How Old Do You Have to Be to Get a Credit Card in Canada?

Applying for your first credit card is an exciting early step towards a healthy financial future. After all, credit cards can be a great way to build your credit score. In turn, a healthy credit score can help you qualify for better interest rates and save money in the long run. But how old do you have to be to get a credit card?

Since the minimum age to apply for a traditional credit card varies across Canada, it may be confusing to determine exactly when you qualify. To make your first credit card application as straightforward as possible, we will be clarifying the minimum age requirement for each province and territory. But first, it is important to realize just what may be at stake when you apply for a credit card.

Things to consider before applying for your first credit card

As exciting as it can be to qualify for your very first credit card, it is important to keep a level head. Reckless credit card use can put you in debt very quickly and negatively impact your credit score for years to come. This means that on top of paying extra via credit card interest, you may receive poorer interest rates when financing a car, applying for a mortgage, or taking out other loans in the near- to medium-term future. Misusing a credit card can be a very expensive mistake.

Look for perks on regular purchases

On the other hand, using a credit card for purchases that you would have made otherwise allows you to enjoy cash back and other rewards. As we mentioned above, responsible credit card use can also help you increase your credit score and qualify for better rates, which saves you money over time. Ultimately, owning a credit card is neither inherently good nor bad —?a credit card is simply a tool that should be used responsibly.?

Use it responsibly to avoid debt

Before applying for your first credit card, be sure to establish a budget and figure out how you will track your expenses. If you do not pay attention to your spending habits, it will be much easier to think of your credit card as an easy way to access free money.

This line of thinking almost always leads to debt. On the other hand, if you stick to a strict budget, it will be much easier to use your credit card without incurring late fees, financial stress, or a poor payment history. The more closely you can stick to a budget, the better you will set yourself up for success.

How old do you have to be to get a credit card in Canada?

If you feel that you are old enough to get a credit card and use it responsibly, the next important requirement is to legally be old enough to apply for a credit card. Since the age of majority ranges across Canada’s different provinces and territories, you may be forced to delay your application for a year depending on where you live. For easy reference, we have compiled a list of how old you have to be to get a credit card in each province and territory.

Minimum age to apply for a traditional credit card on your own:

Once you reach the age of majority, you are legally eligible to apply for a traditional credit card. However, credit card providers can (and frequently do) set stricter requirements for applicants. These requirements generally come in the form of a minimum annual income or a minimum credit score and may block young adults’ applications.

For example, if you are 18 years old, chances are that you will not qualify for a card that requires an annual income of $60,000. Fortunately, some credit cards are better suited for young adults than others.

Student credit cards

If you are currently enrolled in school, you may wish to apply for a student credit card. These cards are relatively easy to obtain, even without a credit history. Although they usually do not come with premium credit card perks, they still provide cardholders with rewards points or cash back. For example, the BMO CashBack Mastercard for Students is easy to qualify for and allows you to earn cash back on all your card purchases.

What if you’re not a student?

If you are not a student at the moment, you may want to explore entry-level credit cards such as the RBC Cash Back Mastercard or the Essential Credit Card by American Express. These cards (and other similar entry-level cards) do not have minimum income requirements, but generally still want to see some form of credit history. If you do not have any credit history yet, you may have to explore non-traditional credit cards in order to build up your profile.

This article is the shortened version of an article originally published on Hardbacon.ca by Athanasia Demetra Nikolakakis under the title "How Old Do You Have to Be to Get a Credit Card in Canada?".