Many do not realize this at a young age, but building credit is absolutely essential in setting the stage for financial independence and future opportunities.
But how old do you need to be to start your credit building journey in Canada?
Is there a magical age that opens the doors to the world of credit cards—and the rewards that come with them?
How Old Do You Have To Be To Get A Credit Card In Canada?
Let’s cut to the chase.
So what is the minimum age to own a credit card in Canada? Well, it depends on where you reside, however, generally you could expect this age to be 18 or 19 i.e., the age of majority–or the age that most teenagers make the leap to adulthood.
What Is The Age of Majority?
The age of majority is the age in Canada at which an individual is considered a “legal adult”. A pivotal inflection that enables people to sign contracts, vote and, of course, apply for a credit card.
Here’s a rundown:
| 18 Years Old | 19 Years Old |
| Alberta Manitoba Ontario Prince Edward Island Quebec Saskatchewan | British Columbia New Brunswick Newfoundland and Labrador Northwest Territories Nova Scotia Nunavut Yukon |
Can You Get A Credit Card If You’re Under 18-19 Years Old In Canada Then?
If you’re under the age of majority, all hope is not lost with respect to getting your hands on a credit card. In fact, it’s quite easy to still have a credit card.
While you must reach the age of majority to get your own credit card—you can still get a credit card under the age of majority as an authorized user.
What’s An Authorized User?
All an authorized user is, is someone authorized to use a credit card account, however, they are not the owner of the credit card nor are they responsible for footing the bill.
An authorized user gets similar benefits as the primary owner, including a separate credit card to make purchases AND can contribute to point/reward collection on the credit card.
But more importantly…
What about building credit?
Good news! Being an authorized user may actually help you build your credit history in some cases (hopefully positively, as long as the primary credit cardholder pays their bill on schedule).
This is important because building your credit history usually makes up a sizable portion (15%) of the calculation of your credit score.
Credit history takes into account how long your credit accounts have been in existence. So as long as you don’t close your credit card, building this out from an early age can contribute to a higher score over time.
I’m Not 18-19 Yet And Don’t Have The Option To Become An Authorized User, What Do I Do?
As outlined above, an underage individual could opt to become an authorized user of someone else’s credit card. However, if that isn’t an option, some other alternatives include:
- Visa Debit or Debit Mastercard. These cards are just like credit cards, but instead of pulling on a line of credit, they pull from your bank account. Very good option for keeping control of your spending.
- Gift Cards. Much like a prepaid credit card, these cards can be set up with a fixed amount. This can assist with teaching teens the ins and outs of budgeting.
- MyDoh. The high-tech option, MyDoh is a smart app that helps parents manage their children’s spending and allows them to load funds onto the app, set spending limits, and track purchases.
While these are useful options, keep in mind that these alternatives do not contribute to building up your credit score.
How Old Do You Have To Be To Get A Secured Credit Card In Canada?
While some credit card offerors allow young authorized users to utilize credit cards, another route that younger folks could take is a secured credit card.
A secured credit card is the same as a regular credit card but requires a security deposit (which is a defacto credit limit).
Age Requirements For Secured Credit Cards
The lion’s share of secured credit cards will require that individuals are at least the age of majority.
These are a good starter credit card because they allow individuals with limited credit to embark on their financial journey with more extensive credit in dollar terms, and with a lower interest rate (although we’d recommend avoiding the payment of interest charges on a credit card at all costs).
Here are a couple solid secured credit cards options:
| Annual Fee | Purchase Rate | ||
| Neo Secured Credit | $0 | –19.99% – 29.99% – QC: 19.99% – 24.99% | Learn More |
| Capital One Guaranteed Secured Mastercard® | $0 | 21.9% – 29.9% | Learn More |
How Old Do You Have To Be To Get A Prepaid Credit Card In Canada?
Now if you are not enamored by the secured credit card route, another path to possessing a credit card is through acquiring a prepaid credit card.
While you must load up these credit cards with your own money (thus making them not like other credit cards), you can gain access to them at a lower age requirement. Even as young as 16.
| Neo Money™ card | $0 | Learn More |
| Wealthsimple Cash | $0 | Learn More |
Keep in mind that in the majority of cases, a prepaid credit card will NOT contribute towards building up a credit score and should be seen more akin to cash or a debit card.
I’m the Age of Majority. Now what?
If you’ve reached the seminal age of majority, congrats! You can now apply for your very own credit card. Many banks and financial service companies will offer student credit cards which have been engineered to help young adults on their way to jump-starting their credit journey.
The internet is your friend here, and you can peruse online for the best options. We would screen for features such as:
No Annual Fee
Why pay fees when you don’t have to? For a young adult, building a credit score is the main goal vs. trying to reap fancy rewards. Thus, targeting a credit card with no annual fees is the most efficient way to build credit.
Low Interest Rate
While we strongly suggest not paying interest charges on a credit card ever (because they are usually super high), there are times when you might have to, and therefore, eyeing a credit card with a low relative interest rate can yield great savings in the long run.
Rewards And Bonuses
While racking up reward points are usually not the main objective of a first credit card, they certainly don’t hurt. Many cards offer cash back on a % of purchases or reward points.
Continuing the theme of rewards, an introductory bonus to a credit card can offer extra points or rewards when signing up for a new credit card. These can be quite lucrative, so keep an eye out for these limited offers.
Extra Benefits
Other features such as fraud protection, purchase protection, zero liability for unauthorized charges, and insurance coverage are some bonus perks to add to the checklist if you can.
Similarly, make sure you go with an established credit card provider that will report activity to credit bureaus—and build your credit score!
Once you’ve found an ideal credit card, almost all providers will allow an application to be submitted online. Once going through the simple process of filling in your personal information, your credit card should be en route via the mail—it’s that easy!
Handling your first credit card
Picture this: you run to your mailbox, jostling the key into the rusted lock for a few seconds before the door finally pops open. Shuffling through useless mail advertisements and statements, your eyes finally lock onto the coveted envelope which contains your very first credit card.
Now before you get too excited, there are a few key tips to keep top of mind:
- Spending habits are key. Just because you have a $1,000 limit, does NOT mean you should be using even remotely close to the maximum limit. Many people fall into trouble with spending more than they otherwise would because of the delayed payment, but you should only purchase what you can afford.
- Pay on time and fully if you can. Entering the world of credit cards means assuming responsibility for timely payment. A missed payment can ding your credit score and penalize your future opportunities of getting additional credit or a loan. Keep yourself to a schedule, and ensure you are always paying on time and fully if possible.
- Keep utilization rate low. If you have a $1,000 limit, spending $500 would equate to a 50% utilization. Having a high utilization can negatively impact your credit score. So try to pay off the balance early after any big-ticket purchases.
Bottom line
Adding your first credit card to your wallet is a major financial milestone. Whether you are the age of majority or are a younger teen, there are many options to sow the seeds of greater financial literacy and set the foundation of a healthy credit score. For a youngster, it is important to recognize and respect the responsibility required to wield a credit card.
With this guide, you should be all set to navigate the credit card no matter what your age. Happy spending (and saving)!
