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-   -   Credit Card for Student (http://www.thefinanceforums.com/showthread.php?t=1615)

mun 03-05-2008 03:44 AM

Credit Card for Student
 
I was wondering if I should get one now. I am 18 and have a car.
I was thinking its a good way to build credit.

I live in Canada BC. Which one do you guys recomend

BillCollector 03-09-2008 11:08 PM

Re: Credit Card for Student
 
well, I got a credit card as soon as i turned 18. Plan was just to pay for gas and little things and pay it off every month. I followed through for a while but soon I started getting things i didn't need and then before i knew it i had 3 cards all maxed out. I regretted getting them but if i would have had better discipline then it wouldn't have gotten out of control. Just use you judgment.

planner 03-12-2008 12:16 AM

Re: Credit Card for Student
 
I think if you feel that you are already responsible to have a credit card then go get one. Having a credit card will help you with many expenses especially when you don't have the cash. Just make sure that you don't make unnecessary purchases that in the end you will regret because you can no longer pay for it. Ensure that whatever it is you swipe you can pay for it when the bill comes due.

jezspencer41 03-15-2008 06:44 AM

Re: Credit Card for Student
 
Barclaycard do a student credit card in canada

mun 03-17-2008 02:56 AM

Re: Credit Card for Student
 
Quote:

Originally Posted by jezspencer41 (Post 7235)
Barclaycard do a student credit card in canada

are u sure.. i could not find it. could u post a link.

jonny0000 04-17-2008 05:53 AM

Re: Credit Card for Student
 
Use it for everything, but make sure that you have the cash to pay of the total in full at the end of each month

brian 04-17-2008 11:35 AM

Re: Credit Card for Student
 
Yep - never use it for credit - just for building credit rating. :)

AllThingsPersonalFinance 04-17-2008 08:20 PM

Re: Credit Card for Student
 
Quote:

Originally Posted by mun (Post 7094)
I was wondering if I should get one now. I am 18 and have a car.
I was thinking its a good way to build credit.

I live in Canada BC. Which one do you guys recomend

You have plenty of time for building credit later. Right now, pay in cash for everything that you get. You are just entering adulthood. The responsible thing to do is to begin a habit of living on what you earn, not managing debt for what you do not earn.

Even charging and paying off when the bill comes in is a bad idea in my eyes.

If you feel like you have to use plastic, get a debit card.

seofan 04-26-2008 07:22 AM

Re: Credit Card for Student
 
I think for a student it would be an ideal solution to get a credit card which offers 0 annual fee and the lowest interest rate.

For example, the Citi Platinum Select Card for College Students offers 0% interest within 6 months on purchases and so on.

But it doesn't mean that it is the only choice. Here you should mention also your specific conditions and purposes for what you need a credit card.

financestrategy 04-28-2008 11:42 AM

Re: Credit Card for Student
 
i totally agree to brian.
its not to increase your credit rating. if you really feel the need, it will act as a boon to you.

but then use it wisely. and make sure that you clear all the payments by the end of every month, or else you might be in soup.

good luck pal. :)

AllThingsPersonalFinance 04-28-2008 11:21 PM

Re: Credit Card for Student
 
Quote:

Originally Posted by mun (Post 7094)
I was wondering if I should get one now. I am 18 and have a car.
I was thinking its a good way to build credit.

I live in Canada BC. Which one do you guys recomend

Despite the advice that you get that sees no fault in getting a credit card to build your credit history, at 18, I do not believe this is a good idea for you.

If you want a credit card, get a secured card. This is a card whose limit is secured by an amount of money that you deposit into a savings account with the credit issuer. After 6 months or so, you can ask for the card to be converted to a regular card that does not have the requirement for a deposit to be made in order to grant a balance limit.

There is more to learn at 18 than how to build a credit rating - getting and keeping a good job, furthering your education, picking good friends, balancing personal and professional needs, learning to drive safely, etc. You get the idea.

