A chip off her mother's block

[A Mickeyfan]

My daughter will be 19 in Aug and graduated high school last May. She has loved my Tinkerbell Credit Card since the day it came out (and I got it). I was going to let her have one under my name as a card holder but decided against it. We were at Disney not last week, but the week before. When we were at DTD they had the sign up for the card & you would get the free bag. Well of couse I wanted the bag but already have the card so I told her to go ahead & sign up for it, she had nothing to loose. She got it She now has her first major credit card. She has a store credit card but she cannot charge her gas on that. I am not comfortable with her having to go into the gas stations to prepay & told her never to use her debit card for that! She shops online & had been using my credit card so she didn't have to use her debid card (since American Eagle charged her debit card 3 times for the same transaction!). Anyway.. she now has her own Tink card with only a $500 limit. She knows that she must use it like a debit, only use it with the money that she has in her checking account. Once there is no money in the checking account to pay the bill off, she has to stop using the card. I have faith in her & at a limit of $500, I think this is a good way to teach her how to use it & not get in over her head..
Maybe she will be nice & give me her reward points as a gift when she collects them

 

[HannaBelle]

That sounds great! $500 is a very resonable limit. I know I got in to a lot of CC debit in college b/c my limits were a lot higher! Unfortunately, we all just have to learn to handle having CC in our own way.

BTW, I just my new mickey CC in the mail this week! My DH was making fun of me but shut-up quickly when I explained my *evil* plan to have a trip totally paid for in 3 years from rewards $$$!

 

[I'mNoPrince]

Congrats

Just make sure you tell her to call chase each time they increase her limit. Tell them you want to keep it at the $500 right now.

If she pays it off each month they will pump it up like no tomorrow.

I remember how nice it was to have my first CC and that was many many years ago.

 

[PatsGirl]

I think that's great. We need to teach our children how to use credit, not ABUSE credit. Too many kids get into college and are offered every card under the sun. Before they know it, not only do they owe their student loans, but many times thousands on credit cards for items they didn't need to begin with.

Against the wisdom of just about everyone I know, friends and family, I put a Mobil/Exxon credit card in my son's name, 17 years old, when he got his license and vehicle last August at 16 1/2. This was as much about learning to use credit as it was learning about the cost of gas, lol. When kids dump $5 here and $10 there into their gas tank they don't understand where their $ has gone but when they see the $75 bill at the end of the month, voila! He now makes one trip for several "causes", asks his friends to donate to his gas fund, and is learning how to budget his money.

He is also responsible for his own cell phone payment each month and has a bad habit of "renting" movies on digital cable which he must pay for when the bill comes in. OUCH! So many bills for such a young age I know but these are his priorities and certainly not necessities so...

 

[DawnM]

Ok, wait, why shouldn't she use her debit card at the pump? I often use mine. What am I doing wrong?

Dawn

 

[Bildmouse]

Is your DD in college or is she working? My DD has a cc connected to her savings with our credit union and wants to get one that doesn't tie up her savings. She is very good with her credit. She knows she will have a huge student loan when she gets done with school (which we will help her pay).
She's afraid she won't be accepted by a regualr cc company because she is in school full time and only has a part time job during the vacations and work study job during the school year. This summer she has been accepted for a research project and won't have any free time to work.

 

[Maybelle]

Ok, wait, why shouldn't she use her debit card at the pump? I often use mine. What am I doing wrong?

Dawn

I always put my gas purchase on my debit card. I was always taught that you never want to pay interest on things like gasoline, and that even though you may PLAN on paying the card right off, you may for some unknown reason be unable to.

I wondered about the same comment in to OP's post.

 

[jennifer293]

My father got my oldest sister her first credit card and it was for $500 too, well she of course paid it off and started establishing a little credit in her name and was doing well. Other companies began sending her more credit cards which she failed to tell anyone about (she moved out the day after she graduated high school)and before my father knew what was going on she was at our house begging my father for almost $20,000 dollars that she had racked up in credit cards and those stupid little loans that charge like 25% interest. She had no clue about money and to this day still does not. She ended up filing bankruptcy at the age of 18 because she got caught up in the act. SO PLEASE PLEASE watch her spending closely and make sure she does not take advantage of any other offers!!


**I use my debit card for my gas too**

 

[luvsgrumpy]

BTW, I just my new mickey CC in the mail this week! My DH was making fun of me but shut-up quickly when I explained my *evil* plan to have a trip totally paid for in 3 years from rewards $$$!

I've never researched Disney Visa but we need to change cards soon, do the rewards just keep accumulating or do they eventually expire? Like you, it will take a few years to earn enough to really put a dent in a vacation. Any other info you have, I'd appreciate it.

BTW, Bildmouse, I got my first CC when I was a freshman in college (eons ago!!) Anyway, mom just co-signed with me, I took sole responsibility but just had her name and credit there until I could remove it. I worked very little while I was in school too.

 

[Tjaleks]

Just a thought on the debit cards for gas...When gas prices started to sky rocket gas stations started to put a large hold on your accounts that would stay on there for days. As a result you can not have access to your money until the hold is released.

