How to Obtain a Credit Card before 21 Years. Obtaining a credit card when the person is a minor can sometimes be a good idea and sometimes not. Depending on the child’s habits, this opportunity can help you grow financially or may delay you.
If the child pays his debts on time this helps him establish his credit credibility, but if he does not fulfill the payments this can deteriorate his history at a very young age.
My story when obtain a credit card
When I started college (a few years ago. :)) I was only 17 years old. Credit card companies had kiosks where students applied for credit, everything was very easy. I got excited and applied for an American Express card. At that time this card had to be paid in full monthly.
What was my surprise when the $800 + account arrived, payable in 30 days. Thanks to my mother who helped me pay the full balance. Otherwise, my credit would be negatively affected because I had no job. The laws are not the same and it is forbidden to grant credit to minors, unless the minor meets some requirements.
Today the credit rules have changed and it is more difficult for those under 21 to obtain it. The credit law established in 2009 makes it more difficult to open credit cards for minors. But it’s not impossible. These are the ways for a minor to obtain a card, under the new rules.
3 Ways to obtain credit card for minors
Co-signature (single owner) – The minor may request credit with a co-signer or co-signature. This signature must be that of the parents or an adult who takes responsibility if the minor cannot pay the debts. If the minor does not pay, the co-signer is responsible for the debts.
Joint accounts (two owners) – The minor can request the card with one of his parents or a responsible adult. In this case, the card belongs to both people. The debts of one person are the debts of both. But if the child requests an increase in the credit line, the company must confirm with the other owner.
Proof of income (an owner) – If the child has income from work or other sources and proves that he can meet his debts, he can apply for a credit card alone, without a co-signature.
Obtaining credit before age 21 can be a good opportunity to meet debts, establish credit and credibility. But if this opportunity is misused, the consequence for the child is that he can destroy his credit at a very young age. So watch out for credit cards for minors. It is not a bad idea, but you must proceed more carefully.