When you see yourself two years from buying your first home, then start working on your credit.

maat55 04-30-2008 11:27 PM

Re: Credit Card for Student
 
Quote:

Originally Posted by AllThingsPersonalFinance (Post 7931)
Despite the advice that you get that sees no fault in getting a credit card to build your credit history, at 18, I do not believe this is a good idea for you.

If you want a credit card, get a secured card. This is a card whose limit is secured by an amount of money that you deposit into a savings account with the credit issuer. After 6 months or so, you can ask for the card to be converted to a regular card that does not have the requirement for a deposit to be made in order to grant a balance limit.

There is more to learn at 18 than how to build a credit rating - getting and keeping a good job, furthering your education, picking good friends, balancing personal and professional needs, learning to drive safely, etc. You get the idea.

When you see yourself two years from buying your first home, then start working on your credit.

I agree completely. A credit rating is not important at this time. Most college students end up with horror stories when getting cards in school. Learning good money management, is very important before taking on debt.

I suggest he read Financial Peace by Dave Ramsey, to understand personal finance before he makes any big financial decissions.

chelsea 05-01-2008 07:39 PM

Re: Credit Card for Student
 
here in the philippines you cant have a credit card if you are not employed or dont have any business.. its ok for students or non employed to have a credit card as long as he has a supplementary or someone that will apply for him.

stockmarketreviews 05-22-2008 01:59 AM

Re: Credit Card for Student
 
hmm if you have cash opt debit card instead of credit one

sahilmiddha 05-26-2008 02:49 AM

Re: Credit Card for Student
 
ya it is necessary for you because you have a car and its maintaince , its repair , in these requirements credit card is very helpful to you.

spencer24 05-26-2008 01:55 PM

Re: Credit Card for Student
 
If you decide to go and get a credit card, make sure that you use it for building your credit only and do not keep unpaid balance on it at the end of the month. Credit card debt is expensive and there are better/cheaper ways to borrow if you need a loan. Credit cards on the other hand are very convenient for all different kinds of payments and you will need one if you want to rent a car, book a flight or a hotel.

rachael24 07-16-2008 10:03 AM

Re: Credit Card for Student
 
Credit cards in college should only be used for building credit. I had a 200.00 credit limit when I was in college, and never had more than 50.00 in debt. Built my credit nicely.

lookup 10-12-2008 08:56 AM

Re: Credit Card for Student
 
Quote:

Originally Posted by brian (Post 7760)
Yep - never use it for credit - just for building credit rating. :)

Gotta agree with that. Use it and pay it off each month, that will build your credit.

piglet 03-10-2011 03:41 PM

Re: Credit Card for Student
 
If you think that you can start building good credit, then it may be a good idea to get one. But you really need to educate yourself on credit cards before just getting one. You need to be able to manage your money, make payments, and not abuse your card. If you really don't need one I would maybe hold off for a while.

KatherineLee88 03-11-2011 08:47 AM

Re: Credit Card for Student
 
I have heard about a Discover Student Card as well as the Citi - those could be good options.

If you're only trying to get a card to build credit then introductory APR, regular APR, and maybe even credit limit aren't issues because your plan is to ONLY charge what you can pay in full at the end of the month. If you're going to keep to that word, it doesn't matter what they plan to charge you for APR because you'll never carry a balance. Also, they may give a $500-1000 credit limit - just never go over 30% of that in a month you won't need a huge limit because I doubt you have 500-1000+ a month to charge on a credit card if you're making purchasing things you would have purchased anyways before you got a card.

I got a card at age 19. I have yet to pay a penny in interest. Just keep that in mind because you too can manage to do just that. I also have a pretty good FICO score for my age. The only thing holding me down is my short credit history which I obviously only time can change.

So yes. Get a card. Use it wisely. Watch your FICO score grow.

jonathanpaul 03-28-2011 10:17 AM

Re: Credit Card for Student
 
Quote:

Originally Posted by AllThingsPersonalFinance (Post 7931)
Despite the advice that you get that sees no fault in getting a credit card to build your credit history, at 18, I do not believe this is a good idea for you.

If you want a credit card, get a secured card. This is a card whose limit is secured by an amount of money that you deposit into a savings account with the credit issuer. After 6 months or so, you can ask for the card to be converted to a regular card that does not have the requirement for a deposit to be made in order to grant a balance limit.

