<p>DS and DD1 are both juniors and have only had debit cards till now. Looking ahead 12-18 months, I feel it would be a handicap to not have one, or even a nascent credit history. I was searching for some recent threads on credit cards for students because I was told there has been some significant changes. With their limited and sporadic employment history, I expect they won't qualify for a reasonable card without a parent's signature. </p>
<p>Any thoughts and suggestions?</p>
<p>Add them to one or more of your credit card accounts. After a while they can then use “their” good credit rating to help secure a card in their own name. this works especially well if they open a CC acct with the same bank as their debit card acct.</p>
<p>Yeah, they won’t. My DD is a current college sophomore. Son just graduated. Son had lots of cc offers at the start of college. DD none. New laws mean under 21 requires parent or cosign. DD has a BofA tied to her checking that I cosigned for. She also has a capital one which is a second card on my account. For those going overseas, Capital one is one of the few cards which doesn’t have foreign transaction fees.
Lots of threads on this but lots of folks post old information. What worked for college kids two years ago is no longer relevant. The situation is drastically different now.
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<p>Well…DD who graduated in the spring gets AT LEAST one credit card offering in the mail each week. Tons of them from AMEX to Capitol One Visa. I’m not sure if she would actually GET one of them if she applied but she gets the offers in the mail. When my kids had very little income…they didn’t need credit cards with more credit line than their income. When DS got a job, he was able to ask for an increase in his credit line.</p>
<p>I guess what I’m saying…once your kiddo graduates and has an income, they will be able to get a credit card. Without an income, I would think they really shouldn’t have one. This is what got the credit card and banking establishments in trouble…issuing credit to folks with insufficient incomes. I, for one, am glad they have tightened this up.</p>
<p>Yes, my junior Accounting major S decided he should start building his credit rating so applied online for a credit card. He didn’t think that it would be any problem getting a card but when he was rejected he learned that the rules have now changed. He’s going to pursue it further but I’m not sure that he has had time to research other credit card companies. My high school D has a card in her name that is tied to my account so I’m not sure that it’s actually doing any good at building her credit rating.</p>
<p>My experience was the same as ebeeeee - my older two children had credit card offers (guaranteed acceptance offers - not just “please apply” offers) coming every day - whereas my younger two (a college sophomore and hs senior) have had none.</p>
<p>The law has changed and an individual under 21 needs a parent to sign for a card now.</p>
<p>I put younger D on one of my accounts so she would have a card for emergencies, and will do the same for younger S when he leaves for college.</p>
<p>My daughter has a credit card in her own name that didn’t require a co-signer, though its a department store card for the store she works in during the summer months (a store card or cash is required for employee purchases). I guess because she applied before all the laws changed her age wasn’t an issue; she was only 18 at the time. It has a very small limit, maybe $500, but she’s uses it regularly when home and working so hopefully it will help her gain a regular Visa/MC when she’s old enough to get one on her own.</p>
<p>My son got a $300 limit, no co-signer VISA card from a credit union last August after the new law. His summer job income was enough for them. It’s a start and I really wouldn’t want him to have a higher limit or carry a balance at this point. He was 18 at the time.</p>
<p>As a parent, I signed up (in my name) for a credit card separate from the ones I use. I had my daughter added to the account and had them put a moderate credit limit on it. Not that I didn’t trust my daughter to handle the credit, but she can misplace things once in while. I didn’t want the hastle of changing automatic payments, etc. if the card was lost. I am going to be paying the bills anyways and this seemed to be the best way to do it. I get the bill, so I can see where the money is spent.</p>
<p>A credit card is actually much safer than a debit card (not that either is totally “safe”) There are more laws and regulations safeguarding credit cards than debit cards. You could have your bank account drained with a debit card and have fewer recourses than with a credit card. If you do use a debit card, check the banks policy, they may offer you some protection. Credit cards have limited liability on fradulent charges as long as they are reported within a specified time after you receive your statement. So, do check that monthly statement and reconcile it with your student.</p>
<p>D is still receiving CC offers–she is a junior & just turned 21. S is 23 and has a job waiting for him but doesn’t receive CC offers. We have them on a card with me–all 3 of us. They only use the card if they tell me what they bought (usually travel tickets we have approved ahead of time & other things in a pinch). Not sure if they’re building a credit history or not at this point. I don’t think they will have a problem getting whatever credit they want & if they do, we will be willing to co-sign with them, as they have always been very responsible. (If they get married, that introduces some new elements, but neither has a BF/GF in the picture yet.)</p>
<p>We have a lower credit limit on the card and have declined the company’s generous offer to raise the limit, as it is sufficient to buy plane tickets, guarantee cars, hotels, and get them out of most automotive problems, which is our intention. Our kids have been known to lose their belongings from time to time & lower limits reduces our stress levels.</p>
<p>I had little to no credit history and got a bank of america secured credit card some months ago. I pay the balance off every month, haven’t had any fees or anything other than an activation fee and the deposit you have to put down for it to bet a secured card. But I was 21 when I applied. I didn’t have a credit card before that and it was not a handicap. I just swiped my debit as credit for years and still do most of the time. The CC is mostly just for bills and textbooks.</p>
<p>Interesting thread. I had missed the news about changed rules for students under 21.</p>
<p>My 18 year old daughter has a visa credit card that was issued by Wells Fargo a little more than a year ago when she was just 17. No co-signer needed. It is linked to (but not ‘secured’ by) her checking account that has about 2K in it currently. But this card was issued before the new law went into effect. I am so glad she is building up her own credit history at an early age.</p>
