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Valued Contributor
Dustink
Posts: 2,980
Registered: ‎10-02-2012
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Re: 18 year old new to credit

[ Edited ]

She needs to build a relationship with a bank by depositing her checks in an account with that bank. Then after 6 months or so she can get a card from them. Leave her as an AU on your cards, no reason to take her off.

 

I was never an AU, and I haven't even had a credit score for a year. US Bank helped me out because I banked with them. They gave me great cards with a thin file. Then other creditors were willing to give me cards.

 

Skip sub-prime cards. Avoid crap1 ect.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:21    


     $14k          $8.5K          $7.5k          $7.5k         $6.5k             $6k             $5k            $5k             $5k              $5k           NPSL       @ 0%
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bluesnowman
Posts: 464
Registered: ‎10-29-2012
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Re: 18 year old new to credit

West, It's good that she recognizes the importantce of credit, but as like another poster stated, people misuse and abuse credit, the point is, it'sm there for a convienence and it has to be repaid at a later date. Don't spend more then you can, and please make a budget. For example, I make about 950-1,000 a month. Out of that I put 400 2-3 cards and then pay it off and it works out, sometimes there are things that I really want to buy like a new game or other things but I have to look at my budget and ask myself if I can afford to pay it back. If the answer is yes, I buy. If not, then I save and then pull the trigger later. Just tell her to be careful and she will see that her credit will be golden in a year or two and she can apply for some very good cards that most kids her age probably wont get, if ever. It's all about restraint and self control and discipline. 

Bank of America: Cash Rewards.-1,000. 4/25/12 (CLI Increase 6/15/13), Citi: Forward- 3k. 10/27/12 (CLI on 2/8/14, SP). Discover: More- 2k. 10/27/12 (Increase 6/1/14). Amex: PRG- NPSL (closed 12/13/13). 11/24/12. Chase: Freedom. 5/1/13- 2.4k. Southwest Rapid Rewards Plus.-3.6k. 6/15/13. Amex BCE-2k. 12/7/13. Amex SPG-4k.12/8/13. Last App: 1/8/14.
Valued Member
flyingpenguin
Posts: 58
Registered: ‎11-25-2012
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Re: 18 year old new to credit

I think you're giving your daughter a great start. :smileyhappy: When I turned 18 (back in 2007), my mom had an existing relationship with BofA, so I signed up for banking with them and got a student card with them. $700 limit, no rewards. I paid in full every month. Two years later, in 2009, I applied for a Citi Forward card and was approved for $4000. Interestingly, $4000 was also my income (from my part-time job and summer job). I'm sure they're not that generous anymore! Anyway, those were the only cards I had until just recently when I applied for another card (US Bank Cash+). Oh actually I just remembered, in 2008 I got a Macy's store card. 

 

Aside: With the BofA card, after 6 months I got an automatic CLI to $1200, after another 6 months I got another automatic increase to $1700. But then the credit crisis hit and I never got another automatic increase. I also stopped using it regularly after I got the Citi Forward. The limit is still at $1700, lol.

 

I've had a good experience with the Citi Forward. 5% back on books (including Amazon), restaurants, movies, and music is great for a college student. The only annoying part is that because of the points system, you can only get the full 5% back on a selection of gift cards. You can get student loan rebates though. I took a look at the Discover More card and it looks good too. The downsides in my opinion are rotating categories (which I would find annoying) and that Discover isn't as widely accepted. Straight cash back is nice though. If I were you, I'd show your daughter the options and let her pick which one to apply for. :smileyhappy:

Amex BCP ($12,100) - US Bank Cash+ ($11,000) - BofA Travel Rewards ($10,000) - Citi Forward ($5,500)

Last HP: 6/11/13 (for BofA CLI)
Regular Contributor
mr_postman
Posts: 179
Registered: ‎01-17-2008
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Re: 18 year old new to credit


westo12 wrote:

So I added my newly turned 18 year old daughter as an AU on 4 of my $0 util/never late credit cards, decided to do a scorewatch trial and girl has almost a 700 credit score.  She works part time and I was thinking she should apply for her own credit card now.  Then, once she gets approved, I can take her off a couple of the new ones.  

