Can a 16 year old get a credit card?

[thomsbrain]

i had co-signed card that was turned over to me when i was 18. good way to build credit.

 

[PowerMac4Ever]

Originally posted by: mugsywwiii

Originally posted by: PowerMac4Ever

Originally posted by: mugsywwiii

Originally posted by: PowerMac4Ever

Originally posted by: mugsywwiii

Originally posted by: Dissipate
Visa Buxx

That's a debit card. Debit cards don't build credit.

It's not a debit card. It does require you to deposite money first, but you'll get the same protection that a credit card would give you (charge backs, etc).

It's not a credit card. http://www.visabuxx.com/learnmore/index.cfm

AgaBooga, don't worry about building credit... get a card when you're 18, you'll still have four years of college before you'll need to buy anything that you'll need credit for (car, house)

Good thing I didn't say it was a credit card...
Also, Amex has a similar program.. it's called "cobalt" or something iirc.

OK, he's asking for a credit card. Someone suggested this, which is NOT a credit card. I said it's a debit card, you disagree with me for reasons that have nothing to do with what he's looking for. Call it whatever you want, but it's still a debit card with some extra features.

Actually, my post is perfectly valid. If he can't get a get a credit card, he might as well go for a Visa Buxx instead of a standard debit card. That way, if some online company screws him over, he can call up Visa and dispute the charge. Security is a big reason why many people use credit cards for large purchases. If the kid can't build credit, then he might as well have some security. Chill out, dood.

 

[Andyman53]

Heh...First post here! W000t!! I'm over here from HowardForums, just found this site on Google and i'm interested since i read tomshardware, extremetech and am an active poster in the Computer Forum over at HoFo.

Ok...Back to the point. Well...I have my own checking account. I'm 16 and its cosigned with my mom. I just had a big problem with Paypal, they found out i was under 18 when i tried applying for a debit card, got the whole account frozen and is getting unfrozen, got out under a loophole. DEFEINETLY NO WAY THEY'D GIVE ME AN ACCOUNT BY MYSELF, no less a debit card?! I went into Commerce Bank with upwards of 1000 dollars and opened a checking account, they still needed a cosigner even though i had 1000 dollars in my hands, contract legalities SUCK. Anyways, they WILL NOT give me a Visa Check Card in my name, its my account, my money but the Visa Check card has to be in my mother's name. They tell me that i'm under 18 and i cannot sign any legal documents. I can write checks, my name is on the checkbook at least. A) Checks don't build credit history and B) Therre are tons of stores that want a Drivers License and someone over 17 writing the check. Again i'm 16 and i'd like to have credit history for when i open up my own cell phone account. FYI: Nextel Wants a 1000 dollar deposit for those w/o a credit history, WHO HAS THAT KIND OF CASH?!?! Anyways...I don't want a prepaid credit card or anything tied up in paypal, I have a checking account. Any suggestions? I'd love to have a credit card or even better a check card IN MY NAME.

 

[amdforever2]

You cannot borrow money, you are not of age to enter a legally binding contract.

You cannot sign on a loan of any sort, so no one can cosign.

You can however be an authorized user on an account, which is your best option.

Bank of America reports authorized user accounts just as if they were your own.

 

[dmurray14]

Wow, thats pretty weird Andyman. I was JUST ABOUT to do the same thing. I have an account cosigned with my mom, and was about to get a paypal debit card. What did they say to you? How did you get out? I have reached my paypal limit, and I have to put in an account - it's gonna have to be my checking account. Are they going to give me crap? BTW, try applying for a checking account online with PNC, they may give you a debit card. I applied and made a deposit, I am awaiting my debit card in the mail, hopefully it will come. Keep me updated on your situation, it's very interesting to me.

 

[Zenmervolt]

Originally posted by: yllus
A co-signed credit card is one in which your potential credit lender asks your parent, guardian or older sibling (basically anyone related to you who has an established credit history) to vouch for your responsibility and possibly even be held liable if a problem arises.

There is no "possibly" about it. If they have any trouble getting you to pay they will go after the co-signer.

ZV

 

[amdskip]

I've had a credit card since I was 16 without a co-signer. Its a capital one card.

