Credit card ?

So I heard People get credit card in college and my parents want me to get it too . I am 18 and they said if it is not necessary they don’t want to do co sign . So my question is which credit did college student get ?
I applied for the chase freedom unlimited one but I am scared I won’t get it since I don’t have any credit score . Should I apply for the ones like Bank of America or Wells Fargo etc ?
Thanks

Go to the bank where you have an account and talk to them about getting a CC. If you have a summer job or one at school during the year, that will help - it’s difficult to show how you will pay a CC off regularly if you have no income coming in. Also consider a secured CC if that’s your only option, just to get started. Expect a very low credit limit to begin with but if you consistently pay on time, you will see that rise over time.

Try Discover – they have student credit cards.

FWIW when my S started working a full time job with a good salary he could not get a card from his bank of 5 years (which he was frustrated about) or an AMEX card until he established a credit rating. Fortunately he got an AMEX through is job and that is how he got a credit rating started. We got smarter with my D and she was able to get a student Discover card so she could start to establish a credit rating as a student. I think some banks may have student credit cards as well.

It is necessary to have a credit so later you can be independent from your parents without cosigning. When I graduated I still had to cosign with my parents and am still building credit for a year before I can refinance and remove my mom as a cosigner. Secured credit cards are terrible with rewards and you have to lock up your money that takes a while to get back, so it’s better you cosign.

I recommend a credit card, but I also recommend linking it to your bank account so you never build up a balance.

My parents cosigned my Delta Amex when I was 18. I’m 23 now, and I have a credit score of 8XX. My credit limit is $9,500. This is even though I had a $1,000 balance sitting on it for around a year when I first moved out and didn’t know how to handle my money.

For those parents who DO NOT want to cosign, there are plenty of “student” credit card options. My D got a credit card through our bank (Bank of the West), where she also has a savings account. It is a secured card (she has a separate account with $300.00, which is her card limit at the moment). She finds having a credit card - even with a small limit - extremely convenient for buying books, food, etc. D waits for the online statement and pays it electronically with her savings account, building credit as she goes. (NOTE: don’t pay off every charge as it hits your cc account - this does nothing to help build credit. Wait for the monthly statement and pay the entire balance then). After a year, they will supposedly up her limit, but that’s up to her to drive that process.

I got a low limit card from my school’s credit union a year ago, without a cosigner. After months of making consistent full-balance payments, I was able to get approved for 2 AMEX cards, which have built up my score significantly. The trick is to not spend more than you can afford and not carry a balance/pay in full every month.

Absolutely do NOT pay in full every month. There is an equation for building credit, and paying in full does not help you. Carrying something like 10% of your credit limit is the best way. Though, you do want to pay the rest off every month…because carrying a high balance is even worse than paying it off completely.

Another perk of a stellar ACT/SAT scores and admission to very selective schools…are the credit cards you get offered. Unsecured. With no parent to cosign.

They’ll start off small. My kid’s first was $300 as a freshman. Her credit has grown to $2500 in three years because she follows the formula. She learned about how to do this by attending a credit seminar hosted by the school. She was kinda horrified that only about a dozen kids turned up to an incredibly helpful seminar…which had reserved an auditorium for 200. On the plus side, in addition to being able to ask personal and comprehensive financial questions…they sent her back to her dorm with a couple cases of snacks that were meant for the masses that didn’t show up.

If your school offers a free financial seminar…do yourself a HUGE favor and go.

Strongly disagree with the above. Paying in full is just fine in terms of building a credit rating. My D pays her student credit card in full every month and has an 800+ credit rating. There is absolutely no reason to ever pay the ridiculously high interest rates charged by the credit card companies.

Also disagree with paying in full each month - we charge everything and pay in full every month and our credit score is 800+.

My sons went to our local credit union and got their first credit cards through them. We cosigned, oldest started with a $1000 limit and I asked for a higher limit for middle son because he’s going to school out of state and I wanted him to have enough available on his card to cover emergencies. Ironiclly, he hasn’t used it for purchases (he uses his debit card) but did link it to a paypal account to sell things on ebay.

@MaryGJ I believe we’re speaking about two different things. Paying everything before the statement cuts off gives you zero utilization and will affect your credit negatively.

Staying below 10% util and paying after the bill comes is what is usually referred to as “paying in full” every month. There is no reason to accumulate interest.

And correct me if I’m wrong, but if you link your credit card to your bank account they will draft AFTER the balance is posted, therefore making sure that your statements reflect usage and subsequent payment.

http://www.experian.com/blogs/ask-experian/better-pay-off-credit-card-full-every-month-or-maintain-balance/

I had this conversation the other night with a friend whose kids are a bit older than my own. She strongly suggested getting college kids a student credit card-- she specifically mentioned Discover, but there are others-- as a way to begin to build a credit rating. The student cards have low balances, ball park $500, so you can’t get in too far over your head.

We’ll look into it next week.

When my D moved into a college apartment for sophomore year & needed grocery $$, she signed up for a low limit student card. She only uses her card for groceries & we pay that bill each month to help her credit grow with no mishaps. Maybe we’re helping too much, but we know the value of good credit. If anything, she has learned how to have a credit card in her pocket & not use it for anything other than necessities & if needed, an emergency.

Yup, I’m going to pile on and drive the point home.

Absolutely bunk.

Perhaps you should do yourself a favor, @marygj and go to one of those financial seminars :slight_smile:

I want to pile on with @romanigypsyeyes and the rest. It’s absolute bunk, paying off your credit card in full every month, doesn’t help you build credit. It’s crazy to pay interest on credit cards unless you absolutely have to. If you pay off the charges before the statement close date, you could have a 0% utilization. A 0% utilization could hurt you because it looks like you don’t use the cards at all. You don’t need much utilization to build credit though, 5% of your credit limit is plenty.

^ I don’t know why you keep tagging me. There is a reason I never respond.