Credit Cards

[mirving1957]

Hello!

My son is currently an AU on my Chase Freedom (28k limit with PIF each month since late '10, prior to that carried a balance of around 11-12k, few lates) and also on my husbands capital one card with a limit around 4-5k (cap1 credit limits suck as I am sure everyone here knows!). We are wondering what should be his first app when he turns 18. I am not sure if Amex will take him for a blue cash.. the capital one journey seems like a great card for him. The discover student card just seems to be very weak in rewards. 0.25 percent is just not great. We are USAA members due to my husband's service if that matters but not sure if their cards would approve him due to the new credit when he is 18. Will we be stuck with the Journey for him or could we get the Amex or USAA?

[jamesdwi]

Start small, get him started with CapOne don't worry about rewards they wouldn't be worth the effort, after he has established his own credit unless you are going to guarantee all his debt and make sure he pays all his bills before they are late. Kids and young adults make mistakes, Most of the people here have made some big ones. Start him small so when he makes the mistakes he doesn't do major damage and he can learn from them. If you get him started with a chase or AMEX card with a decent limit and he screws up he could end up with a large debt and blacklisted with a major creditor as well. It doesn't matter if he gets a toy limit on a card that doesn't grow. Its a learning process when he has learned to manage his own money and his credit he will move on to the prime lenders with good limits and rewards. 

[armyguy90]

I dont know if you guys are NFCU members, but if you've read anything on this forum, you know you should be! Do your son a favor and get him in with them!! Start him with either the nRewards secured (I would think they would likely approve the unsecured nRewards, given their record) or the cashRewards. Their credit limits will grow with him, and not to mention unbeatable Auto Loan and Mortgage rates! I initially joined in 2010 (20 y/o) and had the $500 secured, and 2 years later, Ive had an auto loan that USAA couldnt beat, several personal loans, and was approved today for a CLI bringing my limit to $12,500!! It's in his best interest!

[jamie123]

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jamesdwi wrote:

Start small, get him started with CapOne don't worry about rewards they wouldn't be worth the effort, after he has established his own credit unless you are going to guarantee all his debt and make sure he pays all his bills before they are late. Kids and young adults make mistakes, Most of the people here have made some big ones. Start him small so when he makes the mistakes he doesn't do major damage and he can learn from them. If you get him started with a chase or AMEX card with a decent limit and he screws up he could end up with a large debt and blacklisted with a major creditor as well. It doesn't matter if he gets a toy limit on a card that doesn't grow. Its a learning process when he has learned to manage his own money and his credit he will move on to the prime lenders with good limits and rewards. 

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+1 Some great advice here^^^^^^^^^

Start him with a Cap1 Journey and maybe a Discover Student. You really don't want him to screw up with the major banks that blacklist.

[Cleanmachine]

I help my Son and Daughter to start out with the Citi Forward Credit card with a $4000.00 credit limit and the BOA 123 Credit Card

with $600.00 credit limit which increased to $1500.00 after 3-months.

They pay their accounts in full each month.

They both work part-time while attending college.

As a side note, the APR for the Citi Forward Card is reduced 0.25% for each month when payed on time.

[CardinalRules]

I wouldn't go with CapOne. I'm a college student and I started with a Wells Fargo College Cashback card. It's just 1% cashback, but it's a good starting card for a college student in my opinion. I would also go for the Discover Student More (for the 5% categories and occasional bonuses) and the Citi Forward for College Students. Down the road, I would go for a Zync or Amex Revolver.

[CruzImperial]

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CardinalRules wrote:

I wouldn't go with CapOne. I'm a college student and I started with a Wells Fargo College Cashback card. It's just 1% cashback, but it's a good starting card for a college student in my opinion. I would also go for the Discover Student More (for the 5% categories and occasional bonuses) and the Citi Forward for College Students. Down the road, I would go for a Zync or Amex Revolver.

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+1

Wouldn't go for cap one unless he doesn't get approved for anything else. Considering he doesn't have a credit on his own yet, it could be rough to start without the secure/crappy cards.