<p>busdriver11: If he hasn’t used a limit credit card, he is not going to use the credit card. Let him be, he is an adult, I personally think that is a decision he should make.</p>
<p>“I think this is a personal decision, which is why I preferred to allow my adult children to figure it ought on their own.”</p>
<p>Certainly, each to his own, and you know your children. We have always been extremely open with our kids about finances (whether we’re boring them or not). That is one thing they really don’t learn much about in school, and I think the things that we’ve learned and the mistakes that we’ve made are good to pass on. They seem somewhat interested, if we don’t get too detailed. I really wish my parents had talked about finances, but they did walk the walk when it came to not spending money, and doing everything themselves.</p>
<p>“busdriver11: If he hasn’t used a limit credit card, he is not going to use the credit card. Let him be, he is an adult, I personally think that is a decision he should make.”</p>
<p>He’s got about 50K limits worth of credit cards in his wallet right now, that he uses for small transactions. I’m not worried about him not knowing how to use a credit card. He will make the decision, of course, I’m just trying to advise him.</p>
<p>Apparently the thousands of people who have gotten in over their heads with credit cards, including many who ended up filing for bankruptcy, are not replying to this thread. But they are out there, and I’m sure their consensus would be that credit cards are to risky, too tempting, and can lead to tremendous hardship and regret. I hope your son would take this wise advice into account.</p>
<p>I think it is important to discuss finances in general with your children. However, I personally do not think it is appropriate for anyone, including a parent, to try to talk someone into getting a credit card. There is too much potential downside to owning a credit card, that I think it must be one’s own decision. Again, it is very easy to find all of the information discussed on this thread on the internet.</p>
<p>Having too much open credit is also bad for your credit rating, by the way. Even when you pay your cards down every month, some lenders do not like the idea that you can rack up $50K or so in debt in a day with your credit card(s), and sometimes they require you to close credit accounts in order to obtain approval for a loan.</p>
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<p>They are and are a varied group ranging from those who were suddenly hit with something unexpected such as a serious home repair from a hurricane(nothing to do with credit cards or individuals involved)</p>
<p>or</p>
<p>those who have a serious problems managing their spending or not taking debt seriously enough to pay it off in a timely manner. </p>
<p>The former is something which could hit any of us, the latter is mainly to do with one’s personality and attitude towards spending.</p>
<p>With the latter, even rationally and logically laying out the cons of having lingering credit card debt hanging over one’s head in areas like getting a good interest rate on a home loan often falls on deaf ears. :(</p>
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<p>And that puts one into a bind as closing credit accounts will increase your debt/credit ratio as the credit part is reduced which WILL negatively impact your credit rating. </p>
<p>It’s a reason why many financial advisors advise people to NEVER close credit accounts. Better to leave them dormant most of the time and use them once in a while and pay the incurred balance back than to close them out.</p>
<p>I haven’t used a credit card in 25 years. We have an American Express card for emergencies but don’t use it regularly. My husband and each have debit cards and they have the same protection as credit cards, maybe better. Mostly I just don’t like the credit card industry and don’t want to participate. Also, I don’t like debt, no matter how short-term. They can’t give me enough miles or rewards to make me want to use a credit card.</p>
<p>Does it take a long time to open a credit card account these days? I have not opened one in years, but I am getting the impression from this thread that there is something pressing about having a credit card right NOW. I don’t see any reason why a young person needs to rush into having a credit card, especially if he has supportive parents who can lend a hand (or a credit card charge) in an emergency.</p>
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<p>It is much harder to get a credit card nowadays than before the 2008 recession…and it was harder even then than it was back when I was an undergrad in the mid-late-'90s. </p>
<p>More folks…especially younger ones with little/no credit history are having a harder time getting their first credit card as a result. </p>
<p>As a result, it wouldn’t surprise me if the process is taking longer for new applicants who are young…especially those with little/no credit history.</p>
