My first credit card was obtained in a similar manner, but I sold my information for a foot long Subway sandwich. I still have that credit card, but it hasn't been used in close to 10 years. Thankfully, there's no yearly fee on it.
Really good and relevant! As a migrant student, no one would give me a credit card! Then I learned from other students that the local Credit Union Bank would give credit cards to international students. After that, offers would come in the mail all the time!
Credit history is very important in the US, and the rewards are great. You can use a credit card and pay in full every month, but some people tend to treat it as extra cash, and end up spending more than they should.
Your insight about planning for expenses is so true, most people don't think about the non monthly or seasonal outflows, nor do they think about maintenance for their home or cars. Teaching our children how to use credit wisely is something I suggest, rather than not having a credit card at all. Because credit history is such a large part of one's credit score, waiting to start building a credit history seems unwise. I made my children an authorized user on my Gap Card when they were 15. They were the only ones using it and we monitored it together. My son ate a lot of Chipotle and Chik Fil A I learned! Eventually, I removed them, but then they were able to apply for credit cards themselves. It was a learning opportunity all around.
Thanks Lisa. Great point about building credit. Good thing you can trust your kids with your own personal credit card (with a high limit I presume)! I guess another option would be to open a new account with a low limit, shared between parent kid.
My first credit card was obtained in a similar manner, but I sold my information for a foot long Subway sandwich. I still have that credit card, but it hasn't been used in close to 10 years. Thankfully, there's no yearly fee on it.
A Subway sandwich is way better than what I got.
Really good and relevant! As a migrant student, no one would give me a credit card! Then I learned from other students that the local Credit Union Bank would give credit cards to international students. After that, offers would come in the mail all the time!
Credit history is very important in the US, and the rewards are great. You can use a credit card and pay in full every month, but some people tend to treat it as extra cash, and end up spending more than they should.
Excellent article. This should be required reading for high school students in every school in the nation!
Working on it! :-)
Your insight about planning for expenses is so true, most people don't think about the non monthly or seasonal outflows, nor do they think about maintenance for their home or cars. Teaching our children how to use credit wisely is something I suggest, rather than not having a credit card at all. Because credit history is such a large part of one's credit score, waiting to start building a credit history seems unwise. I made my children an authorized user on my Gap Card when they were 15. They were the only ones using it and we monitored it together. My son ate a lot of Chipotle and Chik Fil A I learned! Eventually, I removed them, but then they were able to apply for credit cards themselves. It was a learning opportunity all around.
Thanks Lisa. Great point about building credit. Good thing you can trust your kids with your own personal credit card (with a high limit I presume)! I guess another option would be to open a new account with a low limit, shared between parent kid.
Oh no, not a high limit! I can be risk averse when necessary.
I never asked for a high limit, the cc company just kept on raising it!