 

[Andyman53]

They said that since i was under 18 and had a paypal account under my name they were freezing all of my payments, limiting my account and holding whatever funds i had in the account for 180 days. My Father's Middle Name is my First name so he had to get a notarized letter signed, copy of drivers license, copy of something with his full name on it including middle name. I HAD TO DO THIS, because they freeze any and all information used in the limited account until i will be 18 including checking accounts, email addresses and credit cards. Can't use those on ANY newly created accounts. That means no more paypal and no more ebay. Which i DEFINETLY COULD NOT LIVE WITHOUT. Paypal SUCKS!! They're being too secure. As for switching to another bank, A) Commerce took a chance on me to get a checking account which they said i'm lucky to get and B) They're 2 blocks away from my house and down the block from my job. I have an ATM card and a checkbook but i'd like a check card. I'll look into getting both our names on the visa card, that'd be great. I can take or leave a credit card, A) Builds Credit which i need but its a real pain in the @$$ to send payments every month when i can B) Get a check card that debits directly from my checking account. I read recently that experian is taking debit cards as credit.

 

[caitlion]

i didnt read the thread so i dont know what you know already.

im 17 and have asked bank of america and chase and the answer ive gotten is that if youre under 18, your parents can get a card on their account in your name. so you will have a credit card with your name on it, but it will be linked to your parents account. therefore, you wont be building any credit. it kinda sucks

oh btw dont get that visabuxx card its stupid. just get a checking account with a debit card.

 

[dmurray14]

Gotcha...I will definitely NOT be screwing around with paypal then. I wonder how they found out your age?

 

[Andyman53]

Yeah, I wonder the same thing, I called them up for somethin or oother, I don't even remember too well.

 

[Cable God]

If you parents make you an authorized user, their ENTIRE credit history with that creditor is mirrored on your report, essentially creating your credit file and history if you have none. So, if they are ever late while you are an Authorized user, or every WERE late in the past 7 years, it WILL show up on your report as well. Even if you are under 18, once you are an authorized user on someone's card, your file is created automaticaly with the CRA (Credit Reporting Agency) that creditor reports to. (Either one or more of the following CRA's: Equifax, Experian, or TransUnion). Inquiries on your TransUnion and Equifax in particular, are EASILY disputed off by saying I never applied with credit with this company. Experian on the other hand, will almost NEVER remove inquiries unless you press the issue by legal means. More info can be found here: www.creditboards.com Readup, and learn while you are young, just how important GOOD credit is.

 

[dpopiz]

get a check card

 

[TechnoPro]

Credit card companies can and do issue unsecured credit cards to minors - WITHOUT COSIGNERS.

One way is through student accounts.

Often times, local or national banks have special accounts for students. Typically, they offer waived fees and/or no balance requirements for checking/savings accounts. Many banks will offer an unsecured credit card to students who have this type of account.

You'd be getting an unsecured card with an very low-credit line at first, one with an annual fee, and and tpically mnedium to high interest rates.

It will build credit if you use it wisely.

 

[classy]

The basics of law is a person under 18 can not enter into a binding agreement. Its against the law to enter into a contract with a minor. There are some parameters varying from state to state. Credit cards are binding agreements. You can put anyone's name on a credit card but the bill and payment requirements will be in the parents name. Now some folks live on their own at 17 so maybe through certain state laws with an establish ability to pay for the card some credit card companies may be able to enter into an agreement. But I would suspect most won't.

 

[classy]

Originally posted by: TechnoPro
Credit card companies can and do issue unsecured credit cards to minors - WITHOUT COSIGNERS.

One way is through student accounts.

Often times, local or national banks have special accounts for students. Typically, they offer waived fees and/or no balance requirements for checking/savings accounts. Many banks will offer an unsecured credit card to students who have this type of account.

You'd be getting an unsecured card with an very low-credit line at first, one with an annual fee, and and tpically mnedium to high interest rates.

It will build credit if you use it wisely.

All do respect, I would like to know what card companies do this. Its against the law to enter into a binding agreement with a minor. This I know is a fact, because as a realtor we have to know the basics of contract law. I am not saying its not possible cause like I said in my post maybe there some state laws that would afford this, but I would venture to say I highly highly doubt any credit card company is going to give a minor a credit card only in their name, especially not unsecured. They would open themselves up to all kinds of legal situations.

 

[TechnoPro]

Originally posted by: classy

Originally posted by: TechnoPro
Credit card companies can and do issue unsecured credit cards to minors - WITHOUT COSIGNERS.

One way is through student accounts.

Often times, local or national banks have special accounts for students. Typically, they offer waived fees and/or no balance requirements for checking/savings accounts. Many banks will offer an unsecured credit card to students who have this type of account.

You'd be getting an unsecured card with an very low-credit line at first, one with an annual fee, and and tpically mnedium to high interest rates.

It will build credit if you use it wisely.

