J-rap Posted May 28, 2014 Share Posted May 28, 2014 My daughter has a full-time job in the summer, a part-time job in the school year, is a top 4.0 student (a senior), she owes nothing (has no student loans), is listed on our credit card account as a card holder (and we have great credit -- we never carry a balance), and she cannot get a credit card. She has applied at three places so far and has been rejected by all. How can she start a credit history if she cannot even get a credit card? Quote Link to comment Share on other sites More sharing options...
Kathryn Posted May 28, 2014 Share Posted May 28, 2014 Does her bank or credit union offer a card? Quote Link to comment Share on other sites More sharing options...
Lolly Posted May 28, 2014 Share Posted May 28, 2014 Two options. One is to have you or your dh as a guarantor on a card. Second option, one which doesn't require you, is to get a secured card. She opens a savings account with the amount of her maximum on the card. She isn't allowed to touch the account; it is specific to the card. The bank allows the card in her name with the amount in the savings to pay the balance if she cannot. Quote Link to comment Share on other sites More sharing options...
Night Elf Posted May 28, 2014 Share Posted May 28, 2014 My dd got a secured card from her bank, Wells Fargo. She had to put $300 into an account and that was her card limit. Quote Link to comment Share on other sites More sharing options...
J-rap Posted May 28, 2014 Author Share Posted May 28, 2014 Thanks everyone -- we'll stop by our bank today and look into getting a secured card. I hadn't even heard of that! So, good suggestions. I'm sure the stricter credit card requirements are better in the long run... Quote Link to comment Share on other sites More sharing options...
Kim in Appalachia Posted May 28, 2014 Share Posted May 28, 2014 My dd, who is in college, just got one, through Old Navy. Did your dd try there? My dd owns her own car, but doesn't have a loan on it. Also, when my dd was in highschool she had a card with her name on it, but it was my account. I got that so she could get gas going to and from school (she was taking classes at a college), and so she could pick stuff up for me at Walmart. I wonder if having her name on my account helped her credit?? I don't know. Quote Link to comment Share on other sites More sharing options...
Pawz4me Posted May 28, 2014 Share Posted May 28, 2014 We plan on taking DS to our credit union in the next few weeks and see what they can offer. We don't mind if we have to co-sign. But I can't imagine it will be a problem--he gets credit card offers in the mail all the time. Quote Link to comment Share on other sites More sharing options...
gardenmom5 Posted May 28, 2014 Share Posted May 28, 2014 has she applied at a bank? one where she has a savings/checking account? usually they fall over themselves trying to hand out credit cards to students. STORES will generally NOT give out credit cards to students. Quote Link to comment Share on other sites More sharing options...
J-rap Posted May 28, 2014 Author Share Posted May 28, 2014 My dd, who is in college, just got one, through Old Navy. Did your dd try there? My dd owns her own car, but doesn't have a loan on it. Also, when my dd was in highschool she had a card with her name on it, but it was my account. I got that so she could get gas going to and from school (she was taking classes at a college), and so she could pick stuff up for me at Walmart. I wonder if having her name on my account helped her credit?? I don't know. Sounds like my daughter... she has own car too with no loan, and has a Master Card card with her name on it (but my account) so that she could help me at the grocery store :) and for emergencies. I guess it didn't seem to help in her case. She hasn't applied at Old Navy. I'll suggest that to her. I think Old Navy even doubles as a Visa card, though I'm not sure. Quote Link to comment Share on other sites More sharing options...
gardenmom5 Posted May 28, 2014 Share Posted May 28, 2014 I wonder if having her name on my account helped her credit?? I don't know. yes it does. we had cards for our girls when they were in college. they were dh's account, but in their name. we made sure the limits were high enough if they ever had to fly home in an emergency, they could pay for a ticket. Quote Link to comment Share on other sites More sharing options...
J-rap Posted May 28, 2014 Author Share Posted May 28, 2014 We plan on taking DS to our credit union in the next few weeks and see what they can offer. We don't mind if we have to co-sign. But I can't imagine it will be a problem--he gets credit card offers in the mail all the time. We may go this route. I wonder if us co-signing will help her credit in the long-run, or if it's important for her to get one in her name only. Quote Link to comment Share on other sites More sharing options...
