Credit For 19 Year Old ?

[disneygirlatheart]

My ds recently got a full time job after graduation. He is planning on going to school next year. My question is what is the best credit card to get for him, that he will not be turned down, so he can start building credit. We tried going through the bank but the loan officer there told us it would not really help him because we would have to cosign for him and it would just be on our credit instead of his. We just need to know basically what is the best card for him to build his credit, that will not turn him down when he opens? Thanks in advance.

 

[bgbodnar]

With the new credit cards laws, most banks will only let you have a credit card in your name is if your over 21. A secured credit card might be different tho.

 

[disfan07]

I got a credit when I was 20 through Wells Fargo. This was about 6 months ago.

 

[ctinct]

Not sure if this would help, but can you make him an authorized user on your card? I know this USED to be a way to build credit, but I know there were a lot of changes with the new credit card laws, and I am not sure if this is still a viable option for building credit. I'm sure you can do a little diggiong to find out, or someone else can chime in here with the info.

 

[starwood]

We just put DS 18 on our Disney Visa. They asked if we wanted to add him a Joint Card Holder. This would mean he is also responsible for the bill if we default. They said this will help build his credit. We decided to just add him as a card holder for the time being which means he can charge but is not responsible for the bill - we are.

 

[ancestry]

If you find one please let me know. My DD (19) has been trying to get a credit card with a low credit line (like around $200 or $300) and hasn't had any luck. She has had the same job since she was 15 so she can prove stability and is a full time college student to boot. I even tried the student credit cards for her (which unfortunately have really high interest rates) but she was still rejected. She has no credit right now. We even tried a store credit card at one point (Kohl's) but no luck.

 

[burberryplaid]

Due to stupidity in my younger days, I haven't had a credit card in 10 years but my husband and I want to buy a house in the next 3-5 years so that means I have to rebuild my credit. Someone on here suggested using a website called www.creditkarma.com to check my credit score for free. Through that website I was able to find a credit card that would approve me based on my score and limited credit history. When I was applying, I noticed that there are several cards for students out there. I would try using creditkarma and see what they recommend for him. Good luck!

 

[Shelly F - Ohio]

A good way for your son to build credit would be to buy something that would require financing.
What I did as a kid was bought new twin bed matteress for my bed which I think cost $250. I financing it through Household Finance. Payed on it faithfully for 7 months. Then I applied for a credit card and was able to get one through a local hometown bank all on my own. I was a teenager at the time.
They say to build credit, one must be able to provide at least 6 months of a good payment history. So if he does go the route of financeing a purchase tell him not to pay it off too early.

A good website to look at different credit cards is
http://www.bankrate.com/credit-cards.aspx

 

[Belle2667]

Not sure if this would help, but can you make him an authorized user on your card? I know this USED to be a way to build credit, but I know there were a lot of changes with the new credit card laws, and I am not sure if this is still a viable option for building credit. I'm sure you can do a little diggiong to find out, or someone else can chime in here with the info.

We did this for convenience sake when DS was 17 (we never carry cash). Anyway, he's 19 now and just got his own cell phone plan and had all kinds of credit and didn't need a cosigner. We can only attribute that to his being an authorized user (with his own card) on our account.

 

[Where'sPiglet?]

If you find one please let me know. My DD (19) has been trying to get a credit card with a low credit line (like around $200 or $300) and hasn't had any luck. She has had the same job since she was 15 so she can prove stability and is a full time college student to boot. I even tried the student credit cards for her (which unfortunately have really high interest rates) but she was still rejected. She has no credit right now. We even tried a store credit card at one point (Kohl's) but no luck.

Has she checked her credit report, to make sure there is nothing on there that does not belong?

 

[wdw_girl_18]

We tried going through the bank but the loan officer there told us it would not really help him because we would have to cosign for him and it would just be on our credit instead of his.

My mom cosigns on credit cards for me. When I went to buy a new car they ran a credit report on my name and all the cards showed up that my mom cosigned on. He said I had good credit! So even if you do cosign it will still help him.

There is a student credit card for kids in college. I was able to get that with an $800 limit, and I babysit (technically not a real job to them). So if i got it, anyone could! My mom did not cosign. This was actually my first credit card. It was through capital one.

 

[MrsPete]

A good way for your son to build credit would be to buy something that would require financing.

