<p>D needs to apply for a credit card to build her credit rating. Also, she is studying abroad next year, and I want to get her a card that has a low exchange rate (her debit card would be 3%!).</p>
<p>I found a MasterCard through Capital One that has no annual fee and a zero % exchange rate. They don’t even charge the 1% fee that MC takes for the transaction.</p>
<p>I have never had a MasterCard, only Visa or American Express. Can anyone tell me if MasterCard will be taken as freely in Europe as Visa is? Any reason I would want to avoid MasterCard and hunt further for a Visa?</p>
<p>MasterCard and Visa are about equally accepted. I only had a MasterCard the last time I was abroad and it was accepted anywhere that took credit cards. Note that in Europe, MasterCard has been referred to as Eurocard, but it is the same thing. Your D would probably like to have cash during her study abroad, so check to make sure her debit card doesn’t charge tons of fees for foreign ATM withdrawals. Fees have been changing as the new credit laws go in effect, so be on the lookout.</p>
<p>As for building credit, I remember something about Capital One only reporting balances to the credit bureaus, rather than credit limits, which was causing people’s credit scores to be lower than expected. If this is still true, you will have to weigh the pros and cons of Capital One more closely than transaction fees.</p>
<p>Hmm, good to know about the credit limit info. I will investigate a bit further on that. But the no-transaction fee is a pretty attractive feature.</p>
<p>If going with Capital One I would read ALL the fine print and do a lot of research. They tend to have all sorts of odd limits and extra charges, especially for the “starter” cards.</p>
<p>The biggest drawback on the Capitol One card seems to be the low credit limit. Starts with $200. The guy I chatted with online just wouldn’t/couldn’t comment on how quickly she could get that increased if she stayed within the limit and paid on time each month. I think she will apply for the Capital One card, and if her card is not up to a limit I find acceptable by the time she leaves, I will have her added as an authorized user on one of my Visa cards as well. Then she can max out the Capital One card, and switch to mine if needed. Although they do apparently have a fee if you go over your credit limit (so does this mean they will approve the transaction, then hit you with a fee?).</p>
<p>^^^ Yes to approving the transaction then hitting you with the fee. Our pretty responsible son got in over his head with a Capital One Card. His limit was $300.00 and he was traveling in NYC and lost track of his spending. When he got his bill they hit him for a charge for every charge over the limit $38.00 a pop I believe and then a $69.00 over the limit fee…etc…etc… and he had a $640+ bill that had a $300 credit limit. Crazy sick how these people make money. We paid it off and he paid us. I refused for C.O. to get another dime from him. His primary card is now a Visa from American Airlines. Crazy high limit for a kid his age, but he controls his spending (see lesson above…lol) and will never exceed his 14K limit…lol…I would kill him. Regardless I would want a kid traveling abroad to have at least a 3K limit.</p>
<p>I also have my kids with 3K limits, just so they can always buy a plane ticket home from WHEREVER they are & and/or get funds or whatever they need in case of an emergency. To date, we have NEVER had problems with them being other than totally responsible & having only modest charges (& never losing, misplacing or loaning their credit cards).</p>
<p>$200 & then hitting folks with fees for going over would be extremely irritating and worse than useless for most folks.</p>
<p>I also like airline credit cards, tho many charge for the first year. The airline card we like gave 15,000 miles free for getting the card (worth a one-way plane ticket HNL to CA, so that seemed worth the annual fee to open the card. When they want to charge us the renewal fee, we balk & they switch it to the free card.</p>
<p>There is a new legislation beginning Feb 2010 that might do away with a lot of fees and such. For example, no more over the limit charge. However, the card can be denied if the card is charged to the max. The only new legislation that makes a lot of sense.</p>
<p>I have a CO card…used it all over Europe without problems. I do have a ridiculously high credit limit (more than most people make in a year!) and I pay it off every month so I can’t comment on their fees, etc. It did work well in Europe and it has the best international transaction rate (0) of any of the cards I have.</p>
<p>If you have access to USAA, their cards for college kids are great. FYI, USAA has recently expanded its membership base–believe anybody who has honorably served in the military is eligible. No longer just officers…</p>
<p>Yay for the new credit card legislation! I will read this carefully, and probably talk with Capital One again before signing her up. I am fine if they put a hard limit on and reject her card when she hits, I will just make sure she has a backup card (mine with her as an authorized user). A soft limit where they allow you to charge right thru it, then hit you with a fee is not good. She is pretty responsible, but I am not sure I could successfully do that with a low credit limit… I do still want to move forward with CO if possible, that 2-3% in exchange fees really adds up!</p>
<p>I have used my Capital One card for 2 trips to Europe–love the zero transaction fee. Both DD and DS are authorized users, so they used it for their study and co-op abroad. No problems. </p>
<p>My suggestion if you want your daughter to have the primary card be in her name–have her apply for her own Capital One and see what her credit limit is. And then you also apply for a Capital One card in your name, where you will probably get a higher credit limit. That way, a zero-transaction-fee card can still be her back-up.</p>
<p>I know there have been some recent changes so this may no longer be the case, but when my DD last applied for a credit card it asked for our household income. She got quite a generous credit limit.</p>
<p>Yes, I was thinking about getting a CO card of my own. I am hoping to travel with D to Europe prior to her studies next fall, and the likely higher credit limit I would have would be very useful! But I already have 2 CCs, and don’t really have need for more from a credit perspective. So I think we will apply right away, and see how her credit limit looks. Then this summer I can apply for a card if needed.</p>