J-rap Posted May 28, 2014 Author Share Posted May 28, 2014 has she applied at a bank? one where she has a savings/checking account? usually they fall over themselves trying to hand out credit cards to students. STORES will generally NOT give out credit cards to students. She hasn't applied at our local bank yet. She's applied at Capital One, REI, and one other (can't remember which). Quote Link to comment Share on other sites More sharing options...
J-rap Posted May 28, 2014 Author Share Posted May 28, 2014 yes it does. we had cards for our girls when they were in college. they were dh's account, but in their name. we made sure the limits were high enough if they ever had to fly home in an emergency, they could pay for a ticket. My daughter has had a card in her name (but my husband's and my account) for years! We've always paid our entire balance every month. So, this didn't seem to help in my daughter's case. Quote Link to comment Share on other sites More sharing options...
Jenny in Florida Posted May 28, 2014 Share Posted May 28, 2014 Does her bank or credit union offer a card? My daughter just got her first credit card (with a low limit) from our credit union. She's had a very small savings account there for several years, and we maintain a small savings account so that we can get access to their rates for things like car loans. She's been working for about a year and a half, but has no previous credit history. They approved her for the card while she waited. Quote Link to comment Share on other sites More sharing options...
bettyandbob Posted May 28, 2014 Share Posted May 28, 2014 Does she have her own savings account at a bank or credit union? I got my first credit card at the bank where I'd opened an account at age 12 and started depositing babysitting money, later lifeguard pay. When I graduated college, I went in and asked about getting a credit card. The manager told me that at first I could only have a very low limit. ($500--this was a long time ago) After a year, I went back and requested they raise the limit. I no longer have that card or an account with that bank, but that's how I got started. Quote Link to comment Share on other sites More sharing options...
Prairie~Phlox Posted May 28, 2014 Share Posted May 28, 2014 Hmm...my 16 yo just opened a checking account, it is joint, but my name is not on the card they sent her, just my signature on the paperwork. She can run it as debit or credit. She already had a savings account. Quote Link to comment Share on other sites More sharing options...
gardenmom5 Posted May 28, 2014 Share Posted May 28, 2014 your signature is on the paperwork for the account - so it is a joint account/you're liable if she doesn't pay. Hmm...my 16 yo just opened a checking account, it is joint, but my name is not on the card they sent her, just my signature on the paperwork. She can run it as debit or credit. She already had a savings account. Quote Link to comment Share on other sites More sharing options...
milovany Posted May 28, 2014 Share Posted May 28, 2014 You can also get a loan from a credit union for a small amount, and then have automatic payments set up. Basically, they deposit the loan amount into her account, then deduct the monthly payment from that same account. Make sure she doesn't touch the loan amount and it just pays itself off. This is what our now-20 year old son did; he got a $500 loan with our long-term credit union when he was 18. When he went to get a small vehicle loan ($2500) at the same credit union last year, they said the only reason they approved him was because he'd had the smaller loan and it had been paid off. Getting a credit card through the same credit union is our next step but should be not-too-difficult because of the car loan (we hope!). If it is, we'll try a store or bank credit card. Quote Link to comment Share on other sites More sharing options...
milovany Posted May 28, 2014 Share Posted May 28, 2014 Hmm...my 16 yo just opened a checking account, it is joint, but my name is not on the card they sent her, just my signature on the paperwork. She can run it as debit or credit. She already had a savings account. Even though it can be run as a credit card, the money is coming directly from a checking account so it's technically a debit card and will not help with establishing credit. Quote Link to comment Share on other sites More sharing options...
Pawz4me Posted May 28, 2014 Share Posted May 28, 2014 We may go this route. I wonder if us co-signing will help her credit in the long-run, or if it's important for her to get one in her name only. I think it would help her credit score. Doesn't co-signing just mean you agree to be responsible if the primary person doesn't pay? So as long as she's paying on time, I think it would boost her credit score. Hmm...my 16 yo just opened a checking account, it is joint, but my name is not on the card they sent her, just my signature on the paperwork. She can run it as debit or credit. She already had a savings account. Even though she can run it as a credit card, it's a debit card. So the money comes out of her checking account almost immediately. Since there's no bill to pay (or not!) once a month, it has no benefit as far as building credit. Quote Link to comment Share on other sites More sharing options...
