Reply
Established Contributor
espnjunkie
Posts: 726
Registered: ‎12-14-2011
0

Re: 18 year old new to credit

While it is important to be mindful of credit and understand it at that age, building credit isn't necessarily all that important at age 18 in my opinion. It's more important to learn lessons about working hard, getting job experience, and sticking to a budget. While being an AU can help a person get started, it is pretty straightforward as to how to build you own credit up from scratch. Realistically speaking, what current needs does she have for credit that a debit card wouldn't provide for the time being? It's generally not a good idea to be carrying a balance unless absolutely necessary, and for the most part an 18 year old's spending won't gain much in the way of rewards to be meaningful.

 

If you decide to go for a student or newcomers card I would recommend either Discover or Capital One, both have no annual fees.

 

 

“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)
Frequent Contributor
bluesnowman
Posts: 464
Registered: ‎10-29-2012
0

Re: 18 year old new to credit

Well what does her profile look like?. Since she has a 700 score right now, and absolutely no baddies whatsoever, I'd pull the trigger and see what happens. Discover rarely pulls EX and usually pull TU or EQ. They pulled TU for me. As long as she has 6 months of history she should be okay, and it is okay if it is a low limit card. If she does not get approved, try the Forward card, it is meant for students and I got approved for it as well, or apply for both at the same time and see if she gets approved or not. (they should not be difficult to get since she has a some form of income and their student cards so they are a little bit more lenient.) 

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: 580
Registered: ‎07-20-2008
0

Re: 18 year old new to credit


espnjunkie wrote:

While it is important to be mindful of credit and understand it at that age, building credit isn't necessarily all that important at age 18 in my opinion. It's more important to learn lessons about working hard, getting job experience, and sticking to a budget. While being an AU can help a person get started, it is pretty straightforward as to how to build you own credit up from scratch. Realistically speaking, what current needs does she have for credit that a debit card wouldn't provide for the time being? It's generally not a good idea to be carrying a balance unless absolutely necessary, and for the most part an 18 year old's spending won't gain much in the way of rewards to be meaningful.

 

If you decide to go for a student or newcomers card I would recommend either Discover or Capital One, both have no annual fees.

  


It's important, because I may be relocating out of the country in the next couple of years and she for the most part will be on her own.  She is a super responsible young woman and I think it's important that she start establishing credit (and good budgeting habits as well) now, rather than later.  

Thanks everyone for the feedback, will research Discover More Student vs Citi Forward and decide on one of those.

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: 12011/23382=51%util

**IN the garden until I get some auto CLI's on major accts**
Established Contributor
espnjunkie
Posts: 726
Registered: ‎12-14-2011
0

Re: 18 year old new to credit

Of course, understanding not only how to build credit but more importantly how to maintain credit is important. There is absolutely no rush though to get an 18 year old into the credit game. Even the most responsible of teenagers is prone to screwing up. It happens haha. It's upto you, but I would suggest going with a debit card first for a bit.

 

I know most of the poeple on this board probably won't want to hear this, and with very very careful use it doesn't have to be, but credit cards in general can cause far more trouble than they are worth. There are way more stories of people shooting themselves in the foot at a young age and seriously regretting it later (see any post regarding "rebuilding"). Credit cards are constant borrowing of money to be repaid at a later date, with severe consequences for breaking the rules. My point is not to come across as arrogant or the boogeyman, but to present an alternative viewpoint for looking at credit. A solid rule of thumb is that unless you "need" to have additional credit, or any for that matter, do not apply for it. A student card from Cap One of Discover is not a bad idea by any means, but much beyond that is likely playing with fire at this stage.

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

Re: 18 year old new to credit


espnjunkie wrote:

Of course, understanding not only how to build credit but more importantly how to maintain credit is important. There is absolutely no rush though to get an 18 year old into the credit game. Even the most responsible of teenagers is prone to screwing up. It happens haha. It's upto you, but I would suggest going with a debit card first for a bit.

