Credit Line for students

[Anonymous]

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@voidman wrote:

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@haulingthescoreup wrote:
Sorry, you don't build a credit history (as defined here on the forums) with a check card

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Well, the check card does not really help directly to up the score, but usage of the check-card for a year or so do get a valid and good enough score for credit-cards. I am not talking theoretically, but practically by few of my friends who are immigrants.

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I'm not understanding the distinction you're making.  A check card does not count in FICO scoring at all.  In fact, it doesn't even appear on one's credit reports.

Someone can use the same check card with a single bank for 20 years or more and not even have a credit score.  Having a check card, as HTSU posted above, does not help one build credit history.

[voidman]

Hummmm, ok, I might be wrong on the credit scrore, Using check-card i.e. using your own money is better than using a credit card, at least for the college students.

I think my friends got their credit-card from the same bank they where banking with for a year or so.

[Anonymous]

Having a checking/savings account at a bank and using a debit card from them for awhile may help you obtain a credit card from THAT bank. Debit cards, however, do not report to credit bureaus and will not help your chances of obtaining credit at other banks.

[voidman]

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@Anonymous wrote:

Having a checking/savings account at a bank and using a debit card from them for awhile may help you obtain a credit card from THAT bank. Debit cards, however, do not report to credit bureaus and will not help your chances of obtaining credit at other banks.

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Yes, I agree, my mistake.

[haulingthescoreup]

I do agree that many college students (and many beyond college age!) aren't mature enough to handle credit, especially if they have high CL's on a particular card. But at the same time, this maturity doesn't come automatically, and having one card with a $1K limit max is one way of learning.

If they're going to screw up, better to mess up one card, with a balance that can be paid off by picking up a part-time job at McDonalds, than to have multiple cards, some with high limits, that will be nearly impossible to pay off if they haven't learned discipline yet.

But there are college-aged people who are very self-disciplined with money and credit, and others who are able to learn, so that's why I disagreed with the "no college student needs credit" statement.


edit: money, credit, credit, money...

Message Edited by haulingthescoreup on 07-06-2008 04:51 PM

[biturbomunkie]

i doubt any CCC will give a $10k CL to an undergrad student (unless you lie when you apply), but most won't have problem with a $1-3k CL. with that said; however, all you need is a $500 CL for extreme emergency. your financial aid/side job/parents/savings should be able to cover your regular expenses AND emergency.

i have seen quite a few young folks got the shaft from CC debts. one of them decided to take a year off to pay off CCs but ended up not returning to school. another girl graduated from a prestigious (and expensive) private school, ended up making $55k/yr and struggles to live due to CC bills, student loan, rent, car payment (for a beat up, used hyundai, which is nothing wrong but it's an interesting contrast to her school's license plate frame). she is now considering (or shopping for) a graduate degree. cost of tuition is one of her top concerns.

having a couple high CL CCs may certainly make you feel better. but why not make yourself feel better by going to the school's gym, or by saving/investing (which gives a real sense of financial security)? imho, the #1 priority for undergrads is to minimize any debt (including student loans), so then there's more room to "play" (i.e. options for grad schools, career, etc.) after graduation. of course, my opinion is rather pointless if your parents are like ATMs. ;P

Message Edited by biturbomunkie on 07-07-2008 09:06 AM

[haulingthescoreup]

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@biturbomunkie wrote:

....having a couple high CL CCs may certainly make you feel better. but why not make yourself feel better by going to the school's gym, or by saving/investing (which gives a real sense of financial security)? imho, the #1 priority for undergrads is to minimize any debt (including student loans), so then there's more room to "play" (i.e. options for grad schools, career, etc.) after graduation. of course, my opinion is rather pointless if your parents are like ATMs. ;P

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I'm about to sound like an old fart (which I am), but I feel sorry for the current teens and twenties, in that I am stunned at the endless barrage of messages aimed at them, saying that appearance and Stuff are what's important. Boob jobs, lip jobs, expensive clothes, crazy-expensive cars --the ads and movies and TV seem to bury them in the idea that looks and style are all-important and should be a major goal. And none of this is cheap, by any means.

I know that's horribly oversimplified, but I really do believe that some of this does get in the brain and stays there. My youngest is moving off-campus (and I agree that her school's dorms are awful), but she has wound up with 3 other kids in a downtown loft with 10-foot ceilings and a kitchen miles better than my own. It seems that a lot of parents of my generation have brought their kids up on expensive trips and new cars on their sixteenth birthdays and shopping trips to big cities. What's left?

Danged if any of my kids are getting granite countertops before I do.


edit to add: She's the only one of the four with credit good enough to have qualified for the loft on her own. And the others come from very wealthy families, which we are decidedly not.

Message Edited by haulingthescoreup on 07-07-2008 06:08 PM