1st Credit Card

<p>I have a question about getting a 1st credit card. My child who will be entering college in about a month has no prior credit rating. She has a job this summer but didn't file taxes last year. What is the best option for getting that first credit card? Will she be flooded with offers once she gets to school? Obviously I want her to have a credit card for expenses, emergencies and most importantly to build credit. Something with no annual fee and some rewards. </p>

<p>Any advice based on experience would be great... thanks</p>

<p>I think the laws have changed and anyone under 21 must have a cosigner on new credit card apps. So, I don’t think she’ll be flooded with offers. </p>

<p>My kids carry Visa cards in their own names, but it’s actually my account. It’s just for emergencies. I figure their students loans give them enough credit history for their age.</p>

<p>companies will definitely flood her, in fact, I’m surprised they haven’t already…</p>

<p>That aside, make sure you go over her card with her before getting it, ie precollge, so you can make sure she understands the fine print. Some of the student cards look promising, so you can double check those. Or you can get a second card that is linked to your account, Master Card allows this. Of course second option depends on how your kid is with finances and if you’re comfortable with that, but in the end, it’s the same as any other credit card. Talking about finances before college is very important, please do it.</p>

<p>Hold on. They may send her offers but the law has changed. She won’t be able to get a card on her own if she is under 21. They must have a cosigner. I know all about this. My older son got a card at 17 on his own as a college freshman. That was before the recession, six years ago. Daughter is a rising college junior. She has applied umpteen times, cannot get a card on her own. I finally got her one through BofA when I cosigned. When she went abroad last semester I got a capital one card and then added her so that she could charge overseas with no foreign transaction fees.
If you are going to cosign we liked the BofA because it is connected online to her bank account. Very easy to transfer money and they have a college account with no fees.<br>
They are also national so that works…I am on one side of the country and they are on the other. I can go to a branch here and deposit money in their bank accounts if I need to. (Not doing that for oldest anymore).<br>
There are lots of threads on this topic. Do a search for credit card …;</p>

<p>There is a website you can go to to stop credit card offers (or at least most credit card offers). Credit card companies are able to get your name and credit score from consumer credit reporting agencies to see if you qualify for one of their “pre-approved” cards. But you have the legal option to opt out, so that the credit reporting agencies take your name off the lists that the card companies check. This is a super handy thing for newly graduated college students actually, because young people with their first jobs get A LOT of credit card offers. </p>

<p>You can opt out here: <a href=“http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt063.shtm[/url]”>http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt063.shtm&lt;/a&gt; </p>

<p>You can opt out online for 5 years, and you can opt out permanently by mail. </p>

<p>For current college students, you can often get a student credit card through your bank. This is a good starter card, they usually have low limits (often under 1000), and no perks, but they help you build up good credit.</p>

<p>I’ve been hanging onto this link for my son when he turns 18:</p>

<p>[Student</a> Credit Cards - Credit Cards For Students - Credit Cards For College Students](<a href=“http://creditcards.bankrate.com/student.php]Student”>http://creditcards.bankrate.com/student.php)</p>

<p>Students with an income and no credit history are considered to have “average” credit. </p>

<p>When I contacted Capital One about their student card, they told me that the student’s income must exceed their rent in order to qualify. They told me an 18yo with sufficient income CAN get a card without a co-signer. They won’t give a card to a 17yo at all. (even with income and a co-signer)</p>

<p>thanks for the input. What I’m hearing coincides with our experience too. Its disconcerting that the credit cards geared to college students are marketed as ‘no co-signer needed’ but that really isn’t the case. Its very difficult for an 18 year old. If I cosign for her will she still be building her own credit rating?</p>

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<p>I’m not certain. For the moment, my S (17yo) just has an “authorized user” card on one of my accounts. I was told that even that would establish a credit history, but I don’t believe that’s really the case. He’s had it for 3 years (since the first time he went to Israel without us) and when I tried to get his annual “free credit report” for him, it didn’t find anything. But perhaps that is all because he is under 18 and it will begin to count for him after his birthday.</p>

<p>Until he gets sufficient income to be approved for a card of his own, he can use the card on my account for emergencies, and use cash, debit or his bursar account for everything else. We may let him use the card for online purchases (textbooks from amazon.com for example) as well.</p>

<p>We also went the “authorized user” route. My husband opened the account in his name and added my daughter as an authorized user. We were also told that this would establish a credit history for her, which was important to me. I felt strongly that she have a credit card not only for college but also because she drives, and after my husband and I blew out a tire 2 1/2 hours away from home, I realized if my daughter faced the same situation she would have no means of getting a new tire. For college, I foresee her using it for books and emergencies. I have made it clear to her that a cute blouse is NOT an emergency.</p>