I agree. We've promised our daughter that if she earns a scholarship that'll pay the majority of her college costs, we'll buy her a new car for graduation. We could pay cash for a car, but we'll put down 3/4 of the money and give her the rest to make payments for a year or so. With the majority of the money down, she'll be able to finance in her name alone (even at age 18-19). Also, the experience of making the payments herself will be good for her.

If instead she has significant college costs, we may do the same thing: We may have her take out student loans, then we'll give her the money to repay them. We'd do this just so she'd build credit.

And, of course, the reality is that at some point in college she'll probably move into an apartment. That'll give her a chance to build credit not only with the rent, but also with the electric company, the water company, etc.

My husband and I don't play these "build your credit" games. We just do what's right financially, and credit falls into place. However, a young person does need to do a bit of it to establish himself.

 

[Callie]

The first card I got was a Maurices Student Card about a year ago, I was 18. A few months after that I was finally approved for an Old Navy Card.

Now I just opened a Capital One Card,

 

[libraryfreak]

I think it's a good thing not to have a credit card at that age. It teaches you to live within your means and to save for what you really want. Too many kids (and adults) get into too much financial trouble with extended credit. At that age they are very impulsive and will buy an Ipod and think nothing of it until they're still paying the minimum monthly payment years later.

Have him do the Dave Ramsey Plan - set up a budget for a new (not new new, I mean a new to him used) car that he can pay cash in a few years. Set up a budget to buy the Ipod. Maybe by the time he has the money he'll decide he would rather have a nicer car. It will teach him to prioritize and hold off on his wants and focus on his needs. A great lifetime skill.

What does he need a credit card for? To establish a fico score? How much will this fico score ultimately cost him with interest paid? He should establish good budget habits now, THEN consider building his score.

Just my 2c.

 

[betmust]

I know a lot of people don't like Bank of America, but when my son turned 18 he got one from them. He does not carry a balance so doesn't worry about the rate on it. When he opened it, they gave him a credit line of $800. A year later, he requested it go to $1,000 because he was charging college texts and gas for back and forth to school. He has never had a problem with them and it is giving him some good credit history. Oh, it also helped that he had a savings account there.
Hope thats some help...

Bette

 

[Halle]

My son was able to get Capital One. Our DD got a student Discover and then two years later (20 yrs old) got and AMEX blue for students.

 

[disfan07]

I think it's a good thing not to have a credit card at that age. It teaches you to live within your means and to save for what you really want. Too many kids (and adults) get into too much financial trouble with extended credit. At that age they are very impulsive and will buy an Ipod and think nothing of it until they're still paying the minimum monthly payment years later.

It depends on the kid (and Adult). My brother and I both use our credit cards to build up our credit but we ONLY use it for gas on a regular basis. WE also have it for medical expenses but those are reimbursed by our parents and I still usually use my debit card for that. So far, since I've had my credit card, about 6 months, i've used it twice for gas. My mom figures that if I use it at least once a month and pay it off on time every month, it will build up my credit score. If you trust your kid and they understand money and the importance of their credit score, I dont think it's a bad thing to get them a credit card.

You can still live within your means with a credit card. I think the kids that get into trouble are the ones who are just handed a credit card and given freedom. I think if you actually have a dicussion with your child about how important it is to be responsible with the card, etc. they are more likely to use it properly.

 

[mrsklamc]

It will teach him to prioritize and hold off on his wants and focus on his needs. A great lifetime skill.

What does he need a credit card for? To establish a fico score? How much will this fico score ultimately cost him with interest paid? He should establish good budget habits now, THEN consider building his score.

Why would you assume he doesn't already HAVE good budget habits? There's nothing OP's post to indicate that.

All credit cards for someone under 21 must now either have a co-signer or the student must be able to show 'sufficient means to repay the debt' and who knows how the banks are interpreting that?

I like Dave Ramsey, but he's wrong on the FICO thing. It can cost you a lot to have a poor one. It's being used to determine everything from energy rates in some areas to insurance rates.

 

[MAH4546]

Assuming he isn't looking for credit (as in he plans to pay it off every month): American Express Zync. It is not a credit card, but a charge card. No credit is extended, but it builds up one's credit history. Annual fee is only $25, which is well worth the benefits that American Express charge cards have built-in to them.

 

[SoonerSarah]

I got mine when I was 19, but it was through a credit union that I belonged to and I already had a car loan, so I didn't have any problems.