Credit cards can be a great way to build your credit history when you’re first building your financials. Having a positive credit score can allow you to rent an apartment, buy a car, or take out loans. However, young people must also be wary of avoiding credit card debt, which can follow you for years to come if you’re not careful. Below, learn the minimum requirements a young person must meet in order to be eligible for credit. 

The Credit CARD Act of 2009

While it’s true that a person must be at least 18 years of age to be considered for a credit card, changes over the last decade have made it more difficult for people under 21 to be approved for credit. The Credit CARD Act was implemented to protect college students from predatory credit practices. In the past, credit card companies would target young people in college who would end up with massive credit card debt due to high-interest rates and lack of income. 

The CARD Act instituted changes to prevent this from happening. In order to receive a credit card under the age of 21, you must meet one of two criteria. People under 21 can have an adult co-sign on the card, which would leave them responsible for outstanding debt, or they must show that they have sufficient income to keep up with minimum payments. 

Factors That Impact Credit Readiness

Assuming an applicant is under 21 and has a sufficient income to cover minimum payments, there are still other considerations to make. Young people that are prone to frivolous spending might be better off waiting until they’re older and more fiscally responsible. Financial missteps made while young will have a continued impact on your life, especially if you rack up high credit card debt in a short period of time. 

Also, it’s crucial that payments are made in a timely manner each month to prevent late payments. Late payments can also affect your credit score, and late payments that go beyond 30 days may be subject to collection attempts. It’s important for young people to evaluate their financial responsibility and career prospects before applying for a credit card. 

Buypower Eminence can help you restore your financial stability after credit card debt. They’ll help you understand the many factors that impact your credit score, while also taking the proper steps to improve your standing. They have experience with a wide range of issues, including tax liens, late payments, and repossession. Call (833) 428-9769 to receive help. You can also visit them online for a complete list of services.