Credit Card for college students

Discussion in 'Community Board' started by westjones, May 2, 2013.

  1. LivingtheWDWdream

    LivingtheWDWdream Dreamin of Disney!

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    According to the Credit Card act of 2009 credit card companies can not extend offers or sign up those who are under the age of 21 without a cosigner. If you do an online search for the Credit Card act of 2009 there are articles that detail it or you can look at the actual public law to read it in legal terms. The section on Young Consumers starts in Section 301 http://www.gpo.gov/fdsys/pkg/PLAW-111publ24/pdf/PLAW-111publ24.pdf

    So you can have her try for the student card but every application for credit will put a ding on her credit report and every denial will also put a ding. So I would not apply to too many cards without doing it as a joint card or as a cosigner if your willing to agree to paying the bill if she defaults.

    I had the same frustration when I first started out, especially with my first car where they said I didn't have enough credit to get a loan for the vehicle. So I had a cosigner and I made my payments on time and showed that I could handle a debt meet my obligations and make payments on time. Then when I went for other forms of credit and for my next vehicle I had better credit. So getting the cosigner helped me build my credit but gave the bank the security of knowing that they would get paid if I couldn't manage the responsibility.

    So you being a cosigner will only help her establish credit you just have to be sure she can truly handle the responsibility.
     
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  3. Liberty Belle

    Liberty Belle <font color=green>I was going to reply, but I see

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    I didn't think we cosigned for my son's credit card, but I guess we must have, then.
     
  4. mtemm

    mtemm <font color=teal>Doubly blessed<br><font color=dar

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    my first card was an American express. they actually had a set up on my college campus if I remember correctly, and offered a great incentive if you signed up (2 plane tix for anywhere in the continental us for $99, I think they were round trip tix). I still have that card to this day, its been over 20 years. :)

    if that isn't an option, maybe try a place like target. there is always something she could use at target which would make it easy to use and actually get stuff she needs. just reiterate the importance of paying off monthly or the interest rate will get her!
     
  5. SC Minnie

    SC Minnie <font color=purple>Are we there yet???<br><font co

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    I agree, check with your credit union. Ours have a credit card for 18 and up with only a $250 limit. DD18 signed up for it and got it before she went to college in August. I figured it would help her get credit history and its only $250 so she couldn't run up $5000 and deal with trying to get it paid off. Its just enough for her to put gas on it or order something on line when she needs to. I know we didn't cosign for this credit card for DD. Now she does have a savings and checking account at the same CU so I don't know if that makes a difference.
     
  6. cassandrap83

    cassandrap83 Only 3hrs from the Magic :)

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    A secured credit card is the best way to start.

    The student has 'skin in the game' and it reports just as a regular credit card does.

    Most banks do offer college credit cards as well. I'd have her go into the local branch where she has her bank account.
     
  7. cassandrap83

    cassandrap83 Only 3hrs from the Magic :)

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    Not true. You can be under 21 and have a credit card solely in your name.

    Credit is not as easy to get these days as it once was. Please stop applying for cards all over the place. Your daughter's credit report is being harmed by doing so. Go to your bank and get a secured credit card.
     
  8. westjones

    westjones <font color=blue>Mother of Two <font color=deeppin

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    Just in case others might want to know, she was able to get a student Discover Card with a $500 credit limit (perfect, I didn't want her to get more than that). Thanks for all of the suggestions.

    Oh, and I only had her apply for the Disney Visa and the Student Chase Visa. Then I had her try the Discover Card and that one does seem to be exactly what we were looking for. Designed for college students with a low limit.
     
  9. Ciao Mickey

    Ciao Mickey <font color=brown>Kind of makes you want to run th

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    My kids got an American Express Blue Card for students.
     
  10. DVC-Don

    DVC-Don DIS Veteran

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    My kids both have State Farm Savings Bank Student Visa cards. They have a low limit. Not sure if they still have them avail.
     

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