<p>This fall, S started at a U which has a US Bank office on campus and the school ID card = US Bank debit card. So S opened a US Bank account and applied for a credit card. Well, US Bank rejected his credit card application (I understood S had no income). So S applied for the card again with me as the co-signer. The application was rejected again! I was alarmed because I thought there was something wrong with my credit rating. I talked to a banker and was told that they did not check my credit score even though I was a co-signer (what?). The banker basically said the bank rejected S because he was a new customer; it didnt care about the co-signer. Banker told S to re-apply in 6 months after he has established some banking relationship with them. </p>
<p>By the way, S got his own credit card from Wells Fargo Bank 9 months ago. He did have an account with a few hundred dollars for 10+ years there. Unfortunately, his WF credit card cannot be paid automatically from his USB account :(</p>
<p>Back in the Stone Age, my dad had me take out a small loan that they then paid back in my name (the loan was for their new color console TV ) This established a credit record that enabled me to get a credit card. I was able to get the loan because I had plenty of money in my savings at this credit union.</p>
<p>oldfort, I wouldn’t wait too long on that credit card. My first job out of college required me to use a credit card to hold hotel rooms, rent a car, etc. I felt like a major loser that I was unable to do these things on my own at first. That’s when dad and I launched the TV loan plan.</p>
<p>D1 has a credit/debit card with her checking acct. She also has our credit card for emergency. The first card I would have her get would be AmEx. She could use that in conjunction with her credit/debit card, and she would have to pay the balance every month, it also has better protections than visa or master.</p>
<p>My concern about debit cards is with their lack of fraud protection. They’re useful and have their place, but they don’t have the consumer safeguards that credit cards have. </p>
<p>One of our credit unions has teen cards that require a joint signature but which are in the child’s name. The child needs to be 16. Which reminds me it’s time to sign up D1.</p>
<p>dadinator, i went to usaa website and if you check eligibility for membership and scroll to bottom, it has a section for OTHER individuals, seems like non military can get some features including credit card.</p>
<p>Just a warning folks regarding the use of debit cards like credit cards. There is a LOT of fraud these days with these cards. Just last week (I know…lousy timing) my credit card was canceled by the company and me because it had been used fraudulently. I was ever so grateful it was NOT my debit card where the protections are much less stringent. </p>
<p>I agree with Oldfort…kids can build their credit ratings easily enough ONCE they have jobs. Prior to that time, a credit card in their name is not necessary. Our kids had them but that is because B of A had the student account that included both a debit and a credit card. It had NOTHING to do with building a credit history.</p>
<p>Have to agree with previous posters re debit cards–if those numbers are stolen, thieves can clean out those checking accts in no time. We have had credit card numbers stolen twice and never had an issue with fraudulent charges. I have, on the other hand, heard of checking accts totally wiped out. Our student has both; uses the credit card in emergency situations only–it has been esp handy with regards to interviewing in different cities and needing records for reimbursement–debit card is used only at an ATM. Credit card is a CitiCard with no annual fee and a $2500 limit. Applied and was approved for this card almost two years ago when someone started a thread about this very same issue. And, since it is used sparingly, balances have been paid off each month, thus incurring no finance charges. I don’t know what the answer is now for kids needing to have some type of credit card esp since rules have changed so much. I do know that we are NOT fans of debit cards and our own student has found out that you need to keep up with those debits by posting–so you can at least keep a handle on money in that checking acct. Student thinks writing checks would be a lot simpler much like we did “back in the day”…</p>
<p>Best friend and her brother were traveling in US. Both used debit card to get cash at an ATM. Once home, noticed $$ withdrawn elsewhere. Told her brother to check and he had his $$ withdrawn too. Looks like the bank had one of those fake slots that steal your numbers. They were given back their money without any problems. This was with debit cards. </p>
<p>The caution I know with debit cards is that they work like checks. You do not have protection in that you can’t “dispute” a charge. Say you order a couch and they withdraw the money but don’t deliver. With a credit card you can notify the bank and dispute the charges.</p>
<p>Would also further emphasize the important difference between credit cards and debit cards from a security standpoint. Unauthorized charges on your credit card simply go against your credit limit until the issue is sorted out… from that standpoint it’s ‘fake’ money so far as your concerned. If the same thing happens on your debit card it’s real money that you could be out of for a while until the issues get sorted out.</p>
<p>Also, whenever you rent a car, check into a hotel or perform some other functions a ‘hold’ will get placed on you card incase you trash the room etc. Again on a credit card this is ‘fake’ money–your credit limit is simply reduced by X amount for a few days–but with a debit card they will literally take the real money from you and then give it back later… sometimes several days after you completed the transaction. </p>
<p>In a bind it’s OK to use the debit card to make purchases as if it was a credit card, but for the above and more reasons it’s really not a good idea to do so as standard practice–far better to use a credit card and then pay off the balance in full at the end of the month.</p>
) This established a credit record that enabled me to get a credit card. I was able to get the loan because I had plenty of money in my savings at this credit union.</p>