Credit Card: What is the right age to start applying for one?

A credit card is a financial instrument which almost every salaried person is expected to possess. It helps you make payments on credit and streamline your finances on monthly basis.

As soon as young people start earning in a corporate job, they apply for a credit card in no time. It is, undoubtedly, now an integral part of monthly budget of salaried persons.

While nobody denies the necessity of a credit card, there are different views on the “right” time to apply for a card.

Some experts believe that the right time to get a credit card is when you start earning, whereas others opine that you should apply for it only after some time you start earning. When you have a bank account, you become eligible to apply for a credit card. 

It is noteworthy to mention that you do not necessarily need to have a bank account in the same bank whose credit card you are applying for.

Key considerations before applying for a credit card

If you are also toying with the idea of applying for a credit card, make note of the following points:

A. Possessing a credit card is equivalent to availing a bank loan. The way bank determines your eligibility to apply for a loan, the same way the card issuing company assesses your eligibility. In other words, you need to have a sound financial health (such as business income/ monthly salary) to be able to repay the loan or a credit card bill.

B. When you are too young to get a credit card, you can use an add-on credit card given as a complementary card to the family members of primary card holder.

C. Minimum age is usually 21 to be able to get a credit card whereas maximum is 60.

D. You should ideally wait for a minimum of six months to one year before you apply for a credit card. If you start earning at 23, for instance, it is advisable to apply for a card a year, or at least six months, after you receive your first salary.

E. Eligibility and limit of credit cards vary from bank to bank. So, whether you are eligible for a card or not, and what is the maximum limit of the card, are some of the factors which only a bank could decide.

It is, therefore, advisable to have a proper understanding of responsibilities which a credit card comes with – without which it can lead to debt. So, it is recommended to stick to restrained spending and clear all outstanding bills in full every month.

(Note: Using a credit card carries its own set of risks)