topic Re: Best Credit Cards for 18, 19, and 20 year old? in Credit Cards

Best Credit Cards for 18, 19, and 20 year old?

Anonymous — Wed, 30 Sep 2020 04:37:03 GMT

It's hard sorting through which cards will only extend credit of my kids are under 21. They currently have:

18- Cap One

Discover IT

19- Cap One

Discover IT (AU)

20- Cap One

Discover IT (AU)

Trying to build their profile since it's so thin. Also their current scores are:

18- 760 Experian

19- 700 Experian

20 - 610 Experian

Thanks in advance

Re: Best Credit Cards for 18, 19, and 20 year old?

Anonymous — Wed, 30 Sep 2020 05:01:00 GMT

If they have no loans, they can do SSLT (share loan trick ) with Navy Federal, or a personal loan (most likely need co-sign or POI for PLs) with Penfed, US Bank, Alliant. Or share loans with other CUs, but the effect may be weaker for reasons of loan term length.

My friends around the age range have Discover/Cap1 and then later Amex, both solid lenders that aren't too hard to get with if you have a clean credit report. I'd bet that the two with 700s could get some Amex charge or co-brand cards.

NFCU is great for all people, even lower scores and dirty reports.

Apple card isn't the worst option, it can grow with use, and soft pull pre-approval. I'd only recommend a Cap1 starter as a last option.

Pre-approvals are generally unlikely for them but you can check them here:https://ficoforums.myfico.com/t5/General-Credit-Topics/List-of-Soft-pull-PREAPPROVAL-Links-Updated-8-10-20/td-p/5938753

Re: Best Credit Cards for 18, 19, and 20 year old?

Slabenstein — Wed, 30 Sep 2020 05:16:03 GMT

Are any of your children students? If so, student cards, which many issuers offer, might be the place to start.

Re: Best Credit Cards for 18, 19, and 20 year old?

Anonymous — Wed, 30 Sep 2020 16:55:55 GMT

@Anonymous wrote:
If they have no loans, they can do SSLT (share loan trick ) with Navy Federal, or a personal loan (most likely need co-sign or POI for PLs) with Penfed, US Bank, Alliant. Or share loans with other CUs, but the effect may be weaker for reasons of loan term length.

My friends around the age range have Discover/Cap1 and then later Amex, both solid lenders that aren't too hard to get with if you have a clean credit report. I'd bet that the two with 700s could get some Amex charge or co-brand cards.

NFCU is great for all people, even lower scores and dirty reports.

Apple card isn't the worst option, it can grow with use, and soft pull pre-approval. I'd only recommend a Cap1 starter as a last option.

Pre-approvals are generally unlikely for them but you can check them here:https://ficoforums.myfico.com/t5/General-Credit-Topics/List-of-Soft-pull-PREAPPROVAL-Links-Updated-8-10-20/td-p/5938753

Thank you for your response. Dumb question but at what age does Amex approve charge cards? I will have to look into the share loan trick as none of them have taken loans out. Thanks again!

Re: Best Credit Cards for 18, 19, and 20 year old?

Anonymous — Wed, 30 Sep 2020 16:57:50 GMT

@Slabenstein wrote:
Are any of your children students? If so, student cards, which many issuers offer, might be the place to start.

Yes, my 18 year old is. The Discover is a student card but that's a great idea. Thank you.

Re: Best Credit Cards for 18, 19, and 20 year old?

Slabenstein — Wed, 30 Sep 2020 17:26:00 GMT

@Anonymous wrote:
@Slabenstein wrote:
Are any of your children students? If so, student cards, which many issuers offer, might be the place to start.
Yes, my 18 year old is. The Discover is a student card but that's a great idea. Thank you.

For the two that aren't (and for the one that is if they want to check other options), I'd start with the Disco and Amex prequal site, as suggested above. That should give them a rough idea of what kinds of cards are available to them. If they see a card they like there they could app for it, or they could look at comparable cards from other issuers. If they don’t see anything for unsecured cards on the Disco or Amex prequal sites, I'd next look at the following three options:

1) Local CUs, esp. if there's one of which you're already a member. Many CUs are more open lenders than the big banks and can be a good place to pick up an unsecured card w/ a young profile. Many would probably be happy to pick up three new borrows so early in their credit journeys, as long as your children's individual incomes meet their DTI standards.

