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MichelleB
01-26-2012, 07:27 PM
We would like to obtain a disney credit card for my 16 yo with us as a cosigner. Is this possible? She's extremely responsible and we want her to have a credit card for those rare occasions when she doesn't have enough money on her --- with our permission of course first.

If chase won't allow this for the disney visa card, is there a company that does?

cornflake
01-26-2012, 07:32 PM
You just get one of your cards in her name.

Marionnette
01-26-2012, 07:38 PM
We would like to obtain a disney credit card for my 16 yo with us as a cosigner. Is this possible? She's extremely responsible and we want her to have a credit card for those rare occasions when she doesn't have enough money on her --- with our permission of course first.

If chase won't allow this for the disney visa card, is there a company that does?
Chase is not going to issue a credit card to your daughter as the primary cardholder. You can make her an authorized user on your account. You will be responsible for ensuring that the payments are made. It would be your account and she would be using it with your permission.

All of my kids are have a credit card in their name but they are my accounts. My daughter went on my Disney Visa when she got her driver's license.

LoriKutchey
01-26-2012, 07:38 PM
You would have to add her as an authorized user on YOUR account. I don't know how young chase will go. American express allowed us to do this for our daughter but I had to wait until she turned 17.

stitchlovestink
01-26-2012, 07:42 PM
I would suspect what you are going to have to do is open the credit card in your name and just make your daughter an authorized user. I am fairly certain (but not 100%) that they cannot give her her own credit line since she is a minor child. I could be wrong, but I don't think I am, as minors aren't supposed to be able to enter into legal binding contracts unless emanicipated (and if they are emanicipated then legally they are no longer considered a 'minor'). HTH.
I know Discover card pushes their card for students once they are 18. But I also believe that the credit card laws were changed so that you can't get one if you don't have any personal income. So a full time student without a job wouldn't qualify to the best of my knowledge. This was supposedly done to keep the CC companies from preying on the college students and putting them into crazy CC debt before they even got out of college.

clm10308
01-26-2012, 07:43 PM
I don't know if you can get her an actuall credit card, but when my DD was 13 I got her a Visa Buxx card which is a prepaid card that has her name on it. I have it set to add a set amount each month. It has parental controls on it so that you can control what she is able to spend the mony on if you care.
The card works anywhere regular visa card are used. It was great for when she went on a couple of Girl Scout trips and needed money but I didn't want her to carry $200 cash.

MichelleB
01-26-2012, 07:51 PM
We were hoping to get it in her name with us cosigning to help her start her credit building. However, since it's mainly for use with our prior permission, I don't have a problem adding her to our account. My DH said he had one at 16 with his parents cosigning so we were checking into it for her. I am going to pay the bill each month. She does a lot of traveling with girl scouts, sports, and marching band so we want her to have access to credit with our approval when needed.

Thank you for all the input!

mrsklamc
01-26-2012, 08:06 PM
Even if you are over 18, you cannot obtain credit any longer if you do not have income of your own.

zurgswife
01-26-2012, 08:42 PM
You can add her to your account; I did it for all my kids once they were driving age. I think the above poster is correct with regards to an account in her name prior to being 21.

HM
01-26-2012, 09:18 PM
My kids use a Visa Check card on their credit union checking accounts. Would that work?

momtosam
01-26-2012, 09:18 PM
No!

marie1203
01-27-2012, 06:05 AM
You could end up hurting her credit more than helping it. If she is an authorize user it will still show in her credit. Without taking the risk of getting denied.

MrsPete
01-27-2012, 07:00 AM
I have no idea whether Disney cards do this, but you can get her a credit card. I don't know whether she can do it without a co-signer.

We wanted our oldest to head off to college next fall with an understanding of how to manage a checkbook and a credit card . . . so I helped her obtain these items at our credit union last summer. Right now, as a high school senior, she's using them with my supervision, and she's doing well: She doesn't write many checks, but she knows how to do it. She uses her ATM card more often. She practices reconciling the statements each month, and she pays the bill with online banking. She'll go away to college knowing the basics. I feel good about that; as we've talked about college I've realized that my oldest is very, very nervous about her ability to handle money well -- she wants advice, she wants to learn how to manage her finances.