ETA: From msnbc.com

It is common practice for gas stations to put a “hold” of $75 to $100 dollars on debit cards, in order to make sure they get paid for what you pump. According to Gerri Detweiler, author of “The Ultimate Credit Handbook,” the station actually puts the hold on your card first and then charges your debit card for the actual transaction. “But the hold isn’t always released immediately,” she explains, “so this can tie up those funds for as much as 72 hours.”


http://www.msnbc.msn.com/id/13905579/

 

[A Mickeyfan]

Ok, wait, why shouldn't she use her debit card at the pump? I often use mine. What am I doing wrong?

Dawn

The way they can swipe the numbers from the cards at the pumps are too easy for scams.. I would never use a debit at a pump. If they get that number, they have your money, they get your CC number, you are not going to be held responsible. Same with shopping online. When she ordered some things from AE at Christmas time, they charged her debit card 3 times for the same purchase. Had she NOT checked her checking balance, she would have never known & bounced checks! At least with the CC when that happens, she would not have to worry about her "money" and waiting for it to be reimbursed. It is only credit & it will be issued, and no bouncing check worries.

So she will not use her debit at a gas pump or online purchases.. for those reasons.

 

[A Mickeyfan]

Just a thought on the debit cards for gas...When gas prices started to sky rocket gas stations started to put a large hold on your accounts that would stay on there for days. As a result you can not have access to your money until the hold is released.

ETA: From msnbc.com

It is common practice for gas stations to put a “hold” of $75 to $100 dollars on debit cards, in order to make sure they get paid for what you pump. According to Gerri Detweiler, author of “The Ultimate Credit Handbook,” the station actually puts the hold on your card first and then charges your debit card for the actual transaction. “But the hold isn’t always released immediately,” she explains, “so this can tie up those funds for as much as 72 hours.”


http://www.msnbc.msn.com/id/13905579/

That too!!!!!

 

[A Mickeyfan]

PatsGirl... You are correct, we do have to teach our children how to use and not abuse them. My DS started with them and abused them. He is paying dearly! He did not want to listen to Mom. He opened one for car repairs with no interest or payments for 6 months & didn't pay for the 6 months. He is now paying minimum payments & still hasn't even paid off the interest (he has been paying since Oct on it ) He opened one at Kay's Jewelery He has a nice watch, his girlfriend has some nice diamond earings & matching necklace.. minimum payments are being made. He has one at Best Buy, he has been making payments for over a year & it seems that it has not gotten down at all I think he goes and just keeps buying things. He is 20 works full time and lives at home. So yes, we do need to teach them At least my DD is willing to learn

Bildmouse... Yes, my DD is in college. She attends the community college full time & lives at home. She has no loans to pay off & works part time as a waitress. She does have a savings & checking account that she has had for a year.

luvsgrumpy... You can let your points add up for a few years.. once you move them to a rewards card, they will have an expiration date of about a year or two).. here is the link for their site
http://www.chase.com/ccp/index.jsp?pg_name=ccpmapp/card_servicing/partner/page/home_disney
I have used mine to purchase one of my seasonal pass's. I also used it to pay for 4 of my nights last Dec at Pop. I used it to pay for my DDE card. To pay off a full vacation, sure, it will take a long time. I put everything I can on mine. I pay my insurance on it, my doctor bills, dentist... everything. I pay my bill in full every month. I basically use it instead of a debit card. I just subtract it out of my check book so that way I know I have the money to pay the bill when it comes. I have not once paid any interest on it & only gotten rewards from it ..that makes it worth getting ...

 

[DawnM]

I was very worried about this too and told my bank that I wanted a debit only card, not a debit visa card. There are no numbers on it so it can't be used as a visa.

But, BofA told me that the protection is just like a Visa, I will not be held liable for purchases I didn't make.

dawn

The way they can swipe the numbers from the cards at the pumps are too easy for scams.. I would never use a debit at a pump. If they get that number, they have your money, they get your CC number, you are not going to be held responsible. Same with shopping online. When she ordered some things from AE at Christmas time, they charged her debit card 3 times for the same purchase. Had she NOT checked her checking balance, she would have never known & bounced checks! At least with the CC when that happens, she would not have to worry about her "money" and waiting for it to be reimbursed. It is only credit & it will be issued, and no bouncing check worries.

So she will not use her debit at a gas pump or online purchases.. for those reasons.

 

[4greatboys]

I think its a great idea to help her learn how credit works and to hopefully never get in over her head.

 

[I'mNoPrince]

I was very worried about this too and told my bank that I wanted a debit only card, not a debit visa card. There are no numbers on it so it can't be used as a visa.

But, BofA told me that the protection is just like a Visa, I will not be held liable for purchases I didn't make.

dawn

It's not the same because they are taking out of your checking account and not just adding them to a charge account this is where the problem is.

It could take up to 30 days or more for you to get your money back into the checking account. Where this is not a problem for all some would be in big trouble if say $1000 disappears from their account. This will cause other checks to bounce and when that happens yes BoA will take care of it's charges to you but you will still have to pay the place you wrote the checks to their fees .

Most of the time it's an inside job at the gas stations they will have freinds come over and fill on you held pump charges. It goes unnoticed most of the time because it's always in small amounts.

I even know of reports that they took and put false faces on the pumps to steal your card and any numbers you punched in the key pad to gain access. Most of the time people just go inside for the attenant to enable the pump or go to another one thinking the first was broke. They have done this with ATMs as well.

For me it would be no problem to catch it as I check all my accounts on a daily bases on the ones I use and each month on the ones I don't.However most people don't do this and when catch the damage of bounced checks have already happened.