Credit card for plebe

[MidCakePa]

All the male JOs with same LES, were successful. All female JOs were declined.

Switzerland is a wonderful country. But a bit backwards still when it comes to gender equality. When we started our expat stint there many years ago, we sat in a local branch of one of the country’s flagship banks, opening our accounts. The entire time, the banker spoke to me but virtually ignored DW next to me. When it came time to set up ATM cards, DW chimed in, “I’ll need one also, please.” The banker nodded to her, turned to me and asked, “Is that acceptable?” DW’s jaw hit the ground and steam was coming out her ears. An eye-opening start to what was otherwise a fantastic time in our lives.

 

[jl123]

My Mid just got turned down for the Amex Platinum Card (with an 800 credit rating) for "insufficient income." Mid called to appeal but Amex wouldn't change decision.

That's the first I've heard of anyone being declined. I know several USMA Cadets with the Platinum Card. Amex may have made a recent change to qualifications.

 

[eaab08]

Is it a good idea to get a credit card as a plebe? I just got my NFCU Debit card but I think it’d be a good idea to start building credit. For context, I’ve never had a credit or debit card before. What I think I’d try to do is transfer some money into the NFCU checking account, then only use the credit card for whatever purchases I might make and use an autopay system to pay off the credit card’s balance every month. I think that’s how it can work, but since I’ve never done this I don’t know. I’m not sure if I’m being too premature with this though and if it’s better to wait until after plebe summer, 4/C year, etc. then I’d wait.

Thank you for the great advice everybody! I think I'd get a NFCU card for convenience and will definitely look into the AMEX Platinum card and Discover student card. However, I've just found out that you have to be 18 to get a credit card. Alas, I'll just wait until after Plebe summer rather than get my parents roped into it. But when I do get it, I'll know where to start!

 

[justme]

One thing that you can do (or have done) at 17 is if your parents are comfortable adding you to one of their cards as an authorized user. That should give you at least some credit history for you when you go to apply for your own.

 

[cluelesscandidateparents]

Is it a good idea to get a credit card as a plebe? I just got my NFCU Debit card but I think it’d be a good idea to start building credit. For context, I’ve never had a credit or debit card before. What I think I’d try to do is transfer some money into the NFCU checking account, then only use the credit card for whatever purchases I might make and use an autopay system to pay off the credit card’s balance every month. I think that’s how it can work, but since I’ve never done this I don’t know. I’m not sure if I’m being too premature with this though and if it’s better to wait until after plebe summer, 4/C year, etc. then I’d wait.

If ur parents have apple card they can add you to it and after you turn 18 your credit will start building as the card will notify the credit agencies. Note. If u spend too much and ur parents dont make payments on time ur and their credit report will get hit.
We have done this for our kids to get use to using , they repay us every month w their allowance… teaching them credit is just credit and Now when they turn 18 we can help them build credit. Upur parents can limit max usage and max usage per transaction. They get a notification every time u use the card..

 

[Old Enlisted Marine]

We added our DS to our account when he got his license with the understanding that it is only for emergencies and all has gone well. He also has received one from NFCU and is managing it well. I check in periodically just by asking a few questions. He has answered them well so I am not worried at he moment but will continue to check in for the short term. There is a lot going on as a Plebe.

 

[STEM 26]

Make sure that the card goes with a credit lesson and DS understands how it works and what can do to his credit. By this age they sure know how it works but financial 101 class every no and then is priceless and highly recommended. My Advice, check for the fine print and what the APR and fees are for each company, if you are not in a rush, please review different options. I review credit reports everyday and it is so sad to see how young generations are careless about credit and they open accounts without knowledge of how credit works.

Remember the 1st accounts on credit will always carry the higher APR because there is no credit history. For our DS we added him as an authorized user to our credit cards (without telling him) just so he can start a credit history so when he is ready and has income to open his own credit he has good scores and good history and able to get better offers. 2 months after he was added to our cards he started to get his own offers he asked if he needed and we told him that as long as he had income to pay for his own credit he could, but to shop around for APR, monthly and annual fees and to not ever go by introductory offers.

Based on my own experience, USAA is really good for negotiations, if they offer you a better deal elsewhere you can always call and they usually match or improve. NFCU is convenient because of locations but a credit card usually does not need in person service.

 

[justme]

We have our teens set as auth users of a "side" card, such as a gas brand one. I have kept the credit limit at a lower amount and have warning texts on any high purchase or balance.

It defeats the purpose, but I imagine they get the same credit score bump whether you physically hand them their extra card or just keep it locked away.

 

[Old Navy BGO]

Make sure that the card goes with a credit lesson and DS understands how it works and what can do to his credit. By this age they sure know how it works but financial 101 class every no and then is priceless and highly recommended.

True Story -
Roommate 1st Class Year, about this time of the year ...reading his credit card statements (3-4 different cards) and remaining credit on each and determining he has $500 to spend on Spring Break (including driving down, shared hotel room, and food /beverage. First job after leaving the Navy was as a Financial Advisor -- I laughed out loud when I saw his ad in the back of SHIPMATE. (He is now a successful attorney !)

We added our DS to our account when he got his license with the understanding that it is only for emergencies and all has gone well

I carried my Parent's card through my time at USNA with same rule -- I think I used it to book flights. First class year, my mother wanted me to build up a Civilian wardrobe (i.e. buy real clothes !), and I didn't spend a dime. (When I graduated and go married, just about everything I owned was bought in the Midstore).

 

[AROTC-dad]

Back in 2015 or so, DS, was allowed to manage a credit card with a $250 limit while still in HS and holding down a job at the theater. He worked two jobs and did ROTC in college and always kept paid his balance off each month. (The mantra was NEVER carry a balance!).

He graduated debt free, thanks to the Army scholarship he earned, and spent his first year as an O-1 maxing his TSP, while also beginning to invest in a brokerage account.

He is now an Army O-2 and recently filled in as Company Commander after returning from the Middle East. He still pays off his platinum AMEX each month and just entered escrow on his first home (zero down VA loan). He has commitments from two other junior officers to rent rooms and he will be net cash flow positive on his mortgage.

Good financial habits CAN be taught!

 

[UHBlackhawk]

Reference the Amex. It’s a great deal but understand that it is a charge card NOT a credit card. There is a difference. Especially if you don’t pay off the balance each month.

 

[DSANN]

American Express used to waive the $695 Platinum fee for ALL SA Mids/Cadets. In the last 24 months, however, they have changed their policy. While these SA Mids/Cadets are active duty - Amex doesn't not consider it active duty until they commission. My son has tried every which way to prove to them otherwise - but they will not budge. But once they commission they can get the Platinum with no fee and it will stay that way until they are no longer active duty.