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amother




Pearl


Post  Tue, Jan 15 2019, 1:29 pm
Here's my dilemma.

My son who is in Beis Medrash wants to start building credit. He applied for several secure credit cards but was denied for lack of income (We give him a monthly allowance of $200 but it is not officially income).

I tried to get him a card linked to my account but apparently this is not done any more.

Any ideas?
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ra_mom




 
 
 


Post  Tue, Jan 15 2019, 1:31 pm
You should be able to get a card for him directly on your own account (not linked) and that would help him too even if it takes longer. Once he has income, he can open a secure line with them holding on to his own money backing the "credit" limit he has.
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pesek zman




 
 
 


Post  Tue, Jan 15 2019, 1:46 pm
he should apply for a store credit card first (like macy's)
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rydys




 
 
 


Post  Tue, Jan 15 2019, 2:13 pm
ra_mom wrote:
You should be able to get a card for him directly on your own account (not linked) and that would help him too even if it takes longer. Once he has income, he can open a secure line with them holding on to his own money backing the "credit" limit he has.


I spoke to the bank about that, an authorized user does not build credit
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ra_mom




 
 
 


Post  Tue, Jan 15 2019, 2:24 pm
rydys wrote:
I spoke to the bank about that, an authorized user does not build credit

If he has a card in his name on your account, it does build credit. I've seen the number creep up. He will still need a secure credit line but this helps the process.
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singleagain




 
 
 


Post  Tue, Jan 15 2019, 3:37 pm
My dad had opened a bank account in my name when I was a kid, and we get I was in college, I went in for some reason and they gave me a credit card to help me build credit. I remember they specifically said something about not needing to keep a certain amount of money in the account and I didn't have to have income. It was no fees bc I was in school and meant to build credit ... This was with bank of America but maybe other Banks have similar programs.

You can always give/loan him a little to start the account.
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allcuteonesrtak




 
 
 


Post  Tue, Jan 15 2019, 3:52 pm
rydys wrote:
I spoke to the bank about that, an authorized user does not build credit


Don't listen to the bank. (Or rather the bank rep you spoke to - they don't Know everything)
Being an authorized user most definitely builds credit.
Make him an authorized user on your card, you don't even need to give him the physical card, wait a year and then tell him to apply for a card of his own.
No need to open a store card, etc.


Last edited by allcuteonesrtak on Tue, Jan 15 2019, 3:53 pm; edited 1 time in total
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amother




Amethyst


Post  Tue, Jan 15 2019, 3:53 pm
rydys wrote:
I spoke to the bank about that, an authorized user does not build credit


Add him as a joint not an authorized user.give them his social.

U should have him open three secured cards and swipe three times a month and pay off right away.
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nchr




 
 
 


Post  Tue, Jan 15 2019, 4:20 pm
You can also try Credit One. My parents got my sister a card from them.
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amother




Silver


Post  Tue, Jan 15 2019, 4:22 pm
Delete

Last edited by amother on Mon, Feb 11 2019, 7:40 pm; edited 1 time in total
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nchr




 
 
 


Post  Tue, Jan 15 2019, 4:24 pm
smileforamile wrote:
An authorized user does not build credit with regard to major loans, like mortgages, car loans, etc. The bank/lender will want to see the accounts that you're accountable for, and will not take into account the authorized user cards.
.


This is pretty much based solely on your credit score. If you hit a certain number. You're ok.
Once you get your son on as an authorized user, other cards will allow him to be the main user. So first add him as an authorized user and then apply for one other and/or for a car loan.
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Mommyg8




 
 
 


Post  Tue, Jan 15 2019, 4:24 pm
allcuteonesrtak wrote:
Don't listen to the bank. (Or rather the bank rep you spoke to - they don't Know everything)
Being an authorized user most definitely builds credit.
Make him an authorized user on your card, you don't even need to give him the physical card, wait a year and then tell him to apply for a card of his own.
No need to open a store card, etc.


Agree with this. Also, he may be able to get a card (with a small limit amount) by applying as a student - I think Discover had a offer like that a while ago. And build up from there.
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amother




Bronze


Post  Tue, Jan 15 2019, 5:14 pm
My husband started off with a card called 1st Financial Bank USA. Some other kolell guys were doing that then. It's meant for students. His credit limit was like $300, and within a few months he got approved for a reg credit card.
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Amarante




 
 
 


Post  Tue, Jan 15 2019, 6:22 pm
There are cards that are linked to having a bank account with a balance. They are obviously low credit limits but they do enable one to build a credit history by charging and paying off on a timely basis.

You should ask your bank about this kind of account. They are used also by people with BAD credit who want to start building their credit scores. As I recall, the amount in the bank account acts as a form of collateral for the credit card charges.
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SesameSeeds




 
 
 


Post  Tue, Jan 15 2019, 7:57 pm
authorized users do not build credit. If you add him as a joint user - that does build credit. I would suggest you open an Old Navy card (where they sometimes approved you for a general visa card which can be used everywhere) or a capital one card. Both would give you a card with a very low credit limit. After 3 months you should be good to go.
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