I am certain that kids who are authorized users get their credit history built up. I’m not sure if it’s a fluke or not, but my kids credit histories show they’ve had cards for many years. They get solicited often for new cards and my older son gets offers to refinance his mortgage
Here’s an interesting thing, though. Younger son just applied for his first credit card on his own, a Chase visa. Got turned down for the personal card, because they said he didn’t have any local credit where he was living. Weird. Got accepted with a 5K limit and a huge signup bonus for their business card (we have a rental business).
So my suggestion, if you have some sort of business, have them apply for a business card. Oddly easier to get.We were not co-applicants, but I wonder if that would be helpful, also.
I too have been trying to get my son a credit card for college. We have not had much luck.
I thought for sure that I could get him a secured credit card by providing collateral for the full amount of credit limit. I have listed $4,000 annual income for him from working part time and they all declined him. Even after offering collateral.
Times have definitely changed. I got my first card from Citibank at UMASS and listed zero income and no assets. They took a chance because I was in college and wanted to establish a banking relationship with me early. Those days are gone.
I might have to call my current credit card company and talk to a representative and see what I can do as a Co-signer. I am fine with that. A $500 credit limit will keep it all under control.
My son who is starting college this fall applied for a credit card though BofA when we were putting his checking and savings accounts in his name. We did not put our names on the CC, because the credit limit would have been more than he wanted.
He stated $0 income, though he has some prize money, scholarship money, and will probably have paid research next summer. The credit limit was $500, which is fine for him. We told him to make small charges occasionally and pay them off right away. (And NO cash advances on the credit card.)
My daughter (18) has been turned down by the Discover Student card as well as the Amazon card. They said that she didn’t have enough credit history.
She has a part time job that pays about $400 per month and would be happy with even a small credit limit as it would allow her to build some credit. Has anyone had any luck with store cards (Nordstrom’s, TJ Maxx, etc.?)
I wonder if there’s variation by state, institution or even some loophole we haven’t figured out because people’s experience seems to vary so much.
Once each of my kids started driving, I added them to my capitol one card (happen to like that one because each person has their own distinct number) so they’d have it in case of emergency, for gas, for stopping and doing an errand for me, etc. Around that time each opened a bank account with a debit card, 1 at B of A and 2 at Wells Fargo.
Two years later, before leaving for college, I went into the bank with each daughter, sat down with a banker and each received a cc in their own name. One was 2009 (prior to the law @menloparkmom linked) and two after. All 3 were approved easily and quickly. None had any kind of income to speak of. Low limits, as I recall. I believe around $500. Two have graduated and were approved for the “better” (more perks) cards they applied for. I assume D3 will do the same when she graduates.
My older D discovered Credit Karma awhile back and I know all 3 keep an eye on their credit scores that way.
When my daughter got her bofa credit card (as a student with no income) they asked for the amount of money I was giving her for monthly support and used that. She was approved (we did this at the bank where the banker filled in the form for us).
My 18 year old was able to apply online for a student Citibank card, or at least I think it is a student card. $500 limit.
He has had a card in his name linked to my account for two years. I do not know if that helped him, but I do know that his credit report reflects all activity on that card, even though it is my card.
Like I said before my DD just turned 18, no job, no credit history, all that I did was uploaded the acceptance letter from UChicago with her application and they gave with her own CC, $1000 credit limit, and I gave them no info on myself. It’s entirely her own account. I’m thinking now that it might be institutional driven. Discovercard was the only card that asked for an acceptance letter, every other card application turned her down flat.
At our college orientation the bank that has ATMs in the dorms and in the student center was there opening accounts. They also offered credit cards that started with $500 limit and a toggle you can turn on that makes it act like a debit card but builds credit. If he goes over what he has it will just act as a credit card. He has had a debit card since he was in 10th grade and has had no problem managing it by himself so I don’t think he will have an issue. It has 0% interest for a year and then a high amount. He looked at that and told me that it would be stupid to carry over a balance! I think that card will be good until he can build up credit.
I think it would be helpful if folks put the years their kids got these student credit cards.
In 2003 and 2006 when our kids were freshman…as noted above…every bank in their college town was taking applications for credit cards. In addition, if a kid opened a student account at almost any bank, it in lived a credit card.
That certainly changed in 2009.
Are there still banks taking credit card applications at orientation? I haven’t heard of that happening around here any more.
As an aside…we used to get more than a handful of credit card solicitations every week in the mail…times four (the number of folks in our home over 18). Those stopped completely on 2009. Woohoo. I do not miss them at all.
@thumper1 My experience is from last month with BofA. We haven’t gone to drop-off/orientation yet. I would expect their employee credit union gets dibs on on-campus solicitation if any.
BofA gave him a $500 credit line with $0 income and 0 credit history. We were transferring savings & checking accounts to his name containing about $10K, so that may have helped.
We still get CC solicitations by mail about weekly.
We regularly get at least one credit card solicitation per week, often more. Most are to our D who has $0 income and no job. S also gets a lot, as do H and I. We toss them all as we have as many CCs as we want already.
During orientations at Caltech, several banks were there to sign up,students. My son wanted Wells Fargo, which was nearest to campus. There was a delay in me transferring $$ there, as i bank with BoA. It became a non issue, as he charged his weekend meals and other expenses to our shared credit card.
For the majority of,people unfamiliar with this school, Caltech offers one meal,plan, which is 10 meals during weekdays. Each House offers a meal during weekends, there are many restaurants in the area, and study groups offer free food. Several on campus restaurants and a store. Huge savings.
DD was turned down by Capital One but was approved by Discover and Amazon. She is an authorized user on two of my cards and has mid 700 credit score. She does have a regular small income from work she does online and also included her expected summer earning from internship.
