What Age Can You Start Building Credit?

It takes time to establish good credit, and the sooner you get started, the better. If you're a teen or young adult, understanding when and how to start building credit is a great first step toward being independent with your money.

Whether you're getting ready for your first credit card or helping a younger person responsibly build credit, we’ll walk you through everything you need to know about boosting credit from an early age.

Introduction to Credit Building at a Young Age

Understanding how credit works – and how to build it early – helps lay a powerful foundation for strong financial health. If you want to rent an apartment, buy a car, or get a loan or credit card, good credit can make those big steps easier and more affordable.

When you establish good credit early in life, you take the first important steps toward a strong financial future. A positive credit history can open the door to lower interest rates, better loan terms, and greater flexibility in financial decisions later in life.

Minimum Age for Credit

So, at what age can you start building credit? As it turns out, the minimum age to open a credit card in your own name is 18, but legal restrictions apply. For instance, if you're under age 21, federal law requires that you show proof of independent income or have a co-signer to qualify for a credit card account. And while most lenders don’t offer loans or credit cards directly to minors under 18, there are still ways to start establishing a credit history before you reach legal adulthood.

It’s important to note that parents and legal guardians can play a key role in helping a child build credit. From custodial bank accounts to shared credit card strategies, financial education can – and should – begin long before a teen turns 18.

Under the Credit CARD Act, applicants under 21 must demonstrate independent ability to pay or apply with a qualified cosigner/joint applicant (if permitted by the issuer). Not all issuers accept cosigners on credit cards.

Getting Started with Credit

Wondering how to start building credit at 17? Or maybe you’re trying to figure out how to start building credit at 18 or 20? Rest assured that no matter where you’re starting, you have accessible credit tools available to you.

Minors usually can’t open a credit account on their own, but they can begin building good savings habits, learn about money management, and take advantage of authorized user options. Once you’re 18, you can consider applying for a student credit card or a secured card as your first credit line. Both options are designed for new credit users and can help establish your credit history with responsible use.

In addition, unsecured card options like the Juzt Digital Credit Card ^[1]are great for first-time credit-users. Designed especially for consumers who are building or rebuilding their credit histories, the Juzt Credit Card offers instant decision, and with its digital-first approach, you can start using your credit card immediately upon approval – there’s no need to wait for a physical card to arrive.

Authorized User Status for Minors

One of the easiest and most popular ways to help a child build credit before they turn 18 is to add them as an authorized user on a parent’s credit card account. This allows the child to benefit from the parent’s positive payment history and long-standing credit account – if the credit card company reports authorized users to the three major credit bureaus: Equifax, Experian and TransUnion.

However, you should proceed with caution. Before making your child an authorized user on your credit card, it’s important to have a conversation about expectations and spending limits. It’s also critical to keep in mind that if the primary account holder misses payments or maxes out the card, it could negatively affect the child’s credit profile. But on the flip side, consistent, timely payments and low credit utilization can help a child build a positive credit history.

Not all issuers report authorized-user accounts, and some scoring models or lenders may discount or exclude authorized-user data. Negative activity (e.g., missed payments, high utilization) on the primary account can harm the authorized user’s credit. Consider setting spending limits or not issuing a physical card to the minor.

Student Credit Cards

Designed specifically for college students, student credit cards offer a manageable entry point into the world of credit. These cards often have lower credit requirements and student-centric benefits like cash back, cell phone protection and no annual fee. However, to qualify while under age 21, students must show proof of income or apply with a co-signer.

Student credit cards can help young adults establish credit by rewarding responsible use – such as making on-time payments and staying under their credit limit. With time, this activity is reported to the credit bureaus, which helps strengthen the student’s credit profile.

With other tools like the Juzt Digital Credit Card, students can establish credit even with limited history. Juzt provides instant access to an unsecured credit line – which means no up-front security deposit – and reports payment activity to Equifax, offering a viable pathway to establishing credit from scratch.

Educational Resources for Young Credit Builders

It’s no secret that smart money management starts with strong financial education. Fortunately, there are a growing number of resources available to help teens and young adults understand how credit works.

Programs like Experian Boost® and Experian Go™ ^[2]can help users build or jump-start a credit report. Free, self-paced financial literacy courses, including personal finance basics and tools from banks or credit unions, also can offer guidance on credit scores, savings accounts and how to build good credit habits.

In addition, free, self-paced financial literacy courses – usually offered by nonprofit organizations, banks, credit unions and educational institutions – cover the basics of personal finance. These courses often teach practical topics such as budgeting, understanding credit scores, comparing interest rates, managing a savings account and avoiding credit pitfalls like late payments or high credit utilization.

Some online platforms and bank-sponsored educational hubs feature interactive lessons and calculators to help users understand how borrowing, saving and spending decisions impact their credit profile and long-term financial well-being.

Plus, school-based programs, especially those in high schools and colleges, are also expanding to include credit education as part of economics or personal finance coursework. These programs can help students understand the importance of building and maintaining a good credit score, the long-term effects of missed payments, and how to compare and use financial products like credit cards, student loans or credit builder loans.

Custodial Accounts and Youth Savings

Although savings accounts don’t directly build credit, they are a key component in teaching good financial habits. Custodial accounts – where a parent or guardian controls the account until the child reaches adulthood – can help children learn how to responsibly manage their money. Depending on the state, these accounts may be governed by the Uniform Transfers to Minors Act or the Uniform Gifts to Minors Act. Custodial accounts can be opened at most banks and credit unions and typically allow a child to access their funds when they reach the age of majority, either 18 or 21, which varies by state.

