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</p>
<p>Got news for you … once your kid is away at college, with their own credit card, your days of allowing and not allowing are over with.</p>
<p>Just wanted to thank everyone for their responses. One of the Citi cards might work well–dh and I had one for years (one through Citi–not a student card) and we never had any problems…one time sent in a payment late–after I had one of my kids and mixed up checks when paying bills–I called and they immediately reversed the late fee and interest.</p>
<p>I agree completely that there is a world of difference between credit and debt. Once we paid off student loans 25 years ago, dh and I have once had a car loan (very low interest) and then only a mortgage. We have instilled in our kids that, if you can’t pay for an item, you shouldn’t buy it–thus, if they/we use a credit card, it’s for our convenience; the bill always gets paid in full each month. We have benefited greatly over the years from free flights, cash back, etc. as well as from being eligible for low mortgage rates due to good credit. </p>
<p>Also, thanks for the warning about fees if one goes over their limit. I would have thought the card would just be declined. Will definitely ask about this. </p>
<p>If anyone else has a specific card to recommend, please chime in!</p>
<p>And more:</p>
<p>[Despite</a> the Credit Crunch, Student Credit Card Debt is Overwhelming](<a href=“http://credit.about.com/b/2009/04/27/despite-the-credit-crunch-student-credit-card-debt-is-overwhelming.htm]Despite”>http://credit.about.com/b/2009/04/27/despite-the-credit-crunch-student-credit-card-debt-is-overwhelming.htm)</p>
<p>"The average college student is carrying more than $3,000 in credit card debt on at least four credit card. This shocking statistic comes from a report released by Sallie Mae, one of the nation’s largest student loan providers. The report also shows that:</p>
<p>84% of college students have a credit card
The average number of credit cards is 4.6
Half of students have 4 or more credit cards
21% have a balance between $3,000 and $7,000!
19% of college seniors have balances above $7,000
Only 11% of students have a $0 balance
80% have been surprised at their balances
68% have made a purchase knowing they didn’t have the money to pay the bill"</p>
<p>But of course, YOUR kid is going to be one of those 11% who have a $0 balance - or at least one of the 20% who are not surprised at their balance - or 32% who have never made a purchase knowing they don’t have the money to pay for it.</p>
<p>Officer: “Sir, why are you and your family sleeping here in the car.”
Mr. NoLoan: “I’m trying to save up $290,000 so I can pay cash for a house.”</p>
<p>Son: “Dad, I’d like to go to Medical School.”
Dad: “Twenty-thousand hours at McDonald’s ought to cover it.”</p>
<p>If you are a USAA member, their cards and terms are very fair</p>
<p>annasdad…Yeah, my kid IS going to be one of the responsible ones. Because we taught her over the last several years how to manage her checking and savings accounts and because we demonstrated to her how you can responsibly manage credit cards and not pay a single penny in fees in over 25 years.</p>
<p>If you think the example you’ve provided and are providing for your children is a worthy one then so be it. I hope for the best for them, but exactly who are you to question everyone else’s parenting skills? Physician…heal thyself.</p>
<p>student here… I will be going to college in the fall and my parents will NOT cosign for a credit card. I understand the pit falls of debt but also know I need to establish credit (not debt anasdad) for the future. I have a summer job and will be doing workstudy in college. Can I qualify for a card by myself? What about a secured credit card? Citibank has one that you deposit $49 and you are given a $200 credit line. You can deposit more money to up your credit line as you go. It costs $29 per year. Any thoughts about this route?</p>
<p>Second the USAA card. If your kid goes overseas they have low transaction fees as compared to many other banks. My son did open an account with a UK bank while on study abroad since like many others he never carries cash and always uses the ATM card. He is now a senior and probably used the USAA card once.</p>
<p>^^ lb01 - You have a lot of options, all of which require some initiative. The Citibank offer isn’t horrible by any means. But the $200 credit limit won’t be enough to buy books (for example). So I’d keep looking, but that’s JMHO.</p>
<p>Legwork: Go speak with the Managers at your local banks. You may not get an offer of credit this year, but they’ll remember you next year when you go back and ask again. Where do you shop? Many stores offer instant credit. If all else fails, sign up for a student subscription to the Wall Street Journal. </p>
<p>Good luck. Just remember that persistence pays off.</p>
<p>Grad: “Dad, I got turned down for that dream job because they ran a credit check and found I’m 90 days overdue on my credit card payment”
Dad: “Son, didn’t we talk about responsible use of credit cards before you went off to college?”
