Introduction

At O1ne Mortgage, we believe in empowering young adults with the knowledge they need to make sound financial decisions. One of the most important steps you can take at 18 is to get a credit card. This article will guide you through the benefits of getting a credit card early, what to look for in a starter credit card, and what to do if you get denied. For any mortgage service needs, feel free to call us at 213-732-3074.

How Old Do You Have to Be to Get a Credit Card?

In most states, you need to be at least 18 years old to get a credit card. However, if you live in Alabama or Nebraska, the minimum age is 19, and in Puerto Rico, it’s 21. The Credit CARD Act of 2009 requires applicants between 18 and 21 to provide proof of income to ensure they can afford the credit card.

Why It’s a Good Idea to Get a Credit Card at 18

Getting a credit card at 18 comes with several advantages:

• Begin Building a Credit History: Starting early gives you more time to build a solid credit history, which can make it easier to borrow money for significant purchases like a car or a house in the future.
• Access Better Fraud Protection: Most credit cards offer zero fraud protection, ensuring you are not responsible for unauthorized purchases.
• Earn Rewards: Many credit cards offer rewards like cash back or travel miles, which can be redeemed for various benefits.
• Learn Financial Responsibility: Managing a credit card helps you develop good financial habits early on, preparing you for larger financial responsibilities in the future.

What to Look For in a Starter Credit Card

Choosing the right starter credit card is crucial. Here are some features to consider:

• New Credit or No Credit Accepted: Look for cards that cater to people with no credit history, such as secured credit cards that require a security deposit.
• No Annual Fee: Avoid unnecessary fees while you’re learning to manage your credit card.
• Low Interest Rate: A low interest rate minimizes the cost of carrying a balance from month to month.
• Offers Rewards: While not essential, rewards can add extra value to your spending.
• Credit Bureau Reporting: Ensure the card reports to at least one major credit bureau to help build your credit history.

What Happens if You Get Denied for a Credit Card?

Getting denied for a credit card can be disappointing, but it’s not the end of the road. Here’s what you can do:

• Become an Authorized User: Ask a trusted family member to add you as an authorized user on their credit card. This can help build your credit history.
• Use Other Bills to Boost Your Credit: Services like Experian Boost® allow you to add utility and streaming service payments to your credit report, potentially increasing your credit score.
• Apply for a Secured or Student Credit Card: These cards are designed for people who are new to credit and can be easier to qualify for.

The Bottom Line

Getting a credit card at 18 can be a smart financial move, helping you build a solid credit history and learn financial responsibility. If you’re just starting out, consider becoming an authorized user or applying for a secured credit card. As you build a positive credit history, you’ll qualify for better offers in the future.

For any mortgage service needs, don’t hesitate to call O1ne Mortgage at 213-732-3074. We’re here to help you make the best financial decisions for your future.