<p>I did some poking around the internet, and apparently banks have already started figuring out the loopholes in the law and the Fed is not being too tough in the implementation. The law requires students 18-21 to have their own income before they can get their own card, but it doesn’t specify how much that income should be, nor does it require banks to verify that income.</p>
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<p>Details at link below:</p>
<p>[The</a> Real New Student Credit Card Rules Credit Card Help Topics](<a href=“http://www.creditcardguide.com/creditcards/student/real-student-credit-card-rules-282/]The”>http://www.creditcardguide.com/creditcards/student/real-student-credit-card-rules-282/)</p>
<p>My son, who is a college senior, has a secured Visa in his name from our credit union. It is secured by his savings, and I am co-signer. He doesn’t work (his job was to graduate in 4 years, and he will be!) and his income is his monthly living expenses and allowance. His Visa pays off in full on the 10th of the month, and has a $1,000.00 credit limit (which is only a moderate percentage of his savings account).</p>
<p>He has been very responsible and is building credit, so this worked out great for us. I will send my daughter with a Visa card (my account) to college this fall, and will switch her to a secured Visa like her brother when she is older…</p>
<p>Be aware that if someone gets turned down for a credit card, that in itself hurts the credit rating.</p>
<p>We did exactly what Menloparkmom #2 above said, and it’s worked great: Opened a Visa account in both my daughter’s name and mine, tied to our family checking account at USBank. This was in August 2010, right before she left for her freshman year on the other coast. She also has a Visa debit card tied to the same account. I can go online and load her debit for small weekly expenses, and I pay off the small charges in full on her credit card every month online. She will have a good credit score when she graduates, and (hopefully) has her own income. </p>
<p>I also can see online every single expense she occurs, which has been educational for both of us.</p>
<p>The credit card limit initially was only $1,000, but we wanted her to have a credit card in case she needed to buy an expensive plane ticket on short notice, or for other any other emergency expenses that might come up. She is on a varsity team, and often off campus. We were told to revisit the credit limit after 6 mos to a year, but we haven’t bothered to do that. Perhaps over the summer.</p>
<p>I had no success as a cosigner on DS credit card application last year with a FICA score >800 much to my disbelief. That was after he was turned down for a card in his own name without a co-signer. Ultimately I got another card in my name, got an associate card for him, had them reduce the limit to a more modest number, and transferred the mailing address to him at college for the statements. Although there is some small risk for this to damage my credit ratings if the card is unpaid, I did ask him to set it up for auto-pay from his checking account. This way he sees the statement each month and it better educates him on what it means to use a credit card and have it paid off monthly. Since the account is really in my name, I do have the opportunity to check the on-line statement but I rarely do. So long as he is using up a reasonable amount for college expenses, I don’t care if he buys used books and lots of pizza or new textbooks only. Given the credit card offers I personally receive each week, I still can’t understand why two banks turned me down as a co-signer but happily put the account in my name when the responsibility for payment/security is the same.</p>
<p>Interesting…My 18 year old freshman son has a card of his own from Cap One with no co-signer. He’s had it for about 6 months. He received a handful of offers in the mail this past fall. It said right on the app you can count fin aid as income. It was a $500 limit and then after 3 months of on time payments and not going over the limit they raised it to $1000.</p>
<p>My D applied for (HS Senior) a CC with Capital One…a student card called the “Journey Card” and she was approved without a cosigner and a $500 limit. I am assuming her pt job and her ability to access her .edu address at her accepted and committed to college was a factor. She is just 18. I have no idea if the limit will increase.</p>
<p>D also got Cap One originally only $300, then they increased it (within a few months to $500). Originally, several companies, including BoA, credit unions, etc. would give a cash secured account. Those are better than debit cards, since they will build credit. With her going overseas, I want her to have a higher limit or second card. She is making more with her paid internship and gets a large scholarship (if they count that).</p>
<p>Worst that happens, is I put money in account as emergency fund or a secured account which will build credit. Being ajust a authorized user or debit card does not. If they later need car insurance, jobs, it is good to have credit (assuming they use it appropriately). I tend to pay the bill to make sure it is on time, but I should have her link it to her checking for online banking bill payer service.</p>
<p>Someone was saying it may be a little easier for Macy’s/store card to start building credit. </p>
<p>If anyone finds the best deal…qualifications to get one, low fees, etc. Some have those alerts to let you know payment is due, etc.</p>
<p>My college freshman got a Citibank CitiForward credit card with no cosigner the summer after he graduated from HS. I think his limit is $800. Here’s a website that I used when researching; at the time, the Citibank card was the “top rated” choice - now the Capitol One Journey card is.</p>
<p>[Best</a> Student Credit Card Deals and Online Applications](<a href=“http://www.creditcardguide.com/student_cards.html]Best”>http://www.creditcardguide.com/student_cards.html)</p>
<p>The one thing that we told him was that he could use the credit card, but only as a float - he must keep track and pay the balance in full every month. No carrying a balance and paying interest. That’s what we do and better that he learns that this is the only way he should use it. Also - it’s to be used for books, travel (train tickets home) and emergencies, not for those little everyday purchases.
I’m glad that he got the card while we still have some amount of influence/control over him, as there has definitely been a learning curve on how to track expenses, how to pay the bill (I’m not kidding here…), etc. He is a really smart kid, but I am constantly amazed at some of those common sense issues that he is just confounded by! :)</p>