<p>My son just applied on line for a citibank student visa card last night. No fee and one percent back. He hasn’t been approved yet but I was under the impression that because he is a college student he would be approved. I was told that being an authorized user wouldn’t establish credit. My son has been an authorized user on our card for a year or more. </p>

<p>Also, it is important that they establish credit while in college. It is so much harder to get once they graduate. I know four recent graduates trying to get their first credit card now and another one who had to put a larger down payment on a new car because of lack of credit even though he has a 6 figure job.</p>

<p>I got my first credit card when I was a freshman, though my parents cosigned for it and had access to the account as well. My bank called it a “college card,” and I had to apply to get it. When I got it my parents helped me set it to automatic payments, so I would never miss a payment (provided that I had enough money in my checking account). I started building credit right away, so now that I’m a graduate with a fulltime job, I already have a solid credit score plus the advantage already knowing how to manage my own budget.</p>

<p>I posted a similar question earlier this month. If you’re interested, you can see it here <a href=“http://talk.collegeconfidential.com/parent-cafe/1175449-best-1st-credit-card.html?highlight=credit+card[/url]”>http://talk.collegeconfidential.com/parent-cafe/1175449-best-1st-credit-card.html?highlight=credit+card&lt;/a&gt; (not sure if I posted that link correctly). </p>

<p>What I concluded is that, if my freshman D is eligible for a card, the ‘best’ or most likely options were our credit union, the bank D will open an account with in her college town (across the country–different banks from home), Capital One’s Journey Student Rewards Card and CitiBank’s CitiForward card.</p>

<p>So, I now know that our credit union requires a co-signer, older D, junior in college, will be approaching her local bank of 2 years to see if she’s eligible. They offered it when she opened the account 2 years ago but, as others have mentioned, the rules have changed. I spoke with Capital One to ask about co-signers and income requirements and was told that it IS possible to get a card without an income if a student has savings and, essentially, no bills (in other words, parents or others are covering the student’s tuition/housing). D2 (freshman in college) is away for the summer but will likely apply for this Capital One card when she returns. I didn’t call CitiBank. So, I don’t know much definitively yet but this is where we are in the process.</p>

<p>Thanks for the information collage1. I will post again when son hears back from Citibank. The funny thing is he doesn’t even want the card. I encouraged him to get it to start establishing credit. I will call my credit card company today too to ask about the authorized user status. I know back in the 80’s my parents added me as an account holder to their card to establish credit. It was a smart decision. I was a home owner at 23 with a great interest rate.</p>

<p>So with all these comments regarding authorized users building a credit history I’m wondering. Would a parents poor credit history or overextended credit usage reflect on the authorized user as well?</p>

<p>Just opened a student credit card with my credit union for my daughter. No cosigner needed, limit is 500. The only thing they need from her is her fall registration and her current summer earnings. The fact that she will not work once school starts does not seem to make a difference to them. We want her to have a CC for travel emergencies so I doubt if she will make much use of it. She feels very grown up (!) about her first CC and we’ll have to go over the responsibilities once the card comes.</p>

<p>We went the authorized user route as well. A couple of advantages of this are that I see what the kids are spending (the bill separates the expenditures made on each card), and I get the rewards (1 % back). It’s also a no annual fee card.</p>

<p>But it’s not the credit card that I use the most.</p>

<p>Son got declined on the Citibank Student credit card. So I called USAA who holds my accounts. They confirmed that he builds no credit as an authorized user on my account. They recommended we apply for a student card on their’s but said he might be denied because of history and income. They have two other options, the co-signer route, or one where he puts money in a CD for a year and they give him a card with that limit. After the year is up he can have his money back with the interest. He gets to keep the card with that limit. I think they called it a secure card.</p>

<p>Sure enough he was declined again based on annual income, and we decided to go the co-signer route. That way I can keep on top of it in case he doesn’t. We sent in the application and am waiting to see what kind of limit they give him. </p>

<p>I don’t think this account earns 1% back though, which is the reason we tried Citibank first.</p>

<p>Correction–my husband now says we did not go the authorized user route. He opened up a new card in his name through Chase. Once he gets the card (which hasn’t happened yet, but we are not concerned) he will add my daughter to the account, much like he added me to his account when we got married. They confirmed that doing this will help her establish credit.</p>

<p>DD turns 21 soon and I am thinking that she might be wise to get a card in her name. Think I will have her try USAA. She starts her first paid job very soon. Hurrah!</p>

<p>eastcoast101 how is that different from the authorized user route (other than that it’s a fresh card which perhaps your DH will not use for himself)? Isn’t adding her to his account adding an “authorized user”?</p>