There is more to learn at 18 than how to build a credit rating - getting and keeping a good job, furthering your education, picking good friends, balancing personal and professional needs, learning to drive safely, etc. You get the idea.

When you see yourself two years from buying your first home, then start working on your credit.

You are advising her to get a secured card.. Why are you giving her that option? is a secured credit card safe to use compared to a student credit card?

littleroc 03-31-2011 05:28 PM

Re: Credit Card for Student
 
Do you have a job?

littleroc 04-01-2011 10:18 AM

Re: Credit Card for Student
 
Quote:

Originally Posted by ptrlee (Post 23031)
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services. Students can often select from either a regular, unsecured credit card or the increasingly popular prepaid or re loadable card, which acts more like a debit card.

Unless your a college student that doesn't have an income and is relying on student loans to pay for it.:rolleyes:

Jalpari 04-07-2011 05:44 AM

Re: Credit Card for Student
 
Yes, most of banks offering wonderful package for student loan ,low markup.

mcarrasco512 07-01-2011 01:38 AM

Re: Credit Card for Student
 
I don't like credit cards......

username123 07-14-2011 06:39 PM

Re: Credit Card for Student
 
I waited for a Discover until I was twenty and I LOVE it. The interest rate is really high, but there's no annual fee and the cash back rewards is awesome. After buying a new laptop and purse I had $100 cash back and it was cool to get money back.

However, one word of caution: pay it off, in full, every month.

reshma adhikari 08-11-2011 04:08 AM

Re: Credit Card for Student
 
is it true that once you have a credit card then your consumption increases,you spend money freely than if you didnt have credit card?
also can we take out money from credit card using ATM?

kate032 08-13-2011 09:29 PM

Re: Credit Card for Student
 
Quote:

Originally Posted by reshma adhikari (Post 25651)
is it true that once you have a credit card then your consumption increases,you spend money freely than if you didnt have credit card?

It depends entirely on the individual.


Quote:

also can we take out money from credit card using ATM?
You can, but you are immediately charged an interest rate, usually a very high one, so it is ill-advised.

It should be mentioned that in the US at this time, a college student cannot get a credit card in their name unless they have an income source. The law also says that even if a parent co-signs, the student can't get the cc until they have income.

Lex 08-26-2011 06:08 AM

Re: Credit Card for Student
 
Quote:

Originally Posted by mun (Post 7094)
I was wondering if I should get one now. I am 18 and have a car.
I was thinking its a good way to build credit.

I live in Canada BC. Which one do you guys recomend

Get a good job. And ensure that the bank you are looking to build a good credit record with has your salary account too! :-D

Herbert 01-09-2012 09:08 AM

Re: Credit Card for Student
 
You should first get a job then think about this credit thing later.

Dragoncrester 01-09-2012 03:20 PM

Re: Credit Card for Student
 
My issue is i have two jobs plus a full time student and since the creditors our so good in getting my credit because of paying on time and keeping my credit to debt ratio down they gave me more and more. Now i have payments to credit cards i can no longer afford and i am starting to see late payments of two or three days late.

FabulousWoman 02-26-2012 10:15 PM

Re: Credit Card for Student
 
Money on a credit cards is never yours. Students should clearly understand that before getting their first card. It can be so easy to get into debt for young adults if they don't have money management experience. Parents can play big role in child's financial education, teach basic financial knowledge.

littleroc 02-27-2012 11:59 AM

Re: Credit Card for Student
 
Plus shouldn't you have a steady job with an income if your going to dabble in credit cards. Students shouldn't get credit cards, their in school for cripes sake! They don't have a steady income yet.

