Credit Card Center Advertiser Disclosure†
08-12-2013 09:38 PM
I agree that she should manage her own credit history without being an authorized user. Allow her to financially manage her own history, debt, and payments with little to zero assistance.
Try getting a secured credit card at a local credit union instead of paying a fee. After about 6 months or a little less, she should be able to qualify for student credit cards/sub-prime ones.. or even a prime one like Discover.
08-13-2013 09:14 AM
Thanks all for your assistance. The purpose of this thread was to figure out how to give my young relative a start since it's much harder for teens to obtain credit these days because of legislation.
Again, I just want to give her a start by helping her obtain her get a very low limit unsecured credit card. I will provide financial literacy and guidance but will not be a mother hen. My goal is to educated her about using credit repsonsibly.I will not assume responsibility for checking statements and due dates.
08-13-2013 09:39 AM
I found this thread very interesting, as one of my DD's will be turning 18 in December. She's about to start her senior year of HS, so we have about a year to get her completely situated before leaving for college. This is what I've done, and what I have planned:
I added her as an AU to a (now) CapOne account in May...originally opened in 2008. I have my card for this account SD'd and she's the only one who uses it. I'm not sure if the entire account history will report, or just since I added her, but we'll check once she hits the 6 month mark.
After a couple of months, (in July) I added her as ACM to my Amex BCP. This was planned to give her a "member since" year the same year as her 18th birthday.
**Thanks to whoever that was who put up that tip of having her create an online account. We haven't done that yet - hadn't even thought about it, but guess what we're going to be doing tonight!
Once she turns 18, I plan on adding her as joint on that 1st card, or on something else. That way she'll have an account that's not just AU, and can hopefully grow with her, but still giving me the opportunity to help her if she starts going off track.
Good luck to you, OP, and your young relative. She's very lucky to have you to help her!
08-13-2013 10:41 AM
08-13-2013 10:59 AM
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.