Interesting…for our credit union, the kids actually had to sign something stating the opposite — that they were NOT relying on someone else’s income to pay their credit card.
I’m not sure if we had an easier time because we used a credit union or because it was a credit union where they had savings accounts or if we were just lucky that our credit union is more willing to take a chance (really, with a $500 limit how much risk is it to them? And especially with a secured card, it’s no risk at all!).
@MassDaD68 Just checking. Have you gone in with him and talked personally with someone at the bank or credit union where he has his savings and/or checking accounts? We didn’t try online CC applications, but maybe we had some advantage since between us parents and the kids we had 8 accounts with BofA at the time when he applied for his CC card ($0 income, no credit history) and the bank representative would like to upsell us on some things for our other accounts.
@MassDaD68 - am surprised to hear that he got turned down for a discover card. S applied for one on his own and indicated that his annual income is 4000$ (summer internship money) too. Does your S have a credit card of yours to carry around? I am wondering if that made a difference for my S - he’s been away for the last four years at high school and has had my credit card to build up a history. His credit rating is in the high 700’s.
@arisamp --I think the difference must be having the parent card in child’s name first because my younger son reported even lower income and was approved for a card from Citi two months ago. Citi CC and Citibank seem completely disconnected. Son applied online for CC. I don’t think our local branch would be able to offer any assistance unless it involved paying the CC bill.
@ClaremontMom I actually thought the same thing initially. My wife and he walked into the bank to inquire about a secured credit card. Unfortunately the teller said it was all done on-line. we did that he was denied. Frankly the on-line stuff makes it harder to leverage your business influence with them.
I tried calling Capital one where I have my CC and wanted to discuss options, the customer service people directed me to the website. the guy was absolutely no help at all. He was basically reading me a script and when I asked something off script he responded that he really can’t talk about it. Finally he stated that I call the credit bureaus about help in building credit. To which I replied that all they do is report things. I think the guy needed to take a few finance classes.
I sure wish my brokerage firms offered credit cards. The investment houses seem much more helpful in dealing with you concerning financial matters. The banks just do not seem too interested at all.
Discover Card came thru for us. We called the company direct and they seemed very eager to help us. It was more in keeping with my understanding of how one goes about growing a business and obtaining new customers.
We called them directly and spoke to someone. That person implied that since be was not age 21, that it needed to be done thru the website and to call directly after the application was done. (btw. they no longer have co-sign options). The application process will ask you to upload some form of proof that you are an enrolled student.
We filled it out on-line and then a screen came up where we could call and see if an approval could be done immediately. We did not have the acceptance letter in electronic format so uploaded an e-mail confirmation for the honors dinner. She needed something more so we uploaded his fall class schedule. A college ID would have been acceptable also (they provide a list of items that are acceptable for upload). She accepted that and approved him. It started with a $1,250 credit line.
This one is on his own so it will help building credit.
Mission accomplished.
Thank you everyone for your comments, suggestions, and help.
Updating for today’s experience. D is 20, has a credit score of 787, income of approx. $5,000, and $8,000 in checking and savings. She applied for a Citibank card. Denied. Applied for the Citibank Student cc. Denied. I’m sort of amazed at this, given her credit score, income, and no debt. Gone are the days when S1 and S2 easily got cards with no history or score.
I was afraid too many applications would ding her credit so Try #3 was with the Discover Student card, recommended on several cc threads throughout the years. Approved! Credit limit of $1,000.
She was added to our 3 credit cards 3 years ago. I’m sure that is responsible for her credit score of 787–evidently it didn’t help too much with Citicard though…
Well, it seems like once you get one card, you’ll receive plenty of offers for others. Since getting a credit card about 10 months ago, pre-approved offers are hitting the mailbox regularly. Pretty irritating.
I was told this past weekend that having the kids as an additional user on your visa/master card does absolutely nothing for their credit rating. Apparently only AMEX which uses their social security numbers helps in this regard. Anyone know for sure?
I do not know for sure. However, there is no other way my D, age 20, would have a credit rating of 787. I did have to give her Social Security number when I added her as an authorized user.
When my D studied abroad, she made sure to put me on all her accounts to be sure I could help her if needed. She added me as an authorized user to her Discover credit card. They needed my SSN and the card is now part of my credit report.
It appears it’s up to the particular issuer to determine if they report additional users to the credit rating companies. In my case they did not so I assumed no one did.
Credit limit of $1,000.