topic Re: Credit Cards with Cosigner in Credit Cards

Credit Cards with Cosigner

Anonymous — Tue, 30 Aug 2011 18:46:27 GMT

Am looking for recommendations on a card that I could co-sign for my nearly 20-year-old college student that would allow her to begin building credit in her name. She currently is an authorized user on one of my cards, but that credit is strictly in my name, as I understand it.

So far she has applied for a Citibank "student" card - denied because they claim they couldn't verify her university enrollment, even though she mailed them a copy of her student ID and the payment email receipt for the upcoming semester at their request. Then applied for a Capital One "student" card, denied because she has "insufficient income". I then tried to contact Chase regarding a co-signed card, which is where she, hubby, and myself, all have our bank accounts. The oh-so "helpful" offshore rep informed me that I could apply for a card and make her an authorized user...when I explained again that is NOT what I want, she told me to look at Chase's website for their other offerings. Which I had already done and couldn't find what I was looking for, thus my need to pick up the phone. Ugh.

I will have no problems getting approved and have no qualms about co-signing, she has been more than responsible with the card she does have, she just needs to begin to establish credit in her own name as she will be in an apartment next year and has heard horror stories about obtaining utility service if you don't already have credit established.

Re: Credit Cards with Cosigner

Anonymous — Tue, 30 Aug 2011 18:50:46 GMT

Adding an AU can help their credit ... ALOT better than cosigning. When I was still building credit my parents added me to one of their oldest cards and it helped me get my own cards without a cosigner. Good luck

Re: Credit Cards with Cosigner

SevenNEW — Tue, 30 Aug 2011 18:57:06 GMT

@Anonymous wrote:
So far she has applied for a Citibank "student" card - denied because they claim they couldn't verify her university enrollment, even though she mailed them a copy of her student ID and the payment email receipt for the upcoming semester at their request. Then applied for a Capital One "student" card, denied because she has "insufficient income". I then tried to contact Chase regarding a co-signed card, which is where she, hubby, and myself, all have our bank accounts. The oh-so "helpful" offshore rep informed me that I could apply for a card and make her an authorized user...when I explained again that is NOT what I want, she told me to look at Chase's website for their other offerings. Which I had already done and couldn't find what I was looking for, thus my need to pick up the phone. Ugh.

Have you tried going to your bank and talk to a representative there? I am sure they would be able to help...

Re: Credit Cards with Cosigner

Anonymous — Tue, 30 Aug 2011 18:58:16 GMT

Give her a few hundred dollars to get a secured card then...

Re: Credit Cards with Cosigner

Anonymous — Tue, 30 Aug 2011 19:18:56 GMT

@SevenNEW wrote:
@Anonymous wrote:
So far she has applied for a Citibank "student" card - denied because they claim they couldn't verify her university enrollment, even though she mailed them a copy of her student ID and the payment email receipt for the upcoming semester at their request. Then applied for a Capital One "student" card, denied because she has "insufficient income". I then tried to contact Chase regarding a co-signed card, which is where she, hubby, and myself, all have our bank accounts. The oh-so "helpful" offshore rep informed me that I could apply for a card and make her an authorized user...when I explained again that is NOT what I want, she told me to look at Chase's website for their other offerings. Which I had already done and couldn't find what I was looking for, thus my need to pick up the phone. Ugh.

Have you tried going to your bank and talk to a representative there? I am sure they would be able to help...

Agreed! If not there, maybe try a local credit union? Credit unions are always pretty nice about getting people new to credit something to start with...they may even give an unsecured card without a cosigner if she has been an AU on your card for a while.

Re: Credit Cards with Cosigner

Anonymous — Tue, 30 Aug 2011 19:40:54 GMT

@Anonymous wrote:
Adding an AU can help their credit ... ALOT better than cosigning. When I was still building credit my parents added me to one of their oldest cards and it helped me get my own cards without a cosigner. Good luck

Really? I have always heard basically the opposite...that since the authorized user has no "legal" obligation to repay, that the credit only counts toward the primary card holder's rating, while a co-signer is basically a joint account that both parties are equally obligated to repay and therefore counts toward both of them.

