Can you create credit as a miner?
In the United States, you can’t get a loan or credit card until you’re 18, but there is always a way to get credit as a minor.
Being a minor in the world of credit
The age of majority that legally separates childhood from adulthood in the United States is 18. Until the age of 18, you cannot legally sign a contract on your own, which is why it is not possible to get credit approval as a minor.
Your credit score and your history play an important role in your financial life. A solid credit background is the key to getting approved for a loan, mortgage or credit card. Your credit also influences the interest rate and the terms you can claim on these credit products. Therefore, bad credit or no credit can cost you money down the road.
It helps to begin to establish and build strong credit at an early age. Not only can you prepare for success with credit later in life, but you can also learn valuable lessons about money management while you’re still young. Unfortunately, not being able to enter into a credit agreement puts the brakes on this if you are not yet 18 years old.
But there’s a great way to build credit as a minor – you’ll just need the help of a parent, legal guardian, or close friend of age.
The best way to acquire credit as a miner
When you’re a minor looking to build credit, the best way to start your credit history is to become an authorized user on an adult’s credit card. There is no age to be an authorized user, which makes it a great place to start in the world of credit.
In this arrangement, the adult contacts their credit card provider and asks the minor to be added as an authorized user. The supplier will likely issue a second credit card in the name of the minor, which they are authorized to use. Minors are not legally responsible for the bill, but they can benefit from the positive use of the card and the payment history it contains.
It is probably a good idea for the primary user to set up rules with the authorized user beforehand. They should set guidelines on whether the minor is allowed to use the card, how much they are allowed to spend and whether they need authorization first, whether they will have to contribute to payments.
Being an authorized user on a credit card is a great way for minors to dip their toes into the credit pool. You can learn more about the responsible use of credit cards and see the the value of on-time payments and keeping credit card balances low can have on credit scores.
The bottom line
There aren’t many ways to build credit as a miner, but being an authorized user can get you started on the right foot. By the time you turn 18, the Authorized User Arrangement may prepare you to take on your own credit.
If you’re of legal age and need a vehicle, a car loan is another great way to build and establish credit. Auto Express Credit can help car buyers with bad credit, no credit, or other credit issues like bankruptcy find auto financing. We match consumers with dealers in their area who know how to handle unique credit situations.
Start the process now by filling out our free and secure form car loan application form. It only takes a few minutes of your time and places no obligations on you, so you can confidently get started today.