emirates202 From United States of America, joined Nov 2011, 237 posts, RR: 0 Posted (1 year 7 months 2 weeks 5 days 1 hour ago) and read 1029 times:
Do any of you know if a 16 year old would be able to sign up for one of the delta Amex cards, under a parents account? I know you need to be 18, to do it alone, but what about under a parents account, just my name on the card? I know you could do this with many cards, I just don't know about the delta amex's. Any of you guys know?
I think 16 is the minimum to have a card linked to your parents' account. I remember this because I went to Europe when I was 15 and AMEX mentioned to my dad that I needed to be 16. Of course, this was back in 2005. My sister is 17 years old and she has an AMEX card as well (linked to my parents' account too)...so if 16 is too young, you've waited this long. You can wait a couple of months...
"You haven't seen a tree until you've seen its shadow from the sky."
SSTeve From United States of America, joined Dec 2011, 532 posts, RR: 0 Reply 3, posted (1 year 7 months 2 weeks 5 days ago) and read 998 times:
Amex cards would seem to help start up the teenager's credit record when you add them to the account, as well. I don't think all cards do, so that's a cool benefit as well. Just tell them not to blow it.
einsteinboricua From Puerto Rico, joined Apr 2010, 2382 posts, RR: 5 Reply 6, posted (1 year 7 months 2 weeks 4 days 15 hours ago) and read 933 times:
Quoting ajd1992 (Reply 4):
Forgive me for being a potential idiot here, but are we talking about giving a child a credit card? As in if you don't repay the balance you get a horrific credit rating and potentially bankrupt?
You can set a credit limit on the card, and since the card is linked to the parents' account, the child doesn't earn credit but if no limit is imposed, then the child can certainly ruin a parent's credit.
Also, if a bank issues a minor a credit card (for students), the limit is rarely over $500 and the parent must cosign and be responsible to pick up the tab should the child fail to pay up. Our regional bank issues college students a Visa with around $300-$500 in credit, and the limit is subjected to the parent's credit rating. This is assuming the student is unemployed and is a dependent. US Bank, in Seattle, issued me a credit line of $600 (which I was surprised), and I have thus far kept up with payments.
"You haven't seen a tree until you've seen its shadow from the sky."
SSTeve From United States of America, joined Dec 2011, 532 posts, RR: 0 Reply 7, posted (1 year 7 months 2 weeks 4 days 6 hours ago) and read 875 times:
Quoting ajd1992 (Reply 4): Forgive me for being a potential idiot here, but are we talking about giving a child a credit card? As in if you don't repay the balance you get a horrific credit rating and potentially bankrupt?
A lot of parents probably have a good idea whether their kids are stupid enough to imperil their family's finances that badly... or even make charges they're not supposed to. For my parents it was simply a matter of convenience. Same with the car keys. To them, the convenience of not having to schlep me everywhere far outweighed the negatives. (That car-required schlepping is probably a bit of the reason my generation is leaning a little more strongly towards areas with better public transportation.) But I suppose if I was a hellion, the scales may have tipped the other way.
Look into it, but I would say no. I don't think AmEx will give you a credit card at only 16 unless you get an adult co-signer. Also, how do you plan on paying for it...? AmEx cards are not free. They charge you to have one.. even if you don't use it. I dumped my AmEx a few years ago and it was the best thing I ever did
"It's not the size of the dog in the fight, but the size of the fight in the dog"
My Blue card certainly is. Since I don't carry a balance, it actually pays ME through rewards points.
Copied directly from the 'Add additional card members' link when I log in:
"Complete the fields below to add an Additional Cardmember to your account. All Additional Cardmembers must be 15 years of age or older and must never have had a defaulted account with American Express. How many total Additional Cards would you like to add to your account? "
type-rated From United States of America, joined Sep 1999, 4725 posts, RR: 20 Reply 10, posted (1 year 7 months 1 week 6 days 8 hours ago) and read 646 times:
The reason AmEx won't give anyone under 18 their own AmEx card is because in this country anyone under 18 is considered a minor, unless they have been emancipated. Therefore a company cannot enter into a contract with a minor. I the minor doesn't pay there isn't one thing that AmEx could do to collect the debt.
That's why they use cosigners, someone over 18 to go after if the account goes into default.
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CompensateMe From United States of America, joined Jan 2009, 904 posts, RR: 0 Reply 11, posted (1 year 7 months 5 days 10 hours ago) and read 425 times:
Yes, it's possible to be added as an "authorized user" to your parent's credit card account. As an authorized user, you will have access to your parent's credit line (or a subset of, if they limit you) and be able to view your purchase history and make payments online. However, you will not be legally responsible (not now or after you turn 18) for the account. The account's trade line (that is, the date it was opened, the outstanding balance, available credit and the payment history) is reported to your credit report by default but you may restrict this (however, portions will still be reported).
Changes made to the FICO model several years ago are suppose to ignore authorized user accounts in scoring (in other words, it will no longer help or hurt you). However, be aware that many automated in-house scoring systems and people doing manual reviews fail to take this in account by default. I was an authorized user on an account in which the person ultimately drove the balance over $100,000 with crappy payment history. I wasn't aware of this (the person previous did not carry a balance and had pristine payment history) until a potential employer disqualified me.
Quoting einsteinboricua (Reply 6): Also, if a bank issues a minor a credit card (for students), the limit is rarely over $500 and the parent must cosign and be responsible to pick up the tab should the child fail to pay up. Our regional bank issues college students a Visa with around $300-$500 in credit, and the limit is subjected to the parent's credit rating. This is assuming the student is unemployed and is a dependent. US Bank, in Seattle, issued me a credit line of $600 (which I was surprised), and I have thus far kept up with payments.
Credit unions tend to forgo the co-signer if the person applying for credit has had a relationship with them. Also, secured credit cards tailored for young adults (that is, you deposit money with the company into an interest-earning CD or savings account and receive credit against the amount) forgo the co-signer - and often graduate quickly.
I received a student credit card in 2000 (when I was 18) with an initial credit limit of $1,500. It grew to over $20,000 in just a few years (without income verification) and carried an interest rate near 30% and annual fee of $95. There was a double-monthly average balance for interest calculation (wipes out the grace period) and a fee of $10 per payment made online or $15 via check. I worried about the impact on ditching the card (since it was among my first; history is a big part of FICO) but bit the bullet in 2008.
Read the T&C carefully!!!!
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