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Okay, my child is being turned down for a job while in college because she has no credit. The fact that she already has stock accounts and bank accounts does not matter (and we wonder why people's finances are screwed up?), she must have credit.

So I'm looking for decent cards that may give her goodies while helping her credit. Any suggestions?

Kathleen
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So I'm looking for decent cards that may give her goodies while helping her credit. Any suggestions?

Assuming she's under 21, since she has no income, you will have to co-sign. Rather than do that, I would suggest making her an authorized user on a few of your cards.

AJ
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Yes, make her an authorized user on one or two of your older credit cards. I did that when my daughter turned 16 and she has an 800 credit score even though she's only 18.
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I disagree with the other 2 posters on making her an authorized user on one of your cards. First, it is my understanding that being an authorized user does not impact her credit score (but I could be mistaken on that). Second, and more importantly, I don't see how that does anything to help her learn how to actually use and manage a credit card.

If you belong to a local credit union, see if they will give her a card that you co-sign for her to use. My credit union lets kids have a co-signed credit card at 17, and so I got each of them a card at that time. Since they were still in high school, they used the card for gas (for which they were responsible) and any other incidentals that they had. The bills came here, and I could help them to check them over for errors, and ensure that they then paid the bills. This was a great teaching tool for them as they were heading off to college and independence to learn how to use a card responsibly.

At the suggestion of another poster here, I had my kids keep those cards after they graduated college. An interesting thing with my credit union is that they do not automatically increase credit lines, and so here we are 10 years later, and they each still have these cards and they still have a $1000 limit.

I've done this for a few reasons. DD still lives with us, so if I want her to stop at the grocery store on the way home and pick something up or buy something else for me, I have her put it on that card, and then I can just go in and pay it off. DS is over an hour away down in RI, and for him, I tell him to use it for some expense that we want to pick up. For instance, we gave him a new iPhone for his birthday last year because his phone (iPhone 4) died about a month before his birthday. It was easiest just to have him go get a new one that we wanted to buy, and just put it on the card. If we don't see him for his birthday, I have been known to tell him to take himself and a friend out for dinner, and put that on the card.

So they've kept the card, which is their oldest, to be convenient for me.

I know that DD's credit score is over 800.

But if you just give your daughter your card, she will not have as much of an opportunity to learn how to manage her spending and learn to pay the bill. I think you need to be thinking much longer term.

P.S. In college, I told them the card was to be used in an emergency which I defined as "you'd walk across the street naked". DS called me one day to say that he had used the car in what he thought was an emergency since he'd fallen and they thought he broke his arm (thankfully not). Then we had the conversation about how if you are in a place whose name stars with "emergency", it's a pretty safe bet that you can and should be using that card.
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...in college ... has stock accounts and bank accounts...

Actually, since she has assets, she might not even need a co-signer. I googled "credit cards for college students with no credit," and this is from wallethub.com:

You can get all of the following student credit cards with no credit. Credit card companies actually roll out the red carpet for students despite their lack of credit history (some offers are from WalletHub partners). They do this because of students’ earning potential and decades of forthcoming financial independence, which can be very profitable for banking institutions. To qualify, all a student must do is demonstrate the independent income or assets needed to pay at least their minimum monthly bill (usually around $10 for student cards). But if that’s not possible, it’s worth looking into having a parent co-sign, given the importance of credit building at this stage in your life.

Looks like Discover offers the best "goodies," but personally I think for a 1st-timer the cash back might be a distraction; plus, although Discover is accepted in a lot more places than they used to be, they're still not as widely accepted as Visa or Mastercard.

Besides "independent assets," there's also the "secured" option.

Citi has a secured Mastercard with no fee. Steep APR, which doesn't matter if it's paid in full each month. I like Citi because they've been easy to deal with when I had disputed charges. Whereas, USAA made me jump through multiple hoops (ultimately deciding in my favor, but I didn't appreciate their reluctance).
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<<So I'm looking for decent cards that may give her goodies while helping her credit. Any suggestions?

Kathleen>>


She's an adult. Let her manage her own finances.


Seattle Pioneer
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First, it is my understanding that being an authorized user does not impact her credit score (but I could be mistaken on that).

Sorry, you are incorrect. There was a short time frame when being an authorized user was pulled out of some of the credit scoring models, but there was significant pushback, and it was reinstated.

Second, and more importantly, I don't see how that does anything to help her learn how to actually use and manage a credit card.

Well, the immediate question was how to get the daughter some credit, which is probably most quickly accomplished by putting her on other cards as an authorized user, since new accounts can delay reporting to credit bureaus for up to 90 days. That said, even with an authorized user card, the daughter could be allowed to manage the card herself, especially if the owner(s) of the card don't use it.

I do agree that it's important to ensure that the daughter is responsible in her use of credit, and managing her own card will help with that. But co-signing accounts, especially for someone who doesn't have any credit history puts your own credit record at significant risk, so it's probably better to wait to co-sign until there is some history of responsible use of credit.

