Is There An Income Requirement
Many come with a minimum income requirement. However, some do not, or may give leeway depending on your circumstances and your credit score.
If you already have a bank account, loan or other financial product with the same bank, you may have a better chance of getting qualified for a credit card with them. You may also be able to use your combined household income on your application. Another possible option could be a secured credit card, which requires putting down a security deposit as collateral.
Can You Apply For A Credit Card At 18
The pre-Credit CARD Act of 2009 has requirements for 18-year-olds getting credit cards. One is that you need a co-signer to get a credit card and access credit at 18. Or, you can show proof of steady income if you have a job. Not many 18-year-olds can qualify with the option of providing evidence of a steady income.
Once you have a co-signer, youâre free to explore your credit card options. If youâre 18, look at the cards listed below and see if one sounds right for you:
- A card designed for students: Some credit cards offer unique benefits to student users. These cards are excellent ways to build credit young â and get some rewards as you go.
- A secured credit card: Secured cards require a refundable deposit to qualify. However, theyâre often available without any credit history.
When It’s Smart To Get A Credit Card For A Child Under 18
Before you imagine the potential pitfalls of an adolescent running amok armed with your credit card account at their disposal, let’s take a look at the top five reasons you may want to consider letting your little one start swiping:
Read Also: Credit Cards Pull Transunion Only
When Should My Child Get A Credit Card
If you think credit cards and childhood don’t mix, you’re not alone: Only about 10% of parents let their kids have a credit card, according to T. Rowe Price’s latest annual survey. However, adding your child to your credit card account can help foster an understanding of finances and debt that could prepare them well for their financial future.
Kids can’t open their own credit card account until they turn 18, and will need to prove independent income until they’re 21. But even before then, minors can benefit from becoming on a family member’s credit account. The right age to add your child as an authorized user depends on the reasons for doing so and whether your child is ready to manage the responsibility.
Researching The Best Credit Cards
When it comes to choosing a particular card, have your child do the research and discuss it with you. There are many websites that evaluate credit cards and the rewards that they offer, including Investopedias own credit card ratings, which include ratings of cards for students. Make sure that your child reads and understands all of the terms on each of the cards under review.
In particular, make sure your child understands how credit card interest rates work. Most kidsand many adults, for that matterhave no idea how fast compound interest can double a credit card balance or how a lower credit score affects the future cost of borrowing. To help your children learn this, have them spend some time online reading up on these topics. Make it a prerequisite for getting a credit card. Chances are, youll learn something, too!
Recommended Reading: Pay My Best Buy Card Online
Your First Credit Card Application May Be Denied
Having a credit card application denied can be frustrating. Fortunately, you are entitled to what is called adverse action information . You can also review some of the factors that are considered in the credit card application process to decide on the next steps you want to take before you submit your next credit card application.
For example, you might want to take another look at your application to ensure you included all of your income and information, consider applying to other institutions, or simply regroup and make a plan to improve your chances of a credit application approval in the future. With time and concerted effort, you can put yourself in a better position to re-apply for a credit card.
Cash Back Credit Cards
Enjoy the flexibility of redeeming cash back rewards anytime you have a $25 minimum cash back balance.1 With a cash back credit card, you get a percentage of your spending back on your card. Plus, maximize your cash back rewards when you spend on certain categories.
Read Also: Cabela’s Club Black Card
Best Credit Cards For Those 21 And Older
Once you hit 21-years-old, you can apply for any credit card that suits your fancy . Of course, the thing to note here is that while you can apply for whatever cards you like, you may still be a far cry from being approved for those cards. See, you still have to meet the credit and income requirements for those cards.
Unless you managed to meet one of the qualifications for getting around the CARD Act, your credit is probably nonexistent on your 21st birthday, making establishing your credit your new number one priority. The length of your credit history can only be improved by, well, having credit over time so hop to it.
Of course, thats easier said than done, as the typical credit card issuer wants at least six months of credit history to issue you a card. But youre not totally out of luck. A whole slew of credit cards are out there, specially designed to help consumers establish their credit histories and start building their credit scores.
