<p>I've been trying to figure out what kind of credit card my D should have for going off to college next year. I thought it would be a good idea for her to start to establish credit, and also to have in case of emergency expenses.</p>
<p>It seems that I could add my D as an authorized user on my existing credit card to cover emergency expenses. But that would not start to build her credit history. Apparently to do that she must either open her own card with me as a cosigner or qualify for her own credit card.</p>
<p>Through my online research I found several options for no fee cards for college students.</p>
<p>US Bank offers a College VISA Card and a Young Adult VISA card. The College card does not require a cosigner; The YA card requires a cosigner. No rewards. </p>
<p>Capital One offers a Journey Student Rewards Card. This card offers cash back rewards. No cosigner.</p>
<p>Citibank offers a CitiForward Card with reward "points." no cosigner.</p>
<p>Does anyone have experience with these cards? Does anyone know how much income a student must show in order to qualify for one of these credit cards?</p>
<p>Thanks jym626 I’ll look at these threads, though they do seem a bit old and I think that a lot of the rules have recently changed for college credit cards</p>
<p>We have had a Capital One Cash-Back Rewards card (or similar title) for years and have been quite happy with their customer service. Don’t know about their student card, but both of our college students have cards as authorized users on our account - I think this does a little bit towards them building a credit history, but not much.
One of the great things about Capital One is that they are one of a very, VERY tiny number of credit cards (I think Charles Schwab may be the other, not sure) that does not charge ANY foreign transaction fees whatsoever (most cards charge a 1% fee that is levied by MasterCard or Visa for foreign transactions, plus another couple percent currency conversion fee. Capital One eats the 1% MC/Visa fee, and charges no additional fees of its own). DEFINITELY the card to have for foreign travel, or if you order anything from abroad.</p>
<p>In terms of income levels for a student card, I think (but don’t know definitely) that something in the range of $2-3K per year is sufficient - definitely doable with a summer job and/or WorkStudy job.</p>
<p>My S has an “authorized user” card on one of my credit card accounts. We got it for him when he was traveling to Israel, as a backup in case his ATM card wouldn’t work or he couldn’t get to an ATM or whatever. </p>
<p>I figure we’ll send it to college with him to have for “emergencies” or things that we agree to pay for (bus ticket home, etc.). </p>
<p>I didn’t think college students under 21 could get their own cards anymore? So it’s interesting to see that pamom found some options out there. (My S is not quite 18 yet, so I’m pretty sure he can’t get anything on his own yet.)</p>
<p>Those under 21 can get their own cards in limited circumstances (being able to demonstrate sufficient income, defined as whatever the credit card companies call sufficient income, or having a credit history already). I do recommend getting a credit card if possible. Using it once a month for a few years for the duration of college would be incredible for one’s credit score and would presumably help with loan rates for things like cars and mortgages. I just got a Capital One Platinum Mastercard as my second card. I haven’t had any problems, though there are really no benefits to the card either. It seems to be good for building credit, though it doesn’t appear to be a long-term option (quite a few people say that these lesser Capital One cards don’t get credit increases after the end of the Credit Steps program).</p>
<p>I think Schwab has discontinued issuing new cards for the one that had no foreign txn fees. Too bad, it was a sweet deal (no foreign txn fee AND 2% back on all purchases into the cash account on your Schwab brokerage account). In fact, it probably isn’t available because any more because it was too sweet… I still have mine, but assume they will change the terms soon, and I know they aren’t issuing new ones. :(</p>
<p>D1 got a card in her own name from US Bank this year as a college junior. But she has an account with several thousand dollars in it at that bank (and has had it for many years). They kept sending her card offers, and I suggested to her that she apply for one so she could start building a credit history. Then they rejected her for too little income. But someone at our branch called her, and they helped her re-apply (and she got the card). With, IMHO (and D’s) a ridiculously high credit limit. She is just using it for a few small purchases now to keep it active and build a history of paying off every month.</p>
<p>I have a Citi Forward card (1 of my friends does too). It has been great for me my limit is $1800 which I never need to go over, I have received $500 in reward gift cards over 3 years, and since I always immediately pay my entire balance I haven’t paid any interest</p>
<p>I am a college student with a Citi Forward card. I started out with a credit limit of $4,000. I am glad that my credit limit is a multiple of what I need because I heard from a credible source that I should never exceed 1/3 of my credit limit while I am building credit history. Whether that’s true or not, I feel comfortable using my credit card for most major transactions to take full advantage of the rewards program.</p>
<p>My card comes with a few other benefits that I have never needed to utilize: travel insurance, cell phone insurance, car rental insurance, warranty extensions, etc. I have been very happy with my Citi card.</p>
<p>I hear that Capital One’s credit limits tend to much lower than the credit limits of other cards. That might be good or bad, depending on your D’s needs.</p>
