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Established Contributor
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Registered: ‎04-30-2007
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New 18 year old DS just got first CC!

He got an email today saying his student Discover Card was on its way!

He's nervous, but I told him this is a good way to learn how to spend within his means, since he's now responsible for it.
pattycake's FICOs: 6/2/10 - TU: 708; EX: ???; EQ: 749
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Re: New 18 year old DS just got first CC!

Congrats!

DD#2 got a student Discover card at summer orientation before her freshman year. It freaked her out so much that we helped her cancel it. If only we'd known...
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Established Contributor
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Re: New 18 year old DS just got first CC!


haulingthescoreup wrote:
Congrats!

DD#2 got a student Discover card at summer orientation before her freshman year. It freaked her out so much that we helped her cancel it. If only we'd known...
He's going to need some help managing it, but I can do that. That's not a basic life skill taught at school, but I'd be more than happy to take that on to ensure these guys don't run into trouble.
pattycake's FICOs: 6/2/10 - TU: 708; EX: ???; EQ: 749
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Re: New 18 year old DS just got first CC!

IMO, be sure he has a checking and savings account to.

 

IMO:  Have him enter any charge he makes into his check register like a debit so that the money is not "double" spent.  Use of credit for the convenience, rewards, access to hotels/rentals/flights is all good.  But actual use of "credit" meaning to spend then pay back over time with interest is a terrible thing for young people to get into the habit of.

 

I like to show them how to watch savings grow.  To see the dividends/interest add up (getting paid interest rather than paying it) and to manage a checking account with checks and debit card so that expenses stay within income (including scheduled deposits to savings and emergency fund).

 

Congrats and good luck "Professor!"

 

:smileyhappy:

 

 

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Established Contributor
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Re: New 18 year old DS just got first CC!

Good points! He has a savings, but because he was only 16 at the time, I had to co-sign. So, now he can get his own accounts and manage the money responsibly. With Internet banking, he can balance accounts much more easily and timely.
pattycake's FICOs: 6/2/10 - TU: 708; EX: ???; EQ: 749
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Re: New 18 year old DS just got first CC!

do you know the limit on the card?

discover gave me a $4,400 limit on my student card.  Bad idea.

 

Established Contributor
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Re: New 18 year old DS just got first CC!

I don't know the limit on the card, but unlike my experience, he has a mom who can shepherd him through the credit learning phase. I have engrained it into him that he cannot max out credit cards!
pattycake's FICOs: 6/2/10 - TU: 708; EX: ???; EQ: 749
Established Contributor
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Re: New 18 year old DS just got first CC!

He just got the card today - $1000 CL, 0% interest until April. He's on his way to building a positive CRB!!!
pattycake's FICOs: 6/2/10 - TU: 708; EX: ???; EQ: 749

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