Credit Cards

<p>dyx - thats a great card. I got one my first year of school. They started me off with their standard $1,100 credit limit, and kept bumping it up every few months, so that I now have a $10,000+ credit limit.
I would recommend getting a card from one of the major banks (Citi, Chase, MBNA) as opposed to CapOne, etc.</p>

<p>No fee cards with cash back opportunities:</p>

<p>Discover Card has up to 1% cash back on all purchases without an annual limit on this rebate and students can get one.
<a href="http://www.discovercard.com/discover/data/student/?icmpgn=200512_dc_wp_hu_drpdwn_stu_nap_gen_1%5B/url%5D"&gt;http://www.discovercard.com/discover/data/student/?icmpgn=200512_dc_wp_hu_drpdwn_stu_nap_gen_1&lt;/a&gt;&lt;/p>

<p>AT&T Universal Rewards Card (MasterCard) has 1% back on most purchases with 5% cash back on grocery and drug store purchases and gas purchases with an annual limit on the amount of the rebate.
<a href="http://www.universalcard.com/us/cards/ucs/compare_02.htm%5B/url%5D"&gt;http://www.universalcard.com/us/cards/ucs/compare_02.htm&lt;/a&gt;&lt;/p>

<p>Does anyone have a no-annual-fee card with no fees for cash withdrawals at ATMs? </p>

<p>How do people minimize the cost of getting $10 here and there from a cash machine?</p>

<p>Reasonabledad, my son has the Bank of America Visa with his checking account. Because my husband and I also bank at B of A, our son is not charged any banking fees. As long as he uses a B of A ATM, I believe he also doesn't pay any fees to withdraw cash. But he seldom uses cash -- he uses the card for most purchases, and pays it off each month online, through his checking account. I wonder, though, do students build a credit history if they pay the balance in full each month? I'd heard that you need to carry a balance over to establish history, but that doesn't sound right.</p>

<p>"I think that's the maximum for that card though because it hasn't gone up in awhile."</p>

<p>Cap One in general has stopped giving credit limit increases, even to credit worthy customers. I have a card from them, as well, and they were pretty good about giving out cards with a high APR but no annual fee to students. Now, however, students cannot get a card from them without an annual fee. Cap One's strategy changed a few years ago and they are now one of the worst.</p>

<p>"Does anyone have a no-annual-fee card with no fees for cash withdrawals at ATMs? </p>

<p>How do people minimize the cost of getting $10 here and there from a cash machine?"</p>

<p>Are you talking about a credit card or a debit card? I've never heard of a debit card that charges an annual fee and it's generally considered a bad idea to make cash advances on a credit card.</p>

<p>Generally, you are not charged a fee if you just make withdrawls from your own ATM. Just make sure that, before you go out, you stop at your local ATM in case there isn't one from your bank around later that night.</p>

<p>"Reasonabledad, my son has the Bank of America Visa with his checking account. Because my husband and I also bank at B of A, our son is not charged any banking fees. As long as he uses a B of A ATM, I believe he also doesn't pay any fees to withdraw cash. But he seldom uses cash -- he uses the card for most purchases, and pays it off each month online, through his checking account. I wonder, though, do students build a credit history if they pay the balance in full each month? I'd heard that you need to carry a balance over to establish history, but that doesn't sound right."</p>

<p>I'm a bit confused here, too--credit card or debit card? Both? Hopefully, he's not using a debit card online.</p>

<p>If it's a credit card, you generally do not build a great deal of history by paying it off every month--companies want to see that you're making regular payments and actually using the card. I wouldn't worry too much about it; however--just have him pay off the card AFTER the statement date every month (so that the balance shows up on his credit report).</p>

<p>He uses a debit/ATM card to get cash, and the credit card for most purchases. So you are saying that as long as he pays his bill AFTER it is mailed, but before it is due, then he establishes a credit history? He doesn't want to pay interest charges.</p>

<p>"So you are saying that as long as he pays his bill AFTER it is mailed, but before it is due, then he establishes a credit history? He doesn't want to pay interest charges."</p>

<p>He'll build credit history no mattter what (since the account has been open the whole time), but it'll look better if it looks like he's actually been using it on his credit report. If he pays it off the day before the statement date, his balance will be 0 when the credit card reports to the agency. If he pays the day after the statement date, the credit card will report the entire balance and that he's been paying satisfactory.</p>

<p>He won't pay interest charges as long as he pays within his grace period, which is at least 20 days (perhaps 30, depending on the card).</p>

<p>So, let's say your child has a credit card with a grade period of 20 days and his statements print on the last day of every month.</p>

<p>If he has the following charges during December:</p>

<p>Dec 1: Books $700
Dec 20: Gum $1</p>

<p>He should pay $700 by Dec 21 and $1 by January 19. That way, he won't incur any finance charges and he will show a balance (the amount of the balance is irrelevant for this purpose) on the card.</p>

