BeRecruited.com offers my son his first credit card

Why is this is a trap? I think that having a credit card in his name and establishing a credit rating would be a good thing???

quote:

Originally posted by johnj314:
Why is this is a trap? I think that having a credit card in his name and establishing a credit rating would be a good thing???

Mainly because most 18 year old's don't know how to manage money. Most don't work when they go off to college so for spending money, the credit card is a way to finance their lifestyle.

We've all been brainwashed in to thinking we have to have a great credit score to get anything in life. That is bogus. Pay cash and see how far ahead you get in life versus being trapped in debt for decades. You can get a mortgage with a zero credit score. If you have to have plastic, a VISA debit card will suffice.

I guess some people view debt differently than others. Therein lies the reason our country is owned by China I guess.

I had a debit card last year - was able to check the balance on my phone and online.

Over the summer, my parents allowed me to get a credit card. It is in my name, but it is joint with my dad so that I could get approved. I just make sure that I treat it like a debit card, never spending money that I don't already have.

quote:

Originally posted by Strike 3:

quote:

Originally posted by johnj314:
Why is this is a trap? I think that having a credit card in his name and establishing a credit rating would be a good thing???

Mainly because most 18 year old's don't know how to manage money. Most don't work when they go off to college so for spending money, the credit card is a way to finance their lifestyle.

We've all been brainwashed in to thinking we have to have a great credit score to get anything in life. That is bogus. Pay cash and see how far ahead you get in life versus being trapped in debt for decades. You can get a mortgage with a zero credit score. If you have to have plastic, a VISA debit card will suffice.

I guess some people view debt differently than others. Therein lies the reason our country is owned by China I guess.

Spot on...Cash is King.

Maybe teaching financial responsibility at a younger age is the answer. Having a credit card while in college or away from home is not all that bad of an idea.

A trap is a horrible way to describe this..If you cant afford the bill when it comes DON'T fill it out..kinda like buying a house you KNOW you cant afford BUT can get that loan anyway..

Getting a mortgage without a good credit score is old thinking....before the current recession and bank bailouts. Mortgage brokers I know say getting a real estate loan approved is very difficult now. It's wise to not use credit cards for anything other than building a good credit score to use when you need it....but you will need that good score at some point.

These credit card issues to first time college students are a trap and unless somebody like the parents don't get that drilled into their heads, they will be trapped. Credit card companies feast off of this. The only other uses for having a credit card is for travelling and emergencies but to blanket incoming 18 yr old college freshman with credit cards is generally foolish since they don't have a clue and see the credit card as an endless money tree until the bills come. How people can be issued credit cards without a job is mindboggling.

That's the rub zomby. It's one thing to issue a credit card to a 18-20 year old who has a job. But to give one to a student without a job is where the trouble starts.

I think the bigger issue is do the users of BeRecruited.com know their information is being sold to or used by credit card companies?

Getting a credit card isn't a bad idea. A person has to establish credit at some point. Learning how to use credit responsibly is a better idea. Credit cards are good for emergencies like a car breaking down traveling home from college or an emergency to get home. Being short on cash at a bar is not an emergency. It's irresponsible.

While in college my kids have/had a bank account with a debit card where I also have access to make deposits in an emergency. My daughter got her first credit card after graduation.

As an adult if you don't use a credit card it can affect your credit rating. My mother found out she did not have a high score since she hadn't charged or purchased anything on credit in years. She uses her debit card. She sold her house. She pays cash for cars. They key to using a credit card is paying it off at the end of the month or at the worst as soon as possible.

The catch on a lot of credit cards with kids is when the kid hits the limit the credit card company will raise the limit. They're looking for suckers as much as the responsible users. They make a lot of money on late fees and overdrafts.

quote:

Originally posted by dw8man:
I think the bigger issue is do the users of BeRecruited.com know their information is being sold to or used by credit card companies?

quote:

Originally posted by dw8man:
I think the bigger issue is do the users of BeRecruited.com know their information is being sold to or used by credit card companies?

I didn't know our info was being "sold" to these companies. They are targeting kids who typically don't have jobs and the resources to pay the debt back.

Like it or not, your credit score is not an indicator of winning financially. All it tells you is whether you are good at borrowing money and paying it back. That’s it. It puts a number to how much you like debt. The best credit score should be a zero.

