07-12-2010 11:13 AM
Have an 18 year old who is going overseas in Sept on a 1 year scholarship, then to college when she gets back fall 2011.
Want to start building her credit. Whats the best first move?
07-12-2010 02:16 PM
Moving to general credit topics forum...
07-14-2010 12:26 AM
Apply for a credit card thats secure make sure they report to all 3 major credit
bureaus each month or in most cases every 3 months make your payment on time
and use the card thats the key. Sears is another company who reports oftem.
07-14-2010 04:17 PM - edited 07-14-2010 04:18 PM
Hi, Dotty, is your daughter's college/ university affiliated with a credit union? Or are there local credit unions that she can join, which offer credit cards? If so, have her join up and establish some sort of regular business, like a monthly automatic deposit into a share (savings) account. CU's are a great way to start out.
Since she is under 21, and I assume that she doesn't have an income (at least while she's overseas), you or another adult will need to co-sign for any credit application. This was a dreadful idea that snuck onto the Credit Card Act, because it means that your credit will be on the hook for her card, including any abuse by potential roommates, BF/GF's, you name it. (Including her.) You can make her an AU (authorized user) on one of your cards, ideally one that is old, squeaky clean, and reports $0 every month. You can give her an AU card and monitor the usage, or you can just let it report on her reports. Do make sure that the card will report AU's on their reports --not all CC's will do so.
If you wind up co-signing for a CC, I would advise that you tell her that on her 21st birthday, when she is eligible for credit under her own name, it will be closed. By then, she should be able to qualify for credit on her own. In the meantime, set up the account so that you can pull it up online once a week or so and make sure that it is being paid. It WILL show up on your credit reports, good, bad, and ugly.
Things happen with college-aged kids. I love my three kids dearly, and I think that overall, they are very responsible young adults, but that didn't keep 2 of 3 of them from having late payments on their credit reports. I take responsibility for my own screw-ups, but I'm sure not letting anyone else's mistakes hurt my own credit!
Anyway, hope that helps and that she has a fantastic time overseas. What a great "gap year" activity before starting college!
07-14-2010 06:55 PM
Here couple ideas. One if your bank or credit union offer a secured credit card set up for her. The other idea would be make her an authorized user on a credit card like a Visa or Mastercard.
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.