18 year old son wants to start building credit. Recommendations?

open a bank account and a credit card.

quote:

---

open a bank account and a credit card

---

The first part is much easier to do than the second.

1) He isn't going to have choices for rewards and he won't get the best interest rates. It's beginner credit.

Is he a student? If so, Capital One Bank has a card that is aimed at first time credit card holders. It will have a $300-$500 credit limit to begin. Probably his best option.

quote:

---

He's had a Chase checking account (and has his own debit card with it) since he was 15. So maybe go to a branch and see if they'll give him a credit card? It would more than likely be a secured credit card right?

---

It would be preferable for him to get an unsecured credit card. Make sure that he applies for a card with an institution that offers both secured and unsecured cards. That way they won't have to pull his credit twice. I know that Capital One offers both. Call and ask Chase if they offer secured credit cards.

I've had 2 friends apply with Capital One in the past 2 years that had zero credit. Actually the 1st one had a very small non credit collection on the report. She had to get secured with $200 CL and $49 into a savings account to secure it. The other person had absolutely nothing on her report. She was able to get $500 unsecured credit card.

LINK

100 points is equivalent of a redeemed dollar.

3 points per dollar at all amazon purchases

2 points per dollar for gas, resturants, and drug stores

1 point for everything else.

And there are multiplier bonuses for things like buying 300 dollars worth from Amazon a month.

I went to my credit union got a collateral loan paid it back and then got Capital One credit card

he sounds smart, tell him to worry more about doing good in college. Live poor for the next 5-10 years, save money in a retirement account, marry the right person, get a good job. credit score will adjust itself accordingly and is much less important than the above.

quote:

---

He's had a Chase checking account (and has his own debit card with it) since he was 15. So maybe go to a branch and see if they'll give him a credit card?

---

Doubt they will with zero credit history as I tried to do the same thing a few years ago. Dad had to open a new card with my name added to it.

My son is a user of our card ... THAT helps him to build credit? I honestly don't think I knew that since the bill comes to us and is paid by us. (He uses it for gas, things for school.)

And I thought if under 21 yo you had to have a parent co-sign???

Get him to apply for the Discover cash rewards card, it's their basic free card and it was my first card a few years back. No complaints and it actually has decent cash back if you catch gas or groceries on the rotating 5%

quote:

---

I have an old credit union account and I called them to see what they might have as well. They have a "credit builder" loan that he can take out. He'll never see the money for the term of the loan (example is $1k) but he'll make monthly payments on it. At the end of the term he'll get the loan money plus any accrued interest on it. Kind of like a forced savings account that he can't touch, but has to pay the payments.

---

Typically u pay more interest than you earn on these. Not really worth it. I'd out some service like a cell phone in his name before I did that