AJ
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Actually, since she has assets, she might not even need a co-signer.

If she has significant enough liquid assets (i.e., taxable accounts), then that may be possible, and from a parent's point of view that would certainly be preferable to having to co-sign. However, I suspect that the credit score with just one or two brand new low limit credit cards would be significantly lower than the credit score that also includes being an authorized user on a card with a higher limit and longer history. Plus, as already mentioned, new cards don't always report to the credit bureaus immediately.

AJ
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But co-signing accounts, especially for someone who doesn't have any credit history puts your own credit record at significant risk, so it's probably better to wait to co-sign until there is some history of responsible use of credit.

Again, we disagree. I felt it was part of my job as a parent to teach my kids about finances, and that included how to handle a credit card. I co-signed on a credit card that had a $1000 limit, which is pretty small and something that hasn't changed in 10 years. It is small enough that I can watch it to ensure they know what they are doing, and if necessary, pay it off and even close it if they were not being responsible.

But this was in there among all the financial lessons including how to make a budget, how to invest, who IRAs and taxes work, etc.

Co-signing on a small limit card was the best choice for me, and I still think is a better choice for the OP than to make her daughter an authorized user.

We will have to agree to disagree on this one.
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But if you just give your daughter your card, she will not have as much of an opportunity to learn how to manage her spending and learn to pay the bill. I think you need to be thinking much longer term.

I don't think anyone is suggesting that she just pump her daughter's credit score up and send her on her merry way. There is more than one way to handle getting credit, but either way, a parent has to teach his or her kids how to manage it. Based on the fact that the OP's daughter already has investment accounts, I suspect that they are already having financial discussions.

My 18 year old daughter is an authorized user and she manages the card herself. She makes the charges; she makes the payments. I check the account periodically to make sure everything is on track. If anything seems amiss, we have a discussion about it. It's all a part of the financial education a that includes budgeting, retirement planning, credit card usage, etc.

There's more than one way to skin a cat.
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I must admit I'm not understanding the point that 2gifts is trying to make that a cosigned card is a better choice. Assuming a small card that is only for them, the only difference I know of is that it would be much harder to cancel the co-signed card if it turns out the child is not so responsible after all.

And in this particular case, adding her as an authorized user on a current card would seem the way to go -- just for the quicker result since she needs it ASAP. And then also go forward with whatever method seems best after that for learning to use credit responsibly.

Which to me means she should go ahead and get her own small card -- since I assume in college means she is over 18.
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There’s more than one way to skin a cat.

Exactly. And so I have made a different suggestion to add to the pile.

Seemed to me that folks had already decided that the authorized user path was the only way. I was pointing out that it is not, and apparently ruffling feathers for some reason.
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Again, we disagree. I felt it was part of my job as a parent to teach my kids about finances, and that included how to handle a credit card.

I don't disagree with that. I also believe that it is a parent's job to teach their kids about finances, including how to responsibly use credit. But the issue in this case is that there is no credit history, which is causing the kid to get turned down for jobs. The secondary issue is that, if one has a credit history that presents as a low score (new accounts with low limits don't present as high scores, even without any derogatory history), there may still be an issue with getting a job.

The fastest way to get a decent looking credit history is to be added as an authorized user to a card with a good history. The parents can then monitor the use of that card, like Frugalicious does with their daughter.

After the initial problem of having not having any credit history is solved, then I agree that the kid should seek their own credit card, hopefully being able to get it on their own, without having to have a co-signer, since they will hopefully now have a job.

If the kid can't get a credit card account on their own, and the kid has been responsible with their authorized user card, then the parent may choose to take on the risk of co-signing. But they should ensure that they are able to monitor the use of that card, and understand what it takes to get their name disassociated with the account, up to and including, being able to get the account closed down, BEFORE they co-sign.

AJ
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As an aside, silver lining: if she doesn't have a job, then that's more time available for school work.

DD did work study as part of her scholarship package freshman year, asked if she could drop it sophomore year and take an additional class instead. We said sure. The work study was for some charitable outreach the university was doing, so very nice, but not in her field, so one year was enough from an experience perspective. After that, she got internships in her field during the summers, and focused on just school during the school year. Graduated on time, which overall was better financially then if she'd taken longer in order to work part time - something a lot of students do. Not that your DD would let a job interfere with school necessarily, but typically a rigorous school's mantra is "study, sleep, socialize - pick two," and with a job, something's got to give. JMHO
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Actually, since she has assets, she might not even need a co-signer. I googled "credit cards for college students with no credit," and this is from wallethub.com:

You can get all of the following student credit cards with no credit. Credit card companies actually roll out the red carpet for students despite their lack of credit history (some offers are from WalletHub partners). They do this because of students’ earning potential and decades of forthcoming financial independence, which can be very profitable for banking institutions. To qualify, all a student must do is demonstrate the independent income or assets needed to pay at least their minimum monthly bill (usually around $10 for student cards). But if that’s not possible, it’s worth looking into having a parent co-sign, given the importance of credit building at this stage in your life.


