by
Skye Parker
|
September 12, 2025
When people start thinking about money, one of the first questions that comes up is how old do you have to be to get a loan. It seems simple, but it’s not always clear because different types of loans come with different requirements. Whether you’re looking at a personal loan, auto loan, or even a pawn loan, the rules can vary a little depending on where you live and what lender you’re talking to.
This guide will break it down in plain words so you know what to expect before you apply.
In most of the United States, the minimum age to sign a contract is 18 years old. Since getting a loan requires a legal contract, that usually means you must be 18 before any lender can approve you. That includes banks, credit unions, online lenders, and pawn shops.
Now, there are a few exceptions depending on state laws. Some states recognize legal adulthood a little differently or have specific carve-outs for things like student loans or medical debt. But as a general rule, if you’re under 18, you won’t be able to walk into a bank and borrow money on your own name.
The age rule isn’t just about paperwork—it’s about responsibility. Lenders want to make sure the person borrowing money is old enough to fully understand what they’re signing. If someone under 18 signs, that contract may not even be enforceable in court. From the lender’s side, that creates risk.
So the answer to “How old do you have to be to get a loan?” is really about making sure both sides of the agreement are protected.
Even though 18 is the standard, the type of loan you’re applying for makes a difference in what else you need besides just your age. Let’s look at the main types.
Personal loans usually require you to be 18, have proof of income, and often a decent credit history. Since most 18-year-olds haven’t had time to build credit, it can be tricky to qualify without a cosigner.
Car loans also start at 18. Dealerships or banks may let you apply, but approval usually depends on credit and job history. Some younger buyers bring in a parent or guardian as a cosigner to get approved.
Here’s where things shift a bit. Federal student loans can actually be signed by minors since the government makes special rules. That means even if you’re under 18, you can usually still take out a student loan for college.
Pawn loans work differently. At a pawn shop like Xtreme Pawn, you don’t need credit or even a job. You just bring in an item of value, and the shop lends money against it. But, you still need to be 18 or older to legally enter into the pawn ticket agreement.
A lot of teens wonder if there’s a way around the rule. Technically, minors can’t sign enforceable contracts, but there are a couple of limited paths:
Outside of these, you’ll need to wait until you hit legal age.
Turning 18 might let you apply for a loan, but that doesn’t mean approval is guaranteed. Lenders also look at:
For many young adults, credit is still thin or nonexistent. That’s why pawn loans are often a practical option, since approval is based on the item you bring in, not your score.
If you’re just turning 18 and thinking about loans, here are a few smart steps:
There are a few things people assume about borrowing age that aren’t quite right.
Truth: A job doesn’t change the contract laws. You still have to be 18.
Truth: Reputable pawn shops always require ID and won’t issue a loan to minors.
Truth: They are unique and have their own set of rules that by pass some age requirements.
For young adults especially, pawn loans stand out because of how simple they are compared to bank loans.
So if you’re 18 and need money but don’t have a long credit history, a pawn loan is often the most accessible choice.
So, how old do you have to be to get a loan? The short answer is 18 years old in most cases, unless you’re dealing with special loans like federal student loans. Even then, being of age doesn’t guarantee approval—you’ll also need income, credit, or collateral depending on the loan type.
For young borrowers looking for a simple solution, pawn loans can be the easiest starting point. Xtreme Pawn helps people get quick access to cash without long applications or credit checks, but like any loan, you’ll still need to be at least 18.
The key takeaway is this: age opens the door, but responsibility keeps it open. Understanding the rules early helps you avoid costly mistakes and sets you up for better financial decisions down the road.
