Credit card for teen

[ICF]

Those "free rewards" are not free they are factor into the cost. Nothing is free. One way or another you pay for it.

if you are referring to the price of the item, then you pay the same price too....even if you pay with cash. So why not use a CC?

If you are referring to the price of the card -- then I don't see how. I don't pay interest on the CC, the only annual fee CC I ever had was my SW Visa that got my thousands of $$'s in free (sorry, $69 annual fee) flights.

We use a CC for everything -- unless it costs more to pay on line (i.e. school book fees/HOA dues) then we just write a check.

In addition to the free flights, I couldn't begin to calculate all the free hotels my no annual fee, never paid interest on Hilton Honors Amex card has gotten me....or Disney $'s from my no annual fee never paid interest on Disney Visa.

If you know how to maintain a budget, CC's are a great way to earn free rewards of your choice.

 

[manning]

if you are referring to the price of the item, then you pay the same price too....even if you pay with cash. So why not use a CC?

If you are referring to the price of the card -- then I don't see how. I don't pay interest on the CC, the only annual fee CC I ever had was my SW Visa that got my thousands of $$'s in free (sorry, $69 annual fee) flights.

We use a CC for everything -- unless it costs more to pay on line (i.e. school book fees/HOA dues) then we just write a check.

In addition to the free flights, I couldn't begin to calculate all the free hotels my no annual fee, never paid interest on Hilton Honors Amex card has gotten me....or Disney $'s from my no annual fee never paid interest on Disney Visa.

If you know how to maintain a budget, CC's are a great way to earn free rewards of your choice.

The name of the game for a company is the bottom line. The price is raised on all purchases. At the same time eliminate "free stuff" the price of all form of purchases would be the purchase rice minus the "free stuff"


Free stuff is old. 50 years back I knew a grocer. He ralated the time he wanted to unload an item, so he put on sale for 33 1/3 off. Product didn't move. A friend suggested buy 3 get one free. The item flew off the self. Instead of a 33 /13% off was instead 25% off


The trigger was/is....FREE

As said you pay for it one way or another.

 

[rantnnravin]

The name of the game for a company is the bottom line. The price is raised on all purchases. At the same time eliminate "free stuff" the price of all form of purchases would be the purchase rice minus the "free stuff"


Free stuff is old. 50 years back I knew a grocer. He ralated the time he wanted to unload an item, so he put on sale for 33 1/3 off. Product didn't move. A friend suggested buy 3 get one free. The item flew off the self. Instead of a 33 /13% off was instead 25% off


The trigger was/is....FREE

As said you pay for it one way or another.

I'm sorry, but the grocer story is completely irrelevant to this discussion.
If I have to pay my wireless provider, the price is going to be the same whether I pay with a credit card or have them ACH from my bank account. The only difference is that Amex will give me 5% cash back for paying my cellphone bill with my credit card. As I do not see the eradication of credit card payments in the marketplace happening anytime soon, I'll gladly allow the card-issuing banks pay me for using their product.
And when DD16 is ready to buy her first car and get car insurance, her established credit history - from being named as an AU on my longstanding accounts - will allow her to pay lower rates than her peers...because that is how the system works.

 

[disneyeveryyear]

My daughter got a Discover Card that was targeted at students when she was 18. Granted the credit limit was only $1,000 - it was still a great way to get started.

This is what my son did also. It has been a great way for him to establish credit.

 

[scrapquitler]

My oldest will be 18 next month. I was thinking we ought to get her started with a credit card. Any suggestions on what is best for starting out? Or will any of them do?

We had our daughter get a Discover student card. They sent her the offer, and I was satisfied with all the terms after I read the fine print. She has only a $500 limit which is more than enough at this point, and she has done quite well with it for just over a year. I wanted to make sure that she would have a credit score built up before she finished college, and she is not on her way to doing that.

 

[scrapquitler]

Currently the law in the U.S.-Consumers under the age of 21 must prove that they have an independent income or get a co-signer before applying for a credit card-the law which this rule is part of went into effect in Feb 2010.

This is what I thought, but my daughter was able to get a Discover Student card without any income and without a co-signer.

 

[scrapquitler]

If the purpose is to build good credit, skip the credit card. Let's not teach them that consumer debt is the norm.

Go to the bank and open a savings account, get a 12 month CD for $1000, Use that CD for a secured personal loan. Make 12 months of payments and repeat. By the time your child is ready to buy a home or car, they will have A+ credit to get best rates.

Having a credit card does not equal having consumer debt. There are many of us (including my 19 year old college student) who use it as a convenient and secure way to spend their budgeted money, and pay it off every single month.

 

[Mackenzie Click-Mickelson]

This is what I thought, but my daughter was able to get a Discover Student card without any income and without a co-signer.

I'm guessing there is a specific reason maybe if it is a Student account versus a normal credit card or if not a Student account it could be a specialized account or there is some other loophole there because that technically is a rule. It is a confusing thing though for sure.

 

[StephMK]

DD22 started with a debit card in HS and got a student Discover card in college with just a PT school job. She has now graduated and paid on that card for 3 years. Her limit has since been raised and she was able to get a very nice deal on a new car due to her great credit history. We did not co-sign for any of it and she is shown that she is much more responsible with credit than either of us were at her age!

 

[wenrob]

DD went to our credit union (where she's had a checking account since 16) at 18 and applied on her own. They started her off at $500 and after 6mos $1000 and now $2500 plus rewards. A year later she applied for and got a Disney Visa. In May she was able to secure a car loan on her own. We have never co signed for anything. She uses her cards for everything but has never received a statement because she pays them off bi weekly. She just turned 20 and has better credit than I do.

If at all possible I would have her get the card on her own. You need credit to build credit, as a pp mentioned that's how the system works. If done responsibily she'll find herself in a much better position in a few years than without.

 

[fifthdimensiondweller]

When I was 18 I got my first credit card through Discover. I feel like it was a good one because it taught me about paying off every month and about using cash back to my advantage. I'm not sure if it was a special card for students (I want to say it was) but worth looking into!

 

[Pembo]

Looked up this thread today. 2 months ago USAA had the student credit card but ds was still 17. FFWD to today, he turned 18 this week and they no longer offer it. We applied for the Capital One Journey card and he was approved with a $300 limit.

It was quite easy to apply. He probably won't use it often but I feel better knowing he has it at college.