best credit card for college student

[barbmouse]

HI all,
I've enjoyed reading the thread about Dis families taking their kids to college for the first time. Our dd is a junior in college so BTDT. I was wondering how many of you have gotten a credit card for your college age kids. Our dd does not have one. She uses cash and her debit card for all purchases but we have thought about her have a cc for emergencies. She will also be traveling abroad and I would like her to have one along with her debit card for that purpose. So I'm asking for advice if you have any to offer about credit cards that would be good for a college student. I know we would need to cosign as she has no credit history and would like it to be in her name.

 

[Sadie22]

Our children had savings accounts with our bank. Before entering college they opened student checking accounts and student credit card accounts. There was no branch office or ATM of that bank convenient to one of them's college campus, but another regional bank was convenient so he opened accounts with that bank. We parents have never cosigned anything other than a one-year apartment lease.

 

[ldo]

most card charge 2-4% for non-USA transactions. Capital One does not charge, so this might be a good one to get--plus no annual fee. Certain Chase cards also do not charge--my Marriott and United CC thru Chase do not charge, but they have annual fees.

do you qualify for USAA? We liked them for establishing credit. We cosgined one car loan with USAA for DS, DS got insurance thru USAA and then he bought another car ($3000) on his own with USAA loan and had a USAA CC. His credit rating was very good was after 4 years. My friend said there might be an USAA card without foreign fees.

 

[SpaceGirl]

HI all,
I've enjoyed reading the thread about Dis families taking their kids to college for the first time. Our dd is a junior in college so BTDT. I was wondering how many of you have gotten a credit card for your college age kids. Our dd does not have one. She uses cash and her debit card for all purchases but we have thought about her have a cc for emergencies. She will also be traveling abroad and I would like her to have one along with her debit card for that purpose. So I'm asking for advice if you have any to offer about credit cards that would be good for a college student. I know we would need to cosign as she has no credit history and would like it to be in her name.

First question does she have a checking savings account or does/has she just used yours? If she has her own account if it is with a credit union that would be the best option as she has a history with them. (If she doesn't she should open an account before she goes back to school)

I would never co-sign for her credit card it's not helping her and could backfire on you possibly effecting your credit rating in the future.

Do you have an existing credit card with low or no balance on it that has a GREAT history...high credit limit, no late payments and over five years old (the older the better) You should be able to add her as a authorized user which will give her a credit history with the Credit Bureaus, your sharing your history with her...what you do will effect her credit instead of what she does effecting yours. After she has a card as an authorized user she will have a credit rating on all three major credit bureaus basted on your history.

When she reaches the age she can apply for her own credit card she shouldn't need any co-signer, it should have a lower credit limit so she doesn't have the opportunity to run up a high balance and get in financial trouble...

When we travel to Europe we always use our Capital One credit card because they don't charge an international transaction fee, you should check your existing cards to see if you already have a card without the fees.

Remember until she is old enough to secure her own cards authorized user is the best way to go, you can remove her from these cards at any time without any penalties or having to close the account to remove your name and your financial responsibility from it. Just as she will be protected if the card goes into default because of your actions.

 

[Deb & Bill]

I read recently in Consumer Reports that it is easier for a young person to get credit by being on an existing card with parents.

 

[FalconTiger13]

Hi all! I am a college student with the DiscoverIt card. Most students receive an invitation to apply. It's a very simple process, and the most difficult part is submitting a copy of a class schedule. If you are a verified college student, Discover works with you as an individual. The basic card has a credit line of $500, with no annual fees. Interest rate is 14.99% of your balance, with minimum payments of $35. Bonus with this card? Students can earn cash back rewards on every purchase

As long as a student realizes the advantages and disadvantages of a credit card, I think it can be very useful. The important part is recognizing that it spends easier than cash, but can be a huge headache if not used responsibly. Obviously, if students have other methods of payment available, use those first!

 

[disykat]

Another vote for a credit card through their own bank. Our bank started our son with a $500 limit with no co-signer. The biggest benefit is him being able to track the card and his other accounts on the same website. I think that makes his money management easier. He also gets a cash bank percentage that is higher if it is deposited straight into his savings account.

 

[Maddle]

Our sons had two credit cards - one that was entirely in their own name and responsibility, one that was a joint user with my DH. I believe they both had debit cards also. They each had checking accounts that were easy for us to transfer money into if necessary.

The joint user card was considered "the school card" and was for expenses such as books, food plan, gasoline for travel back and forth from home, co-pays at the doctor, etc. This card was also VERY convenient if we had to send one of them to the store to pick something up for me/DH - no paybacks necessary. In fact, the younger Boomerang Boy still has that card, and he has been out of school for about 3 years. It doesn't get used very often, but it is still very convenient.

I believe they had the "joint user" card first, which helped establish their credit history.

Maddle

 

[SpaceGirl]

Another vote for a credit card through their own bank. Our bank started our son with a $500 limit with no co-signer. The biggest benefit is him being able to track the card and his other accounts on the same website. I think that makes his money management easier. He also gets a cash bank percentage that is higher if it is deposited straight into his savings account.