Re: Credit Cards with Cosigner

Anonymous — Tue, 30 Aug 2011 19:45:18 GMT

@Anonymous wrote:

Have you tried going to your bank and talk to a representative there? I am sure they would be able to help...
Agreed! If not there, maybe try a local credit union? Credit unions are always pretty nice about getting people new to credit something to start with...they may even give an unsecured card without a cosigner if she has been an AU on your card for a while.

Not yet - haven't had time on the weekends yet so was hoping to handle this online or over the phone. Not looking promising there.

I know exactly "zero" about credit unions, have never dealt with them before, so didn't really give that much thought. Like I said, I have no problem co-signing...as it stands right now, if she were to overspend, I'd be on the hook anyway and we've never had an issue. I guess we could do the secured thing but I'm really trying to stay away from that if possible.

Re: Credit Cards with Cosigner

MarineVietVet — Tue, 30 Aug 2011 19:55:16 GMT

tazsk8s wrote:

Really? I have always heard basically the opposite...that since the authorized user has no "legal" obligation to repay, that the credit only counts toward the primary card holder's rating, while a co-signer is basically a joint account that both parties are equally obligated to repay and therefore counts toward both of them.

While it's true that in most cases the AU has no responsibility for repayment the AU still inherits the entire account of the primary card holder. That means the AU can benefit but also be hurt if the account goes bad.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Re: Credit Cards with Cosigner

Creditaddict — Wed, 31 Aug 2011 00:15:18 GMT

Chase - you can open card and then call and they will MAIL a form for both of you to sign to add her as joint. Later down the road you can do the same process to remove you or her and one of you keep it.... but keep in mind much harder to get 1 joint holder removed vs added. I had no credit check when I was added to my dads card but to remove myself it's a hard pull and you would need to qualify like you were just applying outright for your own card.

USBank use to be able to do a joint app right online.. put your info first as primary and her 2nd.

Nordstrom also use to do joint and would remove joint fairly easy but some banks have started to get away from the joint stuff a bit more and flat out make you close account if you wanted to remove someone.

Citi was my first card at 18 with my father and 3 months later I removed him... but Citi does not even offer joint anymore let alone removing someone... think they took some defaults by removing joint people with no credit check and stuff.

Since you all bank at Chase if you were going to do this I would use them, because then you both can have that account linked as overdraft for your checking accounts and later either close it or not use it once she gets good scores and starts getting her own cards.

Re: Credit Cards with Cosigner

Anonymous — Wed, 31 Aug 2011 00:15:47 GMT

@Anonymous wrote:
@Anonymous wrote:

Have you tried going to your bank and talk to a representative there? I am sure they would be able to help...
Agreed! If not there, maybe try a local credit union? Credit unions are always pretty nice about getting people new to credit something to start with...they may even give an unsecured card without a cosigner if she has been an AU on your card for a while.
Not yet - haven't had time on the weekends yet so was hoping to handle this online or over the phone. Not looking promising there.

I know exactly "zero" about credit unions, have never dealt with them before, so didn't really give that much thought. Like I said, I have no problem co-signing...as it stands right now, if she were to overspend, I'd be on the hook anyway and we've never had an issue. I guess we could do the secured thing but I'm really trying to stay away from that if possible.

If you can't get a non-cosigned card from your bank, I would definitely go to a credit union. They usually only require you to have a small amount (~$5) in a share account to maintain membership (as long as you meet requirements). You can look here to find them and sort by requirements (http://www.ncua.gov/DataServices/FindCU.aspx). You also might want to see if your daughter's college has a credit union or one near campus that allows membership through assotiation to the school

Re: Credit Cards with Cosigner

n777ua — Wed, 31 Aug 2011 00:38:33 GMT

OP~

Let us know what you find out with Chase. I just talked to their underwriting department last week about being added as joint on DW's account and was told they don't have joint accounts anymore.

