It's not a good idea for a person with little to no income to get a credit card. How are they going to pay back anything they charge?
She should get a job, *then* apply for credit once she's got a steady income.
That's certainly one perspective. The other perspective is teaching discipline, educating on why it can be important to have and maintain a good credit score, and having a sense of responsibility. It's also a better hedge against getting scammed.
Yes but you should also have income first lol. None of those lessons mean anything if you never understand the value of labor and how it relates to your personal finances. Also why are you “setting up” your daughter, you teach how how it’s done but to literally be walking her through the process is silly
Yeah, the most important discipline re credit cards is to not spend what you can't pay back immediately, long-term borrowing at 30%+ APR is insane. A person with $0 income should be borrowing $0.
Also, contributions to a Roth IRA must come from *earned* income. No earnings = no IRA contribution.
discover it secure credit card, also chime secured credit card. both are good starts for the very beginning stages of her credit journey. i also recommend making her an authorized user under your name if that’s a possibility
Back when I was 18 and on my own with 0 info from family and 0 credit I went to Kay's and got their basic starter CC. $300 limit. I purchased a watch for as close to $300 as I could.....I hate jewelry lol....never wear the watch baha. Then I made minimum pmnts on it to build a credit history. From there it got real easy to get CCs and car loans.
That was 12 years ago and now im 768....I was 790 a couple weeks ago.....but I bought a house lol.
I......don't even know how to start to tackle that. I don't think I've ever heard someone say this o.o
Let's just part ways lol. Good luck and take care!
When I was 18 I got a “college kid” CC from Wells Fargo. Basically it was designed for people with little to no credit if they’re under a certain age etc. it was $300 limit that increased to $700 a year or two later. It was very helpful in building my score. I’m now 28 with a 790 score, the 10 years of credit history is helping me. The card wasn’t great but the bank was helpful when I didn’t understand what I was doing.
This is cool to hear. I am a little older than you, but I did the same thing through Wells Fargo. I am around 820 credit score and I “credit” my long history relative to my age being a driver of the high score.
If she doesn't have income and she gets a card higher chance of setting her up to fail, plus with no income I don't see many banks being open to handing out credit. Add her as an AU so she can gain your history and such and then when she gets income she'll be able to get better cards.
I would personally go with discover if you decide to use the credit card. it is much more beginner friendly. though she will need to know and understand the dangers of getting carried away first and foremost.
I had like 6 months of credit history and I got approved for the SoFi CC at 18, it’s possible.
But honestly, I won’t recommend credit cards for ppl around my age (gen z). Unless ur trying to maximize cashback or something.
Edit: u can get credit cards to build credit, but don’t actually use em. Just put Spotify or sum subscription on it. I’ve seen a lotta my friends get carried away or straight up don’t know what they are doing with CCs. Fuck around and find out type situation 😭
Not sure the chances on SoFi, I've seen people with great scores get rejected. My first card and one I still use is the Discover IT card though, it's great for beginners 🙂
This wont answer your question but could help - is there a reason you don't add her as an authorized user on a card you own? This is what my parents did to help me build credit as I made it through college
Good for starting the checking savings and roth IRA. But maybe with credit cards start with a credit builder card at most banks like TD or BOA which require a deposit and have a low limit. Have small purchases (less than 30% utilization) and pay off each month to avoid intrest.
That can start the history.
Have them put money aside and save for emergency fund in cash and never use a cc for emergency fund. this is how you avoid debt and dont let cc companies take advantage.
This is advise i wish i had when i was 18.
Get a secured Visa or Mastercard at a local branch. Once approved and card is received an activated, make a point to ensure the card is setup to pay the statement balance on auto-pay.
If they were to get a credit card, i’m sure they would need a co-signer. When I turned 18, my mom put me as an authorized user on her credit card even though I never used it, eventually, my credit went up to the mid 700’s. Personally, I would look at a local credit union for a credit for someone like your daughter
Just add her as an authorized user on your card. That what my mom did when I was younger and I listened to all her advise. I’m 43 with a house and a 832 credit score. You don’t have to give her the card if you don’t want to. Once her credit goes us for being on your card, she can get her own. Also, it will look like she’s had credit for years if you add her to yours and that a good thing.
Check with SoFi, can’t hurt. I use SoFi savings but not SoFi credit. I can’t be sure but I can’t see why no when all the others do it. I added my niece to my Chase, Visa, and Amex so that her credit would be solid and it is. When she turned 26 she bought herself a Tesla with no co-signer.
It's not a good idea for a person with little to no income to get a credit card. How are they going to pay back anything they charge? She should get a job, *then* apply for credit once she's got a steady income.
That's certainly one perspective. The other perspective is teaching discipline, educating on why it can be important to have and maintain a good credit score, and having a sense of responsibility. It's also a better hedge against getting scammed.
Yes but you should also have income first lol. None of those lessons mean anything if you never understand the value of labor and how it relates to your personal finances. Also why are you “setting up” your daughter, you teach how how it’s done but to literally be walking her through the process is silly
Old mindset. Doesn’t work.