About Sharing An Apple Card
If you want to share an Apple Card with trusted family members or friends, set up Apple Card Family and invite friends or family to share your account.
If you dont have an Apple Card, you can apply and if you are approved and accept your offer, you can set up Apple Card Family and invite friends or family.
You can also join a shared Apple Card account by getting an invitation from an account owner to co-own Apple Card. Once you receive the invitation, follow the onscreen instructions.4 You will be prompted to apply for Apple Card.
Recommended Reading: Cabelas Credit Card App
At What Age Can You Get A Credit Card
You’ll need to be at least 18 years old to sign a credit card contract however, since the Credit Card Accountability Responsibility and Disclosure Act of 2009, getting an unsecured credit card before you turn 21 isn’t easy. You’ll need to show proof that you have a steady source of income to qualify.
If you can’t show a source of income, such as a job, you’ll need to have a cosigner on the card or ask to be an authorized user on a friend or relative’s credit card.
What To Do If Your Application Is Rejected
If your credit card application is declined, dont panic. Instead, look carefully at some of the common reasons banks reject credit card applications, so you can see what to work on:
- Poor credit score
- Bad track record of repaying loans or other bills
- Low income/too much other debt
- Short employment history
Take the opportunity to strengthen your financial situation and increase the likelihood of approval the next time you apply. You can order your to verify your information, then start building or improving your credit score. Look for ways to boost your income and/or lower other debt. Avoid re-applying until some time has passed, and you have a stronger employment history.
Read Also: Best Buy Visa App
Be An Authorized User
The first step is to get yourself a credit card which means becoming an authorized user entitled to its benefits. You should have attained the minimum age requirement for owning a credit card. Then there comes the question: how old do you have to get a credit card?
The best time to get a credit card is after becoming an adult. In most jurisdictions, this would be after your 18th birthday. At this age, you will have the right to make independent decisions.
Being an authorized credit card user is essential to keep a positive track record with the three major credit bureaus. If you are dishonest about your age when applying for a credit card, a required background check is likely to catch you in the act.
Best Credit Cards For Students
Without a cosigner, those under the age of 21 who wish to obtain a credit card under their own name will need to have a regular income substantial enough to repay any credit card debt. At the same time, that income doesnt necessarily need to be from a job, which can open up some doors particularly for students.
Why? Because you can typically report extra money from scholarships, grants, and fellowships as income on a credit card application. Whats more, you can also find a range of credit cards designed specifically for students, with flexible credit requirements with room for those who have yet to start establishing a credit history.
You can start exploring options with some of our favorite student cards.
One important thing of which you should be aware of is that certain types of school-related monies should not be reported as income on a credit card application, the most prominent of which is student loan funds.
Basically, since your student loan is really a type of debt, rather than actual income, its a bad idea to claim it as such.
In other words, youll need to pay back your loans, meaning theyre not a very reliable option for repaying other types of debt. Moreover, if you need to falsely report student loan funds as income to qualify for a credit card, you probably dont need to take on any other potential sources of debt in the first place particularly not ones with the high interest rates that come with revolving credit lines.
Recommended Reading: Best Buy Credit Card In Store Apply
Compare Your Credit Card Options
Once youve figured out the kind of credit user you are and where your eligibility stands, its time to find the credit card thats right for you. Dont jump on applying for the first card you come across. Compare the different options in the card category that interests you, and pick the card that youre not only likely to qualify for, but which will also include at least some of the features you want:
Best Secured Credit Cards
Far and away the easiest credit card to obtain and, arguably, one of the safest is a secured credit card. Made for credit builders , secured credit cards require an initial deposit to open the account. That deposit acts as security for the account, and the size of your deposit will dictate the size of your credit line.
Since secured credit cards are less risky for the issuer, they tend to have lower interest rates and fees than unsecured cards for building credit. Plus, your secured card deposit is fully refundable when you close your account in good standing those pesky unsecured card fees are gone for good. Many of our top-rated secured cards have no annual fee at all.