 

I know most of the poeple on this board probably won't want to hear this, and with very very careful use it doesn't have to be, but credit cards in general can cause far more trouble than they are worth. There are way more stories of people shooting themselves in the foot at a young age and seriously regretting it later (see any post regarding "rebuilding"). Credit cards are constant borrowing of money to be repaid at a later date, with severe consequences for breaking the rules. My point is not to come across as arrogant or the boogeyman, but to present an alternative viewpoint for looking at credit. A solid rule of thumb is that unless you "need" to have additional credit, or any for that matter, do not apply for it. A student card from Cap One of Discover is not a bad idea by any means, but much beyond that is likely playing with fire at this stage.


The problem is, the big purchases in life can be thousands more expensive if you don't pay attention to credit.  I WISH I had parents who helped educate me on the proper way to grow and use credit.  Then I wouldn't be in the mess that I am now.  It's not the availability of credit that kills, it's the misuse.  (Did I just use a pro-gun argument with credit?)

 

  • 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
distantarray
Posts: 2,112
Registered: ‎09-25-2011
0

Re: 18 year old new to credit


Jutz wrote:

espnjunkie wrote:

Of course, understanding not only how to build credit but more importantly how to maintain credit is important. There is absolutely no rush though to get an 18 year old into the credit game. Even the most responsible of teenagers is prone to screwing up. It happens haha. It's upto you, but I would suggest going with a debit card first for a bit.

 

I know most of the poeple on this board probably won't want to hear this, and with very very careful use it doesn't have to be, but credit cards in general can cause far more trouble than they are worth. There are way more stories of people shooting themselves in the foot at a young age and seriously regretting it later (see any post regarding "rebuilding"). Credit cards are constant borrowing of money to be repaid at a later date, with severe consequences for breaking the rules. My point is not to come across as arrogant or the boogeyman, but to present an alternative viewpoint for looking at credit. A solid rule of thumb is that unless you "need" to have additional credit, or any for that matter, do not apply for it. A student card from Cap One of Discover is not a bad idea by any means, but much beyond that is likely playing with fire at this stage.


The problem is, the big purchases in life can be thousands more expensive if you don't pay attention to credit.  I WISH I had parents who helped educate me on the proper way to grow and use credit.  Then I wouldn't be in the mess that I am now.  It's not the availability of credit that kills, it's the misuse.  (Did I just use a pro-gun argument with credit?)

 


lol it's a class they should teach in school imo, they teach you only how to write a checkbook which is self explaintory with halfway common sense lol but they should explain how credit works etc.


total credit limits $108,400 Credit scores Ex 728 EQ 738 TU 758
Valued Contributor
Jutz
Posts: 1,216
Registered: ‎05-10-2012
0

Re: 18 year old new to credit


distantarray wrote:

Jutz wrote:

espnjunkie wrote:

Of course, understanding not only how to build credit but more importantly how to maintain credit is important. There is absolutely no rush though to get an 18 year old into the credit game. Even the most responsible of teenagers is prone to screwing up. It happens haha. It's upto you, but I would suggest going with a debit card first for a bit.

 

I know most of the poeple on this board probably won't want to hear this, and with very very careful use it doesn't have to be, but credit cards in general can cause far more trouble than they are worth. There are way more stories of people shooting themselves in the foot at a young age and seriously regretting it later (see any post regarding "rebuilding"). Credit cards are constant borrowing of money to be repaid at a later date, with severe consequences for breaking the rules. My point is not to come across as arrogant or the boogeyman, but to present an alternative viewpoint for looking at credit. A solid rule of thumb is that unless you "need" to have additional credit, or any for that matter, do not apply for it. A student card from Cap One of Discover is not a bad idea by any means, but much beyond that is likely playing with fire at this stage.


