Credit ?

[antharper]

I’m wanting to do something to help my daughter establish some credit . She’s 18 and got a checking account and a decent savings account but nothing else . Never purchased anything with her name on it . She also has a little part time job making a couple hundred a week . I thought about maybe a Walmart credit card just for gas and make sure she pays it off every month . Just wasn’t sure , thought I may get some ideas from y’all . Thanks . Also she’s about to graduate and thought about a vehicle with mine and her name on loan .

 

[pjciii]

I think it's a great idea. I would also make sure that her bank has free bill payer and have her set paperless statements. I would also reccomend that you not set it up with auto debit. That way she can manage her money and choose When to pay it. By all means explain late fees and show her how long it will take to pay off by only making minimum Payments.

Use a credit union. They are more personal.

Time to put My tin foil hat back on.

 

[kayaksteve]

I can’t offer much help in way of finances. Other than I think this is a great thing to do for her. I never had a credit card or any vehicle loans in my name. I always just drove junk and paid cash, never even thought about building credit. When I got in my mid 20s and could afford a newer vehicle and was atleast thinking about home ownership I realized my mistake. Had a tough time at first and had no idea what I was doing but a local credit union got me going and I’ve used them ever since

 

[Wire Nut]

A credit card with a $500 limit builds credit pretty quick. Co-signing a car loan will help too

 

[AceOfTheBase]

++ on a credit union.

 

[antharper]

I’m 48 and never used a credit union . I’ll be checking it out . Same basic principle as a bank ?

 

[pjciii]

Oh, If you havent already teach her howto write a check and that you can easily run out of cash and still have checks left.

 

[pjciii]

I’m 48 and never used a credit union . I’ll be checking it out . Same basic principle as a bank ?

I do not think so. better intrest Rates. Easyier to talk to. Your a human not just an account number.

 

[sghoghunter]

I can’t offer much help in way of finances. Other than I think this is a great thing to do for her. I never had a credit card or any vehicle loans in my name. I always just drove junk and paid cash, never even thought about building credit. When I got in my mid 20s and could afford a newer vehicle and was atleast thinking about home ownership I realized my mistake. Had a tough time at first and had no idea what I was doing but a local credit union got me going and I’ve used them ever since

I was the same way with driving junk and paying cash. When I bought the truck I have now I found out I had good credit but didn’t have enough borrowing for it to help me. One way I helped build mine up was to borrow some of my own money that was in savings with a low interest rather than borrowing their money at a higher interest.

 

[Milkman]

Good advice above.
I have accounts with a mega bank and a local credit union. I like the CU best.
I assume she isn’t on her own yet so things like rent, utilities, etc aren’t in the picture yet.
Maybe switch the cell phone(s) into her name. Maybe the trash service, stuff like that works to build credit too.

 

[Ruger#3]

I’m 48 and never used a credit union . I’ll be checking it out . Same basic principle as a bank ?

Same basic principle but different law governing deposit guarantees. I been in them for decades instead of banks. They tend to have better service.

I think a capped credit card is a great idea. By continuously paying it off her score will go up.

 

[BassRaider]

Nor sure if still offered but go to your bank and setup a secured loan in her name. That way as she makes the payment, she establishes credit. I had to do that many years ago when I wanted to buy a house. Good luck!

 

[westcobbdog]

I’m wanting to do something to help my daughter establish some credit . She’s 18 and got a checking account and a decent savings account but nothing else . Never purchased anything with her name on it . She also has a little part time job making a couple hundred a week . I thought about maybe a Walmart credit card just for gas and make sure she pays it off every month . Just wasn’t sure , thought I may get some ideas from y’all . Thanks . Also she’s about to graduate and thought about a vehicle with mine and her name on loan .

Here’s a good solution. Recently had a lady with a credit repair company ( a legit one ) do a presentation in my real estate office. This lady explained her young teenage son previously had zero credit but now has outstanding credit with a score over 750, all because the parents took out a credit card in his name ( they got the kid a secure card with a few hundred dollar limit ) and the teen then pays his monthly Netflix bill ( $15 ) on said card. Then the card is paid off monthly. That’s all it’s used for. Within a few months his score started jumping. Credit is an extremely important tool to use wisely.

 

[JustUs4All]

Great thing to do for a youngun. Credit Unions are almost identical to banks but their set up structure is different. They are member owned so you will have to become a member at a very nominal cost then it functions almost exactly like a bank.

A similar option is a local bank if you can find one. I just moved from a giant mega bank that just merged agin to go to the next mega-mega level. The bank I moved to has three branches, all within 30 miles of my house and has been in business for over 100 years. The service there is way better.

 

[antharper]

Thanks everyone , some really good ideas . I almost feel like I should of started earlier . Better late than never I guess

 

[earlthegoat2]

I had no credit history until I was 26-27. Military and having college paid for by the GI bill and not having a car payment or utility bills made credit a moot point. I learned I needed credit history when I first got a cell phone. I could afford the phone just fine but they didn’t want give me a contract without credit history. Even bad credit history would have sufficed as long as there was any history. Very bemusing learning experience.

Anyway, I did the $500 credit union credit card and within 2 months had enough history for that phone.

As a side note pertaining to financials, there is a shocking number of people in my family who only have credit history through utility bills. A few live in houses that were inherited so never even had a mortgage. Paid cash for everything their entire lives. They all drive older vehicles that are in excellent shape with 200k+ miles on them. (If anyone follows my postings on cars you will see I am a big believer in never buying a brand new vehicle from a pure financial perspective)

I wouldn’t call my family very wealthy as there is definitely no compounding generational wealth but they do seem to be in a unique situation to never need to borrow money.

I am not one of those. I have 2 mortgages as it turns out. My wife will have a small car payment in the coming months. I did just buy a new used car for myself….at auction. Never carry a balance on the plastic though.

 

[snookdoctor]

If you have credit cards, add her to your accounts. You don't have to give her a card, but her credit will rise if your accounts are in good standing.

 

[gma1320]

If you have credit cards, add her to your accounts. You don't have to give her a card, but her credit will rise if your accounts are in good standing.

This, this is what I did for my wife as well. Works to.

 

[mark-7mag]

The credit card is a good idea and will at least give her some kind of a score. Eventually she'll need more in order to buy a car on her own. You would probably have to co-sign on her 1st car unless she has a big down payment and a good job history. After the 1st loan you sign with her on, she should be good to go

 

[fireman32]

We started both of my boys a low risk investment account each, plus a day trade type of account per kid with $100 to start. They can buy stocks within their budget through Fidelity and kind of learn how the market works with the day trade account.
Both have checking and savings accounts with the oldest having a job so he adds to his fairly often. Think we’ll look at a low limit credit card for the oldest soon. I believe that would also be the safe bet for your daughter. We’ve always been mostly cash buyers, but small loans and store credit cards keep your credit up. My brides score stays over 800 and she hasn’t had a 8-5 job in 14 years.