Grad: “Yes, Dad, but all my friends …”</p>
<p>i’m with oldfort and annasdad!</p>
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<p>I’m not questioning parenting skills, just commenting on the rose colored glasses that some parents insist on wearing.</p>
<p>annasdad–</p>
<p>I hope your student will be graduating debt free…when they run a credit check for employment or even in some cases a security clearance for that dream job, yes, it does affect their status. Tens of thousands of college debt does not bode well with employers either!</p>
<p>I am not pushing a credit card on anyone. Perhaps the bigger issue here is, are we doing our job as parents to teach our kids about being responsible with money? And, further, it is your right as a parent to teach your own child your opinions about responsible money matters.</p>
<p>Our s’s got credit cards because we prefer them to debit cards. That said, younger s has both a credit and atm/debit card (from USAA). We are fortunate that we have never, ever had to dig ourselves out of years of debt, as annasdad describes, and we are teaching our s’s the same spending/savings/investment skills (we hope). Older s chose a credit card that gives him a percent back on purchases (I forget the percent) and yes, both our s’s pay their cards off in full every month. We are seriously averse to any late payment/interest/penalty payments in our house. Younger s purposefully kept his credit limit low, so he would to be tempted to overspend, but he found that he would pay off his account 2x/month to keep the available credit there (the roommates go shopping together and take turns paying, he had his car on campus this past semester and gas wasnt cheap, he bought books, airfare home, etc on the credit card). He realized he was pulling too much money from savings this past spring, so has been scrutinizing his spending this summer.</p>
<p>He also only recentlydecided to increase his credit limit on the card, so pays it only once a month now.</p>
<p>Someone tried to break into his car this past week. The immediately necessary repairs cost less than the deductible on his insurance. He put it on his credit card. What would he have done if he didnt have enough i nhis cking account and couldnt use his debit card? IMO, these are the kinds of circumstances for which a credit card comes in handy.</p>
<p>In fairness, both boys have been working in one form or another (fast food, computer repair, tutoring, internships, etc) since their high school days, so they have had income. We help them with an allowance, but we have expected them to learn money management. Both have done quite well with it. They make us proud.</p>
<p>oldfort, a friend of mine is 28 with a steady job and income, never had a credit card. Just went to get one and was told he can’t have one because he has no credit history. He can only get a secured card with an annual fee. Also was not able to get a car loan without a co-signer. Things have changed a lot over the past few years.</p>
<p>annasdad, I hate to sound rude and I apologize in advance, but your mindset is really frustrating to me. Just because you were irresponsible with your credit cards and racked up debt doesn’t mean everyone is. I wish your daughter luck in life because I’m afraid your teachings will come back to haunt her. Hopefully I am wrong. I know people who have been turned down at being able to rent an apartment because they had no credit history. Good luck to her in buying a house with no credit history. Good luck to her in getting a cell phone with no credit history. Great, she can live at home with you till she saves up 150k in cash to purchase a home. Maybe your parents should have taught you that it’s stupid to buy things you don’t have the money nor the means to pay for and then maybe you wouldn’t have gone in debt. Or, if your parents did teach you this, then maybe you should have had a better sense of what you were doing to yourself. How naive is it to think that just because you had a credit card it means you can buy whatever you want when you want with no means to pay it back? That’s on you. </p>
<p>Just because someone has a credit card doesn’t mean they are out buying things they can’t afford. That’s the most illogical thing I’ve heard in a long time. Talk about rose colored glasses. Just because you were young and dumb doesn’t mean everyone else is.</p>