Prairie~Phlox Posted May 28, 2014 Share Posted May 28, 2014 your signature is on the paperwork for the account - so it is a joint account/you're liable if she doesn't pay. Yes, I am aware of this and am not worried. It's a checking account & her card will not work if there are not sufficient funds in it. Quote Link to comment Share on other sites More sharing options...
Word Nerd Posted May 28, 2014 Share Posted May 28, 2014 They offered them like candy when I was in college—at enrollment, outside the student union, and at other random places on campus, usually with a free gift for signing up. Quote Link to comment Share on other sites More sharing options...
Kim in Appalachia Posted May 28, 2014 Share Posted May 28, 2014 Sounds like my daughter... she has own car too with no loan, and has a Master Card card with her name on it (but my account) so that she could help me at the grocery store :) and for emergencies. I guess it didn't seem to help in her case. She hasn't applied at Old Navy. I'll suggest that to her. I think Old Navy even doubles as a Visa card, though I'm not sure. The Old Navy card is a Visa, so good everywhere. Quote Link to comment Share on other sites More sharing options...
AndyJoy Posted May 28, 2014 Share Posted May 28, 2014 "Back in the day" (2000, LOL) Discover would give any random college student a card with a $300 limit. I didn't even have a job beyond work study. All my friends and I got these to start establishing credit. Quote Link to comment Share on other sites More sharing options...
Word Nerd Posted May 28, 2014 Share Posted May 28, 2014 "Back in the day" (2000, LOL) Discover would give any random college student a card with a $300 limit. I didn't even have a job beyond work study. All my friends and I got these to start establishing credit. That's what I had. It was a student credit card, so the rate wasn't good and the limit was low, but I only used it for gas anyway so I could pay at the pump. Quote Link to comment Share on other sites More sharing options...
Lolly Posted May 29, 2014 Share Posted May 29, 2014 Thanks everyone -- we'll stop by our bank today and look into getting a secured card. I hadn't even heard of that! So, good suggestions. I'm sure the stricter credit card requirements are better in the long run... I'm not so sure they are better. I think they are ridiculous. They won't let me get my own card at this point because I have no job. The only way for me to get a new card would be to get a secured one, which is totally ridiculous. If I didn't already have cards in my name only... I have a credit rating over 800... I have...plenty... of money in their bank in my name only...Yet, I do not qualify for a card without dh's name attached. That is just stupid. has she applied at a bank? one where she has a savings/checking account? usually they fall over themselves trying to hand out credit cards to students. STORES will generally NOT give out credit cards to students. Today, the banks are not allowed to give out credit cards without following very strict guidelines. Doesn't matter if you have accounts there or not. Stores allow almost anyone to have their store card, especially if they have a decent credit rating. Quote Link to comment Share on other sites More sharing options...
Tap Posted May 29, 2014 Share Posted May 29, 2014 Check at a credit union. I asked at ours today and they require 2 pieces of id to open an account. After 3 months, with proof of employment over 1 year, they will give them a credit card. Quote Link to comment Share on other sites More sharing options...
creekland Posted May 29, 2014 Share Posted May 29, 2014 She hasn't applied at our local bank yet. She's applied at Capital One, REI, and one other (can't remember which). Has she tried Discover? That's where my boys have gotten their first cards - after they've had jobs. I'm not sure what the interest rate is as they keep them paid off, but I do like them being able to use them when needed and in case of emergencies. There's also a small cash back bonus that adds up after a while. Quote Link to comment Share on other sites More sharing options...
mysticmomma Posted May 29, 2014 Share Posted May 29, 2014 Three inquiries in a short time can be the reason. Quote Link to comment Share on other sites More sharing options...
