What Is The Best Age To Get A Credit Card?

Are you ready to get your first credit card? Are you hoping to make some dream purchases? A credit card can fulfil dreams. But be at the best age to get the maximum out of your credit card.

“It feels surreal. It seems like you have all the shopping malls, theatres, and eating joints at your disposal, waiting just for you.” said Katherine, a resident of the Greater Toronto Area, after getting her first credit card.

She is not wrong either. A credit card gives you immense power to make purchases, even if you do not have money at that very moment. So, let us delve deeper and understand the best age to own a credit card.

Own a Credit Card in Canada

Respect the law. Before going any further, let us understand the legalities in Canada.

Depending upon which province you are in, you need to be at least 18 years or 19 years old to get a credit card in your name. It translates into the fact that you at least need to be a major to hold a credit card in Canada.

If you are under 18, you can still use a credit card. You require a credit card issued by your parents/guardians or your name. They will fulfil all the payment liabilities.

To become a valid credit card user, you need to be between 13 or 16 years and 18 years, depending upon the province in which you are living.

Further, not every credit card, or we can say issuing organization, gives this privilege of adding valid users, so if you intend to do so, make sure your parents are opting for a credit card that allows it.

What Happens When I Own a Credit Card?

You are young, between 13 and 18, understand:

• How does this world work?
• What is the importance of finance in human life?
• How does a credit card operate, other than swiping it in a machine?
• How hard do your parents work to pay off the credit card dues?

Being in an early adolescent stage, you are experiencing mental, physical, and intellectual changes in your life, and that too at a rapid pace.

Your circle of friends is consistently expanding, and you get too influenced by their purchases. “I want a new I-phone since all my friends have it,” said Anthony, a young 16-year-old Quebec resident.

Since you are still learning and improving your decision-making skills, we will not recommend that you become an owner of a credit card at an early age. Instead, rely on your parents and respect their buying choices, which they are making for you.

Own a Credit Card at 18 and 20

Yes, you are legally eligible to become the owner of a credit card. You can make purchases using it and are free to spend even its maximum limit.

However, since you are studying and certainly do not want to get attracted to the charm of this newly attained financial freedom, we will still not recommend that you own a credit card at this stage of your life.

It is primarily because:

• Your spending habits are too poor, and there is a high chance that you might end up buying things you do not need
• You might do a part-time job or an internship, and the finances through it might not compensate for your poor buying choices.
• Any overdue or partial payment towards your credit card outstanding affects your credit bureau score. It might become tough at the later stages to improve it

Do not rush. The process of good things takes time. So, we will not recommend you take a credit card at even this age bracket.

Own a Credit Card at 21

It is the age of adulthood. It is when you are mature in age and value money. With time, your present knowledge about “managing finance” will improve, and you will become wiser.

But you are certainly better than before, and now you can manage your buying temptations in a better way. We feel 21 is the perfect age for you to own your first credit card.

Your young shoulders are now ready to take up this economic responsibility and learn about the various developments in the finance sector.

So, if you are 21, cheers, go to a bank, own a credit card, and welcome yourself to this new world of loans, credits, and advances.

Own a Credit Card Between 21 and 25

There are several benefits of starting early, no matter which field/ sphere/ zone you are in. If you have been a holder of a credit card since the age of 21, then there are several benefits waiting for you, such as

1. Early Credit Development

You must understand the importance of having a high credit score if you want to talk up loans and advances in your names at the later stages.

By having a good credit score, you will be able to:

• Get mortgage loans, personal loans, car loans, and even short-term credits at competitive rates 
• Get rental accommodations at a cheaper rate
• Get more employment opportunities, as even the employers check out your credit score

If you take a credit card as early as 21 and are clearing all the dues regularly, you are simply building your credit score that comes in handy in the future.

2. Makes You Financially Responsible

You have managed no loan until taking this credit card. Thus, it is high time you became finance savvy and understood the different processes like:

• How can you manage your finances?
• How can you forecast and do budgeting to clear the outstanding amount before the due date?
• How can you not indulge in poor buying?

A credit card can teach everything to you.

3. Gives You Credit for Emergencies

Life is unpredictable. No matter your age, 21 or 41, there could be certain events that make you crave finance. A credit card comes in handy in such situations and meets all your short-term debt obligations.

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