Establishing Student Credit cards for my son

[birjest]

Ok, I think I am setting my son up for success  (18 yo).  November of last year, I added my son as an AU on my AMEX Zync ($750 limit).  Around March, I had him applied for the Discoverer's student card, and he was approved for $1500.  Fast forward to today, I wanted to round him out with a Visa/MC, so we applied for a Citibank's student card.  After the infamous "we will need more time to review" message, I called....only to find out he was denied.  So, here he wasted an inquiry, I called back.  I was told that his credit history was short... 

I explained to the rep that this was the reason why he applied...to establish a history (he only have 10 months).  Soooo, I went to USAA and called the rep before applying.  They explained to me the ins and outs, what I needed to make his application look favorable, and 5 minutes later...cha-ching, he was approved with a $1K limit.

Now, he has an AMEX, Discover, and a Visa.  I thought about having him work in a Master Card, but at this stage, I believe he already have the basic foundation to grow his 'credit tree'.  Also, his EQ is a 680 and TU is 665.

[westo12]

<3 this!  This is what parents are supposed to do for their kids, I've been wanting to do the same thing.  Was your son 18 when you added him as an AU the first time?

[Anonymous]

Excellent job!  No need to apply for anymore cards.  Let those accounts age until after he graduates from college if that's the route he plans to take. 

[Anonymous]

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@birjest wrote:

Ok, I think I am setting my son up for success  (18 yo).  November of last year, I added my son as an AU on my AMEX Zync ($750 limit).  Around March, I had him applied for the Discoverer's student card, and he was approved for $1500.  Fast forward to today, I wanted to round him out with a Visa/MC, so we applied for a Citibank's student card.  After the infamous "we will need more time to review" message, I called....only to find out he was denied.  So, here he wasted an inquiry, I called back.  I was told that his credit history was short... 

I explained to the rep that this was the reason why he applied...to establish a history (he only have 10 months).  Soooo, I went to USAA and called the rep before applying.  They explained to me the ins and outs, what I needed to make his application look favorable, and 5 minutes later...cha-ching, he was approved with a $1K limit.

Now, he has an AMEX, Discover, and a Visa.  I thought about having him work in a Master Card, but at this stage, I believe he already have the basic foundation to grow his 'credit tree'.  Also, his EQ is a 680 and TU is 665.

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This is great! I am thinking of adding my DD to my Navy FCU cash rewards Visa acct ($3k limit) and also having her apply for a secured card with them. I don't have a Discover or AMEX to help her history so I will only be adding her to maybe one or two. One question, aren't students supposed to report their "income" now on student credit cards?

[birjest]

Yes, he was and still is 18.  I think he is off to a good start, 2 cc on his own, with another as an AU.  And he is very careful about credit.  He saw what me and his mom went though back in 2008...in which we went through the Dave Ramsey 's program.  Great program, a bit off line about credit, but I am teaching my son that credit cards are tools and not toys.  I also use the DR phrase, "don't be a slave to the credit card companies, be the master..."  or something like that...

[birjest]

  Since my son receive $1000 from VA as stipend, I added that as income.  Do you give your DD some form of funds for chores, or living expenses?  If so, that is a form of income.  As for the secured card, that was what Citi was telling me to do.  I explained to them that my son has an unsecured Discover and AU AMEX.  So, we went to USAA.  He, or should I say, we are not applying for no cards until he graduate from college.  His wallet is well-rounded...

[Anonymous]

You inspired me. My girls just received approval for their credit card accounts with USAA as well. They are both very responsible and have managed their own checking accounts for a few years now. 

[westo12]

Thank you for confirming!  That's what I'll be doing on her 18th birthday, she's also seen me struggled far too long with past (and some current, lol) credit issues! 

[Anonymous]

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@birjest wrote:

Ok, I think I am setting my son up for success  (18 yo).  November of last year, I added my son as an AU on my AMEX Zync ($750 limit).  Around March, I had him applied for the Discoverer's student card, and he was approved for $1500.  Fast forward to today, I wanted to round him out with a Visa/MC, so we applied for a Citibank's student card.  After the infamous "we will need more time to review" message, I called....only to find out he was denied.  So, here he wasted an inquiry, I called back.  I was told that his credit history was short... 

I explained to the rep that this was the reason why he applied...to establish a history (he only have 10 months).  Soooo, I went to USAA and called the rep before applying.  They explained to me the ins and outs, what I needed to make his application look favorable, and 5 minutes later...cha-ching, he was approved with a $1K limit.

Now, he has an AMEX, Discover, and a Visa.  I thought about having him work in a Master Card, but at this stage, I believe he already have the basic foundation to grow his 'credit tree'.  Also, his EQ is a 680 and TU is 665.

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Congrats! I started out by myself last year with the mtvu card by citi after being denied. I called the executive office and explained that I was trying to build my credit which is exactly what their website claims the forward and mtvu is and was. I eventually got approved. YMMV

[birjest]

Since my son did take a inquiry hit, we will call tomorrow to recon for the Forward.  He was denied the student dividend plat select.  It still baffle me that these cards are gear for college students, but as a sophomore and being 18, he was denied for short history....as the infamous Mays Gilliam would say..."IT AINT RIGHT!!!"