18 year old- Budget101 Discussion List

Another question for 18 year olds. How is the best way for them to start a credit history without me (mom) co-signing? My son does not have a good track record so far with paying for his car (money loaned from his grandma) & cell phone (on grandma's plan), so I absolutely will not co-sign for

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Thread: 18 year old

  1. #1
    Anggie Thompson
    Guest

    Default 18 year old


    Another question for 18 year olds. How is the best way for them to start a credit history without me (mom) co-signing? My son does not have a good track record so far with paying for his car (money loaned from his grandma) & cell phone (on grandma's plan), so I absolutely will not co-sign for anything.

    --
    Anggie
    Fight Breast cancer......no one should die from it
    http://anggie-ggslife.blogspot.com/





  2. #2
    CeCe Sweet
    Guest

    Default 18 year old


    I got my son to start his credit at King Sized or one of the online stores that offers instant credit. They gave him a $500 credit card to use on or off line.

    CeCe










  3. #3
    Lucy Anderson
    Guest

    Default 18 year old


    He should pay cash for things like cars. Don't encourage the use of credit

    at all.



    Absolutely do not co-sign anything. If he needs credit for getting into an

    apartment, usually he can make up for that by having the cash for first,

    last, damage deposit (or pay a little more on the deposit). Utilities

    usually can be opened with a deposit. Nothing else in life needs a credit

    history (which is really an "I love debt" history).







    On Fri, Aug 8, 2008 at 11:34 AM, Anggie Thompson <anggiet@gmail.com> wrote:



    > Another question for 18 year olds. How is the best way for them to

    > start a credit history without me (mom) co-signing?








  4. #4
    Lucy Anderson
    Guest

    Default 18 year old


    Please, please do not encourage a teenager to get a credit card.



    On Fri, Aug 8, 2008 at 1:15 PM, CeCe Sweet <CeCeSweet@yahoo.com> wrote:



    >
    I got my son to start his credit at King Sized or one of the online

    > stores that offers instant credit. They gave him a $500 credit card to use

    > on or off line.

    >

    > CeCe

    >

    >

    >






  5. #5
    Suzi McMullen
    Guest

    Default 18 year old



    Not every young person abuses credit. My 21 year old has one card with a low credit limit and she always pays it off before she uses it again. She is now paying her car payment too and getting a pretty good interest rate because she has handled herself well. I don't know what my 23 year old has. But I recently saw her filing system and it looks like she is very organized. She bought her first vehicle on time last year and I believe she is doing pretty well. My own husband always pays off his items within the same as cash period.

    Credit is not a huge SIN for crying out loud. It's only abused by some of us (me included). Some people abuse alcohol or food or sex. I abuse credit. But I accept myself, warts and all. It's not because the credit is wicked. It's because I am weak. BUT, I pay my bills and I have never struggled to do so. I enjoy hard work and get a sense of satisfaction when I pay my bills. I just hate to see people so militant against it just because some people struggle. It's like saying all gambling is wrong because some people get into trouble or all alcohol is wrong because some drink too much or we shouldn't be allowed to arm ourselves because some people shoot others. Personally, I hate drinking and I don't own a gun and I very RARELY spend 20 bucks or so in some slot machine like once every few years. I would never run around spouting off against other peoples liberties.

    I believe all people should strive for a decent credit rating because life will demand it at some point. How a person handles their bills even decides the rate a person pays for car insurance and what type of a job they can get these days. To have zero debt means to have a very low credit score. So why tell a kid they should work hard, go through school and then once out they don't qualify for a decent job because they have a low credit score?

    Suzi



  6. #6
    Suzi McMullen
    Guest

    Default 18 year old



    They can put 250 dollars into a capital one credit card or other company secured card. The credit limit would start out like 300 dollars or so. The 250 dollar deposit will earn interest. As the child buys on the card and pays it off, their score will increase. After a couple of years the deposit plus interest will be refunded to them.

    Dell is pretty lenient once they have some sort of history.

