I am pushing my younger brother though college. He's 18 and he's my dependent. I want him to get all straight "A"s so, he will not work until graduates from college.
Meanwhile, I want to start his credit history. Since he is younger than 21 , he can't report part of my income as his income based on the current Income Reporting Regulation, which makes him ineligible for a regular credit card.
The local banks recommend a secured credit card. However I still don't understand how they work.
Whenever the time comes (a year or two whenever his credit is up)
- Will the secured credit card transform into a regular credit card?
- Or will he have to close it and open a new regular card with the same bank?
There are two options. Which one is it?
The bankers explanations are very vague . However this is a very important thing . For a good credit history one should never close the earliest credit card. What good is a secured credit card if you will want to close it at some point in time ? Do all of them work that way .
Are there any secured credit cards that transform into a regular credit card (transform meaning the same account number stays on the credit report) ?