Applying for a credit card..

POLKOHOLIC

So heres the deal: I have a student checking account and money market with paypal. I now want to apply for my very first credit card. I applied for an American Express online but was rejected due to the fact that I don't have an 'Open Tradeline within the past 6 months' - I assume this means that Im being declined since I have no credit at all. The question now is which credit card should I apply for if I have no credit history at all. Also, how can I get a free credit report? I believe Im entitled for 3 free reports per year?

As far as credit cards go, I just want something to start building credit. Im gonna make the full payment every month but don't want a secured deposit or charge card. Something with rewards and low interest. Any ideas?

audiobliss

Great question, one which I should have asked, as well. I have a student checking and savings account with Wachovia, and applied for one of Wachovia's student credit cards, but was rejected due to a lack of credit history.

I was like, duh...that's why I'm applying for a student cc.

Polkersince85

annualcreditreport.com Just get one, then in six months get another and so on. Don't buy anything from the site, just get the report. A local bank may let you have a secured card. If you are in school, the cards companies waive the no credit thing, check the brochures at school. Don't get too far in debt.

tonyb

Plenty of banks have cards that you deposit lets say 300.00 with them and they give you a card with a 300.00 limit.As long as you make the payments on time and don't go over the limit,you'll be getting the evil credit card people knocking on your door.Yep,what a racket,they will charge you interest to borrow your own money.Thing is,charge only 50.00 a month and pay it off each month so no interest is charged.

POLKOHOLIC

As I mentioned in the original post...I do not want a secured deposit credit card.

scottvamp

People that get credit cards with good intentions do so with the thought of 1)building credit 2)for "emergencies" and 3) i will just pay it off every month. That is rarely the outcome, only debt will follow. The temptation is way too high when you have them. The insanely high interest rates for first cards can overwhelm you.
I have heard some of the best credit boosters are as simple as solid car payments through credit unions and banks.
I was able to buy my first house at 23 because i happened to save a years worth of utility bills. Unlike the past, now you have VISA bank cards that allow you to purchase anything with no interest or debt.
I fell into extreme debt with credit cards, home equity and loans. I am debt free now and i will never fall to interest again. Its all about 401K now......
There are others ways to build credit. Once your in debt your credit is worse than being debt free.
GOODLUCK!
PS. Yes, secured card is the way to go but better yet is a VISA check card.
Thier is no such thing as bankruptcy anymore....................

Dennis Gardner

I like cash better...............

POLKOHOLIC

1. The question was 'which credit card should I get with no credit history'. The question was not 'should I get a credit card'.

2. Check cards do not build credit.

3. I like plastic better.

4. The question restated: What credit card should I apply for if I have no credit history at all? I do not want a secured deposit card or a charge card. I applied for American Express twice and was declined both times. I have a student checking and money market with Chase.

dkg999

I would check on the Paypal VISA card, I think they have pretty reasonable acceptance terms. Next for the big boys would be Capital One. They have a student program, call their 800# and ask. You can probably get an AMEX if you call and talk to them and can prove some good history. The AMEX is a little safer because you have to pay in full each month.

POLKOHOLIC

dkg999 wrote:

The AMEX is a little safer because you have to pay in full each month.

Thats a charge card and I do not want that. I would like to have the option of paying a minimum ammount as opposed to the full.

Paypal has a mastercard that I have thought about but I cant seem to find specifics on it. Does it have 0% intro apr? if not than whats the rate? Are there any fees? What kind of rewards program do they have?

Dennis Gardner

Chase should be able to help you get a card, but you may have to go to your local branch for help. You are getting kicked out by a computer and may need a human to intelligently handle your request.

dkg999

With no existing trade lines, you should just worry about no annual fees. The fact that you got an AMEX card and managed it successfully for 6 mos to a year will get you the card you want. You have to walk before you can run!

scottvamp

POLKOHOLIC wrote:

1. The question was 'which credit card should I get with no credit history'. The question was not 'should I get a credit card'.

