How To Open A Credit Card At 18

If you’re 18 and looking to open your first credit card, then there are some things you should know before getting started. Typically credit card companies only accept applicants who are at least 18 years old, so this is most likely your first credit card. While this is a relatively easy process, it can seem difficult if it is unfamiliar to you.

Here is a guide on what you will need to know, and advice an online bank, like MoneyLion, or a physical one. Keep reading to find out more.

Credit Card Responsibility

Not only do you need to be of age, but you need to have a sense of responsibility for starting your credit card. Having a credit card starts your credit history, which can be hard to repair if you fail to pay your monthly bills. This credit score can affect your ability to take out a loan, buy a house, or rent a car so make sure you are prepared for this responsibility!

If you don't have a verifiable income and you are under the age of 21, federal law requires that you can't be approved for a credit card. That is unless you have a cosigner, so if you don’t have a steady income then look for someone who’s willing to open a joint credit card with you.

Getting Your Card

If you are 18 and enrolled in college, you should first investigate getting a student credit card. Be wary of student cards with high-interest rates, because they often try to trick younger applicants.

If you already have an existing checking or savings account, then use your bank for your first credit card. Having an existing relationship with your bank will help expedite the process of getting your credit card approved, especially if you have been responsible for doing so. Make sure these cards do not have high-interest rates, or annual fees because they will add up increasingly.

If you don't have a previous checking account, you can apply for a secured credit card. These are a great option if you do not have a credit history already, preventing you from getting a standard Visa V credit card. You have to put down a security deposit that will equal your credit limitation, which the bank holds in case you miss your payments.

Look Online

Consider starting with an online bank if you have no current income and no one to cosign a card with. Not only do most online banks have no minimum requirements for your balance, but they also are easily accessible from the comfort of your phone. With several free online banks, there are financial services that offer accounts with zero ATM fees.

For example, MoneyLion is a money-saving service that keeps your money in your account. MoneyLion is available through more than 55,000 fee-free ATM’s across the globe, meaning no ATM fees. This is a sign of a reliable online banking service, as most will be part of an ATM network with thousands of easily acceptable ATMs across the globe. These ATMs can also be located through your mobile device.

MoneyLion has entered into a compensation arrangement with Benzinga under which MoneyLion pays a fee for marketing and advertising services. MoneyLion does not have editorial control over the content of this material. MoneyLion does not adopt, endorse, or guarantee the accuracy of content posted by Benzinga, and such content does not represent the views of MoneyLion.