Credit Card for Student with no credit history

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DaftInvestor
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Credit Card for Student with no credit history

Post by DaftInvestor » Wed Aug 23, 2017 1:46 pm

We are looking for a good first credit card for one of our college students. I see on bankrate Discover, Citi, and CapitalOne have cards aimed at students with no credit history (assume they might require parents to co-sign but I'm okay with that). Looks like they even give some cash-back to students.
I want the student to have a credit card (don't need to debate this - student had been using debit-card that was comprimised) and no longer want them simply using a card off my account.

Any recommendations?

Update: I see Capital One's student card pays 1% back AND has not foreign transaction fees - might be handy as student may study abroad next year. Any experience with it?

iamlucky13
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Re: Credit Card for Student with no credit history

Post by iamlucky13 » Wed Aug 23, 2017 1:53 pm

Have they tried applying for a conventional (non-student) card so you can avoid the complications with co-signing and later separating yourself from that record once they move on?

Where do they currently bank and is a card through that organization an option? I started out with a card through my credit union. Everybody else turned me down - I was no longer a student when I got my first card and never had any student loans.

Apparently the fact that I had an above-median individual income at the time and had never needed to even apply for credit before then indicated I was too much of a risk for anybody else to consider.

robertmcd
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Re: Credit Card for Student with no credit history

Post by robertmcd » Wed Aug 23, 2017 2:02 pm

Get the discover it card. They are very generous with approvals as well as credit limit increases and it earns 2% on everything/10% on rotating categories the first year. Also lets you see your fico score.

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celia
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Re: Credit Card for Student with no credit history

Post by celia » Wed Aug 23, 2017 2:10 pm

When one of my kids went away to college, I worried that air travel to/from home could be interrupted since he had to transfer planes and winter weather might be unpredictable. So I got him a credit card on a new account that I shared with him. I gave him an allowance of $100 a month that he could use for off-campus expenses (to encourage him and his new friends to put the schoolwork down--at an academically-driven university). And if there was a travel delay, he would use it for food and a hotel, when needed.

After he graduated, I closed the account and asked him to cut the card up into tiny pieces and drop them into multiple trash cans. He took me quite literally and put the pieces in his pocket, then deposited one piece in his dorm, one elsewhere on campus, one at the bus stop, one at the airport, one at the transfer airport, one at the home airport, and one at home. He told me it was unlikely anyone would be following him and collecting all the pieces. :D

A bonus to this was that it helped give him an excellent credit rating for someone his age (even though I paid all the credit card bills--and I could see where he liked to eat and shop).
Last edited by celia on Wed Aug 23, 2017 2:13 pm, edited 1 time in total.

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DaftInvestor
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Re: Credit Card for Student with no credit history

Post by DaftInvestor » Wed Aug 23, 2017 2:13 pm

robertmcd wrote:
Wed Aug 23, 2017 2:02 pm
Get the discover it card. They are very generous with approvals as well as credit limit increases and it earns 2% on everything/10% on rotating categories the first year. Also lets you see your fico score.
Thanks. This is looking like the one - it also appears to have no foreign transaction fees.

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Edie
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Re: Credit Card for Student with no credit history

Post by Edie » Wed Aug 23, 2017 2:19 pm

DaftInvestor wrote:
Wed Aug 23, 2017 1:46 pm
We are looking for a good first credit card for one of our college students. I see on bankrate Discover, Citi, and CapitalOne have cards aimed at students with no credit history (assume they might require parents to co-sign but I'm okay with that). Looks like they even give some cash-back to students.
I want the student to have a credit card (don't need to debate this - student had been using debit-card that was comprimised) and no longer want them simply using a card off my account.

Any recommendations?

Update: I see Capital One's student card pays 1% back AND has not foreign transaction fees - might be handy as student may study abroad next year. Any experience with it?
I also vote for the Discover It card, but you/they might be pleasantly surprised with their credit history if they have been an authorized user on your accounts. My 19 and 20 yo's have excellent credit scores due to being auth'd users since they got their driver's licenses (for chauffeuring younger sibs) and we added them so they had their own card for buying gas when needed.

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DaftInvestor
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Re: Credit Card for Student with no credit history

Post by DaftInvestor » Wed Aug 23, 2017 2:25 pm

Edie wrote:
Wed Aug 23, 2017 2:19 pm
DaftInvestor wrote:
Wed Aug 23, 2017 1:46 pm
We are looking for a good first credit card for one of our college students. I see on bankrate Discover, Citi, and CapitalOne have cards aimed at students with no credit history (assume they might require parents to co-sign but I'm okay with that). Looks like they even give some cash-back to students.
I want the student to have a credit card (don't need to debate this - student had been using debit-card that was comprimised) and no longer want them simply using a card off my account.

Any recommendations?

Update: I see Capital One's student card pays 1% back AND has not foreign transaction fees - might be handy as student may study abroad next year. Any experience with it?
I also vote for the Discover It card, but you/they might be pleasantly surprised with their credit history if they have been an authorized user on your accounts. My 19 and 20 yo's have excellent credit scores due to being auth'd users since they got their driver's licenses (for chauffeuring younger sibs) and we added them so they had their own card for buying gas when needed.
Thanks for the info Edie - I didn't realize just being an authorized user actually boosted or contributed to your score - I'm not even sure if I provided their SSNs when I made them authorized users.

kmurp
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Re: Credit Card for Student with no credit history

Post by kmurp » Wed Aug 23, 2017 3:56 pm

Discover is what my college age daughter did. Worked out well.

3feetpete
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Re: Credit Card for Student with no credit history

Post by 3feetpete » Wed Aug 23, 2017 5:14 pm

When my daughter went to college five years ago I got her a Wells Fargo College Card. No restrictions on it just a low limit It had a chip and pin feature on it which came in handy when she spent time abroad. When she graduated it transformed to a regular Visa credit card. She is 23 now and has an excellent credit rating.

takeshi
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Re: Credit Card for Student with no credit history

Post by takeshi » Thu Aug 24, 2017 10:17 am

Discover seems like people with thin but clean credit profiles including young people just starting out. Keep in mind that international acceptance may be more limited than with Visa or MasterCard if that's a deciding point.

Credit unions can also be a generally good place to look for first credit cards. No experience or info that I've run across for Capital One's student card but they generally seem to like to target this demographic as well.
DaftInvestor wrote:
Wed Aug 23, 2017 2:25 pm
Thanks for the info Edie - I didn't realize just being an authorized user actually boosted or contributed to your score - I'm not even sure if I provided their SSNs when I made them authorized users.
Being an AU can help though accounts where one is an AU don't factor in quite the same as one where the person is the actual cardmember. Additionally, it's never just about score alone. Some creditors will disregard accounts where one is an AU when making a credit decision. SSN isn't always required for a card to report for the AU.

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