2. Check cards do not build credit.

3. I like plastic better.

4. The question restated: What credit card should I apply for if I have no credit history at all? I do not want a secured deposit card or a charge card. I applied for American Express twice and was declined both times. I have a student checking and money market with Chase.

Your answer is, it doesn't matter. A credit card is a credit card. Chase or Capital One, pick your poison. Just listen to the advise.
Thier is also legal loan sharking like Check and Go's. And your reason was to build credit and you acknowledge that this is not the route............

danger boy

POLKOHOLIC wrote:

1. The question was 'which credit card should I get with no credit history'. The question was not 'should I get a credit card'.

2. Check cards do not build credit.

3. I like plastic better.

4. The question restated: What credit card should I apply for if I have no credit history at all? I do not want a secured deposit card or a charge card. I applied for American Express twice and was declined both times. I have a student checking and money market with Chase.

dude.. you're not making any sense to me. you want a credit card right? go to your local bank you have a checking account with and they may be able to help you out.

A secured card will get you the credit history you don't have. capiche!
You can't have a credit card like a American Express.. cuz you don't have any credit history or make enough damn money.

I've been rejected by AM Express too.. for not having a yearly salary up to their standards. So i said eff em.. i got plenty of other credit card place willing to take my hard earned money. I get about 5 or 6 card offers in the mail every week.

POLKOHOLIC

I did not acknowledge that but yea thanks for the advice. I'll remember that when I max out my card like an idiot and forget to pay at the end of the month. Oh and yea, most of this reply was sarcasm.

POLKOHOLIC

I do not want a secured credit card. I want a normal credit card where I have the option to either pay the minimum amount or full balance. I want a grace period of atleast 20 days. I dont want to pay more than 20% interest if I miss a payment. A check card is no good because it does not build credit. I want a credit card to build my credit - I do not want to build my credit history in any other way, shape or form. I realize the "dangers" of having a credit card. I am not an idiot who will max it out knowing that I wont be able to pay it off. Please stop offering alternative methods of building credit. I just want to know what card I can get if I have no credit history at all. Again: the card must be a regular credit card - not a secured deposit or charge card.

scottvamp

Credit cards were designed for idiots. I was one of them.:D

scottvamp

The answer again is it doesn't matter. The card you get is the high interest one that takes you. Do a google search and start applying.
You are in no position to make credit card demands.
I was with a major credit card company that would hold my payment in hand until it was late and charge the hell out of me. And thier was nothing i could do about it. They had tons of lawsuits but they are making so much money it did not matter to them. It is apart of thier bussiness................
SERIOUS!!!!!!!

danger boy

i'm outta here. he just doesn't get it.. you can't have a credit card without a credit history.. things aren't that easy. on most credit cards you do not have to pay the off the full balance every month. that's why it's called CREDIT and not cash.

most stores will give you credit in their stores with no credit history. the bad side it.. it's only good for their stores.

i'm done..

wodom1

I got an American Express Blue for Students my Sophomore year in college. I had no previous credit, and they gave me a $2000 limit @ something like 12% APR, though I can't remember exactly. I did not have to pay this card off in full each month -- which in the long run hurt me. If they're still offering the Blue for Students, look into it.

lomic

Option #1 - Go to a department store and open up a credit account. Yes, you can only use it at that store, but after you buy stuff and make payments for 3-6 months you'll be able to start applying for real cards.

Option #2 - Apply for student cards until you are approved for one. Someone will approve you eventually, but there is one hitch, though I'm not sure it applies to people with no credit history - every time you apply for a credit card it has a negative impact on your credit score, whether you're approved or not. These marks stay on your credit history for about a year IIRC.

Option #3 - If your parents or siblings have good credit have one of them add you as an "Authorized User" to a card they have never missed a payment on, and which they seldom, if ever, use. Have them send the new card to their house and you never see it or have access to it. After 1-2 months the entire history of that credit account should be added to YOUR credit history. Make sure when they call to add you that they ask the bank if they will report the "AU" to the credit bureaus - if not, try a different card.

