<p>I am an entering college freshman, going out-of-state to Pennsylvania (University of Pittsburgh). My mother lives in Georgia, and my dad lives in California. I have a boyfriend and his family 30+ minutes away from my college, but beyond that, no real friends or family near me. Since I’d be in a city with no close contacts, and no real “income” (I won’t have a job besides work/study), I was thinking that getting a credit card may be a worthwhile consideration</p>
<p>I was wondering: do you think it would be a good idea to get a credit card in this case? I wouldn’t really plan to use it much, mostly for emergencies or situations where I would need one; my family has always instilled a “fear” of credit cards in me. In your judgment, would you think I would be too tempted to use it as a college freshman away from home anyway? What are some tips to look for in selecting a card and tips to avoid falling into a bad debt? Anything else to consider?</p>
<p>have you talked to your folks about this?
I would see if they can open an account for you with a debit card. As a freshman you will have enough to worry about without getting your card paid on time. No better way to start off with a bad credit rating by missing a couple of payments.
A debit card could handle most emergencies. You would just need to keep your folks in the loop when you had to use it so they could make sure it is covered.</p>
<p>When our sons went to college, we made sure they had a credit card for emergencies. We figured the worst case that they could buy a plane, train, bus ticket to get home or to other family. Of the three who’ve been to college, two use it responsibly either checking with us before buying or paying it off if they charged something school related. One did not, carrying a balance near the limit. Our 4th who will be going this fall, understands the temptation to buy things with his credit card, but isn’t certain if he can avoid the temptation (I think he will avoid it).</p>
<p>So as long as you use it for your intended purpose, I think it makes a great safety valve for emergencies. Your main problem now is that they’ve tightened up credit requirements and you likely won’t be approved for a credit card without a co-signer who’s qualified. An alternative might be to get a secured credit card now and in 6 months, request that it becomes an unsecured card. To build your credit rating, you should make regular purchases on it and pay it off each month. If you can’t pay it off, don’t charge the item because you can’t afford it in the first place.</p>
<p>Both of my kids had credit cards in their own names when they went off to college. I wanted to know that if they were in a pinch, they could cover anything (including hospital, doctor, medicine, etc.). That was my peace of mind. As they were not working, the bill would come to the house and I would pay it. Basically, instead of giving them cash, they had the credit card.</p>
<p>Both of them have used it very responsibly and are building great credit in their own name since the card is paid in full well before the due date each month. D graduated, got her job and took over the payments on her card. She has continued the usage and payment pattern that we established. S will do the same thing.</p>
<p>This is what worked for our family. Other families may work differently.</p>
<p>We got our S a Visa card that is connected to our account. It basically our credit card with his name on it. Any charges he makes are to our bill. So there is no danger of him not paying the bill. He knows not to use it without approval from us because we would immediately see the charge on our online acct. It’s mostly for emergencies</p>
<p>He does use it (with our approval) for purchasing his textbooks and to buy gas when making a trip home to visit on breaks. It came in very handy when the ATM ate his debit card his first semester. He was able to use the credit card for expenses while waiting for his new debit card to come in the mail.</p>
<p>These are all very helpful posts! I like to hear that other students have been able to resist temptations with a card. I am fairly responsible and good with money (I have already set up a monthly/semester-ly budget and paid my dad back in full for a $784 laptop within 3 months). I talked to my dad about it before and he said we would “look into it,” but his credit isn’t fantastic right now.</p>
<p>@#Theorymom - I am already getting a debit card, but I’m worried that, since I wouldn’t be working, it would be difficult to manage to hold a high enough balance to cover emergencies, like a plane ticket home, hospital bills, or the like. I figured a credit card would be better for those types of situations? However, your suggestion does seem like less of a risk than a full-fledged credit card. Thanks!</p>
<p>Also, what do you guys think about “student cards?” Are they just as good as “real” cards? </p>
<p>Keep the stories and advice coming! Thanks everyone!</p>
<p>With D#1 we experimented with a student card, but the credit limit was so low she would not have had enough credit for a plane ticket home! Plan B was to put her on one of our cards. That worked out fine (except for a few occasions when the college insisted on a check – neither card nor cash would do). In both cases bills were sent home.</p>
<p>Armed with this experience we convinced D#2’s bank to issue a credit card in her name, secured by deposits. That may no longer be legal as D#2 was just 18 at the time.</p>
<p>Both girls are very responsible, and there has never been a case where a charge needed to be “discussed.” YMMV.</p>
<p>We gave our D a credit card from our account, so we see all of her charges (she has never abused the card). It came in handy when she had to go to the bookstore for her text books, or when she needed to get a printer. It has also been useful for paying for her luggage fee when flying (grrrr) or getting a spot on the shuttle to her school. She doesn’t use it much, but I am much more comfortable with her having the charge card than withdrawing gobs of cash and carrying that around.</p>
