Credit Card Recommendation for daughter

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SimplicityNow
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Joined: Fri Aug 05, 2016 10:31 am

Credit Card Recommendation for daughter

Post by SimplicityNow » Sat Jan 27, 2018 9:37 am

My daughter graduated college over a year ago which was followed by minimal paid internships.

She has been gainfully employed for the past 6 months, moved out, shares an apartment with her friend and pays her own bills.

She has been an account holder on one of my credit cards for the past 6 years. Since her employment she doesn't use the card as she pays her debts by check or with her debit card.

She is interested in getting her own credit card. She is very frugal and I am not concerned about her getting into any financial trouble with her own card.

Any recommendations on what might be a good first credit card for her?

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Toons
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Location: Hills of Tennessee

Re: Credit Card Recommendation for daughter

Post by Toons » Sat Jan 27, 2018 9:47 am

Not saying it is the "best"
Check out "Discover it® Card"

:happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

BeneIRA
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Re: Credit Card Recommendation for daughter

Post by BeneIRA » Sat Jan 27, 2018 9:53 am

The Discover It card is a great first credit card. If you use a referral link from someone, then your daughter would get $50 to start and all of her cash back would be doubled her first year. It has rotating 5% categories. I know Discover isn't widely accepted, but in the grand majority of places, it is. This card is relatively easy to get approved for.

The Chase Freedom is much like the Discover It, except no double cash back for the first year. The standard offer is $150 cash back for $500 in spend, which isn't nothing. Also, see below on how it helps with a relationship with Chase. Visa card.

If she wants even simpler, then the Chase Freedom Unlimited is another good choice. It gives 1.5% back on everything in the form of Ultimate Rewards Points. Those are more valuable for travel redemptions, but if she does decide she wants to dabble in miles and points down the road, that is a very good starter card to gain a relationship with Chase. The bonus is that it is a Visa card.

Another option like the above would be the Capital One Quicksilver. I'm not sure if she cares about foreign transaction fees, but if she does, this one doesn't have any. This is another 1.5% cash back on everything card. I like Chase better than Capital One, so I would go for the Freedom Unlimited before this one. This is also a Visa card.

Some will probably recommend the Citi Doublecash, but that usually requires a higher credit score and some history, so I don't think I would go for it.

If you are into American Express, the American Express Blue Cash Everyday could also work very well if she spends most of her money on groceries. The card offers 3% cash back on grocery expenses and nowadays, American Express is taken pretty much anywhere. The plus to this is that she will almost definitely get approved.

Arizonasun2008
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Re: Credit Card Recommendation for daughter

Post by Arizonasun2008 » Sun Jan 28, 2018 1:41 am

Discover has great cash back but it’s not always accepted especially at smaller retailers.

Chase freedom is great with the rotating 5% cash back. And I second the American Express blue cash card also. Both are free, widely accepted and have decent cash back options.

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Tamarind
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Re: Credit Card Recommendation for daughter

Post by Tamarind » Sun Jan 28, 2018 7:32 am

Agreed on the Discover Card. My fiancee had no credit history when we met as she had a frugal nature but her parents had never taught her how to build credit.

She started with a secured card from a local CU which had a miniscule limit pegged to her deposit. She put a small recurring bill on it, set up auto pay, and forgot about it for a year.

Then she got the Discover IT, which had some cash back, no fee, and modest credit score/history requirements. Higher limit, but not enough to move all monthly spending through. Did that for a year.

Last fall she qualified to get a Citi DoubleCash card (2% on everything). At this point she has excellent credit, gets rewards for all her spending, and is satisfied.

There are plenty of cards that can generate better rewards, but most require more effort.

gerntz
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Re: Credit Card Recommendation for daughter

Post by gerntz » Sun Jan 28, 2018 9:11 am

The Citi MC & Fidelity Visa are both 2% back on everything. Keeping track of rotating higher % back categories may be more effort than worth to her. I say keep it simple at this stage in her life/career.

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