Best Secured Credit Cards for College Kids?

[GRG a/k/a goldenrulegirl]

I am looking to guide my DSs into getting their own credit cards (currently, they are authorized users on our accounts).  Both are in college, have at least part-time jobs and live indpendently (pay rent, utilities, groceries, etc.).  One DS is 22, the other is 20, so, given credit card rules, YDS might need to go with a secured credit card because he is under 21.

The goal is to build credit and to keep moving them off of our "payroll".

I am particularly interested in secured credit cards.  I don't care so much about rewards and cash back -- I want them to use them sparingly but regularly so that they build credit and can, hopefully, in time, move on to credit cards with better rates and better perks.  

Has anyone done this and which cards did you go with?

I've heard good things about the secured Discover card, but since we don't have Discover cards, wonder if Discover is accepted widely enough (thinking especially for car rentals and hotel rooms).

Any suggestions/advice/warnings?

[Sharon]

Don't a lot of car rental companies set a minimum age of 25 and hotels a minimum age of 21?  The point being that Discover may work just fine because by the time they are old enough to actually rent a car etc there credit will be established enough that they will no longer have secured cards.

[taz157]

My first credit card was a store card, like JCPenneys. Then I got a card with Captial One that had a $500 limit.

Granted, this was 20 years ago so YMMV...

[GRG a/k/a goldenrulegirl]

Jul 29, 2018 13:29:52 GMT -5 Sharon said:

Don't a lot of car rental companies set a minimum age of 25 and hotels a minimum age of 21?  The point being that Discover may work just fine because by the time they are old enough to actually rent a car etc there credit will be established enough that they will no longer have secured cards.

My kids have been renting cars through Hertz with no "young renters' fees" since they were 19 through our AAA Gold membership using authorized user credit cards in our names.

I don't think either has rented a hotel room yet, but AAA might help with that and our Marriott status.

[GRG a/k/a goldenrulegirl]

Jul 29, 2018 13:30:09 GMT -5 taz157 said:

My first credit card was a store card, like JCPenneys. Then I got a card with Captial One that had a $500 limit.

Granted, this was 20 years ago so YMMV...

They're guys and guys who live simply. I don't think they'd ever use a store card. Hence, my search for a straight credit card -- MasterCard, Visa, etc.

[Apple]

You might see if your local credit union offers one. It would likely have lower fees and interest rate (although the interest rate *shouldn't* matter because the goal is to pay it off in full each month...) We have a small credit union, but they offer credit cards. Not positive they do secured ones, but I think so.

[saveinla]

My son got one starting in senior year of high school, just before he left for college. It's a visa, issued by a local credit union. It has a very low limit and he is happy with it. It is not a secured credit card, but low enough limit that he has no issues paying it off.

[Deleted]

GRG a/k/a goldenrulegirl, store credit cards are considered the worst type of credit to have.  Well, except for maybe payday lenders, etc.

I did a quick search on Google, and there are many options.  But I second checking with your CU or local banking institution.

[wvugurl26]

I've never had problems using a Discover for rental cars and hotel rooms. The places that haven't taken them have been retail establishments like restaurants and stores.

[TheOtherMe]

No problems using Discover either.

I am at a hotel now that said I had to be 21 and I am not in Vegas.  

[zibazinski]

I got my kids ones through B of A , easy peasy. We had accounts there.

[alabamagal]

My boys got non secured credit cards while in college. This was after CARD act. I just googled “credit cards for college” and had the boys apply. Older son got one with major bank ( maybe citi?) just listed income of $4k for summer job. YDS was freshman and he got Discover card, non- secured. Not sure why he didn’t get same one as older brother, but Discover approved him. Both started out with $500 credit limits. I did not co-sign for either. Used them and paid them off and eventually got limit raised. Worked out great for them.

[Regis]

All three of our kids found Discover to be the easiest to get and all got them prior to undergrad graduation.  None of the three had a problem with the acceptance of the card.  Pretty much all three of them only used it for gas and built credit to the point where they could also get a Mastercard/Visa a year later.  Discover started all of them with a $500 limit and raised it to $1,000 pretty quickly (six months?) after making payments in full and on time.

Younger son is 24 and our daughter is 22.  Both have had no problem using their Discover cards to rent hotel rooms.  And both have used AAA to rent cars even though they're under 25 without any additional fees.

[giramomma]

I have nothing to say, other than that you are awesome.

My parents never did such things. I got a credit card on m own when I was 20. They were legit pissed off at me. (Mine's a citi card).

But, I was traveling to a camp, by myself, several states away. Planning to be gone for a month,  I didn't feel comfortable with collect calls and having my emergency $20 stuck in my bra as a plan. If the volunteer "forgot" to pick me up, there would have went my emergency $20.

[Rukh O'Rorke]

DD has had a discover for a few years, and it worked well until she did her semester abroad.


