McCrea was born in South Pasadena, California, the son of Thomas McCrea, who was an executive with the L.A. Gas & Electric Company. As a boy, he had a paper route, and delivered the Los Angeles Times to Cecil B. DeMille and other people in the film industry. He also had the opportunity to watch D. W. Griffith filming Intolerance, and was an extra in a serial starring Ruth Roland.

McCrea graduated from Hollywood High School and then Pomona College (class of 1928), where he had acted on stage and took courses in drama and public speaking, while appearing regularly at the Pasadena Playhouse. Even as a high school student, he was working as a stunt double and held horses for cowboy stars William S. Hart and Tom Mix. He worked as an extra, stunt man and bit player from 1927 to 1928, when he signed a contract with MGM, where he was cast in a major role in The Jazz Age (1929), and got his first leading role that same year in The Silver Horde. He moved to RKO in 1930, where he established himself as a handsome leading man who was considered versatile enough to star in both dramas and comedies.

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