    Suzi
    [quote]
    ----- Original Message -----
    From: Anggie Thompson
    To: Budget101_@yahoogroups.com
    Sent: Friday, August 08, 2008 1:34 PM
    Subject: Budget101.com : 18 year old






    Another question for 18 year olds. How is the best way for them to start a credit history without me (mom) co-signing? My son does not have a good track record so far with paying for his car (money loaned from his grandma) & cell phone (on grandma's plan), so I absolutely will not co-sign for anything.<BR clear="all">
    --
    Anggie
    Fight Breast cancer......no one should die from it
    http://anggie-ggslife.blogspot.com/







  7. #7
    Lucy Anderson
    Guest

    Default 18 year old


    Dell also charges 30% interest. Capital One is a close second.... Why would

    you do this to your child?



    On Fri, Aug 8, 2008 at 2:17 PM, Suzi McMullen <smcmullen@kc.rr.com> wrote:



    > They can put 250 dollars into a capital one credit card or other

    > company secured card.










  8. #8
    Suzi McMullen
    Guest

    Default 18 year old



    It's only 30% if the min. payment is paid and a person has bad credit. I am at 21%. I have been paying over twice the monthly minimum for years. I pay it on a bi-weekly automatic draft and occasionally I increase this amount. I never pay it off because I've purchased numerous cameras, computers both used and new, lots of computer gadgets, Christmas presents for others, inks etc. At the rate that I pay it, it's probably more like 15%. That's not the end of the world. Once again, there are living human beings working at dellthat earn a paycheck from my purchases and interest paid.Many of the purchases that I make through Dell end up being used in my business. But even if it was pure pleasure, it allows me to get what I want and make payments whichI enjoy. They have great customer service, fast shipping, and if handled correctly it allows a person to have a high credit limit that doesn't need to be maxed out, which helps the credit rating. They've raised my credit limit so often that I couldn't ever max it out or even use half of it if I wanted to. I don't know what made you think it's 30%.

    Suzi
    [quote]
    ----- Original Message -----
    From: Lucy Anderson
    To: Budget101_@yahoogroups.com
    Sent: Friday, August 08, 2008 6:33 PM
    Subject: Re: Budget101.com : 18 year old





    Dell also charges 30% interest. Capital One is a close second.... Why would
    you do this to your child?

    On Fri, Aug 8, 2008 at 2:17 PM, Suzi McMullen <smcmullen@kc.rr.com> wrote:

    > They can put 250 dollars into a capital one credit card or other
    > company secured card.





  9. #9
    Lilmouse22
    Guest

    Default 18 year old


    I believe all people should strive for a decent credit rating because life will demand it at some point. How a person handles their bills even decides the rate a person pays for car insurance and what type of a job they can get these days. To have zero debt means to have a very low credit score. So why tell a kid they should work hard, go through school and then once out they don't qualify for a decent job because they have a low credit score?>>>


    >>>I'm afraid I have to disagree with part of your statement...we have 0 debt and have had for 30 years and have a very high credit rating. I have 5 credit cards with a borrowing amount of well over 100,00 and haven' activated 4 of them for many years. Every once in awhile, I activate one, charge a hundred or two on it, pay it in full beforethe 1st payment is due..then don't use it again for several years.

    I use 1 card [local credit union] regularly for online bill paying, gas [soI can keep exact track of how much we use each month] and whatever elseI want to buy when I shop without carrying a bunch of cash. If we need anything big, we just pay cash. The banks and CC companies would love to have me paying interest charges to them 14% to 18% a yearwhile they lend out my money and pay me 1-2% a year...I DON'T THINK SO!!!. Our car insurance isless than$600 yearly. And I am still getting credit card offers almost every week [go in the junk mail bag]

    I pay the card off in full every month and never pay 1 cent of interest. If I canceled the cards I never use, my credit rating would probably go down asI would have only 1 card which I never pay interest on but I do keep one in case we needed to rent a car as most places demand a credit card.

    That said, probably 1 Credit Card with a low limit would be good to help a young person establish a good credit rating.
    <DIV CLASS="aol_ad_footer" ID="u559e299cd4494d3587683413cc2f974d">It's time to go back to school! Get the latest trends and gadgets that make the grade on AOL Shopping.



  10. #10
    Suzi McMullen
    Guest

    Default 18 year old



    But you hadsome debtat some point and have owned a house at some point in life? Credit cards aren't the only way to a rating. But you've surely borrowed something in your life time. That fact would show on your rating. We live in a VERY different time than you did 30 years ago. 30 years ago it wasn't as difficult to obtain that first credit account.

