credit for college guy

[play4gumbo]

Greetings!  Newbie here, so be kind.  I want to help my godson establish good credit as he goes to college at 18years old.  Do we need new credit in his name with me for cosigner?  Can I add him as authorized user to an account I already have and establish credit for him?  I have good credit: he is a great kid with checking and savings accounts only.  How can I help him learn the game?  Thanks!

[Anonymous]

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@play4gumbo wrote:
Greetings!  Newbie here, so be kind.  I want to help my godson establish good credit as he goes to college at 18years old.  Do we need new credit in his name with me for cosigner?  Can I add him as authorized user to an account I already have and establish credit for him?  I have good credit: he is a great kid with checking and savings accounts only.  How can I help him learn the game?  Thanks!

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Welcome! Don't think you really have to worry about anyone judging you for being a "newbie" here..

Anyway, thats great of you to help him do that.  If I were you, I would first add him as an Authorised User on an account that you have that is in good standing (long age of account, no late payments, low utilizaiton % reporting). All of your good credit from that card will then report under his name.

After that, have him apply for a card in his own name - preferably from the bank he has his savings/checking accounts - they are usually good about giving credit to college kids that have an established history with them. Once the AU is reporting on his credit reports, I doubt he would have any trouble getting his first credit card.

[Comp5569]

Be careful!  College is where I screwed up my credit somewhat.  I let two things get charged off.  Stupid me. 

They are still on for a little longer. I cant wait for them to go away!

[Anonymous]

They will be beating down his dorm room door begging him to apply for a credit card. They will entice him with free t-shirts, free pizzas, free subs. NO.Teach him the ancient word....."NO".

If this was my child, or godchild, etc, here is what *I* would do. I would make him an authorized user on a low limit card of mine, and let him charge on it if he so desires. You monitor the activity on the card. Allow this freedom of use with one major stipulation....he agrees NOT to apply for any credit cards on campus without first consulting YOU about it. That sets him up to not be an impulsive little fart, and that it is a good thing to consult with someone who wants to be his mentor. That's YOU. 

What a lucky kid for him to be. You are an awsome person. 

[jaybird201]

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@Anonymous wrote:

They will be beating down his dorm room door begging him to apply for a credit card. They will entice him with free t-shirts, free pizzas, free subs. NO.Teach him the ancient word....."NO".

If this was my child, or godchild, etc, here is what *I* would do. I would make him an authorized user on a low limit card of mine, and let him charge on it if he so desires. You monitor the activity on the card. Allow this freedom of use with one major stipulation....he agrees NOT to apply for any credit cards on campus without first consulting YOU about it. That sets him up to not be an impulsive little fart, and that it is a good thing to consult with someone who wants to be his mentor. That's YOU. 

What a lucky kid for him to be. You are an awsome person. 

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I respectfully disagree, entirely. College kids are so eager to get out of the house, at least I was, because they finally get to have a bit of freedom. I'd help him get set-up a credit card at a local credit union with on-campus locations (many credit unions in the vicinity of schools will have ATMs on-campus and cater to the student body), with a credit limit of $500-$1,000. Give him a few pointers and maybe show him myfico so that he knows how much money he'll save by paying on-time and having good credit. Most importantly, let him know he can come to you for advice and such.

I feel like forcing rules on an college student and treating an 18-year-old like an 8-year-old will hurt more than it'll help. College kids are smart, and provided with the right information, MOST will be able to make smart decisions.

[Anonymous]

I can tell what end of the college student you are on (not the parental side yet, heheeeee).

 

You can disagree all you want, and that's fine, more power to you. In our house, the person paying the bill calls the shots. If it's my tuition dollar, then I set the limits. If they want to be their own man early, fine, knock yourself out. Tuition is on YOU.