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Established Contributor
westo12
Posts: 579
Registered: ‎07-20-2008
0

18 year old new to credit

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?

2014 Starting-618, current TU612 (BarcTU 10/2) / 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: 12314/21582=57%util.

**IN the garden until I get some auto CLI's on major accts**
Valued Contributor
Jutz
Posts: 1,216
Registered: ‎05-10-2012
0

Re: 18 year old new to credit

[ Edited ]

Discover More - Student looks particularly good

  • Current: EQ FICO 694, TU FICO 695, EX FICO 698 | Starting Score: 525 (05/2012)
  • Starting total revolving credit: $1100 | Current total revolving credit: $29,500
  • Inquiries (12 Months): EQ 6 TU 3 EX 6 | Most Recent: 1/21/2014
Chase Freedom $5000
DCU Visa $10000
Capital One QS $2000
AMEX BCE $1000
Lowe's CC $8500
WalMart CC $2400
BOA Platinum $600
AMEX Gold NPSL
Regular Contributor
CotySinz
Posts: 237
Registered: ‎06-27-2011
0

Re: 18 year old new to credit

Granted she may have a 700 that means next to nothing with a thin file. Capital One is where a lot of people get their start but I would try Discover I don't think Chase or Amex would be a good place to start, maybe a Chase Slate. I would let her establish 6mo or so as an AU on your cards then let her app for her own - that way she doesn't waste HPs. That's what I did when I was 18(now 20) apped for everything and learned the hard way don't let her apply for 'dream' cards as she will get denied all day. I currently have 16TU, 24EQ, and 16 EX inqs to put that in perspective - don't let her make the same mistakes as me.


Starting: 563 | Current: 753 (Walmart TU 11/12) | Goal: 800 | Garden since: 01/15/2013

New Contributor
Omri
Posts: 86
Registered: ‎10-29-2012
0

Re: 18 year old new to credit

[ Edited ]

I was an AU on a 5 year old (closed) AmEx of my dad's, and had a 5/3 secured card in my name for 5 months when I got Chase Freedom. That secured card (having my own credit) might have made a difference though. Before I got that, I couldn't even get store cards. I was foolish enough not to get my first credit card until I was 23 (I thought paying with money you already have was a mark of virtue, and didn't want to get myself into debt), so I didn't have the benefit of student cards.

 

I'd go with a Discover More student card. I'm helping my 18-year-old soon-to-be-sister-in-law get her credit started, and she got a Discover Open Road Student and a US Bank card (with no rewards), since she was sent mail offers for them.

Recent FICO scores: TU - 755 (mortgage lender pull)
Established Contributor
westo12
Posts: 579
Registered: ‎07-20-2008
0

Re: 18 year old new to credit

Thanks for the info you two.  Let me be VERY clear, I told her that until she graduates from college, her credit is mine to make sure nothing happens to it lol.  I have made a lot of mistakes in the past and I knew from day one, that I would never let her do the same.  She's all on board. :smileyhappy:

 

When you say thin, what does that mean?  I mean, as an AU, it shows that she has history going back 2 years on one account, 6 months on another, and  3 months on one.  I am waiting for one of the accounts I added her on to come off, since I removed her.  It's one of the newer cards, so it won't hurt any.  

 

 

 

2014 Starting-618, current TU612 (BarcTU 10/2) / 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: 12314/21582=57%util.

**IN the garden until I get some auto CLI's on major accts**
Established Contributor
SwiftTone
Posts: 1,026
Registered: ‎02-27-2012
0

Re: 18 year old new to credit


westo12 wrote:

Thanks for the info you two.  Let me be VERY clear, I told her that until she graduates from college, her credit is mine to make sure nothing happens to it lol.  I have made a lot of mistakes in the past and I knew from day one, that I would never let her do the same.  She's all on board. :smileyhappy:

 

When you say thin, what does that mean?  I mean, as an AU, it shows that she has history going back 2 years on one account, 6 months on another, and  3 months on one.  I am waiting for one of the accounts I added her on to come off, since I removed her.  It's one of the newer cards, so it won't hurt any.  

 

 

 


Thin file meaning lack of history. Even though she is an AU and "her' history on her report goes back a few years, non of those cards are really her's. Some lenders will qualify that, and some will not. I know Chase doesn't really qualify that into their credit decision. What may really confuse them is what would her FICO score be if she didn't have those AU account. Soem might think 650, 600, etc. Sometimes it may do more harm than good.

BCE: $0/$11,200, CSP: $0/$6500, Chase Priority Club: $0/$3500, Freedom: $0/$6000, Barclays NFL: $0/$7000 Discover: $0/$12,500, Citi Dividend: $0/$3500

EQ FICO - 728
TU FICO - 734
EX FICO(AMEX) - 712
Frequent Contributor
bluesnowman
Posts: 464
Registered: ‎10-29-2012
0

Re: 18 year old new to credit

Like a poster above mentioned, I would stick with a student card or cap one and if neither of those, I would stick with your bank or CU. I got my first card (cash rewards card.) from BOFA. And then used it wisely for the next 6 months and now I have a total of 4 prime cards. Just dont go crazy like Cory and tell her not to app for cards she really does not have any chance of getting. And let her be repsonsible for her credit. I tried convincing my parents to let me be an AU on their cards (my parents Amex has 28k CL) but they said it was better for me to start for myself and I am thankful they did. Now, I can better cards in the upcoming months. A thin file means that there is no real history of credit usage. A thick file would consist of car loans and mortgages and other forms of credit. I have a thin file right now but hopefully soon it will start becoming thicker. Remember to tell her use credit wisely and never ever be late and in turn lenders will be faithful and good to you when you need it. Tread carefully. 

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 Contributor
Jutz
Posts: 1,216
Registered: ‎05-10-2012
0

Re: 18 year old new to credit

I would get the Student More (seriously it's a pretty good card now that I'm looking at it!) and then freeze her reports, haha.

  • Current: EQ FICO 694, TU FICO 695, EX FICO 698 | Starting Score: 525 (05/2012)
  • Starting total revolving credit: $1100 | Current total revolving credit: $29,500
  • Inquiries (12 Months): EQ 6 TU 3 EX 6 | Most Recent: 1/21/2014
Chase Freedom $5000
DCU Visa $10000
Capital One QS $2000
AMEX BCE $1000
Lowe's CC $8500
WalMart CC $2400
BOA Platinum $600
AMEX Gold NPSL
Established Contributor
westo12
Posts: 579
Registered: ‎07-20-2008
0

Re: 18 year old new to credit

 

Jutz wrote:

I would get the Student More (seriously it's a pretty good card now that I'm looking at it!) and then freeze her reports, haha.


lol.  Do you think if she applied for it now, she'd get approved?

2014 Starting-618, current TU612 (BarcTU 10/2) / 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: 12314/21582=57%util.

**IN the garden until I get some auto CLI's on major accts**
Established Contributor
distantarray
Posts: 2,112
Registered: ‎09-25-2011
0

Re: 18 year old new to credit

Chase heavily counts AU's in my experience ymmv, but 14months history I was able to get a CSP instantly approved with a 758 credit score. 

 

also Chase however doesn't like to factor in store cards.

Get her a Citi Forward imo, good card for students with excellent credit and it gives 5% for dining out and movies amazon etc.  the points redeem for gift cards like walmart which is fine for a student. Also a Freedom card is a good start.


total credit limits $108,400 Credit scores Ex 728 EQ 738 TU 758

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