<p>DD has her own card with the low student limit. She uses it to order things on line. She pays it off each month and is developing her own credit rating. Important when they graduate and want to rent an apartment, start utilities, etc. </p>
<p>She is also on one of my cards that I keep just for the students in the house. I see the charges and she uses that when she needs to make bigger purchases with my approval… Also handy when I want her to shop for me. </p>
<p>Her brothers on the other hand had trouble managing a credit card of their own and learned the hard way about charging too much. Had to cancel theirs, have them pay me back and have them use only mine for a while while they re-learned proper money management. At least the lessons were learned while there was a safety net and before they were really up a creek.</p>
<p>S has his own card in his own name. He is responsible for it and finds it convenient to use it frequently, though I have so put the fear of debt into the poor child that he pays it in full a few times a month! He lives in terror of a finance charge. It was very handy to have during his semester abroad. Now that he has had it 3 years, the limit has been increased a few times. I think he is on his way to establishing a very good credit rating.</p>
<p>This is exactly what my parents have done to me - or my mom, at least. She pays her credit cards off at the end of every month, and would always complain and reteach us the dangers of credit cards whenever she had to use one. My dad is a bit more “open” to them, but while he doesn’t practice what he preaches, preaches he still does. I’m glad to see that it made a difference in your son, and I’m beginning to think that I would be in the same situation. Thanks!</p>
<p>I like Packmom’s solution for our situation and may just do that if the CC company will do it. But then again, if the card is lost or stolen our high credit limit could rack up some pretty big bills before we might know it was in the <em>wrong</em> hands.</p>
<p>Most places take debit cards like credit cards these days - but the “emergency” thing is a real concern. Have not decided what we are doing if anything besides a debit card.</p>
<p>We got a credit card for each kid. S had an income so he was able to get one in his own name & I got a card & have the statements come to me so they don’t get lost when he switches addresses. D didn’t have an income so I just added D to a card I opened just to keep it separate. Both kids have been totally responsible. I warned them that they have to let me know if they charge anything or I’ll tell the CC company it’s a fraudulent use. It has been a relief for ME to know that either kid could purchase a plane ticket or handle a roadside emergency with their credit card. Both have always been very responsible and know that we don’t believe in paying finance or late fees–just pay up front & if you can’t afford it, don’t buy it!</p>
<p>If you do get a card, be sure you get one with a limit that makes sense for you & your family. To me, it only made sense to get one that was high enough so if they needed to buy a plane ticket they wouldn’t have to worry about going over the limit. I specifically asked that the credit limit be only $3500, otherwise the company wanted to keep raising it. They have honored our request, tho they do offer to raise it whenever we want.</p>
<p>Both S & D have debit cards tied into our family accounts. In a pinch, transfers are immediate. It works the same as a credit card (no pin required) so it’s accepted anywhere. It’s from USAA so I think some military relationship is required. S is now working full time for the summer with direct deposit to his savings. Once he separates his accounts from the family he can establish his own membership even though the military relationship is a generation removed.</p>
<p>D had a credit card throughout her college years. She had it automatically paid out of her checking account, so there was no problem with a bill not being paid.</p>
<p>Best way to not go overboard using your credit card is to leave it in your room most of the time and pay for things with cash. That way, you won’t be tempted.</p>
<p>One of the benefits of a credit card in your own name when used responsibly is that you are building up a credit history the credit bureaus can evaluate. If you use it regularly and pay the balance off without incurring any penalties, your four years will show a good track record, and when you graduate and really need credit, you will be looked on more favorably than if you are applying for a card for the first time.</p>
<p>A good credit rating will help in looking for a job, too. I understand that many employers check the credit ratings of prospective employees. And some insurance companies use credit rating info in setting insurance rates.</p>
<p>First of all, to the OP - congrats on Pitt - my alma mater! (And we live in GA, too.)</p>
<p>We opened a new credit card account when our oldest went to college, and have since added the other two kids. The statement comes to us, and our kids let us know when they’ve used it. If it something outside what we would normally pay for, they pay us back.</p>
<p>It has been great for things like travel arrangements. My H can buy the plane ticket on-line, on behalf of the kid who needs it, but the kid has the same CC. (Sometimes - especially overseas - you have to actually be holding the CC that was used to purchase the ticket.) Also, my kids buy things for school - such as textbooks or violin strings - on-line, which is much easier with a CC. And they have it for emergencies. Since the bill comes here, they don’t have to keep changing the address every year.</p>
<p>I heard this tip once from a financial counselor, on how to keep a card for emergencies only (never tried it, though): Put it in a container of water, and freeze it. That keeps you from using it impulsively. If you do have a true need, just take it out and let the ice melt.</p>
Thanks everyone!</p>