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How Old To Get Secured Credit Card

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How To Get A Credit Card If Youre At Least 21 Years Old

How to use Secured Credit Cards to get a higher credit score

Prospective cardholders at least 21 years old can apply for a credit card on their own regardless of income status. These older applicants have better credit card options as well, especially those who spent their early years building credit through a student credit card or by being an authorized user on a parents account. Cosigners are not necessary but could still be a helpful addition to an application if the applicant has a low credit score or wants a high-end card with extra benefits, perks and reward potential, if the bank allows.

The best credit card options typically have the best rewards. Try looking for a card that has no annual fee and generous cash back rewards, like the Chase Freedom Unlimited®. Chase offers 1.5% back in points that you can redeem for cash or travel.

How Can A Teenager Get A Credit Card

There are three main ways a teen can get a credit card, and theyre all fairly straightforward:

  • Add your teen as an on one of your current accounts.
  • Open a separate low-limit credit card for your teen if youd rather not have her on an account you use regularly.
  • Help your teen pick her own starter credit card once shes 18.
  • Best Secured Credit Card For Cash Back: Discover It Secured Credit Card

    Overview: Earn 2% back at gas stations and restaurants for up to $1,000 in combined spend each quarter plus, Discover will match your cash back at the end of your first year. That means, if you spend $300 a month at restaurants and gas stations, you will earn $6 a month, plus $72 at the end of your first year for the Cashback Match, coming to $144.

    Pros: With no annual fee and rewards to boot, this secured product offers another reason why its a good card for the long haul Discover will automatically review your account after 8 months to see if they can transition you to an unsecured card.

    Cons: Theres a lot to love about this card, but the regular APR is not one of them. Higher than the average APR for credit cards, which is 16.21%, the Discover it Secured Credit Cards variable APR is one of the highest among secured cards.

    From our expert: The Discover it Secured card is noteworthy because it offers rewards a rarity among secured cards, says CreditCards.com Industry Analyst Ted Rossman. With no annual fee and 2% cash back* at restaurants and gas stations and 1% everywhere else, this card is a compelling introduction into the world of credit.

    *2% on up to $1,000 in combined spend each quarter, then 1%

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    Get A Student Credit Card

    Student credit cards are designed specifically for the 18 to 22 year-old range who likely have little to no credit history. Discover it® Student Cash Back is a solid option for college students looking to snag a first credit card. This card offers 0% intro APR for the first six months on purchases, followed by a standard APR of 12.99% – 21.99% Variable, 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate. Plus, automatically earn unlimited 1% cash back on all other purchases and $0 annual fee.

    How Long Does It Take To Get A Secured Credit Card

    How Old Do You Have To Be To Get A Credit Card

    At Experian, one of our priorities is consumer credit and finance education. This post may contain links and references to one or more of our partners, but we provide an objective view to help you make the best decisions. For more information, see our .

    In this article:

    Are you considering a secured credit card to help build or repair your credit? These cards can be used the same way as unsecured credit cards, but require a refundable security deposit that protects the card issuer if you default on the payments. In most instances, the security deposit amount will equal your credit limit and will be returned to you if you cancel the card or convert it to an unsecured product in the future.

    It can take a little over a week from the time you apply to when you have your new secured card in hand . Read on to learn more about the application process, which secured cards are best and how a secured card can improve your credit.

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    Best Secured Credit Cards From Our Partners

    Our pick for

    10.99% intro APR on Balance Transfers for 6 months

    Regular APR

    Pros & Cons

    Product Details

    When you consider the rewards, the lack of an annual fee and the opportunity for an upgrade, the Discover it® Secured Credit Card is the best secured credit card we’ve seen.

    When you consider the rewards, the lack of an annual fee and the opportunity for an upgrade, the Discover it® Secured Credit Card is the best secured credit card we’ve seen.

    Pros

    • The rewards on this card 2% cash back on up to $1,000 worth of spending per quarter on restaurants and gas, and 1% on all other spending would be pretty decent on a regular card. For a secured credit card, theyre unheard of. After eight months, Discover automatically evaluates your account for possible upgrade to an unsecured card. And the annual fee is $0.

    Cons

    • The initial deposit must be paid with a bank account if youre unbanked, youre out of luck. For some people, the $200 minimum deposit will be a stretch. For others, the maximum $2,500 credit limit will be too low.

