Should an 18-Year-Old Get a Credit Card to Build a Credit Score?

Establishing a credit history is one of the most crucial steps for young individuals, and starting early always turns out advantageous. While you can become a primary cardholder at 18, obtaining a credit card before 21 may require additional effort.

The information below will help those new to financing understand the main principles of applying for a credit card, including the age requirements.

Young people between 18 and 21 who lack sufficient income for a traditional unsecured credit card may consider applying for a secured one. These cards are designed for individuals with zero or poor credit and require an upfront deposit that usually matches the limit. For example, if you deposit $300, your credit line will likely be $300.

Demonstrating responsible use of the credit card—such as making full and timely payments—helps build credit history. This is especially vital for those planning further expensive purchases. For example, many Indianapolis students are considering buying a used car, and many Indiana used car dealerships, like Indy Auto Man, are ready to offer car financing to students. 

There is no regular public transport from Indianapolis to the nearest cities. Only one bus can take you to Bloomington, about 50 miles from the Indiana capital. A shuttle from Indianapolis International Airport to downtown is expensive; a public bus takes more than an hour to get to the city. So 18-year-olds driving from Indianapolis to Indiana University Bloomington or from Carmel to the University of Indianapolis to check out the campus and other locations they will be attending next year already feel the need for student car loans. And the Indiana state is not a rare case. 

Young people still attending school already may apply for a student credit card. They often have more lenient requirements and higher approval rates for those with limited credit history or income. They may also offer rewards tailored for students, like cash back on categories such as dining, rideshares, and grocery purchases.

These are core indicators that an 18-year-old is prepared to apply for a credit card and use it responsibly: 

• Stable income. If you have a reliable job or another source of income that enables you to pay off the card balance each month, it shows issuers that you’re ready for credit.
• Timely bill payments. If you’re already managing bills like rent, utilities, and phone payments on time, this suggests you can handle credit card payments responsibly as well.
• Budgeting skills. Creating a budget that tracks your expenses, debt repayment, and savings goals can help you spend wisely with a credit card.
• Understanding interest rates. Calculating credit interest is essential, especially if you ever carry a balance. Interest can accumulate quickly, so it’s important to stay on top of your payments to avoid debt.
• Knowledge of credit card basics. Familiarity with terms like statement balance, current balance, and minimum payment due will help you navigate your first credit card statement.
• Awareness of credit scores. Understanding how your credit card usage impacts your credit score is crucial, as a good score can lead to better rewards and lower interest rates in the future.

Despite the extra requirements, turning 18 presents new financial opportunities that can help establish a solid credit score. Whether choosing to apply for a starter credit card, make a deposit for a secured card, or request to be an authorized user on someone else's account, an 18-year-old can begin building a credit history and take advantage of the benefits that credit cards provide. Just remember to use your credit responsibly to protect your credit score and avoid falling into debt.