I already had the details about every company wanting to throw a cart at them and she has about 5 sitting on a counter. But I figure since we need to get her a card anyway, why not get one that will too goodies at her. Thanks for the article.

Kathleen
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Not that your DD would let a job interfere with school necessarily, but typically a rigorous school's mantra is "study, sleep, socialize - pick two," and with a job, something's got to give.


Technically, she will be working for me, but one of the contracts I have (and the one she wants most) has a background check on all contractors, and the silly thing apparently only takes credit into consideration.

Anyway, thanks to all for the helpful hints, I appreciate it.

Kathleen
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Making your child an authorized user on your card if you have good credit is the quickest way to get them to a good credit report which will hopefully help them get the job. Child should also get their own card, That you do not Co-sign on.

I did this with children and it works. After a year or so after they have built their own score on their own cards you can get your card back from them. You then can choose whether you want to remove them as users on your card, or keep them there for emergencies as others have done.

Mike
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Looks like Discover offers the best "goodies," but personally I think for a 1st-timer the cash back might be a distraction; plus, although Discover is accepted in a lot more places than they used to be, they're still not as widely accepted as Visa or Mastercard.
***************
No one else has suggested this, and it seems you have a good handle on what to do, but I'd like to thrown another idea in here -- a secured credit card. I did that with Discover last year. I had to put $200 on the card. I used it and paid it off every month which was reported to the credit bureaus. At the end of six months, I got the $200 back. Now, it's just a credit card. Also, I have absolutely no problem using it. Every place seems to accept it along with Mastercard & VISA. Just a thought.
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<<Making your child an authorized user on your card if you have good credit is the quickest way to get them to a good credit report which will hopefully help them get the job. Child should also get their own card, That you do not Co-sign on.

I did this with children and it works. After a year or so after they have built their own score on their own cards you can get your card back from them. You then can choose whether you want to remove them as users on your card, or keep them there for emergencies as others have done.

Mike>>



I thought many people were opposed to "privilege"?

This kind of thing is just what disadvantages many in our minority communities.

Those opposed to "privilege" should let their children manage their own lives once they are 18 years of age, not being helicopter parents and hovering over them all the time.

They'd probably be better off anyway.


Seattle Pioneer
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I thought many people were opposed to "privilege"?

This kind of thing is just what disadvantages many in our minority communities.

Those opposed to "privilege" should let their children manage their own lives once they are 18 years of age, not being helicopter parents and hovering over them all the time.

They'd probably be better off anyway.


Childless people are always so full of parenting advice.

PSU
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Liberals are always so full of hypocrisy.

Whose a liberal?

PSU
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I assume my answer isn't going to be appreciated, but just in case I'm wrong...

She should apply for other jobs, or be willing to accept one of the contracts you have that doesn't only take credit into consideration.

xtn
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Childless people are always so full of parenting advice.

Choosing not to have children is a decent indicator of good judgement. So his advise is probably better than what you might get from a lot of parents.

xtn
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Seattle Pioneer,

Posting Reply a bit late. I am middle class not privileged and my children are middle class. I will never apologize for trying to help them in any way I can.

I didn't reply in the past few days because I worked a 75 hour week last week.

The original poster was looking for a way to help improve their child's credit score. The fastest way to do this, without co-signing for them is to make them an authorized user. Until the credit scoring system changes then I see nothing wrong in doing this.

Not a helicopter parent at all. Doing this when they were in college got them better rates on cards so they didn't get sucked into the high interest cards then many college kids fall victim to.

They are now older, have good jobs, and are in control of their own finances. I did my job as a parent.

Maybe if colleges and high schools taught more about banking and finance , all students would have a better chance of getting ahead. The liberal crap that they fill there heads with today is the real problem. I was born, so I am entitled. WOW!

Mike
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<<I didn't reply in the past few days because I worked a 75 hour week last week.

The original poster was looking for a way to help improve their child's credit score. The fastest way to do this, without co-signing for them is to make them an authorized user. Until the credit scoring system changes then I see nothing wrong in doing this.

Not a helicopter parent at all. Doing this when they were in college got them better rates on cards so they didn't get sucked into the high interest cards then many college kids fall victim to.

They are now older, have good jobs, and are in control of their own finances. I did my job as a parent. >>



So---

when your children were in college did they come home and tell you how vile it was that so many whites benefited from racial "privilege"?
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So---

when your children were in college did they come home and tell you how vile it was that so many whites benefited from racial "privilege"?


Really? Sheesh!
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So---

when your children were in college did they come home and tell you how vile it was that so many whites benefited from racial "privilege"?


No but not sure anyone else's child called to say they went up in an F-16 over spring break, either.
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