    Pros & Cons

    Product Details

    The Capital One Platinum Secured Credit Card may not be a good fit for folks recovering from major credit damage, but it could be an excellent match for someone getting a credit card for the first time.

    The Capital One Platinum Secured Credit Card may not be a good fit for folks recovering from major credit damage, but it could be an excellent match for someone getting a credit card for the first time.

    Pros

    Example Of A Secured Credit Card

    The Discover it Secured Card is one of the most popular secured cards on the market. Discover generally accepts borrowers in the “fair” credit categorythat is, those with a credit score in the 580-670 rangealong with borrowers who have a minimal credit history. The minimum security deposit required to open the account is $200, and the maximum credit limit can be up to $2,500, depending on your income and the ability to pay. After eight months, the account is reviewed to see if it qualifies for transfer to an unsecured card, at which time the borrowers deposit can be refunded.

    The Discover it Secured Card offers numerous cashback rewards and has no annual feejust like unsecured Discover cards. It carries a variable APR of 22.99%, as of February 2021.

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    Icici Bank Coral Credit Card

    This ICICI Bank Coral Credit Card offered by ICICI bank offers credit limit up to 85% of the fixed deposit. For an individual to avail the card, you will need to have Rs. 20,000 in his/her fixed deposit account for a period of 180 days.

    Features of ICICI Bank Coral Credit Card:
    • Only ID proof required to avail this credit card.
    • A welcome benefit worth Rs. 999 from Provogue is given.
    • The reward points earned can be converted into gift vouchers and cash.
    • Ensures secure transactions with an embedded microchip.
    Benefits of ICICI Bank Coral Credit Card
    • Joining fee is very low with only Rs. 500.
    • Buy one get one freeâ offer can be availed all through the week on movie tickets.
    • Double reward points earned for transactions at supermarkets and dining.
    • Free airport lounge access

    Does The Secured Card Have An Annual Fee

    HOW TO BUILD YOUR CREDIT SCORE USING SECURED CREDIT CARDS | Credit Building Tips for Beginners

    Some secured cards dont just cost you money by tying up your collateral — some also charge an annual fee.

    If youre paying a fee for your card, this is a really strong argument in favor of closing it. After all, it makes no sense to pay a fee for the rest of your life just to be able to keep an old account on your credit history.

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    How Secured Cards Work

    A secured card is nearly identical to an unsecured card in that you receive a credit limit, can incur interest charges and may even earn rewards. The main difference is you’re required to make a deposit in order to receive a line of credit. The amount you deposit usually becomes your credit limit.

    Deposits typically start at $200 and can range to upwards of $2,500. If you make a $200 security deposit, you’ll receive a $200 credit limit. If you want a bigger credit limit, you’ll need to deposit more money.

    The amount you deposit acts as collateral if you default on payments, but it’s completely refundable in one of two ways: Pay off your balance in full and close your account, or upgrade to an unsecured card.

    Secured cards offer many of the same benefits as traditional credit cards, but they are typically easier to qualify for if your credit history is poor or non-existent.

    The one big difference, in addition to the required security deposit, is the interest rate. Secured cards usually offer all users one variable interest rate, say 24.99%, for example. Meanwhile, an unsecured card often features a range, say 13.99% to 24.99%. In most cases, the better your credit score the lower APR you’ll receive. Since secured cards often only have one, relatively high APR, it’s extremely important you always pay on time and in full to avoid interest charges.

    If Youre Ready To Get Your First Credit Card Or If Youre A Parent Looking To Get One For Your Child You May Be Wondering How Old Someone Needs To Be To Qualify Naturally Not Just Anyone Can Get A Credit Card And There Are Age Requirements For Taking On The Responsibility

    In order to get a credit card account in your name alone, you must be at least 18 years of age. But there are additional financial requirements from ages 18 to 21, including the ability to prove independent income. The process gets a little easier after you turn 21 years old, but there are still important things to know to set yourself up for the application and qualification process.

    This article shows you how to navigate the process at every age along the way.

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    Getting A Credit Card From 18 To 21

    You can get a credit card at age 18, but getting approved may be challenging as you typically need to have a credit history and credit scores. If you have no credit history, its unlikely you have any credit scores.

    Even if you have built credit as an authorized user, getting a credit card from ages 18 to 21 involves meeting some tough requirements.

    If you apply for a credit card while under 21, you need to prove that youre capable of handling payments on your own which usually means proving you have independent income from a job or other sources by supplying a pay stub or bank statement.