    Suzi
    [quote]
    ----- Original Message -----
    From: Lilmouse22
    To: budget101_@yahoogroups.com
    Sent: Friday, August 08, 2008 9:36 PM
    Subject: Budget101.com : Re: 18 year old






    I believe all people should strive for a decent credit rating because life will demand it at some point. How a person handles their bills even decides the rate a person pays for car insurance and what type of a job they can get these days. To have zero debt means to have a very low credit score. So why tell a kid they should work hard, go through school and then once out they don't qualify for a decent job because they have a low credit score?>>>


    >>>I'm afraid I have to disagree with part of your statement...we have 0 debt and have had for 30 years and have a very high credit rating. I have 5 credit cards with a borrowing amount of well over 100,00 and haven' activated 4 of them for many years. Every once in awhile, I activate one, charge a hundred or two on it, pay it in full beforethe 1st payment is due..then don't use it again for several years.

    I use 1 card [local credit union] regularly for online bill paying, gas [soI can keep exact track of how much we use each month] and whatever elseI want to buy when I shop without carrying a bunch of cash. If we need anything big, we just pay cash. The banks and CC companies would love to have me paying interest charges to them 14% to 18% a yearwhile they lend out my money and pay me 1-2% a year...I DON'T THINK SO!!!. Our car insurance isless than$600 yearly. And I am still getting credit card offers almost every week [go in the junk mail bag]

    I pay the card off in full every month and never pay 1 cent of interest. If I canceled the cards I never use, my credit rating would probably go down asI would have only 1 card which I never pay interest on but I do keep one in case we needed to rent a car as most places demand a credit card.

    That said, probably 1 Credit Card with a low limit would be good to help a young person establish a good credit rating.
    <DIV class="aol_ad_footer" id="u559e299cd4494d3587683413cc2f974d"><FONT style="FONT: 10pt ARIAL, SAN-SERIF;COLOR: black;">

    It's time to go back to school! Get the latest trends and gadgets that make the grade on AOL Shopping.






  11. #11
    Lucy Anderson
    Guest

    Default 18 year old


    Does the 21 year old realize how many million dollars she is

    throwing away because she accepts a car payment? It just isn&#39;t smart. I took one before I knew and now it is harder to get out of that cycle.
    Organized is good, paying things off is good. But taking care of your money and not paying interest is best.

    >

    > On Fri, Aug 8, 2008 at 2:14 PM, Suzi McMullen <smcmullen@kc.rr.com>

    wrote:

    >

    > > My 21 year old has one

    card with

    > > a low credit limit and she always pays it off before she uses it

    again. She

    > > is now paying her car payment too and getting a pretty good

    interest rate

    > > because she has handled herself well.





  12. #12
    Lucy Anderson
    Guest

    Default 18 year old


    Because I have Dell..... 21%? That&#39;s even highway robbery. So, how much did that "gadget" actually cost you? If you look at it, it gets scary. If you saved that interest up, your daughter would not need a car payment (if you so chose to pay for her car).


    On Fri, Aug 8, 2008 at 6:07 PM, Suzi McMullen <smcmullen@kc.rr.com> wrote:








    <font face="Arial" size="2">It&#39;s only 30% if the min. payment is paid and a person has bad credit. I am at 21%.

    [/quote]





  13. #13
    Jan Bonilla
    Guest

    Default 18 year old


    Oh my Goodness!!!! PLEASE I BEG YOU!!!!! DO NOT USE CAPITAL

    ONE!!!!!! I work for a business partner of Captal One and this credit

    card is Horrible!!! They won't close your account unless you fight

    with them, then they say it is closed and don't close it.



    They tell you a pay off amount to go to a zero balance and then they

    charge you a interest fee on your account on a paid off balance. They

    put stuff on your account without asking.



    They are rude and nasty people. I have Cap 1 people call their

    customers stupid on the phone. Yes right to the customer.



    Please use a different card if you insist on credit. Yet it is best

    to live debt free. I live completely debt free. The only thing I owe

    is past medical bills. Yet I ( and my ex husband) ruined my credit so

    I am not worried about those medical bills right now.



    A credit card will only make him think he has free money anytime then

    take forever to pay it off.



