Credit for Student

[Focused10]

HI. I'm on a journey to teach my soon to be college freshman daughter all about credit. What's the best way to get her started? She has nothing, but I want to help her start building credit so she will already be educated when the vulchers come on campus enticing them with trinkets for credit. What do you recoemmend as far as credit cards? I looked at the Discover IT for students but it asks for income, and of course, she doesn't have any. Your advice is appreciated. Thanks.

[BluePoodle]

Hello Focused,

Here is a link for my daughter's credit journey 

http://ficoforums.myfico.com/t5/Credit-Cards/Building-College-Student-Credit-History/td-p/2992810

[heyarrnold]

Hi there

First of all, good for you for wanting to teach her this whole game very early!

Per my experience, as I was a student not too long ago , I would suggest that if she qualifies for deferred student loans, to go ahead and let her get those loans. And if she doesn't need them, even better. Put the loan amount in a savings account, let it acquire interest, and then pay the loan off in full when she graduates in four years! These loans would be the easiest type of loans to get under her name. She is approved if she qualifies for financial aid, and pays no interest while in school. 

As far as credit cards, I would get her a secured Wells Fargo, Capital One Platinum, or Bank of America credit card to begin with. These will allow her to begin her credit journey. Use the secured credit cards for 6 months to 1 year.

Down the road, if she gets a job or scholarships, she can put that down as income and apply to regular credit cards. Discover It would be a great started and so would the Chase Freedom. 

[Focused10]

Great! Thanks for sharing. I can certainly add her as an AU to one of my accounts. 

Also, please share with me how you get the credit card icons in your signature? 

[longtimelurker]

My daughter's both got Capital One Journey at the start of their student time, which seems to be a good card (and Citi Forward, which was 5x at the time, but now not worth it).  I had added them earlier as AUs on one of my Cap One cards.   They also got Amex BCEs.   They both had small earnings from jobs on campus.

Last week (after her sophomore year), the younger one got a letter offering to change the card to Quicksilver, which is even better.

[heyarrnold]

---

@Focused10 wrote:

Great! Thanks for sharing. I can certainly add her as an AU to one of my accounts. 

Also, please share with me how you get the credit card icons in your signature? 

---

Read this thread for siggy pictures:

http://ficoforums.myfico.com/t5/SmorgasBoard/THIS-IS-HOW-YOU-ADD-CREDIT-CARD-PICS-TO-YOUR-PROFILE/td...

[msbia]

Hi Focused10, I am just like you! My youngest daughter turned 18 last week and on her birthday I had her open a checking account with USAA. She had previously had a joint credit union account with her older brother, but liked being an AU on my USAA Amex. Once she opened the checking account with $25 she immediately applied for their college student credit card and was approved for $300. Also, her being inspired by my credit journey she also applied for the Discover IT student card and was approved for $500. I have taught her well about credit so she knows what to do. My daughter does work part-time with her money going direct deposit, which she just switched over to her USAA account. I think that the BOA Secured route is a good way to go too, but the Discover Card is great for students as long as you teach responsible spending. Good luck!

[Focused10]

I'm happy to report she got approved for a DIscover for students!!! I'm so excited for her. We don't know the limit yet, but hoping it's $500 or less. 

Thanks for all of your input.