<p>Or maybe credit cards that your student current has. I’m mainly looking for ones that offer high cash back awards, not for travel. Thanks!</p>
<p>Under the new credit card legislation, it is quite difficult now for a student under 21 to get a credit card in their own name. Your best bet if you are under 21 now is to piggy back on your parent’s card if possible (beneficial in more ways than one, as they get the bill, and might forget to settle with you sometimes – works for my D! :)). Or use a debit card.</p>
<p>My daughter who is 21 was just recently denied a Capital one student card. The reason being not enough income. I think she estimated about 3000/year. Not sure how much income they want a "student"to be able to earn. We were hoping for a card in her name with a 2 or 3 $thousand limit. She has 2 checking accounts and one other credit card ( with parent) all in good standing.</p>
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I read an article somewhere that the credit card companies are already manipulating this, because the credit card legislation doesn’t quantify how much the student has to earn to qualify. Some apparently have already lowered the amount to what a student can earn in a summer with a half-way decent job.</p>
<p>My credit card gives me 1.5% cash back on everything, I am thinking of putting S on as an “authorized user” which will let him build his own credit, from what I can find out.</p>
<p>IMO Capital One is a horrible company, I ditched them years ago.</p>
<p>I love my Capital One cash-back rewards card! CO has been very easy to deal with over the years. (Our Ds are both authorized users on our account - to be used for books, online purchases. They are to reimburse us for purchases other than textbooks and necessary school stuff.)
And Capital One is one of the very, very few companies that doesn’t charge a 2-3% charge for foreign currency transactions. <em>Definitely</em> the card to use when traveling in other countries.</p>
<p>In terms of cards for students, daughter who will be a freshman recently received an offer from Discover. I think they require a $2000 per year income for the student card.</p>
<p>My daughter has a debit card attached to her checking/savings account that can also be used for credit (she does not charge on it). It is through PNC, which was the most convenient bank for us.</p>
<p>My professional opinion is that it is a very BAD idea for a college student to have a credit card. Given the acceptance of debit cards, there is no reason to carry cash and debit cards can be used for online purchases just like credit cards. (one reason that used to justify giving teenagers CCs). I know several kids that got in trouble with CCs and had to drop out of college for 1-2 years to work to pay off their bills. </p>
<p>If the kid does not pay off the bill each month, the interest will out-do, the small cash reward they would make with their purchase. I have reviewed the ‘magic’ of compounding interest at 18-24% with teenagers to show them the $50 pair of jeans they buy today can cost them double in a short period of time if they just make the minimum payment. Most of them wise up very quickly. </p>
<p>Another question to consider - what does a college kid really need to purchase on a CC? Daily stuff like meals or entertainment should be paid for in cash. It would probably be a better idea to put major purchases like furniture or travel on your card, if you are willing to fund this for him/her.</p>
<p>My children each had a credit card when entering college. It was used mostly for books and airline tickets and emergencies. They each traveled with respective teams and I felt they should have that extra insurance. Debit cards are great for daily purchases but I like the backing of the credit card company if something goes awry with a bigger purchase. We investigated the Capital One for the lack of foreign transaction fees.</p>
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<p>I respectfully disagree with this for a couple of reasons.</p>
<ol>
<li><p>Credit cards build credit history and help raise your credit score. If you graduate from college with zero history, it will be very difficult to buy a car or a house, or even to get a credit card as an adult. Debit cards do not build your credit.</p></li>
<li><p>If someone is irresponsible with their money, it doesn’t matter if they have a credit card or not. They’ll be just as irresponsible with cash, debit, etc. (i.e. overdrafting their account). I pay off my entire bill every month and I <em>never ever ever</em> spend more than I can afford to pay. Quite frankly it’s a little offensive to assume that <em>all</em> college students cannot handle something simple like living within your means and paying a bill. There are plenty of adults who cannot handle that - it’s a matter of financial education and your personal spending habits, NOT how old you are!</p></li>
