<p>I can't imagine not having a credit card. As long as you pay it off every month, there is minimal risk (admittedly, that is a big if). My first card (I'm 19) had a $5000 limit, and is like a safety net - if I ever need serious money, I have it available to me in my wallet at all times. Plus, it is much more convienent to buy things with CC's than it is with cash.</p>
<p>Unfortunately, credit cards are necessary for emergencies...Many places (such as car rental places and airlines) may require a credit card (not a debit card). We ran into a problem when my son got a credit card before he was 18...even though my husband signed as a co-signer, all the bills were in my son's name, and all bills were paid on time, my son could not get a credit card after he graduated from college because they claimed the credit card was not in his name! (They claimed that he was just an approved user). We did learn some things going through this process though...</p>
<p>Check your credit history to make sure that it is accurate...with recent changes in the law, you are allowed to check your credit history at each of the 3 major credit reporting agencies once each year for free. (you can check one every few months to get more recent information).</p>
<p>Do not send in multiple credit card applications...only send one in every 3 months? If you apply for several forms of credit within a short period of time (includes utility bills etc..), it raises a red flag to credit card companies.</p>
<p>Make sure that you use a new credit card occasionally...Opening a credit card account, but not using it does not improve your credit rating!</p>
<p>Open a local grocery store or gas station credit card account in order to gain a credit history...they are often easier to get approved. Use it occasionally and pay it off on time!</p>
<p>Ask the local bank officer for assistance in finding a credit card that you will likely get approved for. They know what credit cards are available for people with your credit history...people with no credit history will be less likely to get a fancy credit card with cash back features, but just be sure to read ALL of the fine print and take the time to understand it! Try to get a credit card with at least $1000 credit limit...college books or an emergency can put you over a small limit quickly and going over your limit can be a negative on your credit report..You may have to pay a small annual fee for your first credit card, but once you get a credit history you can change to a different company...</p>
<p>Debit cards do not build your credit history! Do not open a debit card account thinking you are building your credit history!</p>
<p>If my son has to have a credit card, I would want him to have one with a low limit so he wouldn't be tempted to take advantage of it. Some kids are more "impulsive" than others. He's a good kid, but I could see him using it (abusing it) at restaurants, etc.</p>
<p>If my son has to have a credit card, I would want him to have one with a low limit so he wouldn't be tempted to take advantage of it. Some kids are more "impulsive" than others. He's a good kid, but I could see him using it (abusing it) at restaurants, etc.</p>
<p>Some debit cards are also credit cards. Mine is.... My debit card has the VISA symbol on it.</p>
<p>I don't think that the debit/credit cards count towards a credit history, at least that's what we were told at our bank. I tend to believe that is true since my daughter uses her debit/credit card often but cannot seem to get a credit card, even from her own bank that her debit card is from.</p>
<p>If my son has to have a credit card, I would want him to have one with a low limit so he wouldn't be tempted to take advantage of it. Some kids are more "impulsive" than others. He's a good kid, but I could see him using it (abusing it) at restaurants, etc.</p>
<p>Some debit cards are also credit cards. Mine is.... My debit card has the VISA symbol on it.</p>
<p>If my son has to have a credit card, I would want him to have one with a low limit so he wouldn't be tempted to take advantage of it. Some kids are more "impulsive" than others. He's a good kid, but I could see him using it (abusing it) at restaurants, etc. </p>
<p>Some debit cards are also credit cards. Mine is.... My debit card has the VISA symbol on it.</p>
<p>If my son has to have a credit card, I would want him to have one with a low limit so he wouldn't be tempted to take advantage of it. Some kids are more "impulsive" than others. He's a good kid, but I could see him using it (abusing it) at restaurants, etc. </p>
<p>Some debit cards are also credit cards. Mine is.... My debit card has the VISA symbol on it.</p>
<p>no.. those visa check cards (debit cards with visa symbol on them) dont count towards credit... </p>
<p>and as for the student cards, you have to watch how you sign up for them.. usually if your husband signs up for the card in his name and has the kid sign second.. then the card is your husbands and your son is an approved user. My card was 100% in my name - my mother was NOT an approved user on the card. she just had to co-sign in case i didn't pay my bill.</p>
<p>and i would def. reccomend getting at least a 1000 dollar limit if you can. i've gone over 1000 twice on my card. once because i backed into a friends car and paid to fix it by putting it on my card, and secondly when i purchased a new computer last month. </p>
<p>both bills were paid at the end of the month, but it's nice to have the ability to put them in your card so you're not running around finding an atm that will give you 1200 dollars to pay a bill...</p>
<p>I can't imagine anyone having trouble getting a credit card... instead of applying for one, why not just wait for one of those "You've been pre-approved for a ______ Platinum Visa" mailings and just send it in? Thats how I got my first card, and I got a 5k credit limit with no job, no bank account, etc (and yes, I was honest about all that on the app).</p>
<p>When our son got his drivers license we put him as a user on one of our credit cards. This served two purposes. First and most obviously, it gave him access to services while in the car in the event of a breakdown or some other "emergency". Second it began establishing a credit rating even though it was our card. Asude from gas purchases, he has never used it without asking us first and paying for charges before the bill arrived. Those were the groundrules.</p>