 

Any ideas of what card she should app for?


I did that to my son added him as AU on my target card and walmar cardt  he also had a BOFA secured on his own that was reporting 4 moths before 

he applied for the discover more and was instantly approved for 2.5k and also citi forward and got 2k he then went on an app sree and now has his own prime cards

Usaa Visa Plat 15k: Usaa Amex 4K: Chase Freedom 2K: and recently got approved for the citi Thank you siggy 5K, also added GE ebay xtras master card 3K and lowes 1k

i think hes pretty much in the garden now he lets me hold all his card and lets me know when he will be charging.

Established Contributor
westo12
Posts: 581
Registered: ‎07-20-2008
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Re: 18 year old new to credit

So today daughter and I get an alert that her score has jumped up to 720. I had added her as an AU on a recently opened cc that caused her util to be 23%, so I removed her from that one. Now her util is under 5%. Tells me that I have a lot to look forward to when all my baddies are gone!
2014 Starting-618, current TU612 (TU 10/6) / Ending Goal score: 720 / 27 Positive TLs / 1 Negative: Unpaid $312 med CA placed 2010 / reported Install Bal/Lim: 25027/36512 | reported Revolving Bal/Lim: 12011/23782=50%util

**IN the garden until I get some auto CLI's on major accts**
Established Contributor
espnjunkie
Posts: 726
Registered: ‎12-14-2011
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Re: 18 year old new to credit


westo12 wrote:

She's had a debit card and her own bank account, which I fund twice a month for over 3 years now.  She has gotten tired of the sermons I've been preaching for YEARS about how when she's old enough to have credit, what to do with it.  

It's nice to be able to sit down with her now that I've been working on cleaning up my credit and show her what I've had to do to clear up my mistakes.  When my credit score jumped up 74 points a few months ago (I posted about that here), she was the first person I called, just got her voicemail that day.  Just this morning, she was cleaning out her voicemail and I heard the message I left her "Why aren't you answering the phoneeee?? You know I can't talk to any of my friends about this, but guess who's credit score just jumped up 74 pts??!!" :smileyhappy:  She saved it and we talked about it on the way in to work and school today.  

Yes, I realize she doesn't need it right now.  Yes I realize that she has the potential to mess up.  But I am here to help her, good, bad or ugly, which is 1000% more than my parents ever did for me.   I got my first cc at 16 (20+ yrs ago) and I took my friends clothes shopping lol.  smh 


Correct me if I am wrong but if a person is under age 21 he/she must have his/her own income to qualify for an unsecured credit card without having a cosigner/joint account. You could start out with a secured card. It provides a solid introduction to credit cards, builds your credit, is easy to get approved for, and doesn't expose you to much risk.

“The real measure of your wealth is how much you’d be worth if you lost all your money.” ~Unknown
Merrill+ Visa Signature ($25,000.00), Amex BCP ($29,700.00), Amex Green (NPSL), Capital One Quicksilver World Mastercard ($10,000.00), US Bank Business
TU-778 (04/28/2014))
EX (Plus) - 777 (10/21/2013)
EQ - 735 (April 2013)
Established Contributor
westo12
Posts: 581
Registered: ‎07-20-2008
0

Re: 18 year old new to credit

I did say she has a part time job, so yes she does have her own income.  Makes approx $1500/mo.