I did this with my nephew when he was 15 years old, he had a part-time job and wanted to make purchases online. We opened his account but they couldn't/wouldn't give him a debit card without me being on his account, he had full access and the ability to check his spending and balances. I was like a silent partner I could go in and check everything also.

When he went to college he was able to use his debt card as a credit card if needed, so we kept his original account with the addition of me linking the two accounts so I could transfer funds to him in an emergency.

When he started graduate school and was a little older, I added him as an authorized user to one of my existing credit cards with 0 balance, high credit limit with a long history. After waiting for the card to report (about 30 days or a full billing cycle) he applied for his first credit card and was approved with a modest credit limit. He never even had the authorized credit card, I kept it in a safe deposit box.

Now that he is out of school he knows how credit works and what he needs to keep his credit report good. He is waiting to close on his first home next week.

 

[SpaceGirl]

Authorized users vs. Joint account holders
There are two ways to share a credit card account with another person: You can be an authorized user or a joint account holder. The liability for the payments differs greatly.

Authorized users piggyback on the credit of a friend or relative, The users are entitled to use the credit extended to the card holder, but have no legal responsibility to pay the bill.

Joint account holders, on the other hand, actually share ownership of the account and both are liable for repaying the debt. A joint account must be opened by the account holders at the same time. It's literally like a joint liability account. Both credit histories get updated, both account holders are legally responsible for the debt, both credit reports are used...I believe in order to have your name removed the account must be closed.

Authorized users with limited or bad credit are able to use that status to build their own credit, as the credit history of the account owner can be reported on the authorized user's credit report. (If you're an authorized user, check with the credit bureaus to be sure the card is being reported on your credit report.)

 

[barbmouse]

Thanks so much for the feedback. She does have both savings and checking (debit card) accounts with our credit union as well as another account at our bank. I will check with them to see what they offer. She also has a job!! = she would be paying the bill.

Thanks for the info on DiscoverIt cards and Capitol one. I didn't realize they didn't have international fees. Good info! Budget Board Disers always come through!

Other info would be awesome!!

 

[bigbabyblues]

When I started college, I got a credit card through my bank. I already had a savings acct, checking acct and small car loan with them (I worked full time before I started college and continued to work while I was in school).

 

[barbmouse]

Does anyone have any experience with Capitol One Journey card? It looks to be for students who wish to build credit. It has no international fees.

 

[cfriend416]

My first credit card was an Amazon Visa, which I got when I turned 18. I don't know if they still offer it, but at the time, they had an Amazon Student card. The idea was that new adults, such as college students, could qualify for the card without a co-signer.

I believe the interest rate is around 20%, give or take. I don't pay much attention to it, because honestly, I rarely leave a balance on it. It's not a great rate, but it doesn't really matter for what I use it for. I got it to build credit and to get rewards points on Amazon, as I bought all my textbooks on Amazon, and still use the site often. I use it for bills and everyday expenses and pay it off every time I get paid.

I know that other companies do student cards for students with no credit as well (but all with high rates). If all she is looking for is to have a card to build credit, or to have something for emergencies, a student card would probably be a good choice. If she's looking for a card so that she can make a big purchase that she can't afford to pay off right away, it might be better if you co-signed on a card with a better interest rate.

 

[clh2]

We have a dd who will be traveling to Europe in January. We are starting to explore CC's with the SmartChip technology. We have one account that uses this; so ideally we would get dd on this card. HOWEVER, Europe uses the "pin" version of this technology, and the US tends to use the other version.

Anyone else looking at this as an option?

 

[Patience]

Our daughter has a credit card with a $500 limit that was issued through our credit union. We did not have to co-sign and she uses it occasionally but mainly for gas.

 

[Cobern]

I had a capital one when I went off to college. It was in my name but somehow tied to my dads capital one (I think like overdraft protection). We set the limit but my dad could raise it is he wanted. I honestly don't remember what is was called because it was about 10 years ago.

We have a capital one now and love it!

 

[Psychodisney]

My DS19(soon to be college junior) applied for a Capital One Journey card. That is there student card and has no annual fee. He was denied because he has no credit history. He has a job, a checking account and savings account. We opted to add him as an authorized user on our Capital One account. When he gets back on campus next week, he is going to apply for his university's credit union Visa. They have to get started somewhere......the university credit unions seem to be the easiest.

 

[tvguy]

Our kids both have Wells Fargo College student accounts, which is a checking account, savings account and Visa credit card with an $800 limit. We are not associated with these accounts in any way.

 

[SC Minnie]

Our daughter has a credit card with a $500 limit that was issued through our credit union. We did not have to co-sign and she uses it occasionally but mainly for gas.

Ours has the same thing. We figured with a $500 limit she couldn't get herself in too much trouble with over spending but it allows her to build some credit history. She mainly uses for gas and books for her Nook.