<p>Another option for students is to do what our son has done. He got a debit card tied to his checking account. Now he never uses the credit card though he does keep it in case of emergency.</p>
<p>Lucifer, That's the thing - my daughter only applied for a credit card from the companies that sent her the offers, "you've been pre-approved...!" and she has the things that you didn't - a bank account and a job history. The one that was an unsolicited offer was the one from her bank entitled, "student credit card, start your credit history here." We will get our HS senior to accept one of the offers he's been getting and see what happens. When she gets home for the break, I'm going to suggest that she investigate her credit history and see if there's something wrong in her credit report.</p>
<p>originaloog, are you sure that your son has a credit history? As fendergirl and another poster mentioned, adding him as a user is not the same as having a card in his name.</p>
<p>In our case, the account was taken out in my son's name (before he was 18) with my husband as a co-signer...all bills were in my son's name, but the credit card company (Capitol one) claimed that he was only an approved user and that we could not prove otherwise! </p>
<p>My daughter opened a credit card account after she turned 18 through her bank with my husband as a co-signer...We checked her credit history and it says that it is a joint account...so she is gaining credit history.</p>
<p>As fendergirl pointed out, just because something has a Visa logo does not mean it is a credit card--that just means that Visa is the processer. Such is the case with any check card, debit card or ATM card--none of them count toward your credit.</p>
<p>
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Try to get a credit card with at least $1000 credit limit...college books or an emergency can put you over a small limit quickly and going over your limit can be a negative on your credit report
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Its actually worse than that; just getting near the limit can hurt your credit score. According to one site, "A heavily weighted factor in your FICO score is how much money you owe on your credit cards relative to your total credit limit. Generally, it's good to keep your balances at or below 25 percent of your credit card limit" See <a href="http://money.cnn.com/2002/02/15/debt/q_fivethings_creditscore/%5B/url%5D">http://money.cnn.com/2002/02/15/debt/q_fivethings_creditscore/</a></p>
<p>And this can happen even if you pay off the card in full each month. According to the myfico.com website which is owned by the producer of FICO scores: "Note that even if you pay off your credit cards in full every month, your credit report may show a balance on those cards. The total balance on your last statement is generally the amount that will show in your credit report." See <a href="http://www.myfico.com/Offers/myFICO_UYCS%20booklet.pdf%5B/url%5D">http://www.myfico.com/Offers/myFICO_UYCS%20booklet.pdf</a></p>
<p>Based on this, it seems to make sense to get a card with a limit at least twice what you ever expect to actually use (including a few hundred dollars for emergencies). And then pay it off in full every month, just like you were writing checks instead of using the card.</p>
<p>Yeah, I was actually going to post about that. It's better to have 5 cards with a 1000 dollar limit and owe 200 on each of them than it is to have one 1500 limit card and owe 1000. a large part of your score is dependent upon what percentage you owe at the current time. Depending on when they pull your credit score, it could vary from day to day, based on what your current balance is at that point.</p>
<p>The first time I got my credit score, i owed 1200 on my card and my limit was 2500. one of the suggestions they gave towards lowering your rating was that the amount i owed in comparison to my limit was too high - although, had i checked my score three days later after that payment was made, my score would of been completely different.</p>
<p>Same with my car loan. My rating is a lot higher now that i only owe 4700 as opposed to when i owed 7000. (this could have to do with the fact that my credit has grown since then, however i suspect it also has to do with me paying down the loan - i'll let you know how much it changes once I pay my car off this summer).</p>
<p>When my D set up her checking account at Wells Fargo they set her up with a debit card that she uses like a credit card. She also got from them a traditional credit card with a $500 limit. She used it a few times to establish some history. She has a card of ours in her name for big purchases and emergencies. Her credit card from her bank allows her to pay her balance online from her checking account. For her it helps having it all in one place. She is a good candidate for a card because she is my nature quite frugal.</p>
<p>I got my first credit card (yes, a real credit card) at 13, just before I turned 14. No, I would not recommend it at such an early age for your average kid, but I've always been pretty financially responsible. My dad is a financial advisor, so that has probably had somewhat of an effect.</p>
<p>Since then I've payed my bill in full each month (anywhere from $0-$200) and yes I worked as well to supplement my very small allowance. When I turned 18 I applied for a credit card in my own name, but I still kept my first card as a back up, for whatever reason.</p>
<p>Credit cards are not the devil, as long as you know how to use them, and you don't apply to every offer that comes your way. Also, another note, transferring balances to 0% APR cards can be risky... I wouldn't recommend it.</p>
<p>Um.. I can't imagine myself getting a credit card.
Is it really that bad not to get a card at all until years from now when I have a steady income or something? :</p>
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Is it really that bad not to get a card at all until years from now when I have a steady income or something? :
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</p>
<p>Yes it really is. Years from now when you have that steady income, you're going to want to buy things like a house, car, and other big ticket items. And unless that steady income is pretty darn big, you're going to need established credit to get those items.</p>