Student Credit Card from 1st Financial Bank (USA)

[NewHope33]

My D has Bank of America also and her experience has been good. Her account is set up just as ebeeeee described above.

[anxiousmom]

At most colleges, banking info is available at orientation, and there are lots of "student oriented" credit card offers available. Banks are EAGER to signup young users. I would wait until your kid has chosen a college, then look at the atm's and banks available near campus. Many colleges have atm's on campus linked to one bank- and that bank is usually the most convenient to sign up with. Often these student accounts have no fees/low balance limits/ expanding credit card limits etc. The banks are looking to lure customers in now, so that when the student graduates they will continue as customers.

[mom60]

My D has had good luck with a credit card from Wells Fargo. They have even reversed fees for her. It is linked to her checking account. It is a college student package-checking, savings and credit card. I don't remember the initial limit but they have upped it over the past 3 yrs.
I still have my first Citibank credit card that was issued way back when I was in college.

[avery11_88]

wow all these bad reports are news to me so far i have had my card for 2 yrs now and i havent had any of those problems. but then again i definitley dont spend up to my limit on anything.

[red sox 7327]

Just an FYI. If ever you get additional charges that you think are unwarranted (a charge for going over your limit ---well, even if it is warranted...), if you call the company and complain 99% of the time they will drop the charges. Take advantage of this and don't pay because there's another way!!!

[CollegeParent08]

My son recieved this credit card with a $1500 credit limit, he soon had it maxed out which was not the problem because I pay the bill. I never really looked at the charges, I just paid it online. After I paid it off a charge was put on from a shopessen I asked him about it and he said he never charged from there. I started to look into it and found that it was a scam. He was getting charged $9.95 per months from April to January. They told him they could do nothing about it until he cancelled the subscription from them, they gave him the information since he never heard of them, called and cancelled. I called then and told them they were responsible because it was their insecure server that allowed this charge. I told the woman that all she had to do was to google it, and she said that she did not have time to look at a bunch of blogs. I then insisted that I speak to her superior in which she gave me to security and they said that they could not talk to me because it was not in my name this was after my son had given them his permission 3 different times to discuss the account with me. I had him call them and while I was on IM with him told him exactly what to say. The best they would do was to remove 3 months charges only if he had a police report sent in with it. I too am going to write the better business bureau, because not only this but the astronomical charges have to be illegal.

[hudsonvalley51]

All credit cards are bad for anyone under the age of 21 who is not employed full-time, and even then they can be bad if the individual doesn't budget responsibly and pay down their debt at the end of every month. I'd advise you to do the same thing I do with the credit card offers I receive every day in the mail -- send them to the trash bin.

[red sox 7327]

hudsonvalley51, credit cards help college students build credit which is important. If they are not responsible then that is another story. However, if they pay the bill off in full every month then I don't think there is anything wrong with it.

[WayOutWestMom]

As soon as my older D turned 18, I took her to the local credit union (where we have accounts) and had her apply for a student Visa. Student cards have a credit limit of $1000 and a reasonably low fixed rate (around 14%, iirc). Limit was high enough she could buy textbooks and airfare home in case of emergency (her dad was undergoing cancer treatment at the time)--but not so high she could run up serious debts.

I've been quite pleased. Customer service has been terrific! D has been quite responsible over the years and requested (and was granted) an increase on her credit limit to $2000 about 2 years ago. (CU will only increase credit limits if the cardholder requests it and they have a record of positive payment history.) When she graduates in May she will 'upgrade' to regular credit card also issued through the credit union.

Younger D has a debit card connected to her checking account, but since she too will going to college OOS, I will have her apply for a student Visa at the CU befores she leaves because it has more fraud protections than her debit does.

BTW, I was appalled that older D was issued not one, but TWO credit cards from a major commercial bank basically on her signature and EACH card had a higher credit limit that I have on my own credit cards. No way should an unemployed 19 year old have TWO $30,000 lines of credit. I made her shred both cards and then call and cancel both accounts. (Then had her check her credit report to make sure they really did close the cards.)

[hudsonvalley51]

Sorry red sox, we can agree about the Red Sox but I am adamant against credit cards for college kids. Not too happy about them for adults either. I was floating on air two weeks ago when my wife permanently retired six store credit cards. I'm still working on eliminating them all but we'll get there.

[mominva]

Kids are different.
One kid had a credit card issued when she opened student checking. She left it home when she went off to school, only took it out as a back-up when she went to Europe for an internship one summer. Now, graduated and employed she collects frequent flyer miles by paying for everything with her card and pays it off each month. She is extremely self-disciplined.
The other two know the credit card would tempt them into spending now, worry about paying later. To avoid financial trouble, they decided no credit cards any time soon.

[mizzou-mom]

If your child goes far away to school, a credit card with a low limit is a good idea. There are times my D has to quickly book a flight and can't get ahold of me and uses her card. We started her at $400, then upped her to $2000 this year for her study abroad. She has needed it to mostly book flights and hostels as they travel around Europe in their downtime. Of course, I can see the downside if your child is irresponsible with money. But then again, if they don't start learning at college age how to handle money, when will they start? Handling your money and spending is a lifelong challenge for everyone.

[hudsonvalley51]

Credit cards to MOST college kids are what subprime mortgages were to novice house flippers and high risk borrowers. And as is the case with the mortgage mess the coming credit card crunch is the fault of both borrowers and lenders. It was bad enough back in ancient times when I was in college and the credit card companies sent "free" credit cards to graduating seniors. Now they are targeting high school seniors. What next? 8th grade graduates. I am afraid nothing good can come from all of this. Better that college kids establish credit by buying a car and paying it off in installments.

A $2,000 line of credit mizzou-mom? I guess if you can afford it...

[mizzou-mom]

hudsonvalley, she is studying abroad this semester and hence, needed an increased line for her travels. $400 is not enough for airfare, hostels, etc., especally for spring break. Also, she works and has NEVER carried a balance. She borrowed $10,000 on her own student loan to cover her trip. We can't afford it, but she can! We started her financial training early.

[hudsonvalley51]

mizzou-mom -- Your daughter sounds like a very responsible young woman and is probably an exception to the rule. My cautionary stance on college students and credit cards applies to most college students (in this one guy's opinion) but there are always exceptions.