TenBestCards 10-14-2012 06:50 PM

Re: Credit Card for Student
 
I remember getting into bad debt while being in college with credit cards also. It's just really hard to avoid if you're busy studying and having fun and charging everything seems real easy. I had to get my folks to bail me out of debt a few times. If I didn't have that option things could have gone real bad. If you really want to build some credit history I would agree with Secured credit cards.
Prepaid Cards do nothing for your credit history and are really just for those who don't qualify for anything else. Good luck!

mkenneth 11-30-2012 02:10 AM

Re: Credit Card for Student
 
I think for a student it would be an ideal solution to get a credit card which offers 0 annual fee and the lowest interest rate. Barclaycard use this credit card.

thesimplemoneyblog 11-30-2012 05:58 PM

Re: Credit Card for Student
 
Don't mean to duplicate posts, but my response on http://www.thefinanceforums.com/very...card-7561.html has some comments that relate directly to this post.

I got my first credit card in my first year of college. There were offers around every corner (something quite disgusting for college students who typically have little wherewithal or knowledge on how to properly manage a credit card), so it was (and is) important to pick a credit card that is right for your lifestyle whether that be mileage benefits, cash rewards, or other rewards programs. At the time, I didn't even have to provide any documentation showing what my income was in order to determine how much credit I could qualify for. Why is that okay? From the get-go, many companies are setting you up for failure. Why wouldn't a college student with little income per month not say 'sure, I'll take $2,000 of credit!'? 'It's okay, I'll just pay it back when I get that great job'...

With that said, there are lots of good cards available (Chase Freedom card can be good for cash rewards). Try going to Bankrate.com to evaluate different credit card offers depending on your needs and if you want cash rewards or mileage from major airlines.
Pay the credit card in full EVERY month, so you don't carry a balance. Otherwise, the interest that most of the cards charge will far surpass any reward/benefit you would have otherwise received.

Be careful when using credit, and carefully consider your ability to afford what you purchase, as it is too easy to get trapped by spending too much since access to credit can be very easy, but it most assuredly is not cheap.

Use a program like Quicken, Mint.com, Yodlee.com, etc. to get a good idea of what you really can afford each month, and then pay the card in full at the end of the month. The hardest thing about having a credit card is learning the discipline to not overextend yourself.

nimbus 03-08-2013 12:53 PM

Re: Credit Card for Student
 
Since you are so young you should go easy on credit cards. If you decide to get one to build credit, be very responsible. Don't go overboard on the spending and as far as possible pay off most of your debts in full. Trust me you don't want to get into the debt trap at this age. There are various types of student credit cards.

Good luck.

jeffnev 02-21-2014 06:51 AM

Re: Credit Card for Student
 
Hi,

You could also have a look at some prepaid credit cards, if you are worried about finances. Prepaid credit cards only allow you to spend what you have put on them, enabling you to better manage your finances. There are many different prepaid credit card suppliers including Cashplus.

jeffnev 04-23-2014 12:12 PM

Re: Credit Card for Student
 
Oh I forgot to mention, debit cards are the best option for young people :)

ed_p 04-23-2014 12:43 PM

Re: Credit Card for Student
 
Quote:

Originally Posted by AllThingsPersonalFinance (Post 7931)
Despite the advice that you get that sees no fault in getting a credit card to build your credit history, at 18, I do not believe this is a good idea for you.

If you want a credit card, get a secured card. This is a card whose limit is secured by an amount of money that you deposit into a savings account with the credit issuer. After 6 months or so, you can ask for the card to be converted to a regular card that does not have the requirement for a deposit to be made in order to grant a balance limit.

There is more to learn at 18 than how to build a credit rating - getting and keeping a good job, furthering your education, picking good friends, balancing personal and professional needs, learning to drive safely, etc. You get the idea.

When you see yourself two years from buying your first home, then start working on your credit.

I totally agree, I never would have got a credit card when I was 18. Yes it does build up your credit rating but is that something you need right now anyway?

I'v seen so many people in debt for such a long time because of credit cards. If you don't have a secure job I would stay clear. The reason not many young people have them is because young people find them selves in different situations every year, we're not settled. Unsettled people with credit cards get into debt!

Debit cards are perfect for young people (and old people).. or if you really want a creditcard, why not go for a Mastercard prepaid credit card as Jeff suggested? You can use them everywhere but you have control over the money. Lots of companies like NETELLER supply them.

Again, if you are sensible and really want a credit card then don't let us stop you. Just be careful!


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