I know for a fact Amex works for this. I had a year and a half of perfect credit history but was not getting any offers from Amex, which as this thread has stated has some of the highest requirements for most of their cards. After my parents added me to their old Amex account I have been getting offers for Amex's best cards (No, not Black and better offers from other CC companies as well.

For more info on this and other topics, I suggest heading over to the "Finance" forum on FatWallet.com

Good luck.

howie777

I don't understand. My little brother didn't even have a job and he was able to get credit cards. I never had any issues getting them either.

If you really want one, try Capital one. They are pretty conservative and may not be as inclinded as others to let you get too deep. If you really think they won't get you, understand they will. Just keep an eye out for it and be honest with yourself and you will see it before you get in real trouble.

I remember laughing to myself as a freshmen, as I heard a professor and a student talk about grad schools and how it wasn't going to be easy getting into one because the student had a 2.84 GPA. How could he let himself end up with a 2.84 GPA! 4 years later I graduated with a 2.52 GPA.... LOL what an idiot I was.

Try Capital One. Good credit is necessary, and I do know someone who uses a credit card all the time. Never once has she paid interest. So here's hoping your one of the few.

Howie

shack

As the economy weakens the CC companies are tightening up a little. If you are approved or not is based soley on your credit score (Beacon, FICO or whatever they use). If you don't meet the minimum score you are not getting one.

If you want a CC now, with no security, get a co-signer, preferably a parent. Keep the limit at $1,000. (As a side note I NEVER recommend a parent or anyone else co-sign for a credit card for anyone other than a minor child or a child who is a full time student - it is just too risky) After a year apply again on your own for a card, payoff and close the co-signed card and you now have credit on your own...like a man.

As far a credit bureau report, if you are turned down you have the right to get a copy for free. They should have given you the information on how and where to do so on the decline letter.

Credit cards can be a curse if not used correctly. I have seen people with credit card balances in excess of $100,000. They were stupid. Credit cards and payday-loan companies are the worst way to borrow money. DON'T use either one for borrowing. Use credit cards as a convinience.

I have one card and it has a substantial limit. I have not paid a single cent in credit card interest in 20+ years. I use the card a lot and pay it in full each month. AMEX sends me money every quarter for using their card and I don't pay THEM anything.

Toxis

Discover has been known to be generous once in a while but I would say either Capital One or Bank of America (who I got my first CC through). Best thing to do is find a retail store who is easy to attain and get their in house card. Once you get one of those, you'll start getting applications in the mail from a million different places. Then pick whoever has the best terms.

TroyD

POLKOHOLIC wrote:

Thats a charge card and I do not want that. I would like to have the option of paying a minimum ammount as opposed to the full.

That is a DANGEROUS way to think. Using your card and not paying it off in full each month can be a recipe for disaster. I have dealt with a number of young kids in the military who operated under that very same philosophy and before they knew it were tens of thousands in debt.

Me, I have credit cards and I use them. I do NOT view them as a source of additional income. Therefore, I pay them off every month.

Be smart. Don't assume debt that you don't need to. Especially if you are student with little/no income.

BDT

POLKOHOLIC

i never said i was going to pay the minimum each month. i would just like to have that option available. for the most part i will be paying it off in full every month.

mrbigbluelight

If you're wanting to establish credit, than here's a link for some cards that are easy to get:

http://www.creditcards.com/bad-credit.php


Note the "Annual Fees": $39 to $69.

Those "Low" APR rates ? 8.9 %, 14.9 %, etc.

Well, miss a payment, and Orchard Bank will jack your rate up to, oh ....
22.6 % or 28.6 % or 32.6 %. Whatever they feel like.

BTW, if you're late on a electric bill, or gas bill, or water bill they have the right to jack your APR up to 22.6 % or 28.6 % or 32.6 %. Whatever they feel like.

(BTW, for those of you who have 1st-line credit cards, they can do the same thing)

So ..... if you want to establish credit, bite the bullet, get one of these predatory cards, use them once a month for a year, than apply for a 1st line credit card. Get that, than call and CANCEL the predatory card.