    Don't co-sign for him. That will only ruin your credit & make you pay

    his debt off. Thats his escape that he can walk out on the loan with

    no consequence.



    Anyway thats my 2 worth...



    Jan...



    On 8/8/08, Suzi McMullen <smcmullen@kc.rr.com> wrote:

    > They can put 250 dollars into a capital one credit card or other company

    > secured card. The credit limit would start out like 300 dollars or so.






  14. #14
    Yolonda
    Guest

    Default 18 year old



    Credit ratings
    are just that – a way to see how much credit someone should lend to
    you. We have told our kids (and lived it before them) that credit cards
    are not necessary if you can pay cash for what you need/want.
    I know I will
    be in a huge minority when I say that DH & I are teaching our kids that saving
    up and paying cash is the way to go. They are 9 & 11 right now and
    each of them has over $25K in a high yield savings account. They are
    extremely responsible for their age when it comes to financial matters.
    We discuss our family finances and our budget openly with them so they can see
    that money is necessary and to teach them to live within their means. I
    think too many kids today want to move out and/or get married and want to pick
    up with the style to which they’ve become accustomed by living with their
    parents. No one wants to start at the bottom, living within their own
    financial means and move up the ladder. They want all the things that
    have taken the parents 20+ years to accumulate – almost as if they have a
    tangible right to it. Before you think we’re terrible people, our
    kids don’t go without any necessities; they have doting grandparents that
    give them too much at times. However, they have been taught to tithe/give,
    save (and that means once it goes in the bank, it doesn’t come out), and
    spend. They truly enjoy depositing money in their bank account and
    checking out their new account total!! We have (and will continue to) encouraged
    them to not use credit cards and to keep a considerate balance in their
    accounts so when they need the money it will be there. We have already
    agreed to match their first car fund (with a max limit built in!) and they are
    on their way to earning scholarships with their academic grades. They
    know college is mandatory in this day and age so it is not negotiable (DS is
    considering military).
    I am in no way
    bashing anyone else’s way of using credit; I just don’t agree and
    wanted to point out the opposite side of the coin. Yolonda










    That said, probably 1 Credit Card with a low limit would be good to
    help a young person establisha good credit rating.




    12.0pt;color:




  15. #15
    Ria
    Guest

    Default 18 year old


    15%! Yikes!! I hate paying even a PENNY of interest! I have never paid interest on credit card debt. Only my mortgage, and I pay extra every single month to get my mortgage paid off early.

    Have you ever figured out exactly how much interest you've paid over the years??? All because you want something that you can't afford!

    To each his own, I guess....but I would never advise someone to get into credit card debt, ever.



    ----- Original Message ----
    From: Suzi McMullen <smcmullen@kc.rr.com>
    To: Budget101_@yahoogroups.com
    Sent: Friday, August 8, 2008 8:07:36 PM
    Subject: Re: Budget101.com : 18 year old






    It's only 30% if the min. payment is paid and a person has bad credit. I am at 21%. I have been paying over twice the monthly minimum for years. I pay it on a bi-weekly automatic draft and occasionally I increase this amount. I never pay it off because I've purchased numerous cameras, computers both used and new, lots of computer gadgets, Christmas presents for others, inks etc. At the rate that I pay it, it's probably more like 15%. That's not the end of the world. Once again, there are living human beings working at dellthat earn a paycheck from my purchases and interest paid.Many of the purchases that I make through Dell end up being used in my business. But even if it was pure pleasure, it allows me to get what I want and make payments whichI enjoy. They have great customer service, fast shipping,
    and if handled correctly it allows a person to have a high credit limit that doesn't need to be maxed out, which helps the credit rating. They've raised my credit limit so often that I couldn't ever max it out or even use half of it if I wanted to. I don't know what made you think it's 30%.

    Suzi
    [quote]
    ----- Original Message -----
    From: Lucy Anderson
    To: Budget101_@yahoogro ups.com
    Sent: Friday, August 08, 2008 6:33 PM
    Subject: Re: Budget101.com : 18 year old





    Dell also charges 30% interest. Capital One is a close second.... Why would
    you do this to your child?

    On Fri, Aug 8, 2008 at 2:17 PM, Suzi McMullen <smcmullen@kc. rr.com> wrote:

    > They can put 250 dollars into a capital one credit card or other
    > company secured card.






 

 
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