All do respect, I would like to know what card companies do this. Its against the law to enter into a binding agreement with a minor. This I know is a fact, because as a realtor we have to know the basics of contract law. I am not saying its not possible cause like I said in my post maybe there some state laws that would afford this, but I would venture to say I highly highly doubt any credit card company is going to give a minor a credit card only in their name, especially not unsecured. They would open themselves up to all kinds of legal situations.

I was granted a Visa card from Fleet Bank when I was 16.5 years old. My signature, and nothing else. Like I said, the deal was open to me since I was a customer with an account at that bank.

As for what institutions do this now, it is of no concern to me nor has it been for over a decade. Throughout the years, especially when in college, I would run across people who obtaiend CCs at an young age through similar channels with a local bank.

 

[classy]

Originally posted by: TechnoPro

Originally posted by: classy

Originally posted by: TechnoPro
Credit card companies can and do issue unsecured credit cards to minors - WITHOUT COSIGNERS.

One way is through student accounts.

Often times, local or national banks have special accounts for students. Typically, they offer waived fees and/or no balance requirements for checking/savings accounts. Many banks will offer an unsecured credit card to students who have this type of account.

You'd be getting an unsecured card with an very low-credit line at first, one with an annual fee, and and tpically mnedium to high interest rates.

It will build credit if you use it wisely.

All do respect, I would like to know what card companies do this. Its against the law to enter into a binding agreement with a minor. This I know is a fact, because as a realtor we have to know the basics of contract law. I am not saying its not possible cause like I said in my post maybe there some state laws that would afford this, but I would venture to say I highly highly doubt any credit card company is going to give a minor a credit card only in their name, especially not unsecured. They would open themselves up to all kinds of legal situations.

I was granted a Visa card from Fleet Bank when I was 16.5 years old. My signature, and nothing else. Like I said, the deal was open to me since I was a customer with an account at that bank.

As for what institutions do this now, it is of no concern to me nor has it been for over a decade. Throughout the years, especially when in college, I would run across people who obtaiend CCs at an young age through similar channels with a local bank.

Ah thats what I thought. My daughter got a credit card application last from the bank where we have an account in her name. She's 3, lol. Most banks do send out credit applications to customers who have accounts. But when you finally apply for that credit card then proof of age as well as ability to pay should be established. Why your bank didn't do that is beyond me. I am quite sure that if they knew you was 16.5 they would have not given you a card. I know in most if not all states, its against the law to enter into a contract with a minor. I am not 100% positive but I believe federal law bans it as well.

 

[TechnoPro]

Originally posted by: classy

Originally posted by: TechnoPro

Originally posted by: classy

Originally posted by: TechnoPro
Credit card companies can and do issue unsecured credit cards to minors - WITHOUT COSIGNERS.

One way is through student accounts.

Often times, local or national banks have special accounts for students. Typically, they offer waived fees and/or no balance requirements for checking/savings accounts. Many banks will offer an unsecured credit card to students who have this type of account.

You'd be getting an unsecured card with an very low-credit line at first, one with an annual fee, and and tpically mnedium to high interest rates.

It will build credit if you use it wisely.

All do respect, I would like to know what card companies do this. Its against the law to enter into a binding agreement with a minor. This I know is a fact, because as a realtor we have to know the basics of contract law. I am not saying its not possible cause like I said in my post maybe there some state laws that would afford this, but I would venture to say I highly highly doubt any credit card company is going to give a minor a credit card only in their name, especially not unsecured. They would open themselves up to all kinds of legal situations.

I was granted a Visa card from Fleet Bank when I was 16.5 years old. My signature, and nothing else. Like I said, the deal was open to me since I was a customer with an account at that bank.

As for what institutions do this now, it is of no concern to me nor has it been for over a decade. Throughout the years, especially when in college, I would run across people who obtaiend CCs at an young age through similar channels with a local bank.

Ah thats what I thought. My daughter got a credit card application last from the bank where we have an account in her name. She's 3, lol. Most banks do send out credit applications to customers who have accounts. But when you finally apply for that credit card then proof of age as well as ability to pay should be established. Why your bank didn't do that is beyond me. I am quite sure that if they knew you was 16.5 they would have not given you a card. I know in most if not all states, its against the law to enter into a contract with a minor. I am not 100% positive but I believe federal law bans it as well.

Actually, it's not what you thought. And while I appreciate your zeal, your experience in the credit industry seems noticeably absent.

I had a normal (read NON-student) account with Fleet. At the bank one day, I went to the branch manager and asked her how I could get a credit card. She said I couldn't. I showed her a pamphlet from the waiting area that featured a student Visa card that issued credit to those under 18 within certain circumstances.

