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Regular Contributor
Mish0817
Posts: 160
Registered: ‎12-02-2012

18 year old daughter building

Hi all I need a little help... I've been teaching my daughter about responsible credit card use and building a good credit profile. She currently is an au on my 2 cap one cards with 550 limits (im rebuilding) has a US bank secured card-for 300 (since dec) Walmart for 400 (since April) she was just approved for Citi student card. When would be an ok time to close the secured card?


Eq 675
TU 661
Ex your guess is as goodas mine!

Nfcu Cash Rewards 5000, Nfcu nRewards Mc 2500, Walmart 600, Target 200, VS 350,Capital one 500,Capital One Secured 551, Us Bank Secured 300 All less than 8 months old!
Moderator
Shogun
Posts: 12,884
Registered: ‎04-15-2011

Re: 18 year old daughter building

I've been doing the same thing with my 18 year old son.  It's a wonderful thing you're doing, I wish I had known more when I was younger, but you have to start somewhere.  I'd let what she has now age for about a year or so, try for a CLI with the Citi after about 6 months.  This just might help get higher CLs in the future, you don't want a bunch of low limit cards, a few higher limits with prime lenders is better, IMHO.


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

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Current scores after adding $81K in CLs and 2 new cars since July 2013
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Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008

Re: 18 year old daughter building

IMO, the only time I would close a card is when it either has high fees attached to it or it has served its purpose.  I agree to leave it as is for now.  In the near future she will be able to be approved for a prime card with higher limits.

Mega Contributor
Creditaddict
Posts: 18,818
Registered: ‎10-23-2007

Re: 18 year old daughter building

Id check the pre-qual for Discover.

if her scores are over 680 she can probably ask for the USbank to be reviewed early for unsecuring (680 use to be magic number but that was years ago, not sure how they work now)

otherwise I agree keep it for a year.

I might go ahead and remove her from AU on the 2 capital ones either at point of CLI with citi, adding another card like Discover or unsecuring the usbank.

what about her own capital one card, like a new quicksilver? then remove the 2 au.

Fico Scores: EQ 639 Navy, TU 665 GE, EX 677 Prosper (07-09-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Fidelity Amex $25k (AU)
Lowest Limit: Buckle $250
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Frequent Contributor
Cleanmachine
Posts: 395
Registered: ‎04-30-2008

Re: 18 year old daughter building

I would recommend that you continue to have your daughter as an authorized user (if these two accounts are in good standing) until she

turns 21 years of age.  Capital One may delete these accounts once removed as authorized user.

 

As far as the Secured Card, if there is no fee associated with this account wait until the one year anniversary, then try to get this account

unsecured, if they refuse, then close the account.

 

The great thing about the Citi Student Card is that they will reduce the APR by 0.25 % every quarter as long as you pay in full after the

closing date.

 

I am also doing the same thing with three of my children.

 

Once they turn 21 years of age, they will be removed as an authorize user on my accounts and on their own.

 

You are doing an excellent job in teaching financial responsibility.

 

Good luck.

New Contributor
hammertime
Posts: 59
Registered: ‎03-30-2010

Re: 18 year old daughter building

Patience is the key. Did similar thing with my daughter at 18. Now at 21 she has 3 prime cards (.Discover, Citi, and Chase)and about 750 FICO. I bought her a car at 18 and added her as co-buyer. I then added 1 prime card per year.. Set them up as autupay and monitor until she understands credit. CL's are at least 1800.
Regular Contributor
Omnipotent
Posts: 154
Registered: ‎06-22-2013

Re: 18 year old daughter building

One year later after 1 starter card (at 18), I was in with Freedom. Patience is key. 

Regular Contributor
culture
Posts: 196
Registered: ‎02-27-2013

Re: 18 year old daughter building

I'm curious how the accounts reports in the AU's credit report.

 

Does is shows as if it was open at the moment you added the person or the original date from the card ?

 

Everything happening in the card affects that Au's CR ?

 

 

 


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