<p>D has received several card offers through the mail but it seems the ones she's getting all ask for her "income". She doesn't have any income, by any normal definition of that word. Are the card offers you folks are talking about, cards in the student's name only, dependent on any statement of income?</p>

<p>Curm,
the offers are specifically for college students. Instead of the spot where you enter an income, the ask what school she is attending and what year she will be and what her anticipated graduation date is. Again my kiddos have a B of A debit card WITH an adjoining credit card/Visa. In addition to that they have a USAA (open to all, even though initially it was for active duty military officers) credit card.</p>

<p>They do exactly what the above poster mentioned about charging the card and paying it before the due date to carry a balance and not incurring any finance charge. There is also a very good Citi card, Discover but watch the interest rate, Capital One and Household Bank. As long as you pay off the balance no finance charge will accrue and a solid credit history will be established.</p>

<p>My kiddos all took one educational loan their freshman year for about $2000. They did not need it and just put it in the bank. Oldest is graduating so she will pay it back within 6 months with the same money and will have another solid (positive) credit to her name.</p>

<p>Kat
and yes the cards are only in their name</p>

<p>Many credit cards ask for the student's household income, in which case they can include your income as well.</p>

<p>All of my cards were always in my name, granted, I've been working in some form since I was 16.</p>

<p>She could look into the credit cards offered by BofA and Sovereign.</p>

<p>On recs from this thread and because I already have BofA accounts and because D's school has BofA machine on campus and an office in town (small town w/out Citibank & others), I took my D to my branch and got her the student visa. Very easy. Yes, they ask for income, but since her monthly income is less than $200 right now, they just put some minimal amnt in and said it didn't matter. All service charges are waived for the first 5 yrs of the card. I understood that to include withdrawals from the ATM, but I didn't ask specifically about that. She will have a checking accnt out of which she can pay off the her monthly bill using on-line banking. Along w/credit card she gets an ATM/debit card. Her paper bill can continue to come to our home address and when she goes away she will get email notification of $$ and date due. We can electronically deposit into the checking accnt any time. Only if she gives me her i.d. and password can I check her statement or purchases on line. I believe he said you can initiate the accnt with as little as $25 in the checking accnt. The credit limit is only $600 to start with, but from what you are all saying, that will go up soon enough. She will most likely also have a visa card for our family account in case of major emergency purchases, altho I can't really think what they might be right now. </p>

<p>As for building good credit, it's simply a matter of using the card regularly and paying it off on time. (Obviously using the ATM card as a debit card will not help establish credit.) If you do not pay the full amount by the due date each month there is an interest penalty as w/any credit card. Someone on this thread asked about building credit by not paying on time. A history of late payments does not look good on your credit report and serves no one but the bank; that would be a good lesson in how to go into debt. I don't see how it matters when it is paid off as long as it is paid in full by the due date every month. I was warned, however, about paying online for my own BofA credit card. You would think that same-day payment would be okay, but they told me to pay at least 2 days before the due date when paying online to make sure payment is properly recorded.</p>

<p>I looked into the student cr cards that give a percentage back. B of A doesn't have that nice feature, but several others do. Right now the BofA account makes more sense for us.</p>

<p>"Someone on this thread asked about building credit by not paying on time. A history of late payments does not look good on your credit report and serves no one but the bank; that would be a good lesson in how to go into debt. I don't see how it matters when it is paid off as long as it is paid in full by the due date every month."</p>

<p>No one said to pay late--that is the worst possible thing you can do. I recommended not charging something and then going home and paying that amount online right away, but rather to wait for your statement to come and then pay it (well before the due date).</p>

<p>If you pay things off before the statement date, then your credit report will show a 0 balance every month and, eventually, be designated as inactive and will no longer help your credit.</p>

<p>Okay. I guess I misunderstood. I can't imagine paying off each charge right away but I can imagine the process is confusing for those kids used to a cash-only economy. Yes, it would definitely be counterproductive. Safest rule for kids would be to wait for their monthly statement and then pay that sucker soon--before they forget about it or accidentally delete the e-statement. I have a frugal D and it may take her awhile to get used to spending money this way. One wing still in the nest and the other flapping.</p>

<p>DS has the B of A accounts as well. He does all of his banking online, and we just deposit to his account as needed (for the things we pay for...). Just be on the lookout for letters about fees. He has gotten them annually and just goes into the local branch and reminds them he's a college student. They waive the fees. But he has gotten a letter every year.</p>

<p>I guess I'll read the letters more closely. LOL. All seem to have an income blank. Now, we don't have any national bank relationships and that may limit her letters, but it would seem she would get some letters like y'all are talking about.</p>