<p>I got my first card when I was 16, never have once carried a balance on it. Upgraded to a new card at 22 that gets cash back. I have never carried a balance on it either… not when my bill came to 100 or when my bill came to 2500. Why would I buy something if I didn’t have the money to pay for it? I charge EVERYTHING to that card automatically. Cable bill, electric bill, etc. I get cash back from it so I’d be stupid not to take free cash back on bills that I have to pay for anyway. Plus, it’s so much easier for me to pay ONE BILL (credit card bill) each month as opposed to 5 separate ones to all the various companies. Oh and things I charge to that card get their warranty doubled. My card that I have never paid a cent of interest to just paid $250 dollars to repair my washer for me when it broke a month after it’s warranty ended. I guess your daughter will be out that $250 to pay that unnecessary bill that could have been paid by her credit card when that happens to her. I’ll keep that $250 in my pocket. My parents are in their 50’s and have never once carried a balance either.</p>
<p>Oh and as far as taking on other debts… Bought my first car with cash at 16. Bought my second car with a loan and nocosigner at 21. Paid it off by the time I was 22 or 23. Bought my house with 20% down at age 25. Good thing my parents taught me about credit, how to manage money and the value of a dollar by making me get a job the day after I turned 14. Every parent is different but all I can say is I am very glad you are not mine or I wouldn’t have any of the items I just described above.</p>
<p>To the OP - Capital One has great student cards. No annual fee and they give cash back on purchases. They also give additional cash back for paying your bill on time. They are all about teaching your kid to be responsible.</p>
<p>annasdad,
That article you linked on student debt is 2 year old. This was written before the changes in student credit went into effect.</p>
<p>I think that people who have experienced the challenges of digging out of debt are more likely to want to help others avoid that experience. Just as those who have not had to deal with that, due either to luck, careful spending habits or what have you, want to bestow this skill on their kids as well. Don’t think parents are wearing rose colored glasses. To the contrary- I think many are going into this with their eyes wide open. Fiscal responsibility is a learned skill, just like any other skill. We are happy, no we are strongly desirous of, now we are insistent on teaching it to our s’s.</p>
<p>Two interesting sites to compare cards. These will also be helpful for us, not just our students. A local consumer guru recommended these.</p>
<p>[Compare</a> 1715 Credit Cards - Apply for the Best Credit Cards](<a href=“http://www.nerdwallet.com/]Compare”>http://www.nerdwallet.com/)
[$$$></a> Credit Card Tune-Up: Calculate the Best Credit Card Reward Deal <$$$](<a href=“http://creditcardtuneup.com/]$$$>”>http://creditcardtuneup.com/)</p>
<p>Another site I have used before: [Credit</a> Cards | Best Credit Card Offers | Low Interest APR Rewards Cards](<a href=“http://www.bankrate.com/credit-cards.aspx]Credit”>Credit Cards: Find the Right Offer For You & Apply Online - Bankrate)</p>
<p>Oh and as far as debit cards vs credit cards, I wouldn’t suggest using your debit card for anything… aside from taking money from an ATM if necessary. Never use them online. If someone gets those numbers and goes on a ramage with them, that money was just taken directly from YOUR bank account I.E. out of YOUR money. Sure, your bank will try it’s best to get that money back for you, but in the mean time, you’re SOL while waiting for it to be returned. If you have fraud on a credit card the credit card company will deal with it and you aren’t out a penny in the mean time. Sister just had debit card fraud this year. $500 was taken from her account. It took weeks till she got that money back. Me, I try to buy something on my CC and have it shipped to another address and my CC calls me to find out if this is a legitimate charge or fraud.</p>
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<p>Here’s part of what I didn’t quote from the first link, which is only one year old:</p>
<p>“Landmark credit card legislation signed by President Obama one year ago curbed some marketing tactics on campuses but didn’t prohibit the arrangements between colleges and banks, known as ‘affinity’ agreements.”</p>
<p>snowball-
we found the bankrate.com to be the best site (I also referenced/recommended it was yearlier inthis thread).</p>
<p>Fendergirl-
Thank you for being so much more direct with what I am delicately dancing around in my posts. You go girl! There are many benefits to being credit worthy and having a good financial head on your shoulders.</p>