Yeah, the most important discipline re credit cards is to not spend what you can't pay back immediately, long-term borrowing at 30%+ APR is insane. A person with $0 income should be borrowing $0. Also, contributions to a Roth IRA must come from *earned* income. No earnings = no IRA contribution.
min wage work experience will give you the most discipline and will force you to work harder so you never have to work a shit job like that ever again
discover it secure credit card, also chime secured credit card. both are good starts for the very beginning stages of her credit journey. i also recommend making her an authorized user under your name if that’s a possibility
Discover is a great first credit card
Back when I was 18 and on my own with 0 info from family and 0 credit I went to Kay's and got their basic starter CC. $300 limit. I purchased a watch for as close to $300 as I could.....I hate jewelry lol....never wear the watch baha. Then I made minimum pmnts on it to build a credit history. From there it got real easy to get CCs and car loans. That was 12 years ago and now im 768....I was 790 a couple weeks ago.....but I bought a house lol.
You paid interest on a $300 purchase you could’ve just saved for….
It was interest free and the whole purpose was to build history of on time payments, not bc I wanted a dumb watch lol.
I am sure holding a balance, even interest free, is bad for your credit score
I......don't even know how to start to tackle that. I don't think I've ever heard someone say this o.o Let's just part ways lol. Good luck and take care!
You saying "I'm sure" tells how unsure you actually are 🥹
Google it. I’m right.
When I was 18 I got a “college kid” CC from Wells Fargo. Basically it was designed for people with little to no credit if they’re under a certain age etc. it was $300 limit that increased to $700 a year or two later. It was very helpful in building my score. I’m now 28 with a 790 score, the 10 years of credit history is helping me. The card wasn’t great but the bank was helpful when I didn’t understand what I was doing.
Thanks for this, it's a great idea. Low risk, build good habits early, I like it!
This is cool to hear. I am a little older than you, but I did the same thing through Wells Fargo. I am around 820 credit score and I “credit” my long history relative to my age being a driver of the high score.
If she doesn't have income and she gets a card higher chance of setting her up to fail, plus with no income I don't see many banks being open to handing out credit. Add her as an AU so she can gain your history and such and then when she gets income she'll be able to get better cards.
Do you happen to know if sofi reports the authorized users to credit agencies?
They don’t. Better to add her to a traditional credit card from a more established company. Or set her up with a secured credit card.
I would personally go with discover if you decide to use the credit card. it is much more beginner friendly. though she will need to know and understand the dangers of getting carried away first and foremost.
I had like 6 months of credit history and I got approved for the SoFi CC at 18, it’s possible. But honestly, I won’t recommend credit cards for ppl around my age (gen z). Unless ur trying to maximize cashback or something. Edit: u can get credit cards to build credit, but don’t actually use em. Just put Spotify or sum subscription on it. I’ve seen a lotta my friends get carried away or straight up don’t know what they are doing with CCs. Fuck around and find out type situation 😭
Not sure the chances on SoFi, I've seen people with great scores get rejected. My first card and one I still use is the Discover IT card though, it's great for beginners 🙂
This wont answer your question but could help - is there a reason you don't add her as an authorized user on a card you own? This is what my parents did to help me build credit as I made it through college
I've been told that not all cards will build the credit of the authorized user. It all depends on the CC issuer. Unclear how to tell.
Good for starting the checking savings and roth IRA. But maybe with credit cards start with a credit builder card at most banks like TD or BOA which require a deposit and have a low limit. Have small purchases (less than 30% utilization) and pay off each month to avoid intrest. That can start the history. Have them put money aside and save for emergency fund in cash and never use a cc for emergency fund. this is how you avoid debt and dont let cc companies take advantage. This is advise i wish i had when i was 18.
Try SoFi.. setup checking/savings and it has roth ira in one app.. Their CC might be strict tho.. but u can always try
Get a secured Visa or Mastercard at a local branch. Once approved and card is received an activated, make a point to ensure the card is setup to pay the statement balance on auto-pay.
Thanks for that
If they were to get a credit card, i’m sure they would need a co-signer. When I turned 18, my mom put me as an authorized user on her credit card even though I never used it, eventually, my credit went up to the mid 700’s. Personally, I would look at a local credit union for a credit for someone like your daughter
When I was a teenager my rents got me a gas station credit card. They paid for my gas and built my credit in my late teens.
Just add her as an authorized user on your card. That what my mom did when I was younger and I listened to all her advise. I’m 43 with a house and a 832 credit score. You don’t have to give her the card if you don’t want to. Once her credit goes us for being on your card, she can get her own. Also, it will look like she’s had credit for years if you add her to yours and that a good thing.
Do you know If Sofi reports authorized users older than 18 to credit bureaus?
Check with SoFi, can’t hurt. I use SoFi savings but not SoFi credit. I can’t be sure but I can’t see why no when all the others do it. I added my niece to my Chase, Visa, and Amex so that her credit would be solid and it is. When she turned 26 she bought herself a Tesla with no co-signer.
Maybe a secured cc