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

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htownjeep
LSU Fan
Nassau Bay, TX
Member since Jun 2005
4170 posts
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18 year old son wants to start building credit. Recommendations?


What would be a good card for him to start out with? Or what would the wise MT'ers suggest? I started out poorly when I was his age. Glad he's approaching it the right way.






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C
LSU Fan
The Woodlands, TX
Member since Dec 2007
20390 posts
 Online 

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


open a bank account and a credit card.





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dallastiger55
LSU Fan
Jennings, LA
Member since Jan 2010
3901 posts

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


quote:

open a bank account and a credit card.



This. Buy a few things every month and put it on the card and make sure it's paid in full every month

Possibly a card that requires a payoff






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VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
9926 posts

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


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.



This post was edited on 2/6 at 11:25 am


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htownjeep
LSU Fan
Nassau Bay, TX
Member since Jun 2005
4170 posts
 Online 

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


quote:

open a bank account and a credit card.

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?






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mglsu21
LSU Fan
Prairieville
Member since Jun 2012
458 posts

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


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.






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Siderophore
LSU Fan
Member since Nov 2010
3334 posts

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


I don't know if they tightened it up after the credit crunch, but if he uses Amazon a lot get the chase amazon card.

Probably the best rewards card for begining credit.






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Siderophore
LSU Fan
Member since Nov 2010
3334 posts

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


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.






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BACONisMEATcandy
LSU Fan
My opinions are my own
Member since Dec 2007
40240 posts

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


Co-sign with him





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Crimsonsaint24
Alabama Fan
Alabama
Member since Jul 2011
548 posts

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


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





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white perch
Louisville Fan
the bright, happy side of hell
Member since Apr 2012
2479 posts

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


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.





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yellowfin
Illinois Fan
Coastal Bar
Member since May 2006
64309 posts
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re: 18 year old son wants to start building credit. Recommendations?


add him as a user to one of your cards





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Projectpat
Texas A&M Fan
Houston, TX
Member since Sep 2011
5120 posts
 Online 

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


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.






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htownjeep
LSU Fan
Nassau Bay, TX
Member since Jun 2005
4170 posts
 Online 

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


As said by a few, I'll either just add him to one of my cards or co-sign a loan for him.

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.






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tiger91
LSU Fan
South of Lafayette
Member since Nov 2005
12843 posts

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


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???






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southernelite
Iowa State Fan
Lake Charles
Member since Sep 2009
39979 posts

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


quote:

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

lol. no.






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jso0003
Auburn Fan
Birmingham/Atlanta
Member since Jun 2009
4692 posts

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


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%





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bryso
Clemson Fan
The Real Death Valley
Member since Dec 2006
27046 posts

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


Add him as an authorized user on your cards and don't actually give him the card.

That is unless ur a broke dick






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bryso
Clemson Fan
The Real Death Valley
Member since Dec 2006
27046 posts

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


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






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Bmath
LSU Fan
TX
Member since Aug 2010
5743 posts

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


My wife's parents got a card in her name on there account when she ~16. They let her use it for food, gas, and emergencies. She had a pretty nice credit score by the time we got married.

However, I feel like there are probably some drawbacks to this.






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