Banks hand these cards out to young adults that don't have the ability to repay their debt. I suppose they expect mom and dad to take care of it. Junior doesn;t tell mom or dad about the credit card, can't make payments and then winds up with bad credit which is worse than no credit at all.

Shoudn't they wait until these kids have jobs?

quote:

The best credit score should be a zero.

When a person goes to buy a house, a car or a loan to start a business they want their score to be as high as possible, not zero. A low score will cost the person thousands in interest.

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Originally posted by RJM:

quote:

The best credit score should be a zero.

When a person goes to buy a house, a car or a loan to start a business they want their score to be as high as possible, not zero. A low score will cost the person thousands in interest.

A loan will cost a person thousands, even tens of thousands in interest. You can use a manual underwriter to get a mortgage with no FICO score.

You should be able to pay cash for a car without going in to debt. Depends on what your desire is but a $5000 car does exactly what a $25,000 car does, point A to point B. A person can get by just fine without a credit score.

I would suggest that most businesses that fail do so because they cannot pay their creditors.

Credit is primarily issued because people have the "Got to have it now" syndrome. They don;t know what saving actually is but they know a great deal about making payments, all for that great FICO score.

quote:

I would suggest that most businesses that fail do so because they cannot pay their creditors.

I'm a business consultant. Most businesses fail because the people involved don't know how to execute their idea. I've seen people throw in the towel because they didn't understand the commitment to being a business owner and returned to being employed.

quote:

Originally posted by RJM:

quote:

I would suggest that most businesses that fail do so because they cannot pay their creditors.

I'm a business consultant. Most businesses fail because the people involved don't know how to execute their idea. I've seen people throw in the towel because they didn't understand the commitment to being a business owner and returned to being employed.

I would agree that that is also an issue.

While I don't have a son or daughter going to college, this thread is hugely important.
I am surprised the controversy isn't jumping off the posts.
Isn't the question and focus of this thread the issue of this recruiting site apparently selling, for profit(?) its list to credit card companies who then solicit/sell credit cards?
Some adults running a business...way different issue in my view.
If there are 17/18 year olds showing up on campus with a BeRecruited credit card, sold from a list to some bank...where does that get disclosed by BeRecruited? How is that okay for a recruiting service to be linked to a credit card?

Think you are reading more into this than is there, infield. Sounds to me like they simply sold their list to a credit card company who then makes their own decisions on issuing their own cards. It's a standard business practice...just fills up our mailboxes with junk mail.

Tx,
At least as posted, it was not a parent who got the email. It was the player who signed up and got the solicitation.
Geez, we have posts about University of Houston getting defrauded, Rudy in a scheme, and this is just business as usual?
If selling their client list to credit card issues/banks, for a profit, is good for every BeRecruited member, far be it from me to question.
I am expressing the view that this is not where recruiting services should be making money.
Like I said, I don't have a son/daughter going to college and don't have to worry about their getting the card and ruining their credit for 7 years...which has been such a scam on college campuses.
I wonder how many will get the email, sign up, don't tell Mom and Dad and guess what happens?
I have a serious issue with the concept/business result of credit cards being offered to 18 year old by BeRecruited. This might be the way internet businesses operate. I don't think it needs to be in situations like this where a credit card, poorly used, can have 7-10 years negative impact on a college age student.

Welcome to America. Marketing happens. Raise the kids right and pray for the best. You need to trust them at some point.

If I may make a far-fetched, radical suggestion, people do have the option of reading the terms of use agreements and privacy policies of web sites instead of just hitting the "I agree" button.

If you don't like the terms, don't sign up and give them your personal information.

Throw the offer in the trash and call or write be recruited.com and tell them to stop selling your info.

It's a great example to teach your kids yet again there's no free lunch in life. Strings and trade offs always exist...and can exist for a long time in this example.

quote:

Originally posted by Swampboy:
If I may make a far-fetched, radical suggestion, people do have the option of reading the terms of use agreements and privacy policies of web sites instead of just hitting the "I agree" button.

If you don't like the terms, don't sign up and give them your personal information.

