Credit card suggestions for my son that lives away from home

I’m pretty sure Frank Abagnale preaches this very thing.

(He did this for his three children at college I believe. They should have good credit when they graduate.)

He also advise against ever using debit. Always use OP money.

"Pacifism is a shifty doctrine under which a man accepts the benefits of the social group without being willing to pay - and claims a halo for his dishonesty." ~Robert A. Heinlein

Posts: 26756 | Location: dughouse | Registered: February 04, 2003

Ignored post by SIGnified posted

Aeteocles

eh-TEE-oh-clez
Picture of Aeteocles

posted

Chase Bank offers a debit card specifically for children. You own the account, you set limits for spend (even limits for categories), and can set limits for withdrawals at ATMs, and can have notifications and approval requests sent directly to you.

While I normally advise against debit cards because of the time it takes to reverse fraud, this may actually be a better solution in this case.

If you open an account in little Mark's name, and start building him credit, he may in the future be susceptible to undue influence or ID theft attacks. If he has good credit, someone may pressure him into co signing loans, or steal his identity and open accounts in his name without him knowing.

Posts: 13050 | Location: Orange County, California | Registered: May 19, 2002

Ignored post by Aeteocles posted

W07VH5

posted

quote:
Originally posted by Aeteocles:
Chase Bank offers a debit card specifically for children. You own the account, you set limits for spend (even limits for categories), and can set limits for withdrawals at ATMs, and can have notifications and approval requests sent directly to you.

While I normally advise against debit cards because of the time it takes to reverse fraud, this may actually be a better solution in this case.

If you open an account in little Mark's name, and start building him credit, he may in the future be susceptible to undue influence or ID theft attacks. If he has good credit, someone may pressure him into co signing loans, or steal his identity and open accounts in his name without him knowing.

I see where you're coming from. So, I'm back to just handing him a bunch of cash every week?

Posts: 45381 | Location: Pennsyltucky | Registered: December 05, 2001

Ignored post by mark123 posted

220-9er

Just because you can,
doesn't mean you should

posted

quote:
Originally posted by mark123:
quote:
Originally posted by Aeteocles:
Chase Bank offers a debit card specifically for children. You own the account, you set limits for spend (even limits for categories), and can set limits for withdrawals at ATMs, and can have notifications and approval requests sent directly to you.

While I normally advise against debit cards because of the time it takes to reverse fraud, this may actually be a better solution in this case.

If you open an account in little Mark's name, and start building him credit, he may in the future be susceptible to undue influence or ID theft attacks. If he has good credit, someone may pressure him into co signing loans, or steal his identity and open accounts in his name without him knowing.

I see where you're coming from. So, I'm back to just handing him a bunch of cash every week?

Another option might be to do the credit card with all those restrictions and also a credit freeze on new accounts with you holding the password to unfreezing after the account is opened.
That way you have something to keep track and document his expenditures that cash won't give to you.

___________________________
Avoid buying ChiCom/CCP products whenever possible.

Posts: 9527 | Location: NE GA | Registered: August 22, 2002

Ignored post by 220-9er posted

1967Goat

Shit don't
mean shit

posted

Capital One card will satisfy your requirements.

Funny, back in November I applied for a Capital One Platinum card from a mailer I received in the mail. I decided to get it because I only have 1 other credit card, a Chase Marriott Visa from when I traveled all the time. My Chase Marriott card came with a $20k limit when I got it. I rarely use it, and never carry a balance.

I've heard good things about Capital One rewards, so that's why I decided to get it. Well, I get it in December and my credit limit....a whopping $500.

It's insulting. I don't need $20k, but a few thousand might be nice for when we go on vacation. I was going to cancel it, but I think I'll just throw it in my drawer and never use it.

Posts: 5764 | Location: 7400 feet in Conifer CO | Registered: November 14, 2006

Ignored post by 1967Goat posted

Aeteocles

eh-TEE-oh-clez
Picture of Aeteocles

posted

quote:
Originally posted by mark123:

I see where you're coming from. So, I'm back to just handing him a bunch of cash every week?

No, sorry. I was unclear.

Normally against debit cards, but in this particular case, the Chase debit card for children sounds perfect.

In this case, the Chase Debit card belongs to you--he can't go to the bank under duress and withdraw money out or change ownership or do anything to the account. He gets a card, and the card has built in parental control over spending limits. Sounds perfect.

I don't have any experience with this particular card, but as a Chase customer I get targeted for ads. The literature says you can set limits for spending categories (e.g. $20 for food, $50 for clothes, etc), have recurring deposits (e.g., a weekly allowance), and get spending notifications automatically. It also has provisions for app based authorizations for spending that exceeds your limits (e.g., he needs to spend on something in particular, and you get a notice that allows you to approve the spend).

This works because the account belongs to you, he just gets a user card. In any other instance, if you open a card "in his name", then he has control over the account.