Another option is to get a department store card from, say, Sears. Use it once a month for 6 months. Buy something you need (socks, skivies) once a month than pay that off 2 weeks early.

Beware of the thinking that "I plan on paying off my balance every month, I just want the option of paying the minimum".
If you have that option, you will more than likely use it.


Getting a "secured" debit card from your bank/credit union doesn't do anything to establish your credit.

ohskigod

I was in finance and credit for about 6 years. looked at more credit bureau reports than you can imagince, so I know a few things.

Polkoholic, how old are you? I'll guess like maybe 18-19, and from what your saying, you have no trade lines on your credit bureau (i.e. no credit or finance account of any kind that will show as a trade line on the credit bureau)

you have to get tradelines and some kind of history built up. Danger boy mentioned a store card, that might work. Capital One back in my credit buying days was allways a first step for a lot of people. My first step was a Bally Jack Lalane gym membership, which due to the way they structured it was a loan that was paid back ebery month, and it showed on my credit bureau as my first trade line. thanks to that, I didnt have to go with the secured credit card route to get a regular credit card.

long story short, hell or high water, you gotta get trade lines on record, then build from there. Then you move onto normal credit cards. believe it or not, paying it off every month is not the best way to get the highest credit score, its having revolving debt, but no where close to the max point. Creditors want to see that you can carry a debt load in a responsible fassion, not that paying it off every month is bad, just not the best route. managing a certain amount of debt is hard, becuase your allways tempted to exptend that debt buying cool toys and ****, then your debt climbs to close or at Max, and that us bad

then you move on to intallment loans, like car loans and such. then the next level is mortgage.

again, long story short, there are steps to building a credit history. do an internet search, read up on it. having good credit makes your life ALOT easier than for someone who's credit is a horror show.

Polk65

A friend told me about applying for a gas and department store card before a credit card. I got the gas and department store cards easily based upon having a job. Six months later I applied at a local BofA and was declined. A bit later I saw a pamphlet at a campus bulletin board for a CitiB student credit card, filled it out with "other references" being my two cards and got my first VISA.

shack

ohskigod wrote:

I was in finance and credit for about 6 years. looked at more credit bureau reports than you can imagince, so I know a few things.

Believe it or not, paying it off every month is not the best way to get the highest credit score, its having revolving debt, but no where close to the max point. Creditors want to see that you can carry a debt load in a responsible fassion, not that paying it off every month is bad, just not the best route.

Lou, I have been lending money for 28 years and that is just about the worst advice you could possibly give a young person. It is also wrong. A credit bureau report has no indication of whether a balance is carried past the end of the billing cycle or not. It is simply a snapshot in time and the balance is reported whenever the credit issuer send the information to the bureau. I pay my card in full every month, but there is probably never a time when there is not a balance on the card because I continue to use the card after the cycle has ended and a bill sent to me. Opening an account or card and not using it doesn't really help the score but it doesn't really hurt it either. Payment history, limiting the amount of revolving credit available and lack of derogatory information are the best way to keep the scores up.

tommyboy

I don't remember having any problem getting my first CC. I just got stuff in the mail and signed up to one when I was 17. My first card was from capital one... They charged me $3 (their monthly fee) a month but I quickly got that fixed when I called and complained. I only had a $500 limit and 20% interest. But I just payed it off every month. After a few months, my mailbox start filling up with 0% interest credit cards.

Now here is my advise.

1. and most important. DO NOT THINK OF THIS AS FREE MONEY!!!
2. Don't get chase CC, I know there are worse out there, but they were constantly calling me or charging me something without telling me.
3. Credit card companies ONLY goal is to get you in debt. Make sure you take advantage of the CC companies, not the other way around...
4. Make sure you read the fine print, you'd be surprised how CC companies trick you by say... for example they are giving you 0% interest, but in small letters it says for balance transfers only.

I am 21 now and have 3 credit cards. I am proud to say that I have never gave one cent to those ****. Take advantage of them.