<p>I am a responsible credit card user (have experience with credit card signed under my mom and actually paying her bills, etc) and I would like to start out in the right financial path. I will be 18 less than a month and I’m contemplating on getting the “right” card. I would like to build good credits but also get rewards for using that card. From your experience, which credit card would you recommend me to apply for? What should I be wary of beside paying it on time, etc?</p>
<p>How about no credit card , but a VISA check card linked to a checking account ?
No temptations to buy things just because there is plastic in your wallet. You have plenty of time to build credit. Once you get one card, you will be bombarded with credit card solicitations too.
I don’t allow my girls to have them and they really don’t need them either. When they are independant and out of college, they may do what they wish, but they are learning to live without them and learning to manage bills without plastic.</p>
<p>The Citi mtvU credit card has some pretty nice rewards.</p>
<p>I disagree with people who advise debit cards over credit cards. As long as you are responsible and <strong><em>pay your bill in full EVERY month</em></strong>, it is a much better idea to start building your credit now than to wait 4 years until you’re done with college and needing a place to live, car, etc.</p>
<p>And if you can’t be responsible with a credit card, debit cards aren’t a terrific idea either. There’s still the chance of having it stolen (with much higher penalties than a credit card), overdrawing your account, etc.</p>
<p>BankofAmerica will start an 18 yr old college student with a card limit of $500. Pay the bill ontime – never, ever, pay interest – and they will slowly increase the limit; it’s a great way to start your own credit file. The card is no-fee, and may even come with your college’s logo.</p>
<p>Yes, you will be bombarded with offers. But, here’s the trick: use your home address so mom or dad can toss the gazillion letters. You can view your account and pay the bill online.</p>
<p>My son got an FIA last year…CNN had the top 5 cards for students and that was one of them. He bought a 200.00 item (500 limit) paid it off in 3 months and hasn’t used it again. I told him he should for small purchases because it isn’t just having it, it’s paying on time. I was going to advise him to pay it in full but the article said that credit is better when they see you paid it by the due date for an ongoing time,and more than the minimum. Either way, I think keep the purchases small, pay it within a few months in possiblie and don’t buy on impulse. I had my son link it to his checking account which helped him pay it easily and they reminded him also a week before.</p>
<p>Check your B of A card closely. D got one and then they changed the liability clause to only include items bought in the state of the card’s mailing address or 100 miles from that address. Doesn’t do much good since she goes to school over 1600 miles away and does most of her purchases there. Ended up getting her a Chase student card.</p>
<p>Csleslie-- what exactly is this liability clause? I am interested in getting my D a credit card, and she has a checking account at B o A, so that would be a natural, but she goes to school 200 miles from home. So, could you elaborate a bit? Thanks!</p>
<p>Let’s say I’m still 17 and my parents have a Bank of America card for me under my name, but linked to their account, do I still build credit even though they’re paying the bills?</p>
<p>I don’t know this for sure, but I was told by Wachovia to have my son open a free checking account and link the card to it. That makes sense since you will need a checking/savings account and it makes the student more responsible. I know Wachovia has an automatic debit for bills if you set it up and a reminder email to let you know it will be due within a week or so.</p>
<p>If your parents want to help you pay it, they can always deposit money in the account for you…as I told my son, the responsibility for the card has to fall on your shoulders (but the help from the bank picks up any slack)</p>
<p>Part of the “Important Notice in Change of Terms” (you know, the information in small print they are always sending you but hardly anyone reads):
“Special Rule for Credit Card Purchases: If you have a problem with the quality of the property or services that you purchased with a credit card, and you have tried in good faith to correct the problem with the merchant, you may have the right not to pay the remaining amount due on the property or services. There are two limitations on this right:
(1) You must have made the purchase in your home state or, if not within your home state, within 100 miles of your current mailing address; and (2) The purchase price must have been more that $50.”
Yes, one could put in a change of address twice a year if their student goes to school out of the 100 mile limit, but there are so many problems with the post office these days. We called the company about this but they were not interested in removing this clause. Then when D tried to apply for another Non-restrictive card from this company, they said she already had been extended enough credit so they would not issue another card.
BTW the card is a B of A Platinum Student Visa. So be sure you read the fine print.</p>
<p>That’s true, although Citi Bank’s card is fine…as the customer service rep repeated more than once, “We got you covered. Anywhere, anytime, for students and non-students, any place, anywhere.” They also have a fraud check…called us to ask if we were out of the country and we weren’t…someone took my card I dropped at the gas station 2 days before!
It is good to check though…lots of fine print everywhere.</p>
<p>The card that is co-signed under your parents does not help you build credit.
I have a Wachovia card (signed under my parents b/c I’m still 17) that I use responsibly. However, none of the person, your parents or you, get any credit b/c it’s used as a debit card with a credit card capability. </p>
<p>So it looks like Citi MTVU is the winner then?</p>
<p>I am wondering, if a college student (over age 18) applies for a credit card, he or she is asked to put down a figure for “household income.” Let’s say that the student lives in a dorm, but the legal residence is still the parents’ house. So would “household income” include the parents’ income? If so, would the parents be liable for paying off the credit card debt if the student defaults? Does anyone have any experience with this?</p>
<p>Or are students getting credit cards using only their income?</p>
<p>I agree with aphoticmelody regarding credit over debit. If you debit gets compromised they are in your account. If you credit card does, the liability is limited and they can’t do too much (unless you have a very large limit – unlikely for a new person with no credit history). Can’t suggest my D’s card which is low interest and earns points because it comes through an insurance company which is restricted to members. But I am sure some of these others are similar since they can’t really be that far apart (on the low side).</p>
<p>When my daughter applied for her card she just put her income which was pretty low. It was a card specifically for students. The limit is quite low - maybe $1,000 which is a good thing. </p>
<p>It is good to have their credit rating building (assuming they are good about paying on time). When my daughter and a friend decided to get an apartment they put the electric in the friend’s name and the internet/cable in my D’s name. My daughter has built enough credit rating that the internet company waived the security deposit. her friend had not started building a credit rating so they had to pay a security deposit for that.</p>
<p>When my son applied for the Citi mtvU Platinum Select Visa for college students, he put down he earned 2,000 and they gave him a 4,000 limit. I was surprised. It has 6 months 0% interest. He bought a suit and a few other things and will have it paid off before the 12.99 kicks in. I told him if he keeps making manageable purchases and pays them off within a few months, his credit should be very good when he starts to look for cars, apartments, etc. My kid though is not the norm, getting him to charge is hard…he’d rather pay cash!</p>