learn financial responsibility.
Little Johnny may not be old enough to enlist in the military, but at 17, he’s ready to start managing his own money. Giving him a credit card can teach him financial responsibility and help him understand the value of money. This way, Johnny can focus on building his financial future instead of thinking about joining the army.
Why are there age limitations on credit cards?
In the United States, you must be at least 18 years old to open a credit card account in your name. This is due to the legal requirement that credit card holders must be able to enter into binding contracts. However, there are ways for 17-year-olds to use credit cards and start building their credit history.
How to get a credit card at 17 years old
Become an authorized user
One of the most common ways for a teenager to use a credit card is by becoming an authorized user on a parent or guardian’s account. As an authorized user, the teenager gets their own card linked to the primary account holder’s credit line. This setup allows them to make purchases and start building their credit history. The primary cardholder remains responsible for making payments on the account.
WEIGH THE RISKS AND BENEFITS
Here is a list of the benefits and the drawbacks to consider.
Pros
- Builds credit history early
- Teaches financial responsibility
- Allows parental oversight
Cons
- Primary cardholder is responsible for all charges
- Spending limits need to be managed carefully
Get a secured credit card
Another option for those approaching 18 is a secured credit card. This type of card requires a cash deposit as collateral, which typically becomes the credit limit. Some issuers may allow teenagers to co-sign or may provide cards specifically designed for students or new credit users.
Pro Tip
If you are under 18, you cannot apply for a credit card, however a parent or guardian can make their child under the age of 18 an authorized user on an existing card account. There are also some lenders that will allow you do open a secured credit card or a secured loan if under 18 which is another option. You can build credit at 17 by being an authorized user or by opening a secured card/secured loan with a lender who offers these products. The options outlined above are really the main ones available for those individuals under 18 years old. Also keep in mind that even if you have developed a credit score at a young age, anyone under 21 years old who applies for a credit card generally must also show proof of independent income to qualify for a credit card. There are some card issuers who may allow an exception to this for student credit cards, however those often require a parent or guardian to co-sign.”– Chris Cucci, Chief of Staff for Climate First Bank.
WEIGH THE RISKS AND BENEFITS
Here is a list of the benefits and the drawbacks to consider.
Pros
- Helps build credit with minimal risk
- Often easier to qualify for
Cons
- Requires an upfront security deposit
- Limited credit lines
Look at prepaid cards and debit cards
While not the same as credit cards, prepaid cards and debit cards can be useful tools for teaching financial responsibility. These cards do not impact credit scores but can be used to manage spending and budgeting.
WEIGH THE RISKS AND BENEFITS
Here is a list of the benefits and the drawbacks to consider.
Pros
- No risk of accumulating debt
- Easy to obtain and use
Cons
- Does not build credit history
- Limited protection compared to credit cards
Look at co-signer options
For 17-year-olds who want to apply for their own credit card but lack sufficient income, some card issuers allow for a co-signer. The co-signer, who must be over 21, vouches for the applicant and agrees to pay the debt if the primary cardholder cannot. However, many major issuers no longer offer this option.
WEIGH THE RISKS AND BENEFITS
Here is a list of the benefits and the drawbacks to consider.
Pros
- Can help qualify for a credit card without income
- Builds credit history
Cons
- Co-signer is liable for any unpaid debt
- Not widely available
Are credit cards popular for 17 year olds?
Credit cards are not typically popular among 17-year-olds due to legal age restrictions. Most teenagers under 18 cannot obtain a credit card independently. However, interest in financial tools and credit-building options is growing among teenagers as they approach adulthood and gain financial responsibility.
Authorized users help build credit early
Many credit card companies report a significant number of authorized users are teenagers. Parents often add their teenagers to their accounts as authorized users to help them build credit early. This trend highlights the importance of early financial education and responsibility.
Financial education is a plus
Over 40% of teenagers express interest in learning about credit and financial management. This growing interest suggests that while they may not have their own credit cards, many 17-year-olds are becoming more financially literate and preparing for future credit use.
Prepaid and secured cards can get you out of sticky situations
Prepaid and secured cards are popular alternatives among teenagers. Approximately 25% of teenagers aged 16-18 use prepaid or secured cards to manage their spending and start building a credit history safely. These options provide a controlled environment for financial learning.
Parental involvement and tracking spending
Nearly 60% of parents add their teenagers as authorized users to their credit cards to monitor spending and teach financial responsibility. This involvement helps teenagers understand the importance of managing credit and preparing them for future financial independence.
Are there specific credit cards for 17-year-olds?
Credit cards specifically designed for 17-year-olds are uncommon due to legal age restrictions. However, some credit cards are more suitable for young users, especially those that allow parents to add their teenagers as authorized users. These cards often come with features that help young users build credit and learn financial responsibility under the supervision of a parent or guardian.
Expert Insight
“If you’re a student, there are special credit cards just for you. They’re designed for people starting out, so they often have lower limits and might charge higher interest, but they’re a good way to learn. And even if you’re not ready for a credit card, managing a savings or checking account responsibly shows banks you’ve got your money game on point. It’s all about showing you’re responsible with money. Learn about credit, maybe take a course, or read up online. And don’t hesitate to ask your parents or guardians for advice—they’ve been there and can help you navigate this whole credit thing until you’re ready to fly solo”. – Kristy Kim, CEO and Founder of TomoCredit
Suitable credit cards for teenagers
Here are some credit card options that are often recommended for teenagers, particularly those aged 17, as authorized users:
| Credit Card | Features |
| Chase Freedom Unlimited |
|
| Capital One Venture Rewards Credit Card |
|
| Bank of America Customized Cash Rewards Credit Card |
|
FAQ
What are the legal requirements for a teenager to get a credit card?
In the United States, individuals must be at least 18 years old to open a credit card account in their name due to legal requirements for entering into binding contracts. However, 17-year-olds can become authorized users on a parent or guardian’s account, allowing them to start building their credit early.
How can a 17-year-old build credit without a credit card?
A 17-year-old can build credit by becoming an authorized user on a parent or guardian’s credit card. They can also use secured credit cards, where they provide a cash deposit as collateral, or prepaid cards and debit cards to learn financial responsibility, even though these do not directly impact credit scores.
What are the benefits of being an authorized user on a parent’s credit card?
Being an authorized user allows a teenager to build their credit history early, learn financial responsibility, and have their spending monitored by a parent. This can provide a safe environment to understand credit management before getting their own credit card.
Are there specific credit cards recommended for teenagers?
Yes, there are several credit cards that are recommended for teenagers, especially those who are authorized users. Some suitable options include the Chase Freedom Unlimited®, Capital One Venture Rewards Credit Card, and Bank of America® Customized Cash Rewards Credit Card. These cards offer various benefits such as cash back, no annual fees, and parental monitoring features.
Can a teenager get a credit card with a co-signer?
While it is possible for 18-year-olds to get a credit card with a co-signer who is over 21, this option is not widely available from all issuers. The co-signer guarantees payment of the debt if the primary cardholder cannot, providing an additional safety net for young adults starting to build credit.
Key takeaways
- Becoming an authorized user on a parent’s credit card is a popular way for 17-year-olds to start building credit.
- Secured credit cards require a cash deposit and can help young users build credit with minimal risk.
- Prepaid and debit cards are useful tools for teaching financial responsibility without impacting credit scores.
- Parental involvement is crucial for monitoring spending and teaching responsible credit use to teenagers.
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