She said I would have to convert my accounts to "Student" accounts. So I did just that. And applied for a card and was granted it.

The risk-analysis people most likely maintained that if I had x dollars for y years in my account, then I was not a credit risk because I had proven to have a certain baseline of funds. And the $300 line they extended me was an insignificant risk relative to other factors. In the industry, the first card a person is given is often kept longer than other cards.

It's all about the likelyhood to repay, and very little else. You raise an intersting issue about the legality of a minor's signature, but I don't think it's entirely black and white.

What first comes to mind is the signature on a check written by a minor. That signature provides legal and procedural authorization to debit said funds from payers account and have them deposited into payee's. Once the check has cleared, I would like to see some kid say "Hey, I'm a minor, I want my money back." Doesn't work that way.

 

[classy]

From Contract-Law.com

2. Who can make a contract?

The laws of each state define who is competent to form a contract. Generally, competency requires a minimum age and mental ability to understand the contract.

Age Requirement. In order to be competent, a person must be the age of majority, which in most states is eighteen. If someone younger than the age of majority tries to form a contract, a court may refuse to enforce it. However, if the contract involves a necessity of life (such as food or housing), the court may require the minor to pay fair market value for the item.

Mental Ability to Understand. In addition, a person must satisfy mental capacity requirements in order to be competent. Some states define mental capacity as a person's capacity to understand his or her actions and to appreciate the consequences of forming a contract. Other states define mental capacity as a person's ability to control his or her actions.

Minors and the mentally incompetent lack the legal capacity to enter into contracts. All others are generally assumed to have full power to bind themselves by entering into contracts. In most states, the legal age for entering into contracts is 18. The test for mental capacity is whether the party understood the nature and consequences of the transaction in question.

Corporations have the power to enter into contracts. They make contracts through the acts of their agents, officers, and employees. Whether a particular employee has the power to bind the corporation to a contract is determined by an area of law called agency law or corporate law. If you doubt whether an individual with whom you are dealing has authority to enter into a contract with you, insist that the contract be reviewed and signed by the corporation's president.

A corporation has a separate legal existence from its founders, officers, and employees. Generally, the individuals associated with a corporation are not themselves responsible for the corporation's debts or liabilities, including liability for breach of contract.

TechnoPro

Now I did some more checking. In some states a teenager can enter into a contract and its not binding until the person turns 18 and the teenager can at anytime cancel the contract. So in turn it would explain why most banks won't issue credit cards to folks under 18. Now as far as risk is concerned, what bank in their right mind would start giving away $300 credit cards to folks who can walk away scott free? I am sure some of those "certain circumstances" were pretty steep. Its interesting for folks to know, especially those of us who have kids.

 

[TechnoPro]

Originally posted by: classy
From Contract-Law.com

2. Who can make a contract?

The laws of each state define who is competent to form a contract. Generally, competency requires a minimum age and mental ability to understand the contract.

Age Requirement. In order to be competent, a person must be the age of majority, which in most states is eighteen. If someone younger than the age of majority tries to form a contract, a court may refuse to enforce it. However, if the contract involves a necessity of life (such as food or housing), the court may require the minor to pay fair market value for the item.

Mental Ability to Understand. In addition, a person must satisfy mental capacity requirements in order to be competent. Some states define mental capacity as a person's capacity to understand his or her actions and to appreciate the consequences of forming a contract. Other states define mental capacity as a person's ability to control his or her actions.

Minors and the mentally incompetent lack the legal capacity to enter into contracts. All others are generally assumed to have full power to bind themselves by entering into contracts. In most states, the legal age for entering into contracts is 18. The test for mental capacity is whether the party understood the nature and consequences of the transaction in question.

Corporations have the power to enter into contracts. They make contracts through the acts of their agents, officers, and employees. Whether a particular employee has the power to bind the corporation to a contract is determined by an area of law called agency law or corporate law. If you doubt whether an individual with whom you are dealing has authority to enter into a contract with you, insist that the contract be reviewed and signed by the corporation's president.

A corporation has a separate legal existence from its founders, officers, and employees. Generally, the individuals associated with a corporation are not themselves responsible for the corporation's debts or liabilities, including liability for breach of contract.

TechnoPro

Now I did some more checking. In some states a teenager can enter into a contract and its not binding until the person turns 18 and the teenager can at anytime cancel the contract. So in turn it would explain why most banks won't issue credit cards to folks under 18. Now as far as risk is concerned, what bank in their right mind would start giving away $300 credit cards to folks who can walk away scott free? I am sure some of those "certain circumstances" were pretty steep. Its interesting for folks to know, especially those of us who have kids.

