<p>Also, another problem with debit cards is that if you overdraw on them, the fees can get murderous! The debit card will go ahead and put through the transaction even if you don't have enough money in the account to cover it and then will charge you a fee. There was a recent thread that spotlighted the problem for us.</p>
<p>Haven't found any difference between MC and Visa. Surprised, Thumper1, that there are places that take one, but not the other.</p>
<p>American Express--you do run into trouble using it sometimes. We've never had personal ones (H has sometimes had business ones)--because 30 years ago, back in the dark ages when credit card companies actually cared about who they issued cards to, they wouldn't issue us an American Express card (young married in our 20s, but we had jobs!). Now they send us mail twice a week offering us a card. Sorry, you had your chance...</p>
<p>The fees on overdrawn debit accounts can be BAD. We know from experience with S2 who gets his check from his job automatically deposited and mistakenly used his debit card to buy stuff before the money was actually in the bank once. H went down and talked to the bank and they were gracious enough to give the boy a second chance without the penalties. He had just gotten the card so wasn't a seasoned user.</p>
<p>To make sure this never happened again, H had S's debit card (he's a rising h.s sr.) connected to our credit card. So if for some reason he overdraws or there is an emergency and he needs money right away, the overdrawn amount will roll over to our credit card with only a $5 service charge. </p>
<p>S2, risng college Jr. has his own credit card in his name. He pays it off monthly online.<br>
We all have Visa and just got a notice from S's sch. that they will no longer accept Visa but will still take MasterCard. I'm hoping this only applies to credit cards and not debit cards because S1 uses his debit card on campus all the time.</p>
<p>We are considering a college banking program offered by USAA that includes a credit card, checking account and a debit card. It allows parents to monitor account/add money but the student is establishing their own credit. It has online bill-paying capability, etc. and has graduated credit limits, starting at $500 as a freshman. It's an interesting program, if one has access to USAA membership. FYI: USAA is a privately held company for those with some afffiliation with the military.</p>
<p>Beil, I'm glad you mentioned the USAA program. I've had the literature sitting on my countertop for two weeks now, trying to decide if I'm comfortable with the fact that there are no bank branches, and therefore deposits are made by scanning and emailing your checks. How do you feel about that? Otherwise, I have tremendous confidence in USAA and have not found any lower interest rate (following the initial interest-free period).</p>
<p>If your student is going to a place with limited air service, look into the credit card that gives milage on that airline; some give 20,000 miles (one free trip) for signing up. We haven't done this yet, but are reading carefully. Is $75/year worth the milage bonus?</p>
<p>There are lots of threads of this subject. DS is a rising college sophomore. He just got one through BofA which is connected to his checking. It has a low-$800. limit. He goes online and transfers money from his checking to his Visa immediately after making purchases. It is useful for books, etc. since he is on the opposite coast.</p>
<p>Worry- USAA banking is awesome. The scan deposit system works instantly. They are also wonderful on customer service. We opened checking accounts for out kids when they were still minors, so our names are on the accounts, which allows us to transfer funds between us as nesc.</p>
<p>The college credit card is designed to increase the limit each year with good credit, preventing the kids from a huge debt while they learn.</p>
<p>We've banked with USAA for years, we mail in our deposits, the scanning option is pretty new, and we still feel it's too weird to take advantage of, but I'm sure we will soon. Both our boys have accounts that also have our names on them.</p>
I find that very odd, because I've dealt with merchant accounts for a number of years, and I never saw one that distinguished between MC/Visa -- that is, it would be kind of hard to set up a system that allowed you to accept one but not the other. So I don't think that would be very common.. even though of course it would be worth checking.</p>
<p>The difference between Mastercard and visa is that one is blue and yellow and one is red and yellow. The real differences are the bank who issues the card: the APR on the card, the penalty for late payment, requirements around due dates and payments, rewards programs, etc. Find one with a reasonable APR and without weird hidden penalties like "if you don't mail the payment in our envelope with our stub, we reserve the right to hold your check for up to 10 days for "research" and oh, yeah, we won't credit your account so that means you are liable for late payment fees." In our experience, the credit card from the bank where we have our checking account was free from the most egregious hooks like I described, so even if the interest rate was a tad higher, it was better because a payment could be instantly transferred online from the checking account at same bank, and both accounts can be monitored online by anybody with the password and user ID.</p>
<p>My S has a credit card from his bank, but only offers $1000 line of credit. Years ago, I got a credit card from MC with his name on it. When he makes major purchases, or buys airline tickets, he uses that. I'm comfortable that he is building his own line of credit. I encouraged him to have payments deducted automatically from bank account, to avoid late charges. (Don't know if he followed that advice, tho.)</p>
<p>My d. (at age 18) applied for her first checking, debit, and credit through a national bank w/ handy local facilities for both her at school and us at home. She had the option of many credit card plans. The bank rep. said that Visa is generally accepted at more places than MC, but suggested the MC option they were offering for other reasons, including no annual fees, and relatively low interest rates. We have MC, and have never been turned away, so that was fine w/ us. I'm only guessing that perhaps Visa is accepted at more places internationally? </p>
<p>I was surprised at another CC thread that mentioned it was hard to find credit options for new student users without parent co-signatures. She had no difficulty at all. The bank rep. thought it would take about a month to process, but she received it in 1 week! She has not used it yet, however. We've tried to emphasize using credit cards for convenience only (as mentioned in other posts), and to never charge more than you can pay when the bill arrives. We'll see...</p>
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<p>I was surprised at another CC thread that mentioned it was hard to find credit options for new student users without parent co-signatures.>></p>
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<p>Each of my kids gets an average of 5 credit card solicitations PER WEEK. It's amazing since both are college students and neither has any substantial income. When I applied for my first Visa card (I was in my 10th year of teaching in a high income state), I was turned down due to insufficient income. Go figure.</p>
<p>What banks have realized is that a lot of people keep their first credit card for a long time. If you can get your foot in the door (card in the wallet), you could have decades of income coming in. They seem to be quite willing to take a little risk up front, especially if the costs are passed along in some way.</p>
<p>S's school has just stopped accepting Visa, but is continuing to accept MC and has added Discover and AmEx for tuition payments.Something about negotiating flat fees for transactions to save the U $$ and Visa wouldnt cooperate.
It sounds like it will still be accepted for other transactions though.</p>
<p>My son has MC and we have Visa. Visa has a 'live' customer service number that can be called; his MC is just automated and he hates it. However, it's linked to a checking account for minors and there wasn't much of an option.</p>
<p>My mother felt it was necessary to get me a credit card about halfway through my freshman year, which was this past year. She told me to use it sometimes when I go shopping. And then when the bill comes to pay it off. I only use it occasionally and paying the bill has never been a problem. In fact, I'm building good credit for myself. If anyone is curious, it's through Chase and is a Visa.</p>
<p>Most of the time I just use my debit card. It's easier. And if I don't have the money for something then I really shouldn't be spending it anyway.</p>
<p>To the earlier poster asking about getting a credit card in high school without giving social security number...I doubt it will happen. With the patriot act you have to give all kinds of information to open a bank account, establish credit, etc.</p>