Can a Minor Get a Credit Card? Most parents ask this important question when they plan on getting credit cards for their cards. It’s important to teach your child financial responsibility and you can do this by getting them credit cards. But the question is “Can a Minor have a Credit Card” Want to learn more about this? Read on!
Can a Minor Get a Credit Card
For most credit card companies, the minimum age requirement for a credit card is 18 years. With this, you should know that kids cannot apply for a personal credit card until they turn 18. However, there is a way you can go around it if you want your child to get a credit card.
Some major credit card companies allow cardholders to add authorized users to their cards. Also, some companies do not set an age limit for authorized users. With this, you can get a credit card for your child by adding him or her as an authorized.
What is an Authorized User on a Credit Card?
An authorized user on a credit card is a person that is added to the credit card account of another person. This means you become an added user of the card when you are added as an authorized user. When you are added as an authorized user, you are linked to the primary cardholder’s account.
With this, you become the secondary cardholder. As an authorized user, you can use the card to make payments but you will not be responsible for making bill payments. Being an authorized user also helps people in credit building.
Adding Teenagers to Credit Card
Minors are known as children below the age of 18. Since kids below the age of 18 are considered minors, they are not eligible to open an account. Adding your teen to your credit card can still help them gain financial intelligence.
Your teen will benefit from becoming an authorized user of your credit card account. Becoming an authorized user is the only method of getting Credit cards for minors.
How to Add Your Child as an Authorized User
Having known that the only way to get your child a credit card is to add him or her as an authorized user, you may e interested in doing so. It’s very easy to do so.
You can do this by contacting your credit card company’s customer service over the phone. If there is a provision for it, you can log in to your account online and add the user to your dashboard.
While doing this, you may be required to provide your child’s details. This includes the Name, Email address, Date of Birth, Social Security Number, phone number, and lots more.
Can a Minor Build Credit as an Authorized User?
Yes, a minor can build credit when he or she becomes an authorized user. This is one advantage of adding your child as an authorized user on your card. Adding your child as an authorized user does not only help them build their credit, it also help them gain financial freedom and independence.
Do not miss payments as this can affect the credit history of both you and your child that is an authorized user. Also, ensure you monitor the transactions your child makes with the card as it can affect his or her credit score.
Can you Get a Credit Card at 16?
No, you can’t get your credit card at 16. Legally, children under the age of 18 are not allowed to apply for credit cards. However, you can get a credit card as a minor by becoming an authorized user.
You need to be 18 years and show proof of income to open a credit card account in your name. However, you can start building your credit by becoming an authorized user and using debit cards for kids.
How to Build Credit for a Minor
It’s very essential you start building credit as a minor. This is because having good credit gives you better loan and credit card offers. Since kids under the age of 18 are not allowed to apply for credit cards, you can choose to be added as an authorized user.
This Primary cardholder should also make payments on time to help you build credit. This is because the credit activity going on the credit card account reflects on your credit reports with them.
Although an authorized user is only limited to making purchases with the card, ensure you spend decently with the card. You can also apply for a Job. Getting a job does not increase your credit score but your income is considered when applying for a credit card. Your income history is as important as your credit history.
Why Should I Add My Kids as an Authorized Users?
Adding your kids as an authorized users gives them the opportunity to learn financial responsibility. In addition to this, it helps your kids spend independently instead of asking you for money all the time.
It also helps them build their credit history and this gives them better financing options. Your kids also earn rewards for spending with your card if it’s a rewards credit card.