Credit Cards for Teens
6 Min Read | Published: March 28, 2025
This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.
Discover the best types of credit cards for teens and how they can help your teenager build financial skills. Get tips for responsible credit card use for teenagers.
At-A-Glance
- Teenagers under the age of 18 aren’t yet eligible to get their own credit card.
- With some card issuers, parents may be able to add a teenager as an authorized user once they turn 13.
- Parents can use credit card as an opportunity to teach kids about personal finance and encourage them to build healthy financial habits.
Learning how to manage credit responsibly can help set teens up for a lifetime of sound financial management. But what are the restrictions around credit cards for teens, and how can you feel confident you’re making the right choice by giving your teenager access to a card?
In this article, we’ll cover important considerations when it comes to getting your child their first credit card, including tips to help you as a parent set financial boundaries.
Can Teenagers Get Credit Cards?
Teenagers under the age of 18 aren’t yet eligible to enter into a credit card agreement on their own. However, some card issuers allow minors under 18 to become authorized users on an existing credit card account. Age restrictions vary per card issuer, but some companies may allow authorized users as young as 13.
Older teens may be able to become primary cardholders, but they still might face certain restrictions until they turn 21. Card issuers may require that a young person between 18 and 21 qualify for an account by providing:
- Proof of Independent Income
Credit card issuers want to know that applicants can repay the balance on an account before extending them a line of credit. Your teen may need to show proof of independent income from a job to apply. - A Co-Signer
If your older teenager doesn’t yet have an independent income, you can step in and co-sign on the credit card. Keep in mind that this means you’ll be responsible for paying the balance if your teen isn’t able to do so.
Should Teens Have Credit Cards?
The decision of whether teens should have credit cards is a family-specific choice for parents and teens to make together. There are several important topics to discuss and consider with your family, including the following benefits:
- Teaching Financial Responsibility
Adding a teen as an authorized user on a card can help them learn about responsible credit card use alongside you instead of on their own. They can ask questions, watch how you manage your monthly spending, and have an opportunity to practice financial management with you. - Building a Teen’s Credit History
You can help give your teenager a leg up by allowing them to establish a credit history at a younger age. Doing so could help your child can qualify for more favorable credit terms in early adulthood, assuming the credit history during their teenage years is favorable. - Convenience
If your teen regularly texts you asking for money while out with friends, it may be more convenient if they have a credit card on hand to make purchases. However, it’s important to put guardrails in place to curb potentially high spending. - Parents Retain Control
If your child’s spending or card management were to get out of control, it’s ultimately up to you as the account holder if you would want to freeze access to their card or take it away entirely.
However, keep in mind there are risks and potential downsides to consider, too, including:
- Risk of Debt
If your teenager’s spending is left unchecked, they could rack up a significant balance on the account. As the primary cardholder, it’s your responsibility to manage spending on the credit card account, though some card issuers may allow you to set limits on authorized user spending to help alleviate the chances of a surprisingly high bill. - Potential Damage to Parent’s Credit Score
Since authorized users are viewed the same as primary account holders from the perspective of credit reporting bureaus, any potentially damaging behaviors your child participates in could reflect negatively on your credit score. For example, if they create a balance on the card that you’re unaware of, you might miss a payment, which could negatively impact your credit score.
How to Build Credit as a Minor
Beyond financial education, there are several ways parents can help establish credit for children, including:
- Let Children Pay Their Own Bills
If your child has recurring bills, like a cell phone or subscription to a streaming service, you can let them manage and pay the monthly bills. Teaching them about the importance of paying bills timely and how it can impact their credit score can help them develop good financial awareness. - Show Your Teen Their Credit Report
After your child has been added as an authorized user for a few months or years, show them how to view their credit report for free. Encourage kids to access their credit reports at least once per year to check for errors and ensure financial information is accurate and up-to-date. - Teach Your College Student About Managing Debt
There are several ways for college students to build credit, from reducing their student loan debt payments to applying for a student credit card. It’s important to help your child manage their finances during their college years as they begin to make financial decisions on their own.
Tips for Parents Introducing Credit Cards for Teens
As you consider giving your teen a credit card, use these helpful tips to ensure a smooth transition:
- Set Limits
While some card issuers allow you to set an actual spending limit for authorized users, it’s also important to discuss a weekly or monthly spending limit with your teen. Doing so can help them responsibly budget their money, enabling them to learn about financial tradeoffs and how to make them. - Monitor Spending
Talking through expenses instead of telling them to curb spending can create opportunities to discuss the importance of thoughtful purchases and encourage your teen to take an active part in managing finances. - Teach About Budgeting
Establishing a realistic budget with your child can help them learn how to independently manage their own wants and needs, allowing them to develop the skills to spend responsibly without you looking over their shoulder.
Did you know?
A 2024 LendingTree survey revealed that 59% of parents surveyed had given their children access to their credit or debit card to make a purchase, but 22% said their children have spent without permission.1 Giving a teen a credit card and setting financial boundaries may help parents open a line of communication with kids and discourage spending without permission.
Choosing the Right Credit Card for Teens
Not all credit cards are created equal. As you search for the best credit card for teenagers, consider features that will encourage responsible money management.
- Low Card Limits
If your card has a high credit limit, you may consider applying for a new line of credit with a lower limit. Giving your teen access to a credit card on that account can alleviate the possibility of them overspending since they’ll only be able to spend up to the card’s limit. - No Annual Fees
A no annual fee credit card may be the best option for teenagers as they begin to manage money. For example, the Blue Cash Everyday® Card by American Express has no annual fee2 while offering benefits like cash back on eligible spend.3 Credit cards with annual fees often come with extensive perks and benefits, but teens are unlikely to spend enough to be able to take full advantage.
The Takeaway
Adding a younger teenager as an authorized user to your credit card account may provide them an opportunity to learn about managing money with your support. As your teenager gets older, you may opt to become a co-signer to help them get their first credit card. No matter whether you decide to get your teen a credit card or not, it’s important to open the door to money conversations that can set your child up for a lifetime of financial success.
1 “Nearly 3 in 5 Parents Have Given Kids Access to Their Cards, but 31% Regret It,” LendingTree
2 For more on Rates and Fees for the Blue Cash Everyday® Card, click here.
3 For more on Offer & Benefit Terms for the Blue Cash Everyday® Card, click here.
Brooke Joly is a writer on a mission to unravel the mysteries of personal finance and make them accessible to the everyday reader. When she’s not behind the keyboard, you can find her enjoying the outdoors in Charleston, SC.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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