2) Navy Federal CU. As stated above, this is a good lender for people whose profiles don't quite qualify them for prime cards from major issuers yet. Your children would need to be able to qualify for membership, and the main way is if any of their immediate family members, including grandparents, has served in any branch of the US military.

3) A secured card with no annual fee that also graduates. This would be a last option, since they would need to put down a deposit to secure the card, but one with a path to graduate into an unsecured card should eventually return their deposit and become a card they can keep in their profile long-term. Checking that it does't charge an annual fee is important, since their credit is only young and not bad, so they shouldn't need to rent trade lines. Discover has probably the best secured card out there, so it might be a good to look at for the two that aren't students, if you get down to this point in your options list.

Re: Best Credit Cards for 18, 19, and 20 year old?

Anonymous — Wed, 30 Sep 2020 18:02:57 GMT

@Anonymous wrote:
@Anonymous wrote:
If they have no loans, they can do SSLT (share loan trick ) with Navy Federal, or a personal loan (most likely need co-sign or POI for PLs) with Penfed, US Bank, Alliant. Or share loans with other CUs, but the effect may be weaker for reasons of loan term length.

My friends around the age range have Discover/Cap1 and then later Amex, both solid lenders that aren't too hard to get with if you have a clean credit report. I'd bet that the two with 700s could get some Amex charge or co-brand cards.

NFCU is great for all people, even lower scores and dirty reports.

Apple card isn't the worst option, it can grow with use, and soft pull pre-approval. I'd only recommend a Cap1 starter as a last option.

Pre-approvals are generally unlikely for them but you can check them here:https://ficoforums.myfico.com/t5/General-Credit-Topics/List-of-Soft-pull-PREAPPROVAL-Links-Updated-8-10-20/td-p/5938753
Thank you for your response. Dumb question but at what age does Amex approve charge cards? I will have to look into the share loan trick as none of them have taken loans out. Thanks again!

Kikoff also provides free cheap starter loans to build loan history. But share secure loans, especially with NFCU, are preferable.

Amex charge cards have AFs that some (most?) teenagers don't like to stomach. The benefits may or may not be a fit for them.

My friend has both a Platinum and Business Green, the Plat being his first CC (along with a Disco just days prior) and the Green being approved 2 months later.

Bio age doesn't matter, for most purposes. What's on reports is what matters.

If you do go for Amex cards, make sure to go for the higher offers, can find out what they are via search/google. Pretty sure charge cards can be easily gotten, but revolvers usually take 3-6 months minimum of their own history

DP: https://ficoforums.myfico.com/t5/Business-Credit/DF-gets-an-Amex-Biz-Green/td-p/6135910

Re: Best Credit Cards for 18, 19, and 20 year old?

Remedios — Wed, 30 Sep 2020 18:07:40 GMT

I don't think they need more cards, they have two. That's plenty for those starting out.

They should focus on aging what they have, absorb good financial habits, and later apply for more when they have a steady income and a reason to have cards in a first place.

I cannot think of a single reason why 18 year old would need a "thick" file.

Re: Best Credit Cards for 18, 19, and 20 year old?

Anonymous — Wed, 30 Sep 2020 18:27:40 GMT

Thanks for your reply, they aren't trying to build a thick file, only trying to have at least 3 cc and are looking into buying a property together. At the age of 17, each were added as AU to my credit cards to help build them a score by the time they turned 18 and then app'd fro their own CC's. They all work, one works and is in school. Anything they purchased on the AU cards they had to pay prior to statement date and have their own bank accounts. They've purchased a car by saving, did not want to secure a loan for a "nice" card, so I believe they are well on their way to financial responsibility. Thanks again.

@Remedios wrote:
I don't think they need more cards, they have two. That's plenty for those starting out.
They should focus on aging what they have, absorb good financial habits, and later apply for more when they have a steady income and a reason to have cards in a first place.

I cannot think of a single reason why 18 year old would need a "thick" file.

Re: Best Credit Cards for 18, 19, and 20 year old?

