<p>Worrywart (and others), regarding the USAA program, I was thinking I might set up an auto transfer from my checking acct to the USAA acct for most deposits. I'm unsure about the scanning simply because I don't know anything about it. Online baking is a new venture for us. ...Ha! I meant to say online baNking!! Anybody willing to explain how this works?</p>
<p>What do you need help with Beil? Lots of banks have online tutorials on their website or their employees in their branches can show you how things work. My mother, who is almost 80, used to go to the bank and ask them to look up account information for her. One very smart employee showed her how to use online banking and even how to pay her bills on the bank's website. She was THRILLED, because she doesn't see very well and driving to the bank, getting stamps, etc. was taking its toll. She called us up and told us that there's this magical way online to pay your bills--pretty funny since we are both web designers and I work for a bank...desigining their online bill payment service!</p>
<p>Tyke,</p>
<p>I have a Citibank MC and though it starts out as automated customer service, if you continue to say "agent" it will connect you with a real, live person. Now I don't know if that's Citibank, or MC, but there is almost always some way to connect with a real live human being.</p>
<p>Right now my kids all have a MC in their names on my account. My recent college graduate will be opening his own account soon when he starts his new job and once that is active I will cancel his account on my card. It gave us much piece of mind when he was in school to know that he had a cc with a high enough credit line to deal with medical and travel emergencies. When he was traveling overseas we also got him an American Express on our account so he could use the AMEX travel offices and their services if necessary.</p>
<p>The kids have all been very respectful of the fact that this is not "their" money. I've gotten many phone calls from the mall or a grocery store asking, Mom, can I charge this?"</p>
<p>College is a good time to learn how to manage your finances. As a result our D was set up with a checking and savings account when she went off to college 2 years ago. She used a debit card linked to her checking account for purchases. She had an overdraft privilege set up with her savings account.</p>
<p>She recently got a Citibank credit card in her name. It's a Visa card. It doesn't make any difference to her whether it was Mastercard or Visa. This is a card specifically marketed to college students that got good reviews on some of the web sites that review credit cards.</p>
<p>She earns points on purchases, points when she pays on time and points for good grades.</p>
<p>I've been tutoring her on how to use credit wisely and how to manage her finances and everything has been working quite well.</p>
<p>If a freshman is getting loans without a co-signer they NEED a credit card to build good credit. Its almost impossible to get a private loan otherwise.</p>
<p>Beil1958 we bank with USAA and we deposit checks the old fashioned way. They send us a bunch of deposit envelopes and we stick them in the mail. Obviously it takes a little longer that way, but if you are uncomfortable with scanning you can still do it the old-fashioned way.</p>
<p>I'm a rising sophomore and I use my Visa check card for pretty much everything. I actually have yet to use the credit card that my parents gave me from their account.</p>
<p>On that note, cathymee posted that a credit card from the parent's account does squat for the student's credit rating. Is this actually true? Because if it is, I need to get my own...</p>
<p>As of September 1 the FICO scoring model used to obtain credit scores will be eliminating authorized user's accounts from the score. So anyone relying on an authorized user account to build a score will no longer be able to.</p>
<p>"Perhaps most at risk are the 2 million or so folks who have only authorized user information in their files -- typically young people or spouses that don't have credit in their own names. Once the information is blocked, these folks won't have enough information in their files to generate any FICO score."</p>
<p>Younger son saw this coming a while back and he and all his sibs all obtained credit (CC and installment loans) before the change will go into effect. Older sis put them on her accounts and they each had a "student" card. Since then, they were able to build some history in the past 6-12 months and have been able to obtain "regular" cards.</p>
<p>Student cards have higher APRs with lower limits but if paid in full monthly the APR is irrelevant. However, since building their scores they have been able to acquire prime cards (vs. subprime- cards for those with no/little history or bad credit) with excellent APRs, fixed 7.99 and 8.25.</p>
<p>They have also been able to convert their "student" cards to regular ones as well. The rewards cards have also been very beneficial. Discover gives a cash back on all gas purchased, Citi MTVU gives triple reward points for paying college tuition, bookstore fess... (anything related to college) redeemed for gift certificates, Citi AA when combined with AA frequent flyer miles really pays off, Chase also has rewards as does B of A/MBNA and of course Amex wish list and other incentives. Amex has a Blue student card (convertable) no annual fee and revolving.</p>
<p>All the kiddos also joined a credit union for the most competitive rates for credit cards, car loans, student loans, lines of credit/overdraft...hence the 7.99% fixed APR with more generous limits.</p>
<p>Son linked many of the accounts to take advantage of the best offers (0% balance transfers for life with no fees or hidden costs) and minimize fees combined with ease of payment. The benefit has been great credit history for all his sibs, 800+ FICO scores for all and car loans below 2.99% for USED vehicles. All in all, he has managed to AGAIN save the family money and educate us all on personal finances which has changed the whole family's perspective about money, fiscal accountability and maturity.</p>
<p>So yes, all my kiddos have credit cards but more importantly healthy credit history with to-die-for-FICOs, and an education and awareness of fiscal management. Son says "making money work for you instead of you working for money!"</p>
<p>The boy DID learn something at p'ton this past year! That and the renewed joy of playing ball again!!!</p>
<p>Kat</p>
<p>I am 18 years old and going to college in the Fall. </p>
<p>I just went to the bank yesterday with my parents and got a Platinum Plus Visa credit card. It has a $2,000 limit, but I plan on using it like my debit card (that is not spending money I dont have). Credit cards are better than debit cards for purchases because it gives you some recourse should a purchase go wrong. A debit card, the money is already gone. It's just safer to use a credit card (they dont have access to all the money in your checking account amoung other things).</p>
<p>Oh, and out of curiosity, which way is best to build credit: Maintain a small balance, or no balance at all? Naturally, I'd prefer the latter...</p>
<p>Buy stuff with the card and pay it off regularly and ON TIME. A balance isn't going to kill you if it isn't too large. Using the card shows that you are capable of handling credit.</p>
<p>I agree with Doubleplay, just pay off your balance every month. That's the only sensible way to manage your credit card.</p>