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Registered: ‎08-30-2011
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Credit Cards with Cosigner

Am looking for recommendations on a card that I could co-sign for my nearly 20-year-old college student that would allow her to begin building credit in her name.  She currently is an authorized user on one of my cards, but that credit is strictly in my name, as I understand it.

 

So far she has applied for a Citibank "student" card - denied because they claim they couldn't verify her university enrollment, even though she mailed them a copy of her student ID and the payment email receipt for the upcoming semester at their request.  Then applied for a Capital One "student" card, denied because she has "insufficient income".  I then tried to contact Chase regarding a co-signed card, which is where she, hubby, and myself, all have our bank accounts.  The oh-so "helpful" offshore rep informed me that I could apply for a card and make her an authorized user...when I explained again that is NOT what I want, she told me to look at Chase's website for their other offerings.  Which I had already done and couldn't find what I was looking for, thus my need to pick up the phone.  Ugh.

 

I will have no problems getting approved and have no qualms about co-signing, she has been more than responsible with the card she does have, she just needs to begin to establish credit in her own name as she will be in an apartment next year and has heard horror stories about obtaining utility service if you don't already have credit established.

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Re: Credit Cards with Cosigner

Adding an AU can help their credit ... ALOT better than cosigning. When I was still building credit my parents added me to one of their oldest cards and it helped me get my own cards without a cosigner. Good luck

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Re: Credit Cards with Cosigner


tazsk8s wrote:

So far she has applied for a Citibank "student" card - denied because they claim they couldn't verify her university enrollment, even though she mailed them a copy of her student ID and the payment email receipt for the upcoming semester at their request.  Then applied for a Capital One "student" card, denied because she has "insufficient income".  I then tried to contact Chase regarding a co-signed card, which is where she, hubby, and myself, all have our bank accounts.  The oh-so "helpful" offshore rep informed me that I could apply for a card and make her an authorized user...when I explained again that is NOT what I want, she told me to look at Chase's website for their other offerings.  Which I had already done and couldn't find what I was looking for, thus my need to pick up the phone.  Ugh.

 


Have you tried going to your bank and talk to a representative there? I am sure they would be able to help...

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Re: Credit Cards with Cosigner

Give her a few hundred dollars to get a secured card then...

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Re: Credit Cards with Cosigner


SevenNEW wrote:

tazsk8s wrote:

So far she has applied for a Citibank "student" card - denied because they claim they couldn't verify her university enrollment, even though she mailed them a copy of her student ID and the payment email receipt for the upcoming semester at their request.  Then applied for a Capital One "student" card, denied because she has "insufficient income".  I then tried to contact Chase regarding a co-signed card, which is where she, hubby, and myself, all have our bank accounts.  The oh-so "helpful" offshore rep informed me that I could apply for a card and make her an authorized user...when I explained again that is NOT what I want, she told me to look at Chase's website for their other offerings.  Which I had already done and couldn't find what I was looking for, thus my need to pick up the phone.  Ugh.

 


Have you tried going to your bank and talk to a representative there? I am sure they would be able to help...


Agreed! If not there, maybe try a local credit union? Credit unions are always pretty nice about getting people new to credit something to start with...they may even give an unsecured card without a cosigner if she has been an AU on your card for a while.

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Re: Credit Cards with Cosigner


gbishere wrote:

Adding an AU can help their credit ... ALOT better than cosigning. When I was still building credit my parents added me to one of their oldest cards and it helped me get my own cards without a cosigner. Good luck


Really?  I have always heard basically the opposite...that since the authorized user has no "legal" obligation to repay, that the credit only counts toward the primary card holder's rating, while a co-signer is basically a joint account that both parties are equally obligated to repay and therefore counts toward both of them. 

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Re: Credit Cards with Cosigner


scientifics wrote:

 


Have you tried going to your bank and talk to a representative there? I am sure they would be able to help...


Agreed! If not there, maybe try a local credit union? Credit unions are always pretty nice about getting people new to credit something to start with...they may even give an unsecured card without a cosigner if she has been an AU on your card for a while.


Not yet - haven't had time on the weekends yet so was hoping to handle this online or over the phone.  Not looking promising there.

 

I know exactly "zero" about credit unions, have never dealt with them before, so didn't really give that much thought.  Like I said, I have no problem co-signing...as it stands right now, if she were to overspend, I'd be on the hook anyway and we've never had an issue.  I guess we could do the secured thing but I'm really trying to stay away from that if possible.

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Re: Credit Cards with Cosigner


tazsk8s wrote:

 

Really?  I have always heard basically the opposite...that since the authorized user has no "legal" obligation to repay, that the credit only counts toward the primary card holder's rating, while a co-signer is basically a joint account that both parties are equally obligated to repay and therefore counts toward both of them. 


While it's true that in most cases the AU has no responsibility for repayment the AU still inherits the entire account of the primary card holder. That means the AU can benefit but also be hurt if the account goes bad.

 

 

 

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Re: Credit Cards with Cosigner

Chase - you can open card and then call and they will MAIL a form for both of you to sign to add her as joint.  Later down the road you can do the same process to remove you or her and one of you keep it.... but keep in mind much harder to get 1 joint holder removed vs added.  I had no credit check when I was added to my dads card but to remove myself it's a hard pull and you would need to qualify like you were just applying outright for your own card.

USBank use to be able to do a joint app right online.. put your info first as primary and her 2nd.

Nordstrom also use to do joint and would remove joint fairly easy but some banks have started to get away from the joint stuff a bit more and flat out make you close account if you wanted to remove someone.

 

Citi was my first card at 18 with my father and 3 months later I removed him... but Citi does not even offer joint anymore let alone removing someone... think they took some defaults by removing joint people with no credit check and stuff.

 

Since you all bank at Chase if you were going to do this I would use them, because then you both can have that account linked as overdraft for your checking accounts and later either close it or not use it once she gets good scores and starts getting her own cards.

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Re: Credit Cards with Cosigner


tazsk8s wrote:

scientifics wrote:

 


Have you tried going to your bank and talk to a representative there? I am sure they would be able to help...


Agreed! If not there, maybe try a local credit union? Credit unions are always pretty nice about getting people new to credit something to start with...they may even give an unsecured card without a cosigner if she has been an AU on your card for a while.


Not yet - haven't had time on the weekends yet so was hoping to handle this online or over the phone.  Not looking promising there.

 

I know exactly "zero" about credit unions, have never dealt with them before, so didn't really give that much thought.  Like I said, I have no problem co-signing...as it stands right now, if she were to overspend, I'd be on the hook anyway and we've never had an issue.  I guess we could do the secured thing but I'm really trying to stay away from that if possible.


If you can't get a non-cosigned card from your bank, I would definitely go to a credit union. They usually only require you to have a small amount (~$5) in a share account to maintain membership (as long as you meet requirements). You can look here to find them and sort by requirements (http://www.ncua.gov/DataServices/FindCU.aspx). You also might want to see if your daughter's college has a credit union or one near campus that allows membership through assotiation to the school

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