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editrix · 03-26-2005, 11:11 AM

I'm inclined to agree with Newmassdad: I don't think your daughter will find it hard to establish credit later on, and I believe student credit cards can hurt more than they help. Many of these cards come with disadvantageous--and confusing--payment terms and interest rates, and can lead to real trouble, from major debt to a lousy credit rating because of a few late payments. There have been many articles warning about the dangers of these cards; here's a link to one that seems pretty sensible: http://www.youngmoney.com/credit_deb...debt/020809_01.

Assuming that your daughter has a savings or checking account, many banks (my freshman daughter uses Bank of America) now have ATM cards that also function as Visa or Mastercard debit cards that can be used at stores and for online purchases. Like Newmassdad, I also got my daughter her own credit card on my account, to be used for emergencies and pre-approved expenses like school books and eyeglasses. She knows that I watch her bills on that account and has been extremely responsible with the card. (Even her younger sister, who was at first jealous at the idea that the older one got a credit card of her own, has seen me checking the bills and is getting the idea that a credit card isn't free money.)

I'm not sure whether her debit and/or my credit account will help my daughter start building a credit history, but again, I don't think that will be a problem once she has a genuine source of income.

03-26-2005, 11:11 AM	#8
editrix Junior Member Join Date: Oct 2004 Threads: 5 Posts: 184	I'm inclined to agree with Newmassdad: I don't think your daughter will find it hard to establish credit later on, and I believe student credit cards can hurt more than they help. Many of these cards come with disadvantageous--and confusing--payment terms and interest rates, and can lead to real trouble, from major debt to a lousy credit rating because of a few late payments. There have been many articles warning about the dangers of these cards; here's a link to one that seems pretty sensible: http://www.youngmoney.com/credit_deb...debt/020809_01. Assuming that your daughter has a savings or checking account, many banks (my freshman daughter uses Bank of America) now have ATM cards that also function as Visa or Mastercard debit cards that can be used at stores and for online purchases. Like Newmassdad, I also got my daughter her own credit card on my account, to be used for emergencies and pre-approved expenses like school books and eyeglasses. She knows that I watch her bills on that account and has been extremely responsible with the card. (Even her younger sister, who was at first jealous at the idea that the older one got a credit card of her own, has seen me checking the bills and is getting the idea that a credit card isn't free money.) I'm not sure whether her debit and/or my credit account will help my daughter start building a credit history, but again, I don't think that will be a problem once she has a genuine source of income.