Re: Credit Cards with Cosigner

Anonymous — Wed, 31 Aug 2011 05:52:32 GMT

Definitely try the credit union.

20 year old college student right here who got a $500 Student Mastercard with the Florida State University Credit Union. At first I thought they denied me because I got the dreaded "7-10 business days" message, but I received a call the next morning saying I needed to come in and become a member of the CU and my card would be mailed to me! Paid like $10 one-time fee then $5 to put into the required savings account (no monthly fees or anything).

Also got approved for 2 Cap1 cards...but I have NEVER been able to get approved for any of these so-called "student" cards, and I've applied for a lot --even Capital One's "journey" student card.

Re: Credit Cards with Cosigner

Anonymous — Wed, 31 Aug 2011 14:04:05 GMT

@n777ua wrote:
OP~

Let us know what you find out with Chase. I just talked to their underwriting department last week about being added as joint on DW's account and was told they don't have joint accounts anymore.

Well, THAT was easy (presses "EASY" button)....

I snuck out of work a few minutes early last night and stopped by the Chase office by my house. The guy pulled up my accounts (I am a signer on daughter's as well, mainly for emergency purposes) and said we had a pre-approved Visa we could use for this. The way they have to do it is, open the account in my name and issue daughter's card as an authorized user. Once the card arrives and we activate it, I need to call the guy at Chase and he does whatever needs to be done to change her to a joint accountholder. Eventually I can have myself removed from the account if I want, but I probably will just leave my name on it as long as 1. she's our dependent and we are paying tuition and most of her bills anyway, and 2. she doesn't do anything stupid...so far so good with the other card. Any stupidity and I just close the account and she's on her own from now on, which I don't anticipate. 10 minutes and I was on my way home.

For what it is worth, we pulled daughter's credit report from Experian last night and there is NOTHING on there except the two inquiries from Citi and Capital One. So her being an authorized user on my other card for 3+ years (Fifth Third) has done nothing to help her establish credit. At least we know this one will go on her record as well as mine, and I will probably close the other card out because it really doesn't serve a purpose now.

Dunno why they told you what they did, n777ua...this really couldn't have been any easier.

Re: Credit Cards with Cosigner

Anonymous — Wed, 31 Aug 2011 14:11:22 GMT

My friend added me as an authorized user on her credit card. She has excellent credit history. I got the card in the mail with only my name on it. Is this going to help me build credit? also, the bank didn't ask for my personal innfo like social security card, they just asked for my name and DOB..will this be a problem when reporting the card activity?

Re: Credit Cards with Cosigner

Anonymous — Wed, 31 Aug 2011 15:03:08 GMT

I went through this with my daughter. She is a 19 year old college student.

When a student first starts applying for a cc, the problem is that they do not have a credit record at all. They are a ghost.

I had my daughter first apply for CITI as well. DENIED. She did not even have a thin file, she had no file of course. They would not approve at all.

I had been told by a couple of my companies to put her on as an AU as well. But I also did not want to do that.

I researched the heck out of it. It appeared that Capital One was the easiest card to get for a college student. She applied online and PRESTO! Approved INSTANTLY with a $500.00 credit limit. THE KEY IS THAT THE STUDENT MUST HAVE A JOB. My daughter works part time and makes decent money as a college student. If the student does not have any source of income on their own, then it appears that they will not get approved.

Here is the link for CAP1 :

http://www.capitalone.com/creditcards/journey-student-rewards-credit-card/a/?linkid=WWW_1010_CARD_TGAFF01_Z_Z_01_T_CP91417AW

For 6 months, I told her to charge ONE thing on it every month (no more than $35.00 which is 7% of the credit limit), let it post and then PIF. She has done this religiously. She would either get some gas at the pump, books, clothing, etc.

6 months later, she applied online for Zync and was instantly approved. She then applied for CITI forward (student) and was approved with $800 CL. When she applied for Citi 6 months later after her initial rejection, they still did not instantly approve, but the screen provided a phone number to call them. They wanted to verify her address, and they approved her on the phone. After all of the hours and days I have spent reading posts on here, I realized that she needed to have a credit MIX as well. She applled for ONE store card ( I told her to choose wisely because she should only have one, and get one that she will actually use in rotation). Of course she chose Victoria Secret, and was instantly approved for $500.00.

