Can I get it in my name - even with my dad as a cosigner - with me being a minor? If so, will I be able to take advantage of his credit history or will I be stuck with a $500 credit limit, 25% APR card?
Yes you can get a credit card in your name, you have two options:
1) Your father is the only applicant ensuring that he will be approved probably with a high limit (unless he specifies a smaller amount, I recommend $1,000 - $1,500 depending on your needs). On the application he just has to specify that he wants an additional card to be issued in your name. The only bad side to this is that even though you are making payments for this credit card it will NOT reflect on your personal credit history only his.
2) You want for 3 months until you are a legal adult. Your father is the primary applicant and you are the secondary applicant. There is no guarantee that your request for credit will be approved. Both of you will be issued credit cards, and the good thing is this accoun will be reported on your credit history establishing credit and on your way to future debt. If you and your father are confident that you will be approved then this is the way to go. Why make payments and have nothing to show for it? If you both have accounts established with a bank or credit union then I would recommend applying with them because you already have a relationship with them. Again CitiBank is a great credit card company but I would look into their price matching policy (if they have one).
Thursday, July 05, 2001 12:51 PM (NEW!)
Ross - A coupla questions here:
<< 1) Do not get the credit card until you turn 18 then have your father apply as the primary applicant and you as the secondary applicant. There is a chance his application will be declined since you have ZERO credit history, but if he has bulletproof credit, high income, low debt, then it should be a breeze. >>
So even with me being a full time HS student, I still can get one like this? I guess I'm asking is, are the job and finiancial situations of both applicants considered? My dad as far as I know (and have seen) has all that you listed above.
See above, I recommend you wait until you are 18 and both apply or only he applies and asks a credit card be issued in your name. If you choose the latter, the good/bad will NOT be reported on your credit history - you will have nothing to show for making the payments, only him.
<< 2) Although the AmEx Blue is cool, geek, hip whatever I would NOT GET THE AMEX yet. Reason? It's not nearly as widely accepted as Visa and MasterCard are. I'd say about 25% of the restaurants, fast food, Internet places I shop, car rentals, hotels, airlines, etc. DO NOT ACCEPT AMEX. Get a CitiBank VISA Dividends which rewards you with a 1% rebate, no annual fee, decent APR and since you're the co-signer you will be building a credit history. >>
Do you have any opinions on other banks? Capital One? First USA? And should I get a student card or go for the full thing? Also, can my dad set the credit limit to less than what they gave me? In other words if they give him $10,000 can he set it to about $1,000? That'd be about right for me.
First of all if you or your father have accounts with a particular bank or credit union I would suggest applying for their credit card since you have a relationship with them they may be able to offer competitive pricing/reduced annual fee (or none)/good rate/perks/etc. Other credit card companies based on good customer service I would recommend are:
CitiBank (get one with perks like Dividends 1%, or Viper's Sony card or airlines card, etc.)
Chase Manhattan
First USA
Next VISA (good if you buy a lot at Amazon)
Sorry I can't think of any others right now it's been a few years since I did credit card lending but I've always loved CitiBank.
Even though your father may be approved for $10,000 he can request a limit of only $1,000 although I recommend he specify this during the application process. Bear in mind that even though he is approved for $10,000 initally he requests $1,000 so if he wants an increase to $2,000 a month later they will have to re-evaluate the account and his credit so it's not an easy flick of a button. Usually you need to have an account established for at least 6-12 months before they will even consider an increase. Just don't get too much but don't get too little either.
<<
3) If your father applies by himself he can request a card for you in your name, however even if you make ALL the payments it will NOT reflect on your credit. Why? Because you were not an applicant on the account. >>
So noted. I will tell him not to do that.
I would again recommend a standard Visa or MasterCard instead of AMEX just because not all institutions accept AMEX. Consider getting an AMEX when you turn 19.
Hope this helps.
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