The problem is, the big purchases in life can be thousands more expensive if you don't pay attention to credit.  I WISH I had parents who helped educate me on the proper way to grow and use credit.  Then I wouldn't be in the mess that I am now.  It's not the availability of credit that kills, it's the misuse.  (Did I just use a pro-gun argument with credit?)

 


lol it's a class they should teach in school imo, they teach you only how to write a checkbook which is self explaintory with halfway common sense lol but they should explain how credit works etc.


it's criminal they don't.  The only warning you get is to not abuse credit cards, meanwhile 8 months ago I had less than 2k in debt and a 525 FICO.  So yeah...it's not just about spending too much money, there's a ton more.

 

  • 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
espnjunkie
Posts: 726
Registered: ‎12-14-2011
0

Re: 18 year old new to credit


Jutz wrote:

espnjunkie wrote:

Of course, understanding not only how to build credit but more importantly how to maintain credit is important. There is absolutely no rush though to get an 18 year old into the credit game. Even the most responsible of teenagers is prone to screwing up. It happens haha. It's upto you, but I would suggest going with a debit card first for a bit.

 

I know most of the poeple on this board probably won't want to hear this, and with very very careful use it doesn't have to be, but credit cards in general can cause far more trouble than they are worth. There are way more stories of people shooting themselves in the foot at a young age and seriously regretting it later (see any post regarding "rebuilding"). Credit cards are constant borrowing of money to be repaid at a later date, with severe consequences for breaking the rules. My point is not to come across as arrogant or the boogeyman, but to present an alternative viewpoint for looking at credit. A solid rule of thumb is that unless you "need" to have additional credit, or any for that matter, do not apply for it. A student card from Cap One of Discover is not a bad idea by any means, but much beyond that is likely playing with fire at this stage.


The problem is, the big purchases in life can be thousands more expensive if you don't pay attention to credit.  I WISH I had parents who helped educate me on the proper way to grow and use credit.  Then I wouldn't be in the mess that I am now.  It's not the availability of credit that kills, it's the misuse.  (Did I just use a pro-gun argument with credit?)

 


Those both go hand in hand. While it is more difficult to get credit under the age of 21 now than it used to be (this is a good thing I believe), it's still readily available. Credit has to be viewed for what it is and is not. Young adults should be carefully instructed that purchases made by credit card are taking a short term loan from the creditor to be paid at a later date. I understand sometimes it is necessary to carry a balance, but in general young adults should be taught to ALWAYS pay in full each statement and never to spend more than you can afford. Regularly carrying balances is a recipe for disaster, especially if done so at a young age.

“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)
Contributor
Croselx
Posts: 139
Registered: ‎07-31-2012
0

Re: 18 year old new to credit

I think the Discover More Student is the way to go for her first card (in my experience, most student cards get approved).

 

People have to change their general view of credit cards, it should not be viewed as extra cash or spending power.. it should be viewed as a convenient way to pay for things you can afford at the time while earning rewards in the process (in case of reward cards), this means to PIF always. They should also see credit as saving money in the long run when the time to buy a nice home and car arrives (show them an example of a $100K loan @ 3% and then the same amount @ 4% and this should hopefully make them value credit).

 

Teaching young adults and providing them aid in obtaining prime cards with benefits can backfire, but this probably means that said person would probably mess up later on anyway, bad credit and financial management doesn't pick age (habits have to be taught and practiced from a young age). You can give them the tools and knowledge and hope for the best (you can only 'teach' them, but without practice that knowledge is useless).

 

 

As of Feb: AAoA 1 year, 10 months
CK TU: 740; Wal-Mart TU FICO: 721
CS EX: 715
8 CCs, 15 total accounts.
Negs on report: 1 30 day late aged 3 years
5 inquiries
Established Contributor
westo12
Posts: 580
Registered: ‎07-20-2008
0

Re: 18 year old new to credit

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 

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: 12011/23382=51%util

**IN the garden until I get some auto CLI's on major accts**

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}