Savings and custodial accounts do not build credit because they do not involve borrowing. UTMA/UGMA rules and the age of majority vary by state; this content is informational only and not legal advice.

In addition to custodial accounts, many banks and credit unions offer youth savings accounts specifically designed for minors. These accounts are often joint accounts, meaning both the child and the parent are account holders. Here's how a typical youth savings account works:

• Opening the account: A parent or guardian typically opens the account with the child and makes an initial deposit, often as low as $25.

• Joint access: The adult oversees the account but may allow the child to make deposits or withdrawals, depending on age and maturity.

• Interest earned: Like standard savings accounts, youth accounts earn interest, helping young savers learn about compounding over time.

• Online tools: Kid-friendly mobile apps or dashboards to help children visualize their progress and savings goals.

• Educational features: Some accounts include features like allowance tracking, goal-setting tools, or rewards for consistent deposits.

Youth savings accounts can be a great option for helping children understand key financial concepts such as budgeting, saving for goals, and monitoring their account balances. As they grow older, this early exposure can create habits that lead to responsible credit usage later in life – like making timely payments on a credit card bill or keeping a low credit utilization ratio.

In addition, some secured loans and credit builder loans may use a savings account as collateral, linking the practice of saving with establishing credit. For example, a young adult might secure a credit card with a $300 deposit from their savings account, then responsibly use the card to build credit. The savings mindset also supports good credit behavior and helps establish financial discipline.

Credit-Building Opportunities for College Students

College is often an ideal time to start building credit. Students can apply for a student credit card, take out a student loan, or even consider a credit builder loan to help establish their credit history. But be aware: making on-time payments on any of these accounts is critical. Even utility bills and rent payments can sometimes be added to credit reports, depending on the service provider or credit bureau.

College students should also understand the impact of credit card accounts, how to avoid excessive credit card debt, and how to monitor their credit reports regularly for errors or signs of identity theft. For many students, the college years represent their first taste of financial independence. Whether you’re opening a credit card account or repaying student loans, your actions during these years can shape your credit profile for the future.

Here are some smart financial strategies to help college students build credit:

Student loans

For many college students, student loans are the first major credit account in their name. Federal and private student loans are reported to the credit bureaus, and repayment activity directly affects your credit. If you take out a student loan, make sure you fully understand its terms – even if your loan is in deferment while you’re in school, interest may accrue, and it’s important to prepare for repaying your loan as soon as you're required to.

Making timely payments once your repayment period begins is critical for building a solid credit history. Late payments can harm your score and stay on your credit reports for up to seven years. On the flip side, a consistent record of responsible repayment can strengthen your credit profile and open more financial doors for you in the future.

Adding monthly bills to your credit profile

While traditional credit scoring models focus on loans and credit card accounts, some alternative credit-building tools allow college students to add other monthly bills to their credit reports. For example, services like Experian Boost® can report utility bills, cell phone payments or streaming subscriptions to your credit file. If you’re already paying these bills in your name, this can be an easy way to supplement your credit history.

Credit builder loans

If you're not quite ready for a credit card, or you just prefer installment credit, you might consider a credit builder loan. These products hold your funds in a savings account until you’ve made regular payments. They also report to the three major credit bureaus, which helps you establish a positive credit history and credit mix.

Monitoring credit and avoiding pitfalls

College students can be especially vulnerable to identity theft and credit missteps, so monitoring your credit report is a must. You can get a free credit report each year from each of the three major credit bureaus – Equifax, Experian and TransUnion – at AnnualCreditReport.com.

When checking your report, look for the following:

• Inaccurate personal information

• Duplicate or unfamiliar credit accounts

• Signs of unauthorized activity or fraud

• Accounts showing late payments or high balances

If you spot an error, immediately report it to the credit bureau to protect your credit standing.

Starting to build credit as a college student can give you a head start on major financial goals like qualifying for a car loan, getting an apartment without a co-signer, or getting better interest rates on future loans. With the right tools and smart financial moves, college students can begin adulthood with a solid credit foundation.

And for students who may not yet qualify for a traditional student or secured card, a tool like the Juzt Digital Credit Card can offer an alternative starting point. It’s fully digital and designed for people with limited or no credit history, offering quick pre‑approval and instant access to a digital card upon approval. There’s no deposit required, and responsible use can help users build credit history over time.

Juzt reports activity to Equifax, which allows you to start establishing a credit footprint more immediately than some secured or student cards. The platform also includes spending alerts and analytics to help build good credit habits.

Establishing good credit early in life isn’t just smart – it’s empowering. By understanding how to start building credit as early as 18 (or how to start building credit even earlier with parental help), you set yourself up for a lifetime of financial opportunity. Whether you’re a teen thinking about your credit readiness or a college student opening your first credit card account, the steps you take now can shape your financial future for years to come.

And it’s never too early to start the journey. Go slow, stay consistent and remember: good credit doesn’t happen in an instant – but with smart and steady credit decisions, you can build a strong credit history that will serve you well into the future.

This article is for informational purposes only and does not constitute financial, legal, or tax advice. Product availability, credit approval, APRs, fees, limits, reporting, and timelines vary by issuer and applicant; no outcome is guaranteed. Review the applicable cardmember agreement and program terms before applying or using any product.