Anonymous — Wed, 30 Sep 2020 18:31:26 GMT

@Slabenstein wrote:
@Anonymous wrote:
@Slabenstein wrote:
Are any of your children students? If so, student cards, which many issuers offer, might be the place to start.
Yes, my 18 year old is. The Discover is a student card but that's a great idea. Thank you.
For the two that aren't (and for the one that is if they want to check other options), I'd start with the Disco and Amex prequal site, as suggested above. That should give them a rough idea of what kinds of cards are available to them. If they see a card they like there they could app for it, or they could look at comparable cards from other issuers. If they don’t see anything for unsecured cards on the Disco or Amex prequal sites, I'd next look at the following three options:

1) Local CUs, esp. if there's one of which you're already a member. Many CUs are more open lenders than the big banks and can be a good place to pick up an unsecured card w/ a young profile. Many would probably be happy to pick up three new borrows so early in their credit journeys, as long as your children's individual incomes meet their DTI standards.

2) Navy Federal CU. As stated above, this is a good lender for people whose profiles don't quite qualify them for prime cards from major issuers yet. Your children would need to be able to qualify for membership, and the main way is if any of their immediate family members, including grandparents, has served in any branch of the US military.

3) A secured card with no annual fee that also graduates. This would be a last option, since they would need to put down a deposit to secure the card, but one with a path to graduate into an unsecured card should eventually return their deposit and become a card they can keep in their profile long-term. Checking that it does't charge an annual fee is important, since their credit is only young and not bad, so they shouldn't need to rent trade lines. Discover has probably the best secured card out there, so it might be a good to look at for the two that aren't students, if you get down to this point in your options list.

Thank you! So many options to discuss with them. Appreciate you taking time to respond.

Re: Best Credit Cards for 18, 19, and 20 year old?

Slabenstein — Wed, 30 Sep 2020 18:33:46 GMT

@Anonymous wrote:
Thanks for your reply, they aren't trying to build a thick file, only trying to have at least 3 cc and are looking into buying a property together. At the age of 17, each were added as AU to my credit cards to help build them a score by the time they turned 18 and then app'd fro their own CC's. They all work, one works and is in school. Anything they purchased on the AU cards they had to pay prior to statement date and have their own bank accounts. They've purchased a car by saving, did not want to secure a loan for a "nice" card, so I believe they are well on their way to financial responsibility. Thanks again.
@Remedios wrote:
I don't think they need more cards, they have two. That's plenty for those starting out.
They should focus on aging what they have, absorb good financial habits, and later apply for more when they have a steady income and a reason to have cards in a first place.

I cannot think of a single reason why 18 year old would need a "thick" file.

Where do they have their deposit accounts? Also, a very important question is how soon are they planning to make this property purchase?

Re: Best Credit Cards for 18, 19, and 20 year old?

Anonymous — Wed, 30 Sep 2020 18:35:35 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
If they have no loans, they can do SSLT (share loan trick ) with Navy Federal, or a personal loan (most likely need co-sign or POI for PLs) with Penfed, US Bank, Alliant. Or share loans with other CUs, but the effect may be weaker for reasons of loan term length.

My friends around the age range have Discover/Cap1 and then later Amex, both solid lenders that aren't too hard to get with if you have a clean credit report. I'd bet that the two with 700s could get some Amex charge or co-brand cards.

NFCU is great for all people, even lower scores and dirty reports.

Apple card isn't the worst option, it can grow with use, and soft pull pre-approval. I'd only recommend a Cap1 starter as a last option.

Pre-approvals are generally unlikely for them but you can check them here:https://ficoforums.myfico.com/t5/General-Credit-Topics/List-of-Soft-pull-PREAPPROVAL-Links-Updated-8-10-20/td-p/5938753
Thank you for your response. Dumb question but at what age does Amex approve charge cards? I will have to look into the share loan trick as none of them have taken loans out. Thanks again!
Kikoff also provides free cheap starter loans to build loan history. But share secure loans, especially with NFCU, are preferable.

Amex charge cards have AFs that some (most?) teenagers don't like to stomach. The benefits may or may not be a fit for them.

My friend has both a Platinum and Business Green, the Plat being his first CC (along with a Disco just days prior) and the Green being approved 2 months later.

Bio age doesn't matter, for most purposes. What's on reports is what matters.

If you do go for Amex cards, make sure to go for the higher offers, can find out what they are via search/google. Pretty sure charge cards can be easily gotten, but revolvers usually take 3-6 months minimum of their own history

DP: https://ficoforums.myfico.com/t5/Business-Credit/DF-gets-an-Amex-Biz-Green/td-p/6135910

Great recommendations. Thanks for the response. For the business green, do they have to have an EIN and DUNs? My 19 year old started a side hustle but hasn't done all the "business things" yet.