She's had a savings account at the credit union for years. The accounts she opened last summer are "minor accounts" with my name on them; when she turns 18 this summer, we'll change that. I asked that she be given a credit card with a $300 limit -- they wanted to give her more. I see that as enough to fix a tire or a small emergency, but not enough to get herself into trouble.

punkin
01-27-2012, 07:13 AM
I have no idea whether Disney cards do this, but you can get her a credit card. I don't know whether she can do it without a co-signer.

We wanted our oldest to head off to college next fall with an understanding of how to manage a checkbook and a credit card . . . so I helped her obtain these items at our credit union last summer. Right now, as a high school senior, she's using them with my supervision, and she's doing well: She doesn't write many checks, but she knows how to do it. She uses her ATM card more often. She practices reconciling the statements each month, and she pays the bill with online banking. She'll go away to college knowing the basics. I feel good about that; as we've talked about college I've realized that my oldest is very, very nervous about her ability to handle money well -- she wants advice, she wants to learn how to manage her finances.

She's had a savings account at the credit union for years. The accounts she opened last summer are "minor accounts" with my name on them; when she turns 18 this summer, we'll change that. I asked that she be given a credit card with a $300 limit -- they wanted to give her more. I see that as enough to fix a tire or a small emergency, but not enough to get herself into trouble.

I agree in principle and I think $300 is plenty when she is home, but will be too low when she goes away to college. Her books for one semester alone will blow through that $300 in a minute. When my DD went to school, she got a $1000 limit on her card (which is on my account).

OP, I know for a fact that Amex will let you put her as an authorized user at 16 (that's what I did).

MichelleB
01-27-2012, 07:56 AM
I didn't realize that as an authorized user it would show on her credit and, in theory, help her later. I'm just going to do that.

She's had a savings account for several years and does well with that. I agree...I want her to know how to manage finances when she leaves for college in 2 yrs and feel now is a good time to start with our supervision.

labst60
01-27-2012, 08:42 AM
For sure do an authorized card on your account as opposed to a prepaid card (unless you plan on putting less than $100 or so on it) - you have *much* more protection if the card is lost or stolen.

And personally, this goes for adults too. Even responsible adults can accidentally misplace something or have their purse/wallet stolen. Or an "extra" tip added at dinner, etc.

We put EVERTYHING on our credit cards and pay in full each month. I don't even carry a debit/atm card for fear of loss!

MomToOne
01-27-2012, 01:53 PM
Legally the minimum age for a standard credit card is now 21 UNLESS:
1. The person has a co-signer who is over 21, or
2. They can supply proof of their ability (not their parents LOL) to pay the bills

Younger customers can also be given secured credit cards, where they have to maintain a deposit with the issuing bank = the amount of credit they recieve.

runwad
01-27-2012, 06:45 PM
I didn't realize that as an authorized user it would show on her credit and, in theory, help her later. I'm just going to do that.

She's had a savings account for several years and does well with that. I agree...I want her to know how to manage finances when she leaves for college in 2 yrs and feel now is a good time to start with our supervision.

I watch Suze Orman and she recommends doing this with minors because your credit score becomes their credit score. So if you have a great score that will be great for her when she goes to get car loans or whatever in her name! I plan on making my DD16 an authorized user on our card next year.

mrsklamc
01-27-2012, 07:03 PM
I could be wrong but I thought that part of the new credit card rules were that being an authorized user did NOT count for their credit.

TheRustyScupper
01-27-2012, 07:08 PM
. . . for those rare occasions when she doesn't have enough money on her --- with our permission of course first . .

1) Famous last words. :woohoo:
2) Seriously, no credit card company issues to under-18.
3) Like other said, put her on YOUR card.
4) Better yet, get her a pre-paid VISA card with about $500.
5) You can tell quickly how well she does.
6) Without the risk of her running up big debts.

MichelleB
01-27-2012, 07:21 PM
Yes, I may eat my words but at this point, she's extremely responsible. We've got 3 kids and she's by far the best with money. i can't help but think it's safer than me sending her somewhere with a pocketful of cash.

Thank you to all of you for your help and input!

cornflake
01-27-2012, 07:31 PM
Wow, I think this is very young for a CC!

She's 16! I had had one for years at that point. It's just easier for the kid to shop without you without needing to carry cash and worry about not having the cash for something and etc.

