What card are you getting for college kids? I've used debit cards but now have concerns over security as well as see a need to help them build credit.

I think all the major cc companies have student programs.
This will be no help at all but mine was a MontgomeryWards card. Then I think Sinclair gas. No wonder they're both extinct now.

BoA just closed my first CC I ever got in college for lack of use, I suppose. It was a good 30-year run.

In January of '73 I got a new car loan from the Bank of A&M, it was my last semester at A&M. Came with a checking account with a 4-digit account #. 51 years later it's my BoA checking and there are 8 new numbers in front of my original 4. Not bad for a college kid with no job.

I advised both of my kids to get the Apple Card. It's driven via the wallet app on the phone, and facilitates their high yield savings account that's also built around the wallet app. Then I advised them to put their utility bills on it and set it on autopay for the statement balance and have their employers send a small amount of money each month to their savings accounts. The card pays 3% cash back on purchases from the Apple Store or Apple.com so things they are going to buy anyway get cash back. You also get 0% for 12 months of purchases from the store. It's a good overall starter account.

I have a Chase Sapphire Preferred and I got an extra in his name. I don't think there was any charge to do this (vs my. Cap One Venture card was going to charge an extra fee for a second card). If there was, it was cheaper compared to Venture.

So far I've been paying the bill, but coming this fall, he's going to keep track of his personal expenses and send a check.

I am not sure if this arrangement builds his credit or not, since I am the primary card holder.

He has no regular income, so I'm not sure he'd qualify for much. And there are perks to having the Sapphire card.

No. It will do nothing for his credit or credit history.

For a kids first card I would not want them to have points or rewards. Getting "rewarded" for swiping the card is counter intuitive to teaching them responsible use of credit and credit card use.

K I S S

Just signed my oldest up for the Chase Freedom Rise. It only has a $500 limit, which I thought was low since that is what my first ones were. After a year of on-time payments it is supposed to be upgraded to the Freedom Unlimited. I primarily have Chase cards and like their options for the Ultimate Rewards, so I figured this was a good option to start with and start building rewards.

Have you asked if he can be added as an account manager rather than an authorized user? I've got a 21 year old that I made account manager on a card which gives him full access and allows him to link his checking account for payments which he is responsible for. We got a credit report on him and it's on his credit report.

No, I didn't know that was an option! I will look into it though, because that is exactly what we need. Thanks for the suggestion!

Are you still able to view the account, too?

Not having a credit history can cost you a lot of money in the long run. If you are worried about getting into debt but want to build a credit history you can "sock drawer" a card which is where you open an account, put a single reoccurring charge on it like your Netflix bill, set the account up to auto pay the bill every month, then stash the card away and never carry it with you.

YouBet said:

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BoA just closed my first CC I ever got in college for lack of use, I suppose. It was a good 30-year run.

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This reminds me. I'm of the age demographic where I remember those manual credit card swipe machines at stores, and our family using them, but I really can't say that I ever had to use one to buy anything personally.

Did your old card ever get to take a ride in an electronic machine or was it a manual swipe special?

Yes. I get an email when the payment is due, when it's scheduled and when it's posted.

Chipotlemonger said:

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YouBet said:

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BoA just closed my first CC I ever got in college for lack of use, I suppose. It was a good 30-year run.

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This reminds me. I'm of the age demographic where I remember those manual credit card swipe machines at stores, and our family using them, but I really can't say that I ever had to use one to buy anything personally.

Did your old card ever get to take a ride in an electronic machine or was it a manual swipe special?

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The old Knucklebusters! A few companies here and there kept/keep those as backup in case their POS goes down. I definitely used those back in the day but my card got upgraded over the years. That first card was actually another company that was ultimately purchased or merged with BoA. I've forgotten who the card was even with, originally.

I just still marvel at the fact that without applying for it I was given a CC with a $30K limit. Keep in mind I was a full-time student with a part-time job waiting tables. In the early to mid-90s credit cards were being given out like candy without a care in the world or remotely any minimum standards to get one.

TX_COWDOC said:

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What card are you getting for college kids? I've used debit cards but now have concerns over security as well as see a need to help them build credit.

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I believe NerdWallet.com is a good start for navigating the best cards on the market. They even have a first credit card section. General take is to get one without an annual fee, and a limit that is high enough to actually get them out of an emergency on top of their normal spend, but not so high they can get themselves in debt trouble too quickly. Interest rate is irrelevant if you plan on paying it off each month (which even college kids should). Fighting over 18 vs 25% is meh.

Kenneth_2003 said:

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I still have the A&M Master Card that I got on campus with a free T-shirt when I filled out the application.

I rarely use it, but it's my backup card. I think it initially has a $500 limit.

If getting a person a credit card gets them in debt I guess the spoon made them fat.

Not everyone has to go full Dave Ramsey

edit... for typos

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Ha, it was amazing how many people were carrying those cards around when I was there back in the 90s.

One suggestion I have is to setup accountability. Have your kid at least prove out to you that they are paying off their card monthly. I wouldn't be concerned with the what they buy (too controlling), but putting in some measures to help them become disciplined with it while it is new to them is a good safeguard.

saturn135 said:

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Credit cards help build credit by getting into debt. Getting into debt helps build credit...see the problem. Teach kids to pay with cash, therefor never getting into debt just to build credit. This society is so backwards.

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Ramsey's schtick only helps the poor stay slightly less poor

I avg close to 4% cash back across all purchases over several different cards, plus 1% on rent with Bilt (bypasses fees), plus get to earn interest on the several K a month I get to keep in high yield MM by not having to pay in full til following month statement date, have never carried a balance/paid interest

so investing the free ~2K/yr compounding over 40 years comes out to easily over half a mil by not paying cash