<p>"Does it take a long time to open a credit card account these days? I have not opened one in years, but I am getting the impression from this thread that there is something pressing about having a credit card right NOW. I don’t see any reason why a young person needs to rush into having a credit card, especially if he has supportive parents who can lend a hand (or a credit card charge) in an emergency. "</p>
<p>No, I don’t think it will take long, maybe a week or two. Amex will even rush it to you in a few days. Our pressing issue is that he’s leaving to start work in two weeks, and I feel like everything should be taken care of before he goes. It seems like when you are earning a full time income would be a good time to start becoming financially independent, and not have your parents credit card in your wallet as a backup, to make your own payments, monitor your own expenses.</p>
<p>We will always be there if he needs a loan, a room, an airline ticket (with those free points, you know), anything, but there is no way he’s going to NYC without a credit card…we wouldn’t let them walk out the door without one, once they started driving and traveling. It’s just an issue of whether it would be his own, or ours as an emergency backup. Since we use credit cards for EVERYTHING, I didn’t know if people could actually function as well with just an ATM card. Seems like many can, and probably many more should.</p>
<p>Yes, people do manage without credit cards in NYC. My D and her husband (who had been living in NYC for 8 years) had their first credit cards in their own names just last year. My D had the use of our card ever since she was in HS , but just for emergencies and she used it probably 5 times in 10 years. She always made do with her debit card.</p>
<p>Personally, I think a credit card is a lot safer to carry around in your wallet then a large amount of cash. Someone first moving out on their own will have a number of one time expenses for bedding, housewares, etc. and those are far more easily purchased with a credit card.</p>
<p>Online shopping is another reason to have one. I don’t get the point of having LOTS of credit cards, you can make do with one-two (Visa & Mastercard) at virtually every place you shop. Establishing credit is also good for larger future purchases like a car or house. Many credit cards have annual fees, so good to shop around and not keep adding new cards just because they include some ‘free’ mail offer. If you accumulate frequent flyer points on too many different cards/airlines, you will generally never get enough for a free flight and the miles do eventually expire.</p>
<p>Am not a big fan of debit cards for the reasons mentioned in prior posts. I think credit cards are far safer and won’t result in someone emptying out your bank account as fradulant use of a debit card can.</p>
<p>I have heard enough horror stories from the 2008 crisis to like debt. And I don’t see the point of getting into debt if I have the money. I also think a lot of people should not have credit cards, particularly several cards. Maybe it’s a generational thing, but most under 35 people I know don’t use a credit card for everything, only for an emergency.</p>
<p>And when my purse was stolen, I reported my debit card stolen and there was no problem at all. I buy online with a debit card, no problem either. It’s a personal decision, but I am very surprised some people here use credit cards so much. Among my friends and family it’s more common to use them only when you don’t have the money in your account (an emergency) and we use a debit card for everything else (including online buying).</p>
<p>" Many credit cards have annual fees, so good to shop around and not keep adding new cards just because they include some ‘free’ mail offer. If you accumulate frequent flyer points on too many different cards/airlines, you will generally never get enough for a free flight and the miles do eventually expire."</p>
<p>Depends how you do it. Stick to the cards that award the same airline miles, airlines that you use, and some miles never expire (ie Delta). Playing the credit card shuffle game can be irritating trying to keep track of, but in the last year, we have gotten about 300K worth of non-expiring airline miles, over 1K worth of REI gift cards, hundreds of dollars in Starbucks gift cards, and over 1K of direct cash. …mostly with zero fee cards. With a little effort, and a small hit on your credit record, you really can get thousands of dollars worth of tickets and benefits. Our kids have flown back and forth, west coast to east coast at least four times a year…free.</p>
<p>I have a debit card that I only use in the ATM. I usually do not carry it with me unless I think I might need cash. If in a pinch, I can get cash from my ccs. I use credit cards for almost everything that I can. H & I each have a Southwest Visa card that we use (and I have one for business). With the points accumulated, we often earn free tickets, and he has had a free companion pass to fly with me for 4 years now. That same card also has a no foreign transaction fee; we saved the cost of it many times over on our last trip abroad. We have a cash back Visa card that S1 also has for emergencies, and the the first cc we every got back in grad school when they weren’t giving them away to anyone. We keep it because it’s Platinum. That said, we pay off all of them every month, so they don’t cost us anything in interest. If I had time, I would juggle them to get free things/cash back.</p>
