If he has a decent income and no bad credit orchard bank will more thank likely give him a $1,500 credit limit @ 14.9% with a $39 annual fee. Its not bad for a first card and will help him establish credit.
I've noticed that credit card companies love to approve students for cards. I had tons of offers coming in the mail when I was in college, but I never took advantage of them because I didn't feel I needed a credit card. Once I graduated, although my income went up and nothing negative had been added to my credit report, the offers stopped coming in... I find it all somewhat strage, but then again, I find a lot of the things credit card companies do kinda strange...
This isn't strange at all.... credit card companies assume that most students' parents will help pay off any debt racked up on their cards, especially when the nasty collectors start calling....
Students should apply and get a card (w/ no AF, if poss) that they use to buy pizza every few months, then PIF it.... great way to build up credit history.Message Edited by writemikep on 10-27-2009 01:43 PM
That makes sense. I wish I had thought to do that ("apply and get a card (w/ no AF, if poss) that they use to buy pizza every few months, then PIF it.... great way to build up credit history.") way back in the day.
Quark4...I'm really impressed with your high credit scores! awesome job! I was just wondering what have you done to keep up such good scores. I'm getting my credit back and learning as i go any tips would be helpful and again great job.
Thanks for the compliments, KMF. I'll be happy to pass on whatever I know. Here are the rules I follow:
Keep in mind that credit is a privilege. Like all privileges, it comes with responsibility. You will have to work hard for it. I spend about 3 hours every month making sure mine is healthy. This includes reading my credit reports, going through all CC charges, setting up each statement's payment as soon as the statement is available, and rate-shopping for credit (when needed) without actually applying.
And NEVER, EVER CARRY A BALANCE.
Good luck! If you need someone to discourage you from making a purchase on instalments, send me a PM!
If you have no credit at all, or bad credit, you have to start somewhere. I ran into this problem. I had to get a prepaid credit card for about $500. You put the deposit down first, then they issue a card for that amount. I went through HSBC. Yes it sucks to have to pay a deposit and an annual fee ($35), but it's a great way to start somewhere. Pay all of your bills with it for 2-3 years and make your payments on time and in full. HSBC reports to the 3 major credit bureaus so if you keep your account in good standing, after 2-3 years you will begin to show a good credit history. I recently upped my credit line from $500 to $2500 (by depositing the additional 2K) and they boosted my credit line to $8,000. This was after paying on time for over 24 months. Everyone's situation is different of course, but worst case scenario you can get a secured credit card to start building/rebuilding your credit. It takes time and you have to start somewhere.