Helping sister with first credit card

Anonymous · ‎11-06-2015

I'm trying to help my sister establish some credit as she is graduating from veterinary school next year. We checked her credit scores using CCT and got EX:776, TU:731, and EQ: 737. Both of us were added as AU on our mother's AMEX cards when she opened them, so she has that in her favor without establishing credit on her own. I had a small talk with her about trying to establish some credit history before she graduates and has to start taking on monthly expenses plus paying back student loans. All she owns is a debit/credit card through her bank. I figured getting her one card to start putting her groceries, gas, etc. on can help her start to learn how to use a credit card responsibly. I started out with a store credit card while living at home to help with my credit when I was younger. I feel that this was a great starting point for me, but wouldn't be best for her at this point in her life. Anyone have any suggestions on cards for me to research for her? She's taking her boards next month so she is unable to look into this at the moment, which is why I'm trying to find the best cards for her to look into after she's done in December. She doesn't have any income at the moment, so I know the CL will be low and I think that will work better for her starting out, so she can learn how to use one properly. Her monthly expenses are paid by my mother who deposits the money into her checking account and then my sister uses that money to pay her bills. Everything else she uses her debit/credit card for.

Anonymous · ‎11-06-2015

discover loves new and clean profiles. do it

Erusidhion · ‎11-06-2015

Run her information through all the known pre-approval sites. Bank of America, US Bank, Chase, Barclay (google search for the link), Capital One, Citibank, American Express has a pre-approval. Store cards are great; get a Wal-mart Mastercard. Wal-mart is everywhere and the financing for 0% apr depending on what you buy is great. Lowes is good because it's a Synchrony card like Wal-mart; massive CLIs every 4 months for either one. But definitely do the pre-quals first and see what she can get and make a list to go from there. The Amazon STORE card is also another great card from Synchrony and has 0% apr on certain purchases and amounts. I don't think the Amazon Chase Visa offers this.

After you do all the pre-approvals then make a decision. Discover does like new credit files. I think she may have a chance at a Barlclay Rewards too. Though I'd opt for the Ring incase she ever carries balances for emergency situations like car repairs, housing appliances etc. With her credit scores she has a lot of options. She's basically at the point where I started. Those were fun times even though it was only 1 year and 9 months ago.

Good luck!

EQ 654 -- 43 Inquiries
TU 695 -- 54 Inquiries
EX 668 -- 50 Inquiries

Utilization: 9% AAoA: 20 months Total History: 3Y
Updated: 08/04/2017 Premier 3B

Anonymous · ‎11-06-2015

The Discover card is definitely on the list as I applied for this card myself. My mother just told me that she found a Bank of America pre-approval offer that came in the mail for her, however the Discover seems to offer better benefits. I will look through those other sites as well and try to narrow down some options for her. I wouldn't consider her the most responsible person, hence trying to get her started while still in school and not trying to tackle her $100,000+ school loans. I figured it'd be best to start while she's still somewhat close by, lol.

Anonymous · ‎11-06-2015

discover is forgiving on late payments, they have amazing customer service and offer "visa signature" benefits with their cards. it's an amazing contender before you even account for the double cash back promo or the apple pay bonus.

NRB525 · ‎11-06-2015

@Anonymous wrote:
The Discover card is definitely on the list as I applied for this card myself. My mother just told me that she found a Bank of America pre-approval offer that came in the mail for her, however the Discover seems to offer better benefits. I will look through those other sites as well and try to narrow down some options for her. I wouldn't consider her the most responsible person, hence trying to get her started while still in school and not trying to tackle her $100,000+ school loans. I figured it'd be best to start while she's still somewhat close by, lol.

Look into the Capital One Quicksilver. Simple 1.5% cash back, works more places than AMEX or Discover, no FTF if there's any travel at all, such as to Canada or Mexico, and once one card has a base of experience, the next card 6-months or a year from now will have a better limit.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765

Anonymous · ‎11-07-2015

With her current credit score she can pretty get any card she wants.. Might not start with limit that's too high.. I would go with QS discover Amex blue and chase freedom... So that's 4 cards and u cover most of it.. If she travel a lot get the travel one if not get the cash.. All ones I listed pretty much cash but u can look into company for same but for miles.. Also if ur saying she's not really responsible have ur open it and ur able to access the account and just make sure she's paying on time m.. Keep a tab on her for 6 months or so and make she she doesn't mess up.. After that just let her go on her own and check when u sense trouble

Anonymous · ‎11-07-2015

I'm going to get her info and look into the discover, chase, and amex cards, although I do wonder about how accepted the amex and discover cards are if one will be her main card. I feel like a low may work in her favor while she gets used to using it. She's traveled overseas 2-3 times in the last couple of years but those were for internships for school so I don't know if she plans on doing anymore travel, at least in the next year. My mother paid for those trips. In regards to her being responsible about use, that's just my opinion as her sister and her having everything paid for by ou5 mother. As much as I want her to learn how to do things on her own like I did (she's 25 and perfectly capable), I don't won't her to make mistakes, especially if they are easily avoidable. She's sometimes just hard headed about taking advice from family. Just trying to help her get started before she goes off on her own.

Anonymous · ‎11-07-2015

Well I'm surprised nobodys brought this up, but you said she has no income but her mother deposits money into her account every month? If this is true she can add that as income technically if she's over 21. Her SL will depend a whole lot on her stated income if shes never had a CC before. What would you say her mother deposits monthly into her account?

Anonymous · ‎11-07-2015

if she has no true income she has no means of getting a credit card on her own honestly.