You can start building credit before you turn 18 by becoming an authorized user on a parent’s credit card, and you can open your own accounts once you have independent income or a cosigner. The earlier you establish a credit history, the longer your average account age will be when you need credit for a car loan, apartment, or mortgage. Here’s how to approach each step based on where you are right now.
Start as an Authorized User
The fastest way to build credit before 18 is to be added as an authorized user on a parent’s or guardian’s credit card. When you’re an authorized user, the card’s payment history appears on your credit report even though you’re not legally responsible for the balance. You don’t need to use the card at all for this to work. As long as the primary cardholder pays on time and keeps their balance low, that positive history flows to your credit file.
Not every bank reports authorized user activity the same way. Wells Fargo and American Express only report authorized users who are at least 18. American Express allows users as young as 13 but doesn’t start reporting to the credit bureaus until the user turns 18. Bank of America and U.S. Bank report authorized user accounts regardless of age, as long as the account is in good standing. On the credit bureau side, Equifax includes authorized user data for anyone 16 or older, while Experian reports positive authorized user history but removes the account from your report if the primary account becomes delinquent.
Before asking a family member to add you, confirm two things: the issuer will report to at least one bureau for your age group, and the account has a clean payment history with a low utilization rate (meaning the cardholder isn’t using most of the available credit). A card with a high balance or missed payments would hurt your score rather than help it.
Opening Your Own Card Under 21
Federal law makes it harder to get a credit card on your own before you turn 21. Under the Credit CARD Act, a card issuer can only approve an applicant under 21 if that person can show independent income sufficient to cover minimum payments, or if a cosigner who is at least 21 agrees in writing to take on liability for the debt. Income from a part-time job, freelance work, or a stipend counts. Allowances from parents and money you might have access to in the future do not.
If you get approved based on your own income, the issuer can’t raise your credit limit before you turn 21 unless your income has grown enough to support it, or you add a cosigner. If you originally needed a cosigner to qualify, the issuer needs that cosigner’s written permission before increasing your limit.
Student Credit Cards
Student cards are designed for applicants with little or no credit history. Cards like the Chase Freedom Rise and Capital One Savor Student Cash Rewards require no security deposit and no prior credit score. They typically come with low credit limits (often $500 to $1,000), modest rewards, and a path to upgrade to a better card after you’ve demonstrated responsible use. When evaluating student cards, look for one that offers automatic credit limit increases or a clear graduation path to an unsecured rewards card so you can build on the same account history over time.
Secured Credit Cards
If you can’t qualify for a student card, a secured credit card is your next option. You put down a refundable deposit, usually a few hundred dollars, which becomes your credit limit. You then use the card and make payments just like any other credit card. The deposit protects the issuer, so approval requirements are minimal. After several months of on-time payments, many issuers will refund your deposit and convert the card to a regular unsecured card. This graduation typically happens after 6 to 12 months of consistent payments.
Credit Builder Loans
A credit builder loan works in reverse compared to a traditional loan. Instead of receiving money upfront, you make fixed monthly payments into a savings account or certificate held by the lender. Once you’ve paid the full amount, the lender releases the funds to you. Each payment gets reported to at least one credit bureau, so you’re building a payment history while also saving money.
These loans are offered by credit unions, community banks, and fintech apps. Costs vary widely. Some charge zero interest or fees, while others tack on origination fees, administrative fees, and even prepayment penalties that can add up quickly. Before signing up, compare the total cost of the loan (all fees plus interest) against the amount you’ll get back at the end. If you’re paying $50 in fees to build credit on a $300 loan, that’s a significant cost. Some lenders partially refund interest when you pay off the loan, which makes the deal more reasonable.
Report Rent and Utility Payments
If you’re paying rent, you can use a rent reporting service to have those payments show up on your credit report. This is especially useful for young renters who don’t have other credit accounts yet. Several services exist at different price points. Boom charges $3 per month and reports to all three major credit bureaus. Self offers a rent reporting plan ranging from free to $6.95 per month, with an optional $49.95 fee to report past payment history retroactively. Rental Kharma charges a $75 signup fee plus $8.95 monthly and reports to two of the three bureaus.
The math matters here. If you’re paying $9 a month for a service that reports to only two bureaus, consider whether a cheaper option that reports to all three would be a better value. And if your landlord already reports payments through a property management platform, you may not need a separate service at all.
Habits That Protect Your Score
Building credit isn’t just about opening accounts. The two biggest factors in your credit score are payment history and credit utilization, and both are entirely within your control from the start.
Pay every bill on time, every month, with no exceptions. A single missed payment can stay on your credit report for seven years. Set up autopay for at least the minimum payment on any credit card or loan so you never miss a due date, even if you plan to pay more manually.
Keep your credit utilization low. Utilization is the percentage of your available credit you’re actually using. If your card has a $500 limit and you carry a $250 balance, that’s 50% utilization, which signals risk to lenders. Aim to use less than 30% of your limit, and below 10% is even better. On a $500 limit, that means keeping your balance under $50 when your statement closes.
Avoid opening too many accounts at once. Each application triggers a hard inquiry on your credit report, which temporarily lowers your score by a few points. More importantly, a flurry of new accounts shortens your average account age, which is another factor in your score. Open one or two accounts, use them responsibly for six months to a year, and then consider adding another if it makes sense.
A Realistic Timeline
You generally need at least six months of reported account activity before you have a credit score at all. After about a year of on-time payments and low utilization, most young people can reach a score in the mid-600s to low 700s, which is enough to qualify for an auto loan or a standard credit card with better terms. By the time you graduate from college or reach your mid-20s, you could have four or five years of credit history, putting you well ahead of peers who waited until they needed credit to start building it.
The key advantage of starting young is time. Length of credit history accounts for roughly 15% of your score, and there’s no shortcut for it. Every month your oldest account ages, your score benefits. A 22-year-old with five years of history is in a meaningfully stronger position than a 22-year-old applying for their first card.