The Kitchen Table

Getting a Loan as a Young Adult

  • August 01, 2019

Getting a loan as a young person is often more difficult than when you are older and have an established credit history. You might not meet many lender’s eligibility requirements. So, what are your options if you are young and needs a loan? At LPI, one of the areas that we specialize in is help those who need to establish credit for the first time. There are Federal regulations that govern the age requirements and these regulations are over seen by the Federal Trade Commission (or the FTC), the nation’s consumer protection agency. The FTC enforces the Equal Credit Opportunity Act (or the ECOA), which prohibits credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or because you get public assistance. Creditors may ask you for most of this information in certain situations, but they may not use it when deciding whether to give you credit or when setting the terms of your credit.

Not everyone who applies for credit gets it or gets the same terms: factors like income, expenses, debts, and credit history are among the consideration’s lenders use to determine your creditworthiness. When deciding to grant you credit or when setting the terms of credit, Lenders may not consider your age, unless you’re too young to sign contracts.

In all states, the age requirement to sign a contract is 18 years of age. A child under the age of 18 is considered a minor and is unable to sign a contract unless it is for essential items. Essential items include medicines, food, and medical services. So, if you are not yet 18, and you are looking to borrow money on your own, you will need to wait until your 18th  birthday.

Employees of LPI Loans and our affiliates are not attorneys and LPI Loans DOES NOT provide any legal advice and users of this web site should consult with their own attorney for legal advice


LPI helped me with my security deposit on my apartment, and they did a loan in time for my Daughter's wedding dress. They saved me when I needed 2 loans with no credit, and gave me the credit and personal security I needed. Very friendly people. Highly recommend them.
Russell H. Davenport, IA