    If youre an applicant under 21, you might be a student without established independent income. In that case, you will likely need a co-signer when you apply for credit cards.

    Consider A Secured Credit Card To Rebuild Your Credit

    How to Reduce Your Average Monthly Credit Card Payments

    It doesn’t take very long to get a secured credit card. You can use it to build or repair your credit by making all payments on time and keeping the balance low . Consider using Experian CreditMatch to find cards you may qualify for, or explore other alternatives to help boost your credit health if a secured credit card isn’t a good fit.

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    Why You Should Establish Credit Early

    The third-most important factor in achieving a good credit score is your length of credit history, or the amount of time you’ve had credit accounts in your name. Potential lenders like to see that you can keep your credit accounts in good standing for years to come.

    In fact, a majority of people who have a perfect 850 credit score are either Gen Xers or Baby Boomers, according to Experian’s research. This shows that while it’s still possible to have a perfect credit score in your 20s and 30s, consumers with long credit histories have a major advantage. Credit expert Jim Droske, who has a perfect credit score, that the average age of his credit card accounts is 10 years and 11 months and his oldest account is 34 years and 10 months.

    Why Is A Good Credit Score Important

    A credit score helps you to benefit from various products from financial institutions, which include loans, credit cards, and overdrafts. The better the score, the more trust the financial institutions have in you.

    You can find a personal loan from a credit union if you have a good credit score. However, most times, a credit score alone cannot dictate whether you will get a loan or not. You can have a low score and still get a loan from a credit union. Most importantly, you must be a member of the union.

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    Capital One Guaranteed Secured Mastercard

    * Annual fee: $59* Interest: 19.8%* Minimum required deposit: $75

    This easy to get credit card has one of the lowest minimum deposits, so its a good choice if you dont have the $500 required by many of the other card companies. Its uses are less advantageous, since it has both an annual fee and a high interest rate, but its an option thats open to you if you cant afford the bigger deposit to get started.

    What Is The Difference Between Secured And Unsecured Credit Cards

    15 Secured Credit Cards that Graduate to Unsecure in less than 1 year! Get a Credit Limit Increase!

    The difference between the two cards arises on the issue of collateral. Secured cards need you to deposit specific amounts of money to act as collateral. On the other hand, unsecured cards do not require you to pay any deposit as collateral.

    Interest rates for secured credit cards are lower as compared to that of unsecured cards since a secured card has a low risk due to the deposit you make when taking the card.

    Moreover, most unsecured credit card issuers check your FICO score before deciding how much to give you. For secured credit cards, the issuers do not bother checking your score.

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    Best Secured Credit Card For No Credit Check: Opensky Secured Visa Credit Card

    Overview: Unlike most credit cards, the OpenSky Secured Visa doesnt require a credit check to apply. Also, you can build your credit history quickly because the card issuer reports to all 3 credit bureaus.

    Pros: No credit check is required with the OpenSky Secured Visa, which is a rarity for credit cards.

    Cons: Theres an annual fee, as well as fees for foreign transactions, inactivity and garnishment.

    Building Your Credit History

    Establishing a credit history is a key part of getting approved for a credit card at any age. The best way to do so is to get a bill or two in your name and pay it on time and in full every month on a consistent basis.

    For example, if youre on your parents cell phone plan, you might get your own plan and then make steady payments when your bills come due. Furthermore, if you take out student loans for college, making your monthly payments on time is another good way to build credit. And as mentioned earlier, charging against a secured credit card and paying off your balance will help you establish a credit history, too.

    Though youre technically eligible for a credit card once you turn 18, many people that age have trouble getting approved. If you end up being one of them, dont despair. With a little effort, you can build a credit history and snag a card of your own once issuers trust that youre reliable enough to pay your bills.

    The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.

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    How Fast Can A Secured Credit Card Help My Credit

    A secured credit card can help you build credit if you use it to make small purchases and pay the balance in full on or before the due date each month. This shows creditors that you’re able to responsibly manage your debts. Your credit score could also benefit if you pay on time, as payment history accounts for 35% of your FICO® Score. Keeping the balance low is another credit booster because it helps your credit utilization, which is the second most important component of your credit score.

    There’s no set time frame for how long it takes for a secured credit card to help you build credit. But opening an account and making timely payments can add positive information to your report that will benefit your score and possibly help improve it over time.

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