Re: Best Credit Cards for 18, 19, and 20 year old?

Duke_Nukem — Wed, 30 Sep 2020 18:37:14 GMT

Can't answer your question about Amex Charge cards, but my DD attained the Amex BCE when she was 18 and I think claimed a sub $10k/year income at that time. She started out with the Disco Chrome Student, then got the Amex around 6 months later when her credit reports started generating "real" scores (she had high scores before 6 months because of being AU on several of our cards).

After having her Disco for a year, she got the Chase Freedom with a $4750 limit. Chase also has a student version they introduced last year, but you had to visit a branch office to open it. Not sure if the student version has similar requirements to the bigger siblings (typically need 1 year of history with 1st card).

Agree with all the other NFCU recommendations... they are great if you are able to join.

Re: Best Credit Cards for 18, 19, and 20 year old?

Anonymous — Wed, 30 Sep 2020 18:40:39 GMT

@Slabenstein wrote:
@Anonymous wrote:
Thanks for your reply, they aren't trying to build a thick file, only trying to have at least 3 cc and are looking into buying a property together. At the age of 17, each were added as AU to my credit cards to help build them a score by the time they turned 18 and then app'd fro their own CC's. They all work, one works and is in school. Anything they purchased on the AU cards they had to pay prior to statement date and have their own bank accounts. They've purchased a car by saving, did not want to secure a loan for a "nice" card, so I believe they are well on their way to financial responsibility. Thanks again.
@Remedios wrote:
I don't think they need more cards, they have two. That's plenty for those starting out.
They should focus on aging what they have, absorb good financial habits, and later apply for more when they have a steady income and a reason to have cards in a first place.

I cannot think of a single reason why 18 year old would need a "thick" file.

Where do they have their deposit accounts? Also, a very important question is how soon are they planning to make this property purchase?

18 year old - Chase & America First CU. It's a local CU

19 yr old - WF & America First

20 yr old - WF & America First

They currently have $40,000 saved betwee. The 3 of them and have been shopping for a high yield savings but were told to leave their money in the CU it's at since they each started that account at 17. Yes I had to sign for the CU but they are hoping to do so in the next 6 months when my 18 yr old hits 2 years at her job.

Re: Best Credit Cards for 18, 19, and 20 year old?

Anonymous — Wed, 30 Sep 2020 18:48:38 GMT

@Duke_Nukem wrote:
Can't answer your question about Amex Charge cards, but my DD attained the Amex BCE when she was 18 and I think claimed a sub $10k/year income at that time. She started out with the Disco Chrome Student, then got the Amex around 6 months later when her credit reports started generating "real" scores (she had high scores before 6 months because of being AU on several of our cards).

After having her Disco for a year, she got the Chase Freedom with a $4750 limit. Chase also has a student version they introduced last year, but you had to visit a branch office to open it. Not sure if the student version has similar requirements to the bigger siblings (typically need 1 year of history with 1st card).

Agree with all the other NFCU recommendations... they are great if you are able to join.

Thank you for taking time to respond. I'm sure we'll be discussing Amex in detail tonight

Re: Best Credit Cards for 18, 19, and 20 year old?

Anonymous — Wed, 30 Sep 2020 18:48:50 GMT

@Anonymous

No you don't need EIN/DUNS, but if doing business cards I'd suggest setting it up to ensure the cards can be matched with the profile reported to D&B. D&B took only ~2 days to come back to me with my DUNS, though it says on site it may take longer.

Also in response to them wanting a mortgage, usually you'd want to set up the credit profiles a year in advance to age out any new account/inquiry penalties.

3 cards and 1 installment loan is the adage around here, though apparently 5 cards may be more beneficial on mortgage scores?

They're still young, may grow/change in what they aim to do, setting up the credit profiles now and waiting for a year to at least have best available interest rates ,while also having their minds a bit more seasoned would be sensible.

Re: Best Credit Cards for 18, 19, and 20 year old?

Kforce — Thu, 01 Oct 2020 02:38:27 GMT

@Remedios wrote:
I don't think they need more cards, they have two. That's plenty for those starting out.
They should focus on aging what they have, absorb good financial habits, and later apply for more when they have a steady income and a reason to have cards in a first place.

I cannot think of a single reason why 18 year old would need a "thick" file.

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