She has 4 cards now that are ONLY used in rotation. She never spends more than 10% of the cards CL (averages between 6-7%), and pays in full every month once it reports. Her cards now have to AGE. She took 4 hits in less than a year, so that is a lot. The only thing really missing is some sort of installment account. Instead of paying for college in full every semester, I may have her get a small student loan at some point ($1000.00), but only after a year has elapsed from her last CC inquiry.

Some will say it is crazy for a 19 year old to have 4 cards. I always advise caution with credit. See how they do with one card. If they are pristine with it, then it is OK to add some to the mix. A good credit mix will get a better score. If they are maxing out every month, then don't get any more cards. Keep the utilization LOW, and always pay on time. I am embarrassed to admit that her credit score is now better than mine. LOL. BUT......I am so happy to pass on all of the information I have learned on myfico to my daughter.

Most importantly: GOOD LUCK! Let us know how you make out!!

Re: Credit Cards with Cosigner

Anonymous — Wed, 31 Aug 2011 15:07:53 GMT

oy...disregard my post. I see you did the Cap1 route with no luck. My BAD.

It looks like everything worked out though!

Re: Credit Cards with Cosigner

Anonymous — Wed, 31 Aug 2011 15:29:15 GMT

@Anonymous wrote:
@n777ua wrote:
OP~

Let us know what you find out with Chase. I just talked to their underwriting department last week about being added as joint on DW's account and was told they don't have joint accounts anymore.
Well, THAT was easy (presses "EASY" button)....

I snuck out of work a few minutes early last night and stopped by the Chase office by my house. The guy pulled up my accounts (I am a signer on daughter's as well, mainly for emergency purposes) and said we had a pre-approved Visa we could use for this. The way they have to do it is, open the account in my name and issue daughter's card as an authorized user. Once the card arrives and we activate it, I need to call the guy at Chase and he does whatever needs to be done to change her to a joint accountholder. Eventually I can have myself removed from the account if I want, but I probably will just leave my name on it as long as 1. she's our dependent and we are paying tuition and most of her bills anyway, and 2. she doesn't do anything stupid...so far so good with the other card. Any stupidity and I just close the account and she's on her own from now on, which I don't anticipate. 10 minutes and I was on my way home.

For what it is worth, we pulled daughter's credit report from Experian last night and there is NOTHING on there except the two inquiries from Citi and Capital One. So her being an authorized user on my other card for 3+ years (Fifth Third) has done nothing to help her establish credit. At least we know this one will go on her record as well as mine, and I will probably close the other card out because it really doesn't serve a purpose now.

Dunno why they told you what they did, n777ua...this really couldn't have been any easier.

It can take up for a month for an AU account to report on credit.

Re: Credit Cards with Cosigner

Anonymous — Wed, 31 Aug 2011 16:11:12 GMT

@Anonymous wrote:
It can take up for a month for an AU account to report on credit.

Fair enough, but in this case she's been an AU on that account for 3+ years. Maybe it would have something to do with her being under 18 when we initially did it? We gave it to her around the time she first got her drivers' license so there could never be an excuse for running out of gas (plus we would have had to hand her a wad of cash to fill the tank with and I didn't want her walking around the high school with a large-ish chunk of cash). At this point I don't even remember what info we had to provide for her to get the card.

Not a biggie. Problem solved.

Re: Credit Cards with Cosigner

Anonymous — Wed, 19 Dec 2012 09:44:48 GMT

I highly recommend looking into credit reunions. They are extremely helpful and are unlike any other banking experience you have ever had. For instance do you thin BofA would call you to telll you were about to overdraft because of that purhcase you made at the mall and give you a chance to return it or transfer funds before getting slapped with a 38 dollar fee? I don't think so.

Credit Unions are personal and caring. I think you may find your solution to your problem there.