flyingiguana Posted May 29, 2014 Share Posted May 29, 2014 My daughter just got a Target credit card without any trouble. She has had a couple jobs, but nothing that would make me think she was a good credit risk. She's had a debit card on her bank account for several years as well. She's been on our card for 4 years. And she just graduated, but that was so recently (like, last week) that I'm not sure what effect that would have. She also told them she was just about to start a job, but that's not really the same as having one, in my book. I don't know which of these things made it possible. I also don't know if this would translate into her being able to get a real card that works anywhere. Actually, she wasn't even able to open a bank acct with reasonable fees at Wells Fargo back when she first started college (and needed a place to deposit her pay checks). Wells Fargo had a bait and switch tactic, where they offered free checking to college students, but then did a credit check and told the student they weren't "eligible" for the free checking. They'd have to sign up for the expensive sort. Wells Fargo refused to tell us what the issue was, so I assume it was just some sort of scam where they either do this to all college students, or if it was our zip code (which is pretty inner city, if you don't know the neighborhoods around here -- and I'm guessing the computer that spat out this result really didn't know) So we went to a credit union. They ran the exact same check. We were convinced they would also reject her. As Wells Fargo had not told us the reason for the rejection, I was imagining some sort of identity theft that we were going to have to spend years cleaning up. But the credit union gave her an account with no problem. They didn't even see what would have been a red flag for Wells Fargo. So just because one place has rejected a kid for a credit card, I wouldn't be so convinced that it's impossible for that kid to get a card. It may have more to do with marketing and the particular risk that company wants to take on -- and might not mean your daughter is completely uncreditworthy to everyone. I suspect things like state and zip code that you live at may also have an effect. (I know there are probably laws against this sort of thing, but I honestly don't see how anyone would enforce this as all this would be buried in proprietary code). That might mean that she might make the cut at one company when she wouldn't at another. Wells Fargo, by the way, has lost my daughter's business. Now that she's getting a high paying job, I imagine they'd be disappointed. If they knew. We also have been pulling our money from them as we've had a chance. Didn't seem like the best marketing scheme on their part. The big thing Wells Fargo has going for it is that it's nationwide (although with really annoying gaps in ATM coverage) Quote Link to comment Share on other sites More sharing options...
J-rap Posted May 29, 2014 Author Share Posted May 29, 2014 "Back in the day" (2000, LOL) Discover would give any random college student a card with a $300 limit. I didn't even have a job beyond work study. All my friends and I got these to start establishing credit. Actually, I HAVE heard that Discover cards are easier to get as a first card. Quote Link to comment Share on other sites More sharing options...
J-rap Posted May 29, 2014 Author Share Posted May 29, 2014 Has she tried Discover? That's where my boys have gotten their first cards - after they've had jobs. I'm not sure what the interest rate is as they keep them paid off, but I do like them being able to use them when needed and in case of emergencies. There's also a small cash back bonus that adds up after a while. You know, I'm remembering now that I think that's the card that my son first had, and I've heard that Discover cards are often easier to get. Part of the problem with my daughter is that she travels internationally and is hoping to teach abroad next year, and I don't know if Discover works as well internationally. But, I guess you have to start somewhere! Quote Link to comment Share on other sites More sharing options...
J-rap Posted May 29, 2014 Author Share Posted May 29, 2014 Three inquiries in a short time can be the reason. Well that makes it a little tricky, then! :confused1: Quote Link to comment Share on other sites More sharing options...
flyingiguana Posted May 30, 2014 Share Posted May 30, 2014 My daughter just told me she's going to apply for a Discover card -- because if her friend refers her, both she and her friend get 50 dollars. Obviously, I'm only hearing about this supposed promotion third hand, but if it's true, it might be worth looking into. If you can find someone who already has a Discover card. Quote Link to comment Share on other sites More sharing options...
BlsdMama Posted May 30, 2014 Share Posted May 30, 2014 So, I'd pop over to the CreditBoards. Here's the thing - hard pulls / inquiries go on your record for 12-24 months and while they don't affect credit score a LOT, they do affect it. And if you have little to no credit, seeing a bunch of inquiries on there is a very negative thing. So if you head over to the CreditBoards, they have a database of cards and you can figure out how likely you are to get approved. Or just ask the question on the forums over there. My thought is you want a card that will "graduate" to unsecured after 12 months. In other words, you start with a limit of like $300 secured, then it will graduate to unsecured and her limit will grow with her and her income as life goes on and she proves herself. But because credit score is ALSO made of up of "average age of accounts" (AAOA) you don't want to get a subprime card that she'll later want to cancel because this will be her longest running card. The other thing is that often while the local credit union is an EXCELLENT place to start for something like this, the flip side is also that sometimes local cu's don't report or don't report to all three bureaus. So it's something to keep in mind. :) Quote Link to comment Share on other sites More sharing options...
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