Swampboy,

After I posted my comment yesterday, I went out to BeRecruited.com and read their service agreement when signing up and searched their website, I found no indication that any information would be used by or given to a third party to solicite anything, nor did I find any indication that BeRecruited would solicate sales for a third party or allow this to happen. I also found no opt out ability to prevent getting unwanted information or solicitations.

Now, to be fair, I only spent about 20 minutes looking and was specifically searching for this information. It is very possible I missed it as sometimes the obvious isn't so obvious.....

It's cleverly hidden on their privacy policy page:

"We also use personal information to send you newsletters, information, offers and other promotional materials for beRecruited.com's or third parties' goods or services. We attempt to send you offers that are of value to you, such as discounts, exclusive offers or special event information. The Site provides you with options to decline to receive communications from beRecruited.com (other than those contained in Operational Communications). Some of these options may only be for a certain category of communications; others may be more general. By posting a profile on the Site, you are opting in to receive the beRecruited.com by Mail email. To stop receiving beRecruited.com by Mail, you must delete your account which you can do at any time by logging into your account and going to "Delete Account" which is part of the "My Profile" section of the site."

quote:

Originally posted by cball:
Throw the offer in the trash and call or write be recruited.com and tell them to stop selling your info.

+1

Selling personal info is a BIG business. Ever heard of "Junk Mail"??? Now it it is "Junk EMail"!!!

quote:

Originally posted by Swampboy:
It's cleverly hidden on their privacy policy page:

"We also use personal information to send you newsletters, information, offers and other promotional materials for beRecruited.com's or third parties' goods or services. We attempt to send you offers that are of value to you, such as discounts, exclusive offers or special event information. The Site provides you with options to decline to receive communications from beRecruited.com (other than those contained in Operational Communications). Some of these options may only be for a certain category of communications; others may be more general. By posting a profile on the Site, you are opting in to receive the beRecruited.com by Mail email. To stop receiving beRecruited.com by Mail, you must delete your account which you can do at any time by logging into your account and going to "Delete Account" which is part of the "My Profile" section of the site."

Good find!

I just found it interesting that the email offered him his "FIRST CREDIT CARD". It should read, "Here's your chance to go into debt right out of high school, young man. No Job? No ability to pay the monthly bill? No problem! It's yours anyway! That's what Discover is all about. One day, you'll DISCOVER that you are deeply in debt.

quote:

Originally posted by Strike 3:
I just found it interesting that the email offered him his "FIRST CREDIT CARD". It should read, "Here's your chance to go into debt right out of high school, young man. No Job? No ability to pay the monthly bill? No problem! It's yours anyway! That's what Discover is all about. One day, you'll DISCOVER that you are deeply in debt.

Yes, it's one of those sentimental "firsts" we'll look back on with misty eyes one day: "Awwww look, it's junior's first credit card! . . . Oh, and there's the picture of him when he saw how high the interest rate got raised after he missed his first payment! Wasn't that a grand surprise! What memories!"

quote:

Originally posted by Strike 3:

quote:

Originally posted by dw8man:
I think the bigger issue is do the users of BeRecruited.com know their information is being sold to or used by credit card companies?

I didn't know our info was being "sold" to these companies. They are targeting kids who typically don't have jobs and the resources to pay the debt back.

Like it or not, your credit score is not an indicator of winning financially. All it tells you is whether you are good at borrowing money and paying it back. That’s it. It puts a number to how much you like debt. The best credit score should be a zero.

Banks handed these cards out to young adults that don't have the ability to repay their debt. I suppose they expect mom and dad to take care of it. Junior doesn;t tell mom or dad about the credit card, can't make payments and then winds up with bad credit which is worse than no credit at all.

Shoudn't they wait until these kids have jobs?

I was a supervisor for a major credit card company, you are right, the best credit for an 18, 19 year old with no job is no credit.

If you have an Amex charge card, add on your student for small purchases, it has to be paid back end of month (make him do it) and he can work towards credit as he matures, when off to college either give him a debit card attached to his checking or a pre paid card.

When son was in college he was given a line of credit from the bank where we opened up his student checking, we did cosign. It began as 500.00 dollars then in a few months it jumped to 10K, we gave it back, no wonder this country has financial problems.

The funniest thing is that they often turn down those that have jobs and able to repay, but turn them down and extend to students.

Yes, they sold your sons info to a credit card company.