<p>With the credit card law changing on 2/22 to require a parent co-signer, should I rush to get my 18 yr old high school senior a credit card now so he has it in the fall for college? I have seen this suggested but not sure about what to do. Will his debit card or a prepaid credit card be sufficient when he lives a thousand miles away? Those of you with college students, what do you recommend?</p>
<p>here is what we did, knowing laws were changing…went to our local hometown bank (not a national chain) opened a checking account for him and requested a credit card, i had to be a co-applicant on the card but it will be reported to credit agencies under his name (and mine) so he will begin to establish a credit history. Got him the minimum amount of 500. he has had a debit card for years on another checking account but in an emergency if he didnt have enough money in that account (and he does let it get low) the debit card would not help him. i also considered getting an additional card on one of ours but that will not build credit for him. i have heard that usaa will give students credit cards currently (it a military service but non military can apply). a number of my son’s friends have applied for cc through national type cards (bank of america etc) and are being denied.
son understands that he can put a small amount on the card each month and must pay it off in full to begin to develop a history of pays as agreed.</p>
<p>The article below suggests that just getting your child on your account as an authorized user is enough to establish credit (the hybrid approach). I tend to think this is true as a co-worker’s son went to buy his first house and his parent’s credit card (for which he was an authorized user) showed up on his credit report.</p>
<p>That is what I have done with my son. He has a credit card (in his own name) on my credit card account. It’s to be used only for emergencies or when I authorize him to use it (like if he has a doctor’s appointment and needs to make the co-payment at the visit). I’m not a big fan of college students having their own credit cards unless they have a job. Too tempting to spend money they don’t have. In 20 years of marriage, we have always paid our credit cards off in full each month. We are trying to instill that in our child also. </p>
<p>[Your</a> Money - Credit Card Limits for Youth Can Be Opportunity for Parents - NYTimes.com](<a href=“http://www.nytimes.com/2010/02/13/your-money/credit-and-debit-cards/13money.html?8dpc]Your”>http://www.nytimes.com/2010/02/13/your-money/credit-and-debit-cards/13money.html?8dpc)</p>
<p>I’d say go for it. Apply online for a USAA card. They are highly rated as a reputable company. It makes life so much easier for D (and us), and I wanted everything in her name only. </p>
<p>My daughter is also very far away but is on an urban campus with apartment-style dorms. At a more isolated campus, there isn’t much they really need to spend day-to-day, but you never know what comes up - spring break trips, study abroad, whatever. I like that she’s building her own credit and it’s completely separate from ours. She’s also very careful about spending, so I had no problem getting her a couple of cards.</p>
<p>You might just get one, let him use it for some purchases and see how it goes. You can always cancel it. Or just hide it for awhile.</p>
<p>Our D opened a student checking and savings account with Wells Fargo and applied for a student credit card with no cosigner. They approved her for a limit of $800.00. We chose Wells because they have ATMs on her college campus and a local branch very close to our house. We feel very confident that she uses it appropriately since the credit card statements come to our house and we have access to her accounts online. She has established credit since we got her a young adult credit card when she was 16. The Wells card is for her “wants” and the other is for her “needs”. We pay needs and she pays wants. Managing credit, especially in this economy, is a very important life lesson.</p>