Credit Card suggestion for soon to be college graduate?

Parent Cafe
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<p>DS will be graduating in may. While he has cards under our accounts, I think it would be good for his credit if he has a card of his own. It is also time, since we won’t be paying his expenses once he starts working.</p>

<p>He is very financially responsible and will pay off any charges each month. The thought of paying extra in interest is offensive to his nature :-)</p>

<p>He has a great job already lined up, so he will me moving to a new city. He also needs to establish some credit in order to get an apartment. </p>

<p>Has anyone looked into what options are out there for young people these days and have any recommendations for cards to look at? </p>

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<p>Bank of America is good. Both my kids have it.</p>

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<p>My partner just got his first credit card through Amazon. He gets cashback and there are no fees. </p>

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<p>D got a Costco AmEx – was approved on the spot by answering a few questions while shopping at Costco. She’s been happy with it.</p>

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<p>S got a discovercard. I like it because they now include your credit score every month went you get your statement.</p>

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<p>Please don’t get me going about Bank of America and their credit card customer service. It’s not terrific.</p>

<p>I would suggest your son open an account at a credit union where he locates for his job. Then apply for a credit card through the credit union.</p>

<p>He may also find that his alumni association has a credit card…some larger schools do.</p>

<p>But really, the credit union will likely be a better option. </p>

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<p>I’ve found the best service for my too many cards comes from Chase; they call me about iffy transactions much more often than any other. I find it relatively painless to speak to a human being there too. It’s easy to use points at Amazon - or register at Points.com. </p>

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<p>When I first started my first ‘grown-up’ job a few months after graduating from college a couple of years ago, I applied for a credit card at credit union semi-affiliated with my new employer, I also opened checking account at same time with the same credit union…I was denied the credit card. About same time I bought a new car, and the dealership helped place car loan at competitive terms through a bank. I made my car payments for about 6 months and then applied for and was approved for credit cards with Discover and also for a bank card back at the credit union that turned me down earlier. I also refinanced my car loan at better terms with the same credit union. After a few more months everyone started offering me credit cards…didn’t get anymore. Build up a credit history and you’ll be all set. I only use credit cards for convenience…not to build up credit card debt.</p>

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<p>Thanks for the input everyone. Passing on the info.</p>

<p>Thumper1, can anyone join a credit union? I thought you had to be part of a specific company or group that offers one. </p>

<p>How likely is it that he would be approved for a card with no credit history? </p>

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<p>Would some experience using a debit card serve essentially the same function?</p>

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<p>JustOneDad, he of course has debit cards that he uses all the time. He has credit cards too, but they are from my account. We are just trying to get a card of his own to help establish a credit profile for him. </p>

<p>I think kids today are more about debit cards and venmo than credit cards. I think we have sufficiently scared them of their potential evil. </p>

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<p>Anyone can join a credit union now. Using a debit card will not build credit! </p>

<p>But I would NOT get a credit card to build my credit rating. I would get a credit card to have for emergency use, and things like buying plane tickets online. </p>

<p>To build credit…get an apartment, utilities, and a car loan. Pay everything on time.</p>

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<p>thumper1, cc won’t help establish credit if he uses it minimally and pays the balance each month?</p>

<p>On the apartment, he has had one for the past two years and pays on time always. I had him email the management company to see if they even report. If they don’t, is there another way for that history to be used to help him? </p>

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<p>We have had good service from Capital One for years. They are one of the very few companies that don’t charge a foreign transaction fee.
Our two recent college grads have been on our Capital One Venture card for years ( which gave them excellent credit ratings) and each got her own CapitalOne Quicksilver card - 1.5% cash back, no annual fee - this past summer. <a href=“Capital One Quicksilver Review: A No-Fuss, No-Gimmicks Card - NerdWallet”>http://www.nerdwallet.com/blog/credit-cards/capital-one-quicksilver-review/&lt;/a&gt;&lt;/p&gt;

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<p>It’s too late for the OP, but as soon as my son turned 18 in high school, he applied for this card <a href=“Credit Cards for College Students | Capital One”>http://www.capitalone.com/credit-cards/journey-student/&lt;/a&gt; and got it. It only had a $300 limit. He set up auto-pay from his bank account so it paid in full each month. They raised his limit to $500 after 6 months. He is now a freshman in college and Wells Fargo just sent him a $1,500 limit card. He set that up on auto pay as well. He uses the cards for nearly every purchase as they both have cash back. If you are responsible, it is a great way to build credit. He already has a credit score in the mid 700’s as a 19 year old. He’ll be good to go credit-wise when he graduates.</p>

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<p>I would suggest he do his banking through a mutual fund company like Fidelity or Vanguard. Can do online banking, get a credit card, and start saving and investing - all under one roof. No ATM fees, and the credit card typically has a rebate program. Visiting their websites frequently for his banking needs, he’ll encounter articles about investing, retirement, etc. Never too early to start learning and saving. </p>

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<p>My kids all got their first CC through the bank where they had checking. Wells Fargo offers a college card that doesn’t appear difficult to get. It starts off with a low limit and it goes up as they pay on time.
Thumper- apartment renting rarely appears on your credit agency reporting.
If you know your child is responsible with money it is smart to begin to build credit. </p>

18

<p>The apartment doesn’t alpear…but the utilities do.</p>

<p>Capital One is fine if you understand their fine print. You have to pay quickly and on time…or your rates can easily just be raised. Happened to some folks we know. They thought it was a 25-30 day payment window…it was 20.</p>

<p>As long as you know the terms of service, you should be fine.</p>

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<p>I’ve suggested that my son, who will graduate college in May, get a CC through an airline. He’s been offered a job across the country and is expecting to travel with the job. He got his first cc from his bank as a college freshman and has any payments automatically deducted from his checking account. This site might help the OP’s son decide what he wants. <a href=“Credit Cards - NerdWallet”>http://www.nerdwallet.com/credit-cards/&lt;/a&gt;&lt;/p&gt;

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<p>Our S likes to find CCs that give the best signing bonuses and provide benefits or cash he will enjoy using. If the kid will be doing a lot of flying, it makes sense to consider airline CCs, particularly those part erupting with preferred airline. </p>

<p>Chase cards tend to award points that can be converted to airline if your preference. That’s the card we’ve recently been favoring. </p>

<p>Not sure how the CC companies are with folks with limited or no credit history. Added each kid to our CCs when they started college, so their history is older than they are! </p>