<p>
Find out what you can count as income. When I applied for my credit card, the instructions explicitly stated that college scholarships and grant-based financial aid count.</p>
<p>I’m not sure it is true that she has to open a card with the parent as the co-signer to establish her own credit. I added my D to our account last year for her study abroad expenses, which could potentially have been higher than the $1300 limit on her own card (received before the new laws). When she checked her credit history recently, the card from my account was in there as having been her card since the day I opened the original account. So it looks better for her credit history having a card on my older account.</p>
<p>I was glad she was able to obtain a card on her own several years ago, she is good at handling her money and I don’t worry about her overspending, but I am bothered by the above post that the banks are counting scholarships as income to qualify for credit.</p>
<p>How about the debit card that comes with the Visa logo for their own bank account? Does that count toward their credit history building I wonder?</p>
<p>USE A CREDIT UNION. Credit unions usually have incredibly easy terms to understand and offer no frills with their credit cards like cash back rewards etc.—because they are usually much lower interest and have no hidden fees, ridiculously complicated terms to understand, and other ways to gouge you out of money. Credit unions are not for profit organizations, it makes the most sense to get credit through one. I have over 750 credit score yet citibank raised by interest rate from 17% to 24% for no reason at all (I paid every single bill on time). I subsequently quit using that card after learning my lesson and went to my local credit union to get a credit card with 7% interest. Everyone complains about having to bailout the banks with tax payer dollars…well go do something about it. Use a credit union. All the profits of a credit union go directly back to YOU the consumer in the former of lower interest rates on loans and much better customer service.</p>
<p>@ihs76: My credit report doesn’t list my bank debit card with a Visa logo on it - since it’s not a credit card (but rather a debit/check card), it wouldn’t count.</p>
<p>My 18 years old applied for her own college student credit card after got her 1st paycheck from the on-campus job, with the bank she already has a bank account. On the application, she estimated her annual income. To my surprise, she wasn’t asked to show proof of the income. A week later, she received the credit card with a $700 or $800 limit (I don’t remember)</p>
<p>My son got a citi card a few years ago and uses automatic debit to keep his usually low balance up to date. They give points toward things, although he hasn’t ever cashed them in, waiting for something he really wants.</p>
<p>Can you use Capital One abroad, I thought they didn’t take credit cards in Europe since they don’t use the strip we do on the card?</p>
<p>mamabear- when did you add your D as an authorized user? I think the rules may have changed recently and that credit history on an authorized user-is no longer helpful for establishing credit- apparently there was quite a business of companies selling people the opportunity to “piggyback” their credit rating by becoming authorized users with totally unralted people who had good credit</p>
<p>I have asked this question of a couple of credit card companies and the answer I got was you need a card in your own name, not an authorized user card, to built credit.</p>
<p>debruns- yes you can use credit cards abroad. but that’s where the foreign transaction fees hit you hard.</p>
<p>paMom, I think you’re correct. The CARD act (of 2009?) did change a lot of the old rules for establishing credit in your own name. These days, if you are under 21 and want a card in your own name,you have to get a parent co-signer or show proof of income. You can still be an authorized user on a parent’s card, but this will not help you establish your own credit.</p>
<p>My own D got a Discover card and a VISA right before the rules changed.</p>
<p>My 19 yo S recently received a mailed offer for a Citi Visa card geared toward college students. They will consider grants, student loans, and even allowance received from parents as acceptable sources of income. According to our bank (USAA), these are not allowable sources of income under the current laws, but that is what is printed on the Citi application.</p>
<p>S did fine without a credit card during his freshman year, and used a debit/check card for most expenses. He is planning to get a credit card this year, which we will co-sign for through USAA. The other option offered by our bank for those under 21 is a secured card, but that is a less attractive option due to the fact that it has an annual fee and that it may be a bit more difficult to get an increase on the credit limit.</p>
<p>OP, one thing to think about is whether your D really needs to start to establish her credit before she is 21. We waited until my D was 21 to get her own card. She has a debit card for her own bank account that she uses for all of her own expenses. She does have a credit card (authorized user on my card) for emergencies and for those purchases that we have agreed in advance I will cover. As I mentioned above, she got her own card at 21 with US Bank (where she banks anyway), but there was really no need during her freshman & sophomore years of college. Given the new credit card rules, you might just go with that route.</p>
<p>Regarding the “chip and pin” cards used in Europe, you can use a US card there, but you need to let them know that it is a US card. They usually use a different machine to run it through. D1 and I traveled in Finland & Sweden last year, and everyone still took the US card. We didn’t have anyone refuse to take it.</p>