How to Obtain a Credit Card as a Young Adult Under 20

The journey to financial independence often begins with having a credit card, which can be a powerful tool for building a good credit score and managing finances. However, if you are under 20, you may find yourself in a tricky situation as most credit card issuers require you to be an adult to apply for a card in your own name. This article will explore various options for young adults under 20 to obtain a credit card.

Getting a Credit Card Under 18

Although you cannot apply for a credit card in your name while you are under 18, you can explore several alternatives:

1. Adding Yourself as an Authorized User on Your Parents’ Card

Your parents can add you as an authorized user to their credit card. This allows you to use the card, but your parents will be responsible for the balance. They will also be able to monitor your spending and finances. While a good option, this solution does not build your own credit history since the card’s spending is on your parents’ account.

2. Co-Signer Option for College Students

If you are in college and your parents trust you with managing finances, they can apply for a co-signer agreement with the bank. This will allow you to have a credit card in your own name, with your parents as a co-signer. The card’s balance will be charged to their account, but it is a step towards gaining your own financial independence by using the card under your name.

Getting a Credit Card if You Turn 20

Once you turn 20, you can apply for a credit card in India, provided you meet certain criteria:

Eligibility Criteria for Credit Card Eligibility

You should be a resident of India or a Non-Resident Indian (NRI). You should have a regular source of income, whether you are salaried or self-employed. You should have a bank account with a good credit history.

Additionally, there are special options designed for students and young adults, such as:

Secured credit cards linked to a fixed deposit account. Student-specific credit cards with lower fees and higher rewards. Add-on credit cards from your parents or guardians who already have a primary credit card.

These cards can be a great way to start building your credit history and manage your finances. You can compare the features and benefits of different credit cards online and choose the one that suits your needs and preferences. Many banks offer online applications and detailed eligibility checkers on their websites or through mobile apps.

Alternative Solutions and Long-Term Plans

If you prefer not to apply for a credit card, there are other financial strategies you can adopt. Working part-time jobs such as mowing lawns, working at a fast food restaurant, or as a waiter/busboy can help you earn extra money. By saving a portion of your earnings, you can build a financial cushion that can be used for necessities, emergencies, or other financial goals. While this approach may take longer to build your financial independence, it is a reliable way to gain financial literacy and prepare for the future.

For more detailed information, you can refer to these websites that provide comprehensive guides and tips for young adults seeking financial independence:

Website 1 Website 2 Website 3

Remember, building a strong financial foundation, whether through credit cards or alternative means, is crucial for securing your future.