Credit For 19 Year Old ?

[disneygirlatheart]

Thanks for all the replies. I will start by adding him as an user to our cards. As long as that builds up his credit, that is all he really needs right now. He is going to be using a debit for everything else anyway. He is not carrying a balance on any cards even if he gets them, he will just be paying the few purchases, gas, he makes a month off every month.

 

[Fyrefly]

As far as I understood things, if he can provide proof of employment he shouldn't need a co-signer. I'm not sure adding him onto your card really helps.

Have you tried other banks? I'm with a credit union, and they used to run student credit cards for their members before the law changed. You'd only get a $500 limit, but if you were enrolled in college you could get one with no history. My Mastercard has a $1000 limit since I had a job when I applied. This was almost 3 years ago. An 18 year old with income should be able to get a card, otherwise what about kids who move out upon becoming legal? I think that's just a policy of your bank.

I also disagree with the poster that a card is an irresponsible thing to have. I have one and have always paid the full balance every month. I put pretty much everything I buy on the card, but I keep track of it and spend within my means. And doing that for 2 years has let me pass two credit checks. I got cable internet and renter's insurance both set up in my own name and I was considered safe enough based on my credit that I didn't have to pay anything down. If he is going to be able to get an apartment within a few years, a car, insurance... a lot depends on getting a good score now. So go you for trying to find one!

 

[phred52]

At age 15 we cogigned for each dd to get a disney visa. The second card (in my name) was cut up, so dd KNEW all charges were hers to pay. All bills came to the house, were easy to follow. NEVER once did either have a problem with spending, even at that age. At 18, each applied for and received their own disney visa. I was concerned for dd#2 as this was in the middle of the credit cards tightening their belts, yet she still got approved on her own, with too high a limit. We dropped it to $500 by calling and asking them to do that. We gave our kids responsibility young, they haven't disappointed us even once.

 

[Kate and Pete]

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.

This is great advice! Please don't get him a credit card! Get him the Dave Ramsey Total Money Makeover, set up a budget, teach him to pay in cash.

 

[creativeamanda]

OP--Have you just looked at getting him a gas card? Some of my friends' parents did this--they got their children a gas card during college. The balance was paid in full every month, and the girls got gas in their car when they needed it without touching savings for books/etc.

Also, when you limit what he can buy, it helps a lot and prevents buying things that are not necessary on credit.

 

[lyncecelia]

I got mine at 19 from Capital One in order to build my credit too. I always paid it on time, and only have a $500 limit. I refuse to get a higher one because debt scares me to death....I want to pay this one off first.

I was at first responsible. Then I got a little irresponsible and maxed it out...so I'm working hard to pay it off. But my credit score is still good, so I'm happy about that

 

[Where'sPiglet?]

This is great advice! Please don't get him a credit card! Get him the Dave Ramsey Total Money Makeover, set up a budget, teach him to pay in cash.

I agree with most of what Dave Ramsey teaches. However, I disagree with his stance on cash only. While I use cash often for day to day purchases, I feel that having a solid credit history is very beneficial in this day in age. I use credit cards when doing online purchases (often cheaper than in-store prices), traveling (to pay online and also get deals as well as the credit card benefits like rental car insurance and lost luggage replacement costs), and it's also a cushion to my cash emergency fund (having the credit line available).

I have read his book and I use a budget. Within that budget, I have a variety of payment options available to me. I don't have children, but if I did, I would want to make sure they are aware of both the benefits and consequences of all common forms of payment. I would also want them to have a solid credit history, since it affects things like car buying, housing, and even jobs.

 

[disfan07]

I don't have children, but if I did, I would want to make sure they are aware of both the benefits and consequences of all common forms of payment. I would also want them to have a solid credit history, since it affects things like car buying, housing, and even jobs.

Exactly. I think it would be better for a college aged kid to get a credit card when they still have their parents to make them awarer of how to be responsible. It sounds like the OP is being very responsible about this and would make sure to talk to her son about how to use it responsibly.

I think thats a better option than graduating from college and getting a credit card at like 23 or 24 and being irresponsible because they were never taught how to be responsible with a credit card.

 

[ColoradoDisneyFreaks]

I don't have children, but if I did, I would want to make sure they are aware of both the benefits and consequences of all common forms of payment. I would also want them to have a solid credit history, since it affects things like car buying, housing, and even jobs.

I think the biggest thing is the job. With the economy the way it is, there are more and more companies who are using a credit score/check as one way to screen candidates. Having a credit card available for emergencies, and building up good credit isn't going to necessarily teach a kid to live beyond his means, with good guidance it should do the exact opposite. Plus, having that good credit report may mean the difference between him and another applicant when he applies for that dream job after school!