Another reason to go with a low- or no-fee secured credit card over a pricey unsecured credit card is that some secured cards can be upgraded down the line. For example, if you have a Discover it® Secured, Discover will periodically check up on your credit progress to see if you can qualify for an unsecured card.
If your credit report passes muster, youll be automatically upgraded to an unsecured card, and your deposit will be refunded in full. As an added bonus, the switch is often seen as an upgrade, not a new credit product, which means youll hang onto the account history youve built with your secured card.
You May Like: What Credit Card Companies Pull Transunion
How To Build A Credit Record As A Young Adult
As a young adult, youll start with NOTHING on your credit record, which can be a good thing. It means you have that fresh start that many people wish they could have again. So since youre in this position, use it wisely!
The only drawback? Itll probably be challenging getting your first credit card, so here are some ways you can get some history on your credit record so that youll get APPROVED when you do finally apply for a credit card.
- Get added as a secondary user on an existing credit card. If you dont have a job, get your guardians to add you as a secondary user on one of their credit cards. This will get your credit record started.
- Open a store account. If you do have a job, start building a credit record by getting a store account, and use it! Buy a few hundred rands of clothes, but make sure you pay it back immediately. And make sure you dont buy more than you can payback.
- Open a savings account and start saving. Lenders look at how risky you are based on how dire your situation is. The less you need the credit, the better it looks on your credit history. A great way to do this is to save as much money as possible.
- Get an affordable cellphone contract. And I must emphasize AFFORDABLE. The last thing you need is a missed payment this early in the game.
These are just a few ways you can build a credit record
We Have The Right Credit Card For You
As you begin your life in Canada, a credit card will help you transition and settle in to your new home. Choose the type of card youâre looking for below to explore your options.
Personal Credit Cards
Enjoy the convenience and worldwide acceptance of a credit card from RBC. Choose from a range of premium and no annual fee cards.
Student Credit Cards
Start building a credit history while youâre a student and simplify your life with one of our popular cards for international students.
Business Credit Cards
Manage your business expenses, simplify your day-to-day tasks and invest in your business with a flexible business credit card.
Don’t Miss: Jcpenney Mastercard Apr
Are You An Emancipated Minor
Well, the short answer is no. The law doesnt just see you as an emancipated minor you need to go through a legal process of getting emancipated from your parents or any legal guardians. Once done, then legally, youll be able to get credit.
Before we dive into how you can get emancipated, your first need to understand precisely what emancipated means.
What does emancipated minor mean?
An emancipated minor is a minor that legally breaks ties or becomes liberated from a guardian or parents. In the eyes of the law, once youve been emancipated youll be viewed as a major
So, in a nutshell, it simply means that youll be seen as an independent or as an adult.
Scenarios where minors choose to become emancipated?
There a dozens of reasons why minors choose to be emancipated, here are the most commong reasons.
- A minor chose to get married, and youre married in the eyes of the law in South Africa.
- If your parents have kicked you out of your house.
- If your parents are abusive, or you have moral obligations that go against how they choose to live, and youve decided to leave.
- If youre financially dependent on your parents.
Requirements to become emancipated in South Africa
The court used to have stringent requirements before you could become emancipated. However, today, they take it case by case. That said, here are some requirements that are generally considered in court:
Remember, the court would like to see that youre capable of looking after yourself efficiently.
Why You Shouldn’t Wait
Parents who introduce their kids to the concept of handling credit in their teen years may better prepare them for using it responsibly in the future. A credit card probably shouldn’t be a high schooler’s introduction to personal financial management, however.
As an alternative, some experts recommend opening a youth checking account with an attached debit card when a child is in middle school. Parents can teach the child how to monitor the balance in the account and use their debit card wisely.
After that, they can move on to a low-limit credit card when the child is slightly older. If the child is under 18, the card will generally have to be in a parent’s name, with the child listed as an .
You May Like: My Cabelas Club Visa