Posts: 13050 | Location: Orange County, California | Registered: May 19, 2002

Ignored post by Aeteocles posted

SigSAC

Member

posted

quote:
Originally posted by 1967Goat:
Capital One card will satisfy your requirements.

I've heard good things about Capital One rewards, so that's why I decided to get it. Well, I get it in December and my credit limit....a whopping $500. It's insulting. I don't need $20k, but a few thousand might be nice for when we go on vacation. I was going to cancel it, but I think I'll just throw it in my drawer and never use it.

Capital One will send you a notification if you don't use it for about 2 years that it will be cancelled. If you want a higher limit, use it for normal purchases on a regular basis and pay it off monthly.

Posts: 2773 | Location: Northern California | Registered: December 01, 2006

Ignored post by SigSAC posted

W07VH5

posted

quote:
Originally posted by Aeteocles:
quote:
Originally posted by mark123:

I see where you're coming from. So, I'm back to just handing him a bunch of cash every week?

No, sorry. I was unclear.

Normally against debit cards, but in this particular case, the Chase debit card for children sounds perfect.

In this case, the Chase Debit card belongs to you--he can't go to the bank under duress and withdraw money out or change ownership or do anything to the account. He gets a card, and the card has built in parental control over spending limits. Sounds perfect.

I don't have any experience with this particular card, but as a Chase customer I get targeted for ads. The literature says you can set limits for spending categories (e.g. $20 for food, $50 for clothes, etc), have recurring deposits (e.g., a weekly allowance), and get spending notifications automatically. It also has provisions for app based authorizations for spending that exceeds your limits (e.g., he needs to spend on something in particular, and you get a notice that allows you to approve the spend).

This works because the account belongs to you, he just gets a user card. In any other instance, if you open a card "in his name", then he has control over the account.

Ah, ok. Thanks. I have a Chase Ink for business so I will call them and see about setting up a card for Marky.

Posts: 45381 | Location: Pennsyltucky | Registered: December 05, 2001

Ignored post by mark123 posted

W07VH5

posted

quote:
Originally posted by 220-9er:
quote:
Originally posted by mark123:
quote:
Originally posted by Aeteocles:
Chase Bank offers a debit card specifically for children. You own the account, you set limits for spend (even limits for categories), and can set limits for withdrawals at ATMs, and can have notifications and approval requests sent directly to you.

While I normally advise against debit cards because of the time it takes to reverse fraud, this may actually be a better solution in this case.

If you open an account in little Mark's name, and start building him credit, he may in the future be susceptible to undue influence or ID theft attacks. If he has good credit, someone may pressure him into co signing loans, or steal his identity and open accounts in his name without him knowing.

I see where you're coming from. So, I'm back to just handing him a bunch of cash every week?

Another option might be to do the credit card with all those restrictions and also a credit freeze on new accounts with you holding the password to unfreezing after the account is opened.
That way you have something to keep track and document his expenditures that cash won't give to you.

Yeah, I should probably put a freeze on his credit report once I get a card for him.

Posts: 45381 | Location: Pennsyltucky | Registered: December 05, 2001

Ignored post by mark123 posted

V-Tail

אַרְיֵה

posted

quote:
Originally posted by 1967Goat:

I've heard good things about Capital One rewards, so that's why I decided to get it. Well, I get it in December and my credit limit....a whopping $500. It's insulting. I don't need $20k, but a few thousand might be nice for when we go on vacation. I was going to cancel it, but I think I'll just throw it in my drawer and never use it.

I got one of those a few years ago. Very low limit, but convenient to use, so I used it and paid the balance in full each month. I never asked them to increase the limit, but every once in a while I would receive an email informing me that they had increased the limit, which is now more than ten times higher than it was originally.

הרחפת שלי מלאה בצלופחים

Posts: 30702 | Location: Central Florida, Orlando area | Registered: January 03, 2010

Ignored post by V-Tail posted

Patriot

Run Silent
Run Deep

Picture of Patriot

posted

Do you have an AMEX? If so, add him as an authorized user. You can set a limit for his use that stops at the limit.

I did this for both my daughters and it worked great.

_____________________________
Pledge allegiance or pack your bag!
The problem with Socialism is that eventually you run out of other people's money. - Margaret Thatcher
Spread my work ethic, not my wealth

Posts: 6987 | Location: South East, Pa | Registered: July 04, 2002

Ignored post by Patriot posted

sig 226

Serenity now!

posted

quote:
Originally posted by Patriot:
Do you have an AMEX? If so, add him as an authorized user. You can set a limit for his use that stops at the limit.

I did this for both my daughters and it worked great.

This worked for me as well..

------------------------------------------------

9/11/01 Never Forget

"In valor there is hope" - Tacitus

Posts: 2675 | Location: VA | Registered: April 15, 2003

Ignored post by sig 226 posted

W07VH5

posted

quote:
Originally posted by Patriot:
Do you have an AMEX?…

I don’t.

Posts: 45381 | Location: Pennsyltucky | Registered: December 05, 2001

Ignored post by mark123 posted