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[LBKB]

My son just turned 18 we tried to get him a credit card but he was denied. I know he has no credit history any ideas on how to best get credit history without taking out a loan?

 

[Starbrite]

My son just turned 18 we tried to get him a credit card but he was denied. I know he has no credit history any ideas on how to best get credit history without taking out a loan?

Do you have a credit card? My mom added me as an authorized user (or something like that). It appeared on my credit report as credit available, but not as debt. It really helped me alot.

 

[taylor3297]

Since was denied a card, he is entitled to a free credit report. I would get a copy to make sure there isn't something on his report that is a mistake.

 

[Liberty Belle]

Since was denied a card, he is entitled to a free credit report. I would get a copy to make sure there isn't something on his report that is a mistake.

Me, too. I was offered many credit cards when I was in college and I had no credit history.

 

[maelstrom]

My first credit card was a Capital One Visa, and I got it when I was 18 and a half. It had a $300 limit.

 

[The Mystery Machine]

Does he have a savings account, debit card, checks, job, is he a student in college, etc...?

 

[PollyannaMom]

Definitely check his report, but in this economy, I expect he was denied just because he has no history. If that's the case, there are "secured cards" kids use to establish credit. - You put a certain amount in an account, and his credit card (in his name) has that as a limit. As he pays the bills on time, it will establish a payment history for him, and then he can get a real one. (And you can put your security deposit back into savings.)

 

[AirGoofy]

If you listen to Dave Ramsey, he does not need a credit card.

 

[KathyTX]

Me, too. I was offered many credit cards when I was in college and I had no credit history.

Lending rules have changed a LOT in the recent economy. Easy credit/too much credit is a big part of what got us into the current mess.

OP, does your son have a job (or any source of income)?

Has he looked into starting with a secured spending account, where he deposits XX amount into a bank account (the security), and that amount becomes his credit limit? This gives him the convenience of a credit card, starts a credit history, and is no risk to the lendor.

(Whoops, just read back and saw that Pollyanna Mom already said this!)

 

[GRUMPY PIRATE]

A lot of good suggestions.

I think with the "credit crunch" that banks and starting to pay attention to, they are lowering the number and amount of credit they extend. There have been a LOT of threads about various card companies lowering credit amounts and increasing interest.

We have pretty good credit (over 800) and it didn't matter. The amounts have been lowered (okay, we havn't used the cards in well over a year) but still it is kind of irksome.

what I found out is that CREDIT UNIONS have a much better deal (fixed rate) and so forth. With just a phone call and an updated application, we had a card approved in a day.

If you or your son is a member of a CU, or you can join one, I would look into that for a better deal. A lot of credit unions have pretty open membership rules. (if you live in the county, or a member of your family hs even been to a college, and so on)

 

[lajones81]

My first credit card was a Capital One Visa, and I got it when I was 18 and a half. It had a $300 limit.

Me, too!

 

[Pomlover2586]

I had a checking/savings account with a bank....and had banked with them for about 4 years. When I turned 18 I wrote a letter to them asking for applying for a credit card through them. I stated that I had tried gas cards etc but was denied due to my non-existant credit history. I asked that they help me establish credit since I was a current banker with them.

First CC had a $500 limit[I asked for the lowest].....did the trick

 

[BeachGirlFLA]

I know they're changing the minimum age for credit cards without a co-signer to 21.

 

[Piecey]

My first credit card was the Disney Visa... and I still have the same limit I got back then. $1200

I was shocked!



Sometimes store cards will help!
Things like Sears, JCPennys, even a jewelry store that offers their own card.

 

[HM]

As a start, I'd either add him to your credit card, or set up his ATM card as a Visa Debit Card (so it can be used like a credit card).

 

[wvjules]

You have a few options here:

1.) Have him open a secured card through BofA or even better a local credit union. Credit Unions are usually much more generous with their products and much more lenient with credit history.

2.) Add him as an authorized user on one of your major CC's that has a low or zero balance.

3.) Be a co-signer on a credit card for him.

I would suggest joining a credit union. Check out Navy Federal if you are eligible.

Avoid cards like First Premier and those that have huge AFs and/or monthly fees.

 

[wvjules]

As a start, I'd either add him to your credit card, or set up his ATM card as a Visa Debit Card (so it can be used like a credit card).

Making his ATM card a Visa Debit card doesn't help him establish credit.