Credit Line for students

[Anonymous]

Hello folks, I hear that FICO score is the most important factor for getting a good credit lines, but how important are the occupation and the household income? For example, do you think a student with a good FICO score can get approximately $10,000 credit card?

[Anonymous]

Define "good."

Seriously, I think that credit line is way too high for your average young'un. You don't have to learn to drive in a Ferrari, and you don't need a $10,000 credit limit to learn how to manage credit.

If you're just starting out, you're rather unlikely to get a card with that high a CL. Most likely, you'll get something in the $250 to $500 range. The good news is that, as long as you don't mess up, that should be increased by the end of the year to a thousand or so, and on from there.

[Anonymous]

My friends and I, in college about 5 years ago, were getting more than $500 CLs. I've seen many cards start out at $2500-5000 for beginner college students. But the financial market has changed quite a bit since then so I don't know what you'll get.

[CreditDrama85]

when i was in college i started with an Amex green card and would pay in full. it was my only credit card. i was eventually upgraded to platinum and then i applied to citi with a 3 yr credit history and got 11k.

i am still learning to manage my credit and i finally hit a few bumps in the road but eventhough Amex closed my cards and marked them as "paid account, was a charge-off" . i have citi, 3 capital one, a secured wells fargo, and national city.

i have learned not to have as many accounts and to live within my means because your income can change at any time. and i think thats the lesson students can only learn through time no matter how responsible they are.

as a student, if u visualize how u can pay off the purchase in the near future, u will buy it. i now ask myself if it is something i need.

[voidman]

When I was a student, I didn't have a credit card, no ways a student needs a credit card. Looking at the replies, the credit card companies is making a lot of money out from these no-income students.

To build a credit history all you need to have is a checking account with a check card, in a year the credit history is good enough for a card and sometimes the bank itself will give you a credit card after a year or so usage of the check-card.

Lesson No 1.
When you are student spend your own money and not a "credit" money.

Lesson No 2.
Finish your college.

You only need few credit cards to build a revolving credit history. It need not be hundreds of k of credit limit to show a util of 1 or 2%. It can be done with $300 card also.

Credit Card is not for everyone and don't consider it as your right to have one.

[haulingthescoreup]

Sorry, you don't build a credit history (as defined here on the forums) with a check card.

There's no problem at all with college students having credit cards. Mine all do, $1000 CL's for the first few years, and they're learned to treat them like debit cards.

The middle kid has four years of history and 760 scores. The others each have one late from bumbling their payments one time, and their scores range from 680's - 690's (for the 20 year old) to 720's (for the 25 year old.)

When you graduate from college and need to get an apartment and furniture, plus a job that might require a credit check, it's pretty handy to have at least 2 years of reportable history under your belt.

[mrlimo]

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haulingthescoreup wrote:
Sorry, you don't build a credit history (as defined here on the forums) with a check card.

There's no problem at all with college students having credit cards. Mine all do, $1000 CL's for the first few years, and they're learned to treat them like debit cards.

The middle kid has four years of history and 760 scores. The others each have one late from bumbling their payments one time, and their scores range from 680's - 690's (for the 20 year old) to 720's (for the 25 year old.)

When you graduate from college and need to get an apartment and furniture, plus a job that might require a credit check, it's pretty handy to have at least 2 years of reportable history under your belt.

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the only question Hauling that comes to mind is how much of there credit awareness is taught at home by yourself? I completely agree with you and when it comes time for my 3 year old in 15 more years. I want to teach him about credit awareness and how to manage it properly. Many kids however dont have that structure in learning and could very easily go askew being there in college no money and want to party.

[haulingthescoreup]

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@mrlimo wrote:

the only question Hauling that comes to mind is how much of there credit awareness is taught at home by yourself? I completely agree with you and when it comes time for my 3 year old in 15 more years. I want to teach him about credit awareness and how to manage it properly. Many kids however dont have that structure in learning and could very easily go askew being there in college no money and want to party.

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They've learned a lot from me, whether they much wanted to or not. I gave all three a copy of Suze Orman's book Young, Fabulous, and Broke, and we were very fortunate that I'm with USAA and was able to get them started there. My middle one (the 760's 22-year-old) even gently advised her younger sister to not try to go AU on one of my cards (I hadn't offered) because, "Umm, Mom's credit isn't so hot." Gee, thanks. I started pulling their FICO's quarterly a year or so ago, so that they could see the cause and effect.

I didn't get any education whatsoever in this area as a kid, as my parents grew up in the Depression and were naturally frugal. I doubt that education would have helped me, as I was particularly bone-headed, but now that credit has gotten so complex, and the American personal finance scene has changed so much, I think every parent ought to first learn about it, and then pass it on.

When it comes to credit and my kids, I very much followed the Catherine Aird advice: "If you can't be a good example, then you'll just have to serve as a horrible warning.” And I've also droned my own saying at them that credit is a wonderful servant, but a terrible master.

[Anonymous]

lvoH,

Anything is possible, but you have to have a lot of other things going for you. If you happen to have say 100,000k invested with Fidelity, then they can make a call and get you a high limit credit card. Most college students, however, don't have financial advisors managing uber cash/equities.

I didn't have a credit card until I graduated college - which is delaying my scores rise somewhat, so I do think it is a good idea to get one. That said, I agree with previous posters that you need to think of it as a debit card, and thus, unless you can put 10k through your debit card, you have no need for a 10k credit line.

Your line of 300-1000 will grow quickly and could be at 5k or more when you earn your first post-grad job. Goodluck, a credit card is most often the start to a great credit history.

[voidman]

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@haulingthescoreup wrote:
Sorry, you don't build a credit history (as defined here on the forums) with a check card

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Well, the check card does not really help directly to up the score, but usage of the check-card for a year or so do get a valid and good enough score for credit-cards. I am not talking theoretically, but practically by few of my friends who are immigrants.

I will not argue about people who do not earn (either school or college people or otherwise) enough or do not earn at all to have a credit card, as I disagree on that in and out.