</ol>
<p>I am 21, I’ve had a card since I was 18, and my credit score is hovering around 800. I use it for most of my purchases here at college since my bank does not have branches in this state.</p>
<p>For the OP: Try a Citi Forward or Citi MTVU card (both Visa). Both have no annual fee and decent reward points.</p>
<p>“1. Credit cards build credit history and help raise your credit score. If you graduate from college with zero history, it will be very difficult to buy a car or a house, or even to get a credit card as an adult. Debit cards do not build your credit.”</p>
<p>When my kids graduate from college with no credit history, I will gladly co-sign a loan. My guess is that it will not be necessary because with a decent job, they should be able to get a credit card and a car loan if they need it. BTW, most of the parents on here graduated from college with, guess what, no credit history. As recently as 20 to 25 years ago, credit cards were not that common.</p>
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<p>I’m sure you will agree that a lot has changed in the last 20 years as far as the availability of credit and the economic climate, and the easy credit of the 1990s and early 2000s (which contributed greatly to the current recession, especially with subprime mortgages) has all but disappeared.</p>
<p>I just don’t buy into the belief that as soon as the college diploma is in your hand, you gain a new sense of financial responsibility that was mysteriously lacking before.</p>
<p>Well, my I guess is I will be able to make at least 6k a year during the summer through special research programs at my school, and probably some during the school-year as well. Another question is, are students allowed to pay tuition + room + board with their credit cards? It’s not for the purpose of borrowing the money (we will certainly pay back every month), but to get the cash back rewards.</p>
<p>But the use of the debit with the credit option works. I can easily see how the college student in my family is managing with what she has available to her now. She does work with a certain amount of money each month and manages.</p>
<p>About paying tuition, room and board with credit cards: many colleges have gotten wise to the benefits parents get from paying with credit cards and many have shut sdown that option. At my daughter’s university, if we pay with a credit card, it is through a third-party payer and there is a charge that wipes out any benefit the CC company gives.</p>
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Many colleges are now charging fees to take credit cards that are far in excess of the rewards. My S’s school charges 2.75% (they actually use a 3rd party to do the transaction).</p>
<p>Contrary to what at least one poster said above, being authorized on your parent’s credit card does not build your credit rating at all.</p>
<p>Regarding Capital One, D1 and I were both rejected for cards from the about 6 months ago (a couple months before the new legislation went into effect). I have spotless credit, so it was quite a surprise. I was so surprised I pressed them vie phone and mail for details; turns out they did not like the way my mortgage is structured. I went to Charles Schwab and got their Visa instead – also no foreign txn fees, and 2% goes into the cash account affiliated with your Schwab brokerage account.</p>
<p>I will allow D to stay authorized on my card until she has a job after college and can get a card on her own merit. She uses a debit card 99% of the time anyway, only uses the card when I have okayed it or in an emergency (stuck overnight in New York when her flight was cancelled last night… that was an example, and I told her to put the hotel and her meals on the card).</p>
<p>Its a good idea to build up your kids credit rating after they attain adulthood, even they are still in college without a job. I think there are still banks will give you a credit card if you have enough “reserve deposit”. You should be able to get a crdit card with an upperlimit of say $1500, if you have a cd with the bank in an equal or greater amount. Once your kids start using the card and make payments on time, it will grow and eventually build a great credit history.</p>
<p>I have heard other people say good things about USAA crdit cards. We have been USAA members for decades, so I know the kids will be able to get those credit cards whenever they want one.</p>
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There are many articles on the internet that say that it does. </p>
<p>For example:</p>
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[How</a> do college students build credit history as rules change? - USATODAY.com](<a href=“http://www.usatoday.com/money/perfi/columnist/block/2009-09-07-credit-cards-college-students_N.htm]How”>http://www.usatoday.com/money/perfi/columnist/block/2009-09-07-credit-cards-college-students_N.htm)</p>