<p>^^That sounds like a good card, tango. Someone on this thread mentioned you could get a 50K signup bonus for their card, too. Unfortunately, SW doesn’t fly the routes we use. It is time consuming, but it is very profitable, if one is so inclined. Miles can be so valuable. I used only 40K Delta miles on a ticket we needed over Thanksgiving that cost $1700. Really, $1700 for a fairly short route ticket, highway robbery. But decent miles, so it was free. I hate paying for airline tickets, and try to never do it, though we travel often. I still don’t see how the credit card companies profit on these offers, but they keep making them available.</p>
<p>Busdriver was amused by you posting this question, knowing that you are also a devotee of CC miles, points and so on. </p>
<p>Your S is perhaps unimpressed by the benefits of the cards? A youthful rebellion? </p>
<p>As it sounds as if he has the frugal gene, he should have no fear of overspending. </p>
<p>Back when I was starting out, no credit history, it was an accomplishment to get one department store credit card. Then another. It was a slow process to get to the point where Visa would give me a card. </p>
<p>That my kids have gotten cards so easily, has amused me. With and without jobs. </p>
<p>Just in terms of emergencies and car rentals, I’d never want one of mine to be without a CC, in addition to the debit card. A few years back a neighbor’s car engine blew out. One of the hard decision points for her was funding a new engine with CC debt, as she didn’t’ even have one at that point and paid cash for everything. Admirable, but in many lives some rain does fall, and it is helpful to have a card for those times.</p>
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<p>I have had a great fear of debt long before 2008. However, I found I have an even greater fear of being ripped off by online merchants with little/no recourse as I experienced that one and thankfully only time with my bank visa/mastercard debit card. It was the only time as after talking with my bank and various other banking employees in different banks…I stopped using my debit card for any purchases…especially online ones. </p>
<p>Regarding managing credit cards…it’s not rocket science. Don’t put more than you can pay off for that month and pay off the balance in full on time. Never had an issue of going over my head for the last 10+ years. </p>
<p>Not to mention the greater fraud/defective merchandise protection, the fact credit card issuers get to deal with hassling any fraudulent merchants…not me, extra warranties on electronics/other items, points, and more and the cost/benefit of credit vs debit cards is a no brainer. </p>
<p>As for debit cards, I only use them to withdraw cash from the ATM and little else.</p>
<p>With my purchases, it’s either cash or credit. Cash in person and places which don’t take anything else and credit for everything else.</p>
<p>My son never had a credit card in college. He used his debit card to buy everything from plane tickets to pizzas and everything in between. It’s still a Visa card, technically, and is accepted everywhere Visa is. It was set to decline at point of purchase if he had insufficient funds, so no overdrafts, fees, or anything of that nature. It’s a good experience of how to live within one’s means and the value of saving for future needs… even it it’s just the need for a Subway sandwich. ;)</p>
<p>“Busdriver, was amused by you posting this question, knowing that you are also a devotee of CC miles, points and so on.”</p>
<p>Okay, I admit this is rather hilarious. I love playing credit cards, as I think they can be lucrative for people who play them…but not for those who get played. You use them as a tool, but not to buy things you can’t afford, or wouldn’t buy. My husband used to be annoyed by trying to keep track of them all, whom to pay off, which one to cancel, until he started getting these $500 REI gift certificates to buy whatever he wanted with. Now he’s asking me, hey, isn’t it time for another Amex to get those REI cards again? With two people in the family doing it, really adds up. Okay, we even bought a couple of short sale condos with credit cards (0% and 1.99% interest), as it was cheaper than getting a mortgage loan/HELOC. Not for everyone, but this has worked well for us.</p>
<p>Nah, I don’t think our son is rebelling, he doesn’t have to. If he doesn’t want to do something, nobody makes him do it. He was merely questioning why he would need one, while admitting it works well for us, he is very logical. I just didn’t have any really good answers for him, except for helping his credit rating for jobs and renting an apartment. I know he was thinking that he’d gotten a job and apartment anyways, so? For some reason, putting him as an additional user on a few of our cards has given him a decent credit history. His report shows that he has a HELOC and one of his credit cards for 15 years. How ridiculous this system is!</p>