2014 Starting-618, current TU612 (TU 10/6) / Ending Goal score: 720 / 27 Positive TLs / 1 Negative: Unpaid $312 med CA placed 2010 / reported Install Bal/Lim: 25027/36512 | reported Revolving Bal/Lim: 12011/23782=50%util

**IN the garden until I get some auto CLI's on major accts**
Frequent Contributor
bluesnowman
Posts: 464
Registered: ‎10-29-2012
0

Re: 18 year old new to credit

She could put down roughly about 18,000 as gross or projected income if she makes 1500 a month and lists her occupation as a student. My projected/gross income is about 12,000 (but I'm a student, and yes you can list student on the app). That is what I put on my apps, and I have gotten approved for all my cards (except for Freedom, they want to see longer history with 2-3 cards, trying again in May/June), albeit my limits are not the highest but they are more then enough right now. I have a feeling when I got approved for my Amex, I think really the only reason they approved me was because of my scores, because my income isn't to high and they like people with decent incomes (like 45k+). But if your scores are high and your reports are pretty clean, they just might be able to overlook the income and grant you a card. I guess that is just my experience. So she can still apply for some decent cards and probably get approved. I think this is what she can get approved for depending on what she tries for:

 

1. Citi Forward (student, or regular)- When I applied, I just filled out the app and got approved but they did not say which one it was and they never had me fax in enrollment or any other documents/

2.) Discover More (student or regular) again same thing with Discover, approval was instant, Fico score came from TU as 742. Same with the fact that did not have me send anything to them, no income verification for either cards.

3.) A capital one card- They generally are very easy to get approved for, but I have heard negative things about them, so I don't really want to do business with them.

4.) If she has 6-8 months of history and her report is clean and her scores are 715+ she can try for an Amex card. The easiest revolver IMO to be approved for is the Gold Delta, and any of the charge cards minus the Centurion and the Platinum (the platinum maybe after she graduates?) I have a PRG and about 7-8 months of history. She can get the BCE  or BCP as well, but I would try this after a year + of history.

5.) Chase Freedom once she has 2-3 accounts established and they are in good standing for 6 months +. Or after a year of history. 

 

Cards I'd avoid right now, or until she graduates or has a stable career:

 

1.) CSP- They like to see a good history, high income, and good credit scores (like 720+). Minnimum CL is at least 5k. 

2.) U.S. Bank Cash+- Visa Signature, good card to have as well for all categories.

3.) Any airline or hotel card for right now (especially Chase's airline and hotel partners and Amex's SPG.)

 

Good luck to her!

Bank of America: Cash Rewards.-1,000. 4/25/12 (CLI Increase 6/15/13), Citi: Forward- 3k. 10/27/12 (CLI on 2/8/14, SP). Discover: More- 2k. 10/27/12 (Increase 6/1/14). Amex: PRG- NPSL (closed 12/13/13). 11/24/12. Chase: Freedom. 5/1/13- 2.4k. Southwest Rapid Rewards Plus.-3.6k. 6/15/13. Amex BCE-2k. 12/7/13. Amex SPG-4k.12/8/13. Last App: 1/8/14.
Established Contributor
westo12
Posts: 581
Registered: ‎07-20-2008
0

Re: 18 year old new to credit

Discover More it is with a starting limit of $1500. Love this forum for all of the great input and support to help those of us who've struggled for YEARS with credit issues, be able to turn them around and now teach our children how to be more responsible! Thank you everyone again for all of your help!
2014 Starting-618, current TU612 (TU 10/6) / Ending Goal score: 720 / 27 Positive TLs / 1 Negative: Unpaid $312 med CA placed 2010 / reported Install Bal/Lim: 25027/36512 | reported Revolving Bal/Lim: 12011/23782=50%util

**IN the garden until I get some auto CLI's on major accts**
Moderator Emeritus
webhopper
Posts: 7,230
Registered: ‎09-16-2011
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Re: 18 year old new to credit


westo12 wrote:
Discover More it is with a starting limit of $1500. Love this forum for all of the great input and support to help those of us who've struggled for YEARS with credit issues, be able to turn them around and now teach our children how to be more responsible! Thank you everyone again for all of your help!

 

That's awesome! Discover was one of my first accounts too!

Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
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