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Getting Your First Credit Card in the US: Secured Cards and the Under-21 Rules

By PointsExplainedLast reviewed

Check your credit reports first

Get your free reports from all three bureaus at AnnualCreditReport.com so you know whether you have a file and whether it is accurate.

Choose secured or unsecured

The CFPB lists secured cards and credit builder loans among the ways to start a credit history. Compare the deposit, annual fee and other fees in each card's pricing table.

Confirm the card reports to the bureaus

A card helps build your history only if the issuer reports how you use it. The FTC says many secured card issuers do; confirm with the issuer before you apply.

Use a little, pay in full, on time

Repayment history is the top factor in most scores, according to the CFPB, and it says experts advise using no more than 30 percent of your total limit.

Where this comes from

Sources

The documents this guide relies on. If one has changed since we read it, the document is right and this guide is out of date.

  1. Regulation Z, 12 CFR 1026.1 - Authority, purpose, coverage (CFPB)

    Regulation Z implements the Truth in Lending Act.

    consumerfinance.gov · Accessed
  2. Regulation Z, 12 CFR 1026.51 - Ability to pay (CFPB)

    Issuer must consider ability to make required minimum payments before opening an account or increasing a limit; under-21 applicants need independent ability to pay or a cosigner, guarantor or joint applicant aged 21+; limits on credit line increases before age 21.

    consumerfinance.gov · Accessed
  3. CFPB - Can a credit card company consider my age when deciding to lend me a card?

    Age can't generally be used in lending decisions; under ECOA lenders can't use age to discriminate, but card companies can consider age for capacity to contract or in an elderly applicant's favor.

    consumerfinance.gov · Accessed
  4. CFPB - I am a stay-at-home spouse or partner without a separate income. Can I still get a credit card in my own name?

    Applicants 21+ with a spouse or partner may be assessed individually or on combined income or assets; under 21, card companies must look only at individual income or assets.

    consumerfinance.gov · Accessed
  5. CFPB - What are some ways to start or rebuild a good credit history?

    Secured cards, credit builder loans and retail store cards with relatively low limits help build credit; debit cards, prepaid cards and payday loans don't.

    consumerfinance.gov · Accessed
  6. FTC Consumer Advice - Comparing Credit, Charge, Secured Credit, Debit, or Prepaid Cards

    Debit cards don't help build credit history; secured card deposits (percentage of limit, maybe up to 100%) and return of deposit; many secured card issuers report to credit reporting agencies; may help qualify for an unsecured card; generally higher APRs and annual fees, possible activation or monthly fees; same legal protections including $50 unauthorized use limit; charge cards have no interest, no pre-set limit, full payment due, some with high annual fees.

    consumer.ftc.gov · Accessed
  7. CFPB - Why did I get a low credit limit on a credit card?

    Common reasons for a low credit limit; if turned down and offered a different card, the issuer must give the reasons for denial; a limit decrease on an existing card generally requires an adverse action notice.

    consumerfinance.gov · Accessed
  8. Regulation Z, 12 CFR 1026.60 - Credit and charge card applications and solicitations (CFPB)

    Application and solicitation disclosures: APRs for purchases, cash advances and balance transfers; annual fee; transaction charges for purchases; cash advance fee; late payment fee; balance transfer fee.

    consumerfinance.gov · Accessed
  9. Official interpretation of Regulation Z 1026.60, comment 60(b)(4)-2 (CFPB)

    Purchase transaction charges include foreign transaction fees.

    consumerfinance.gov · Accessed
  10. CFPB - Credit Card Agreement Database

    Issuers generally required to post card agreements on their websites; CFPB database of agreements from hundreds of issuers.

    consumerfinance.gov · Accessed
  11. FTC Consumer Advice - Free Credit Reports

    Free reports from all three bureaus at AnnualCreditReport.com.

    consumer.ftc.gov · Accessed
  12. CFPB - How do I get and keep a good credit score?

    Repayment history as the number one factor; experts advise no more than 30 percent utilization.

    consumerfinance.gov · Accessed
Questions

About this guide

Can I get a credit card at 18?

Possibly, but under Regulation Z an issuer can't open an account for someone under 21 without financial information showing an independent ability to make the minimum payments, or a cosigner, guarantor or joint applicant who is at least 21 and able to pay.

Will I get my secured card deposit back?

The FTC says you usually get the deposit back when you pay off your balance and close the account. Check the card's agreement for its specific terms.

Will a debit or prepaid card build my credit?

No. The CFPB lists debit cards and prepaid cards among the products that don't build credit history.
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