Especially now when you can monitor the use in pretty much real time online, I don't see the downside.

elgerber
01-27-2012, 09:30 PM
Legally the minimum age for a standard credit card is now 21 UNLESS:
1. The person has a co-signer who is over 21, or
2. They can supply proof of their ability (not their parents LOL) to pay the bills

Younger customers can also be given secured credit cards, where they have to maintain a deposit with the issuing bank = the amount of credit they recieve.

My son is 18 and has had his own credit card since right after he turned 18. He works at DQ making minimum wage, and he was honest on his app and he got the card. It is a student card, not sure if that matters. They gave him a ridiculous credit limit, $5000, I was a bit shocked at that!

Tarheel girl 1975
01-27-2012, 10:56 PM
I could be wrong but I thought that part of the new credit card rules were that being an authorized user did NOT count for their credit.

It may help their credit score, but it may not help them get future credit. I am a loan officer at a credit union and we don't take credit history as an authorized user into consideration when making a decision. Since they are not responsible for any of the payments as an authorized user, it doesn't reflect their ability to handle credit. Larger financial institutions, however, may look at it differently.

sookie
01-27-2012, 10:57 PM
I think FICO and the credit bureaus are making changes.... authorized users will not show up on credit reports or get a credit scoring. Only joint or co-owners of accounts.

TheRatPack
01-29-2012, 04:16 PM
I think I read on the other Chase Disney thread that they added their daughter to their card when they upgraded to the Premier card and it didn't even ask for her daughters social security number.....so I think some of the previous posters are right, authorized users may not get the benefit of building credit this way anymore?

MrsPete
01-29-2012, 04:45 PM
I agree in principle and I think $300 is plenty when she is home, but will be too low when she goes away to college. Her books for one semester alone will blow through that $300 in a minute. When my DD went to school, she got a $1000 limit on her card (which is on my account).

OP, I know for a fact that Amex will let you put her as an authorized user at 16 (that's what I did).Every situation's different. Right now while she's living at home the $300 is plenty -- and next fall when she goes away to college, I feel sure it'll still be plenty.

My daughter's books will cost zero; her tuition includes book rental. And we're not letting her take her car to school freshman year. The $300 is ample for an emergency room co-pay or any other small emergency that she's likely to encounter as a college freshman. Going out to dinner or buying a dress for a dance aren't emergencies. We're paying her basic college costs, but we expect her to take care of her own spending money, and giving her too much financial cushion will not encourage independence. I watch Suze Orman and she recommends doing this with minors because your credit score becomes their credit score. So if you have a great score that will be great for her when she goes to get car loans or whatever in her name! I plan on making my DD16 an authorized user on our card next year.This used to be great advice, but the laws have changed and children can no longer be "grandfathered in" to their parents' credit scores. Really, it wasn't all that fair a thing to do, so I see why they changed it. Yes, I may eat my words but at this point, she's extremely responsible. We've got 3 kids and she's by far the best with money. i can't help but think it's safer than me sending her somewhere with a pocketful of cash.

Thank you to all of you for your help and input!No matter how responsible she may be, you're right to walk her through these steps and help her understand how to use a credit card. I think the biggest issue is to be SURE that she fully grasps that $20 spent on a credit card is identical to $20 cash spent. It's funny when young kids say things like, "Oh, Mommy, it's okay if you don't have any money -- you have checks." But plenty of adults struggle with understanding money that isn't actually passing through their hands. If you can help her grasp that fact at 16, you'll be doing her a great service.

Having read other people's posts, I do think that a pre-paid card might be just the thing FOR NOW. A $50 or 100 pre-paid VISA that she could keep in her purse for emergencies. If it's lost, it's upsetting but not the end of the world.

17 is eons older than 16. Let her prove herself at 16 with a pre-paid card, then move her up to a real credit card (and let her learn to pay the bill herself) next year when she's 17. 17/just before senior year starts is also the perfect time to start a checking account. In contrast, the wrong thing to do is to wait 'til the week before she goes away to college to open her first checking account.

Another little detail about preparing her to manage her own finances in college: When you visit colleges, note what ATMs are on campus. Especially if she won't have her own car, you don't want to set her up to pay ATM fees constantly.