I appreciate the research, thank you.

I called up a banker friend of mine because of your earlier thought-provoking remarks. His, answer, in brief:

* Banks typically do NOT extend credit to minors without cosigners for the very reason you originally stated (contract law).

* Banks typically DO solicit minors, largely by targeting youth through advertisemnts. Think "credit cards are cool."

* There is a hybrid type of card that sits between being secured and unsecured. Say I have a account with a bank. This bank may extend me unsecured credit contingent upon my maintaning a certain balance in the bank account AND by agreeing that any non-payment or delinquencies may be corected by drawing from that bank account. These accounts are not common today, having given way to a pure secured card.

For all I know, I could have had one of these cards, as I truly do not remember what provisions were involved.

 

[Andyman53]

Originally posted by: TechnoPro

Originally posted by: classy
From Contract-Law.com

2. Who can make a contract?

The laws of each state define who is competent to form a contract. Generally, competency requires a minimum age and mental ability to understand the contract.

Age Requirement. In order to be competent, a person must be the age of majority, which in most states is eighteen. If someone younger than the age of majority tries to form a contract, a court may refuse to enforce it. However, if the contract involves a necessity of life (such as food or housing), the court may require the minor to pay fair market value for the item.

Mental Ability to Understand. In addition, a person must satisfy mental capacity requirements in order to be competent. Some states define mental capacity as a person's capacity to understand his or her actions and to appreciate the consequences of forming a contract. Other states define mental capacity as a person's ability to control his or her actions.

Minors and the mentally incompetent lack the legal capacity to enter into contracts. All others are generally assumed to have full power to bind themselves by entering into contracts. In most states, the legal age for entering into contracts is 18. The test for mental capacity is whether the party understood the nature and consequences of the transaction in question.

Corporations have the power to enter into contracts. They make contracts through the acts of their agents, officers, and employees. Whether a particular employee has the power to bind the corporation to a contract is determined by an area of law called agency law or corporate law. If you doubt whether an individual with whom you are dealing has authority to enter into a contract with you, insist that the contract be reviewed and signed by the corporation's president.

A corporation has a separate legal existence from its founders, officers, and employees. Generally, the individuals associated with a corporation are not themselves responsible for the corporation's debts or liabilities, including liability for breach of contract.

TechnoPro

Now I did some more checking. In some states a teenager can enter into a contract and its not binding until the person turns 18 and the teenager can at anytime cancel the contract. So in turn it would explain why most banks won't issue credit cards to folks under 18. Now as far as risk is concerned, what bank in their right mind would start giving away $300 credit cards to folks who can walk away scott free? I am sure some of those "certain circumstances" were pretty steep. Its interesting for folks to know, especially those of us who have kids.

I appreciate the research, thank you.

I called up a banker friend of mine because of your earlier thought-provoking remarks. His, answer, in brief:

* Banks typically do NOT extend credit to minors without cosigners for the very reason you originally stated (contract law).

* Banks typically DO solicit minors, largely by targeting youth through advertisemnts. Think "credit cards are cool."

* There is a hybrid type of card that sits between being secured and unsecured. Say I have a account with a bank. This bank may extend me unsecured credit contingent upon my maintaning a certain balance in the bank account AND by agreeing that any non-payment or delinquencies may be corected by drawing from that bank account. These accounts are not common today, having given way to a pure secured card.

For all I know, I could have had one of these cards, as I truly do not remember what provisions were involved.

HEH!!! I"M BAAAACKKKKKKKK!! Damnit, My bank (COMMERCE BANK) is being a real beetch and not letting me even co-sign with my mom, they say i'm under 18 and i can't have a credit card. "i will be co-signing with my mother" ""YOU CANNOT HAVE A CREDIT CARD IF YOU ARE UNDER 18" mind you i've had over 1000 dollars with them for over 6 months. What points should i bring up in arguing, is there any brick and mortar evidence online, regulations etc...They told me distinctly that my credit history will not get reported to the credit agency no matter who's name is on the card along with mine. I really want this check card, an ATM card will not and cannot do. Help...PLEEEEEEASE! Thanks.

 

[Andyman53]

I'm about to go tommorow...any final words?

 

[wiredspider]

I tried to get one a Commerce too, they wouldn't do it even with co-sign, they recommmeded WSFS (probably local to here...). I doubt it matters how much $$$ you got in your account because I had over 5x that and was still turned away. I still do like how most of Commerce's services are free and no minimums so I think I would try opening a name under parents name, but on the card to have your name.

 

[onetwo3]

I got one, use it for gas and such...