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Credit card for college student
Old 04-19-2006, 10:34 AM   #1
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Credit card for college student

Hi all,

My daughter will be leaving the nest soon.* She will be 1,500 miles away from home.* I thought it would be a good idea to get her a credit card for emergency use.

Bank of America, where she has a student checking account, promptly offers a card with a $600 credit line.* However, the interest rate is almost 19%.* Although she has been instructed to never carry a balance beyond the grace period, I still find that rate outrageous.* The bank representative told me the rate is common for new credit card owners.* Is the rep right?* Should I try another bank?* Are there alternatives?

Thanks,
Sam
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Re: Credit card for college student
Old 04-19-2006, 10:40 AM   #2
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Re: Credit card for college student

You can try another bank, but unless you are willing to co-sign (bad idea, IMO), that's probably about ballpark. But if she never carries a balance, wh cares what the rate is?
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Re: Credit card for college student
Old 04-19-2006, 10:51 AM   #3
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Re: Credit card for college student

I agree with Brewer on the rate. Use it as an example of what it will cost her to have a balance.

I have 2 college age kids who have credit cards through a college student account that our credit union offers. Check and see if BofA has something similar....or where ever her checking account is.

It's an automatic $1000 credit limit for kids with no credit history with a 14.9 percent. If she doesn't have a checking account yet, look for the package deal for students.

IF you want to help her credit history, add her as an authorized signer on one of your cards (assuming you have good credit). You don't have to giver her the card, but your history will show up on her credit report adding longevity and giving her a FICO score.
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Re: Credit card for college student
Old 04-19-2006, 10:51 AM   #4
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Re: Credit card for college student

Quote:
Originally Posted by brewer12345
are willing to co-sign (bad idea, IMO), that's probably about ballpark.* But if she never carries a balance, wh cares what the rate is?
Second Brewer--no balance no problem
We co-signed for a card for our very responsible daughter back when that was the only way to get a card for someone starting college.
BIG WARNING to any other parents who have done the same--the primary card holder has to cancel the card to get you off it.
I had even noted the original application that co-signature was only good to the date of her 21 st birthday. *When the time came I sent a certified letter advising the cancellation of our guarantee (saw the card on my credit report). *The card company replied--sorry you are not the primary owner (but we will come after you if we do not get our money), so you can not change the card.
Daugher dutifully cancelled but a major pain.
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Re: Credit card for college student
Old 04-19-2006, 11:48 AM   #5
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Re: Credit card for college student

Quote:
Originally Posted by Sam
Bank of America, where she has a student checking account, promptly offers a card with a $600 credit line.* However, the interest rate is almost 19%.*
If she decides to pick up the military option, she can apply for a USAA or NFCU credit card with a lower rate.

Best not to carry a balance. From what I remember of getting my first teenager's credit card, good luck with that...
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Re: Credit card for college student
Old 04-19-2006, 12:35 PM   #6
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Re: Credit card for college student

Banks believe that you must earn the lower APR by showing you're worthy. It's not really such a bad thing. If she gets a low rate card right away, she might be more tempted to carry a balance.
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Re: Credit card for college student
Old 04-19-2006, 01:10 PM   #7
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Re: Credit card for college student

Quote:
IF you want to help her credit history, add her as an authorized signer on one of your cards (assuming you have good credit).* You don't have to giver her the card, but your history will show up on her credit report adding longevity and giving her a FICO score.
I second that. The info. on the card will be transferred to her credit history. If you give her the AU card, you will be able to see what is being charged and have it taken away if there is abuse. I think you should obviously teach her to pay in full every month so that the rates dont matter.
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Re: Credit card for college student
Old 04-19-2006, 02:31 PM   #8
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Re: Credit card for college student

Quote:
Originally Posted by Nords
If she decides to pick up the military option, she can apply for a USAA or NFCU credit card with a lower rate.
Thanks Nords,

Yes, she is going to USNA.* I'll will check out USAA and NFCU.

Sam
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Re: Credit card for college student
Old 04-19-2006, 02:45 PM   #9
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Re: Credit card for college student

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Originally Posted by Sam
Thanks Nords,

Yes, she is going to USNA.* I'll will check out USAA and NFCU.

Sam
Check out www.penfed.org too. They seem to have attractive credit card deals, although I don't know how picky they are about who they offer one to.
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Re: Credit card for college student
Old 04-19-2006, 02:47 PM   #10
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Re: Credit card for college student

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Originally Posted by brewer12345
Check out www.penfed.org too.* They seem to have attractive credit card deals, although I don't know how picky they are about who they offer one to.
Thanks. Will do that too.
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Re: Credit card for college student
Old 04-19-2006, 02:52 PM   #11
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Re: Credit card for college student

Quote:
Originally Posted by Sam

My daughter will be leaving the nest soon. She will be 1,500 miles away from home. I thought it would be a good idea to get her a credit card for emergency use.
Just curious: why a credit card as opposed to a debit card only?
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Re: Credit card for college student
Old 04-19-2006, 03:01 PM   #12
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Re: Credit card for college student

Quote:
Originally Posted by Rich_in_Tampa
Just curious: why a credit card as opposed to a debit card only?
Rich_in_Tampa,

She already had a debit card for sometime now.* In my mind, the main reasons for a credit card are:

1)* The need to build up her credit history.
2)* Rent a car;* Buy plane ticket online, being able to check in electronically.
3)* $ in emergency case, where the needed amount exceeds her bank account balance.

Sam
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