No discover in Europe.

[zibazinski]

Jul 30, 2018 7:25:19 GMT -5 giramomma said:

I have nothing to say, other than that you are awesome.

My parents never did such things. I got a credit card on m own when I was 20. They were legit pissed off at me. (Mine's a citi card).

But, I was traveling to a camp, by myself, several states away. Planning to be gone for a month,  I didn't feel comfortable with collect calls and having my emergency $20 stuck in my bra as a plan. If the volunteer "forgot" to pick me up, there would have went my emergency $20.

I knew one kid who had a credit card when I was in college. Of course his parents were college educated and loved him.

[Deleted]

Jul 30, 2018 16:52:53 GMT -5 zibazinski said:

Jul 30, 2018 7:25:19 GMT -5 giramomma said:

I have nothing to say, other than that you are awesome.

My parents never did such things. I got a credit card on m own when I was 20. They were legit pissed off at me. (Mine's a citi card).

But, I was traveling to a camp, by myself, several states away. Planning to be gone for a month,  I didn't feel comfortable with collect calls and having my emergency $20 stuck in my bra as a plan. If the volunteer "forgot" to pick me up, there would have went my emergency $20.

I knew one kid who had a credit card when I was in college. Of course his parents were college educated and loved him.

When I went in the late 80's, early 90's.  The banks were set up on campus giving away tee shirts and frisbees and other crap getting students to sign up for cards.  Lots of kids had them.  I know I never had a cosigner for my first one, but I had a full time job at 17 so had income to report. 

I'm torn on helping DS establish credit.  Not sure what I'll do there.  He's had a debit card since he was 12 and manages that...which is pretty simple since if he has no money it just gets denied.

[zibazinski]

In the 70’s it was different

[Regis]

Jul 30, 2018 17:10:38 GMT -5 minnesotapaintlady said:

Jul 30, 2018 16:52:53 GMT -5 zibazinski said:

I knew one kid who had a credit card when I was in college. Of course his parents were college educated and loved him.

When I went in the late 80's, early 90's.  The banks were set up on campus giving away tee shirts and frisbees and other crap getting students to sign up for cards.  Lots of kids had them.  I know I never had a cosigner for my first one, but I had a full time job at 17 so had income to report. 

I'm torn on helping DS establish credit.  Not sure what I'll do there.  He's had a debit card since he was 12 and manages that...which is pretty simple since if he has no money it just gets denied.

We made each of our kids an authorized additional cardholder on our credit card when they went to college.  It was clearly understood that they were to only use it in an emergency.  Every once in a while, we'd let them buy something (necessities, not alcohol) and put it on that credit card.  If I'm wrong please feel free to correct me but I believe they did build some credit history and a credit score by being an authorized user on our card.

[alabamagal]

Jul 30, 2018 17:10:38 GMT -5 minnesotapaintlady said:

Jul 30, 2018 16:52:53 GMT -5 zibazinski said:

I knew one kid who had a credit card when I was in college. Of course his parents were college educated and loved him.

When I went in the late 80's, early 90's.  The banks were set up on campus giving away tee shirts and frisbees and other crap getting students to sign up for cards.  Lots of kids had them.  I know I never had a cosigner for my first one, but I had a full time job at 17 so had income to report. 

I'm torn on helping DS establish credit.  Not sure what I'll do there.  He's had a debit card since he was 12 and manages that...which is pretty simple since if he has no money it just gets denied.

You really can’t do that much damage with a $500 limit credit card. They can get in much more trouble with student loans. You really technically don’t have to help them, they can get on their own if they are 18. But if they are like my kids, I had to encourage them to do it. And it really does start them on a good path to get a credit rating. It helps when you are a poor college student trying to get an apartment without a co-signer. If you have a $500 limit card while in college and pay it on time, you can get a high credit score with very little income.

Just remember to explain difference between credit card and debit card. My DS once called in a panic when he lost his credit card and checked online and said the balance was $0. And he was a Finance major.

[Regis]

My youngest son has had his Discover for just over three years, just completed grad school and started his first "adult" job.  He happens to be at the house right now and told me that Discover shows his credit score to be about 760.

[TheOtherMe]

Jul 30, 2018 17:37:20 GMT -5 zibazinski said:

In the 70’s it was different

Totally different.  I never even thought about a credit card while in college.  I didn't get one until I had my first real job.  I also had a car loan by then.  

I graduated college in 1975

[alabamagal]

Jul 30, 2018 19:29:59 GMT -5 Regis said:

My youngest son has had his Discover for just over three years, just completed grad school and started his first "adult" job.  He happens to be at the house right now and told me that Discover shows his credit score to be about 760.

When my kids were at that stage in life they had higher credit scores than I did! With very little income and a low limit credit card that was paid off!