First credit cards for an 18 year old?

[masscredit]

I believe some lenders don't give much weight to AU accounts? I'm courious to see what their scores are with just those accounts. I will be guiding them towards long term goals but I think at least one will be guiding me at some point. She works at a bank and will be majoring in finance. 

[keekers]

---

@masscredit wrote:

Not really credit card related but thinking about this for scoring purposes which might get them better cards in the future - what do you think about each of them getting a SSL then paying them down to 8%? They'll get the scoring benefit for having a loan and the history that goes along with it which can also be benefical in the future. 

---

I did this with my son when he turned 18 to help his credit mix.

[FranknBeans]

My daughter was a AU on four of my cards. The day she turned 18 she had a credit score in the 780s. She was oreapproved for all the Amex cards   She ended up getting the blue cash. A couple months later she got a Discover Cash Back. Scores recovered and are in the 780s.  She wants a Chase card but hasn't tried yet.  Her CL are 6k for Amex and I think 3 k for Discover. 

[Anonymalous]

---

@masscredit wrote:

I believe some lenders don't give much weight to AU accounts? I'm courious to see what their scores are with just those accounts. I will be guiding them towards long term goals but I think at least one will be guiding me at some point. She works at a bank and will be majoring in finance. 

---

Most don't. I was new to credit 3 years ago, but due to a 20+ year old AU card, I had FICO 8's in the 760s through 780s. Still got shot down.

Credit scores matter less than what's your credit profile. That's why starting with student cards or starter cards is a good idea. Every lender will look at your daughters' profiles, and see new files. One option I don't think anyone's mentioned is the Chase Rise, which is a 1.5% cashback card intended for those new credit, though having a deposit account is basically required. It's a replacement for their old student card, but broader (not just for students).

And for an 18 year old, I don't think there's any reason to get more than 1 card. The most important thing about credit is learning to handle it. Get a card, learn how to read statements, due vs. close dates, the effect of balances on credit scores, how to manage utilization, autopay, etc. Develop good habits early, and it'll last a lifetime.

[Thomas_Thumb]

---

@Anonymalous wrote:

---

---

Credit scores matter less than what's your credit profile. That's why starting with student cards or starter cards is a good idea. One option I don't think anyone's mentioned is the Chase Rise, which is a 1.5% cashback card intended for those new credit, though having a deposit account is basically required. It's a replacement for their old student card, but broader (not just for students).

And for an 18 year old, I don't think there's any reason to get more than 1 card. 

---

Chase Rise "having a deposit account is basically required". That sounds a lot like a secured credit card.

[ptatohed]

---

@Thomas_Thumb wrote:

---

@Anonymalous wrote:

---

---

Credit scores matter less than what's your credit profile. That's why starting with student cards or starter cards is a good idea. One option I don't think anyone's mentioned is the Chase Rise, which is a 1.5% cashback card intended for those new credit, though having a deposit account is basically required. It's a replacement for their old student card, but broader (not just for students).

And for an 18 year old, I don't think there's any reason to get more than 1 card. 

---

Chase Rise "having a deposit account is basically required". That sounds a lot like a secured credit card.

---

It's not secured.  Chase just says your odds of approval are much higher if you have an account with them.  

[Anonymalous]

---

@ptatohed wrote:

---

@Thomas_Thumb wrote:

---

@Anonymalous wrote:

---

---

Credit scores matter less than what's your credit profile. That's why starting with student cards or starter cards is a good idea. One option I don't think anyone's mentioned is the Chase Rise, which is a 1.5% cashback card intended for those new credit, though having a deposit account is basically required. It's a replacement for their old student card, but broader (not just for students).

And for an 18 year old, I don't think there's any reason to get more than 1 card. 

---

Chase Rise "having a deposit account is basically required". That sounds a lot like a secured credit card.

---

It's not secured.  Chase just says your odds of approval are much higher if you have an account with them.  

---

Yep. Chase is all about cross-selling, so I don't think they're using the deposit account as a stealth security deposit. Instead, they're pushing people toward a deposit account because they want to lure them deeper and deeper into their ecosystem.

[FranknBeans]

My daughter got approved for the Chase Freedom Flex   Third card at 18. A Discover, Amex and now Chase.  Her scores are still in the high 760s.  

[masscredit]

Currently the plan is to pull their reports and check their scores to see what the starting point is. The utilize pre-qualification sites for Discover (most likely the student card) and AMEX. Also looking at a Chase card. I've read the chances of being approved are greater if the person has at least $250 in an account with them. Sooo... I might suggest they open accounts with that amount then set them up with direct deposit. That will get them a $300 SUB. Then let those accounts age/grow over time.