Warning! College students and parents of college students

[BlackElantraGT]

Originally Posted by HondaGuy

Damn, good timing Scott! I almost signed up for the same deal. It seemed like a good deal. I got a Macy's card for now, which is building some credit, plus I get 20% off (employee discount, but only work there like once a month!). lol

What are other ways to build good credit? I was thinking of a gas card... BTW I'm 18 and the only credit I currently have is my Macy's card (2 months or so in) and Les Schwab when I bought my wheels, but that got paid off within 30 days. And I make pretty good money, but not great, but I guess good for my age and in college. Oh and sorry for getting kinda off topic. lol

Don't open up any more store accounts, like Best Buy card, Circuit City card, etc. etc.

Store cards can be a good way to start credit when you have none whatsoever because their credit criteria is much more lenient than actual credit cards like Visa/MasterCard/Discover/AMEX. At the same time, store cards usually have rediculous interest rates because of the risky customers they take in.

IMO, if you're a student with no credit, it's almost just as easy getting approved for a student credit card. In a creditor's eyes, credit cards are more highly regarded whereas store accounts are looked down upon. If somehow you can't get approved for a student credit card (ie you currently have poor credit), I would suggest looking opening up a secured line of credit with a reputable bank.

With a secured credit line, it works more like a debit card where you have to put money into the credit card, but you still get a bill you have to pay for at the end of the month. The difference is that these charges will be reported to the credit bureaus, which is what builds/destroys your credit history. I believe Wells Fargo offers a secured credit card with a $500 minimum deposit.

Just make sure you're not being ripped off by the credit card companies with all sorts of additional fees, where before you even charge anything on the card, you're already have a few hundred charged up because of their so called "fees"

[Scottwax]

Originally Posted by jsatek

Why no takers on the balace transfer? Thats the best revenge, take your money from them!

The Attorney General wont do a thing until it becomes a class action suit.

Because my son isn't enough under the limit on his Discover Card and I just felt it was best to take the offer of removing the latest over limit fee and just pay off and close out the account.

[Grimm]

Scott here is what you should do with that card. Quit using it first, and then call them up to close the account. Offer to pay off the account with what you feel is a reasonable offer (say you owe $500, but they've racked up unreasable charges making the balance $800; offer them $500 to pay it off). More than likely they will take the money. Make sure you get in writing that they accept the offer.

[Scottwax]

Originally Posted by Grimm

Scott here is what you should do with that card. Quit using it first, and then call them up to close the account. Offer to pay off the account with what you feel is a reasonable offer (say you owe $500, but they've racked up unreasable charges making the balance $800; offer them $500 to pay it off). More than likely they will take the money. Make sure you get in writing that they accept the offer.

Read the whole thread, I paid the card off after they offered to remove one of the over the limit fees.

[Ctowner]

Originally Posted by Grimm

Scott here is what you should do with that card. Quit using it first, and then call them up to close the account. Offer to pay off the account with what you feel is a reasonable offer (say you owe $500, but they've racked up unreasable charges making the balance $800; offer them $500 to pay it off). More than likely they will take the money. Make sure you get in writing that they accept the offer.

Yeah def get it in writing credit card companies are dirtay!

[Tasty]

Credit cards are evil, they don't help to "build" credit, and they shouldn't be allowing them to peddle to college students on campus. SO many misconceptions about credit cards out there. When I finally pay mine off it is getting shredded (already not being used) and I will NEVER have another one again. Dave Ramsey has lots of good advice with regard to credit cards and the problems that come with them.

[xtahoex]

I am not sure that leaving a balance on a high interest credit card is a good way to up your credit. There are probably cheaper ways. Here's an article with a few ideas.
No Credit? Here's How to Establish Good Credit With or Without a Secured Credit Card

[Scottwax]

Originally Posted by xtahoex

I am not sure that leaving a balance on a high interest credit card is a good way to up your credit. There are probably cheaper ways. Here's an article with a few ideas.
No Credit? Here's How to Establish Good Credit With or Without a Secured Credit Card

The problem is they way they post over limit fees until 45 days after they apply themm to your account. My ex-wife paid on that account for 9 months and didn't make a dent in the balance because she never knew that another over limit fee was being applied (but not put on the bill) even before the bill went out. If they didn't have a such an dishonest way of posting the over the limit fees, the account would have been paid off in about 5 months.

Anyway, that is why I paid it off.

[xtahoex]

Oh, I completely understand what you were saying scottwax. I wasn't saying there was anything wrong with what you did. In fact I think that company is very unethical in the way they are doing business. I only posted that for other peoples benefit because I remembered reading a few post that suggested leaving a balance on your card and just paying part of it each month. They said to do this because paying your balance in full would not establish good credit, and I don't believe that is correct. I do think paying off your balance in full will improve your credit. Also, the interest charges on most credit cards for balances that are not paid off each month are usually very high, I can't see how paying those high interest rates is ever a good idea.

[pair of Blazers]

Scottwax
glad to see you squaered away w/bill. I hope both state attorney genrals go after 1st Financial's practices in how they bill.
on the flip side I think its better to have a second card issued on the parents account so they see whats going on and the child can establish credit. I would also stick to the larger commercial institutions (ie:Chase ,Citbank.....) they have a better track record.
about 10yrs ago I got burned by who ever was PC Richards bank w/0% financing for 1 yr. they mailed the last statment late and I had to eat the interest. called spoke to 2 supervisors didn't want to hear it. end result was cancel the card and a nasty letter.
now I carry 3 card Amex like cash only when I don't have it mostly for dining out , an Amex variant and a Visa. all of the card are set to a limit that I have set after their limit were getting ridiculous, there is no reson to have a 5 figure limit on these cards for pesonal use. I its a business card or your own business I can see that.
on the banking side my father was a banker for 40yrs he retired early mostly b/c it wasn't about people any more it was about bottom line and quota's,that was in the early 90's. unforunately there is no more sevice in the sevice business any more or at least thats what I see, and I'm in the service biz.
just my thoughts for now.

[Glowin97x]

Good work on sticking it to them scott. The more info you spread the better. I didnt go with salie mae for my law school loans because I heard how terrible they are. Cost them the interest on 150k.