<p>The USAA credit card cannot be issued in your D’s name until she turns 18. MY D was not 18 until her second year, so we had a user card on our account issued in her name for emergenecies. </p>
<p>Also, you can use a USAA checking account for her just fine. She cannot open her own checking account until she is 18, but you can set one up with you & your spouse on the same account, we have still not taken our names off, as this allows her account to show up on our online accounting and we can easily transfer $ to her.</p>
<p>When D got a job she wanted a local checking account-couldn’t wait the 3-5 days to mail in a check and they kept not processing her EFT. She opened a WaMu account and quickly discovered what a quality outfit USAA is. WaMu set her up with overdraft, then allowed her to overdraft when using her debit card for some small purchases, I think she made 3 $5 debit purchasees and was dinged to the tune of $75 ($25 each OD) and they have other fun little charges, too. I think that happened twice and she has now closed that account and appreciates the client friendly outlook of USAA.</p>
<p>So, I would highly recommend sticking with USAA all the way.</p>
<p>The USAA debit card which can be run through cash registers as a debit mastercard does not work for online purchases. Rather than “convert” this to a credit card you should add the credit card adn keep the debit for bank aco**** access.</p>
<p>Thanks guys, I will print this out for discussion tonight. We as a general policy stay away from debit cards for just the reasons you have listed.
I’m trying to find a bank that has branches both here and in the state where she will be in school, but I don’t think that’s going to happen.</p>
<p>I would do both a debit card and a credit card. Get the credit card with a very low maximum balance. Use it enough to build credit, but that is all. The debit can be for day to day stuff.</p>
<p>PS- I would rather learn a 75 dollar lesson for overdrafts (users choice), than a few hundred dollar lesson for high interest rates, etc.</p>
<p>We also use USAA and I just got a mailing from them offering “College Start”–which includes a MasterCard for the rising college freshman among its options–for my graduating senior in HS…</p>
<p>My S currently has a debit card thru USAA, and a credit card w/his name on the card but I’m the account owner…He also has his own checking account (without overdraft protection)…I think I’ll wait a while before getting into the establishing credit issue…he’s still “fresh” at managing check account, debit account, and Mom’s credit card…so far, no mistakes and he’s perfectly reliable…but he’s got so much adjusting to do when he arrives at college, and I think his finances should work out fine the way they are…at least for now…I think I’ll save establishing credit for a time when he’s a bit more established…</p>
<p>By the way: USAA’s debit card in S’s name (funded by me) is great…USAA is very easy to use and very responsive. I’m very happy with them. So if you want a credit card in your kid’s name, I do recommend them…</p>
<p>All 3 of my kids as teenagers had Visabuxx cards. I like them because it is so easy to load money to the cards, check on spending, etc. </p>
<p>Now my son has debit cards through his checking account at Wells Fargo and his savings account at the school credit union. He also just got a Citibank student credit card–filled out application online and got one with a 1200 credit limit, 300 cash advance limit. He is EXTREMELY frugal and so this doesn’t worry me in the slightest. But it is good for building a credit history and for emergency cash if he is out of town. </p>
<p>I have a related question: we are going to buy a car (two new drivers in the family) for son. Is it a good idea to apply for a car loan jointly with son to also build the credit history in his name for the car loan?</p>