Topic Wiki

If you are here reading this forum/thread, you probably have heard, seen or know someone who has been leveraging credit card points for free or very low cost travel and want to get involved. While it may be very tempting to jump right in and apply for a bunch of credit cards, it is advisable to read through the forums before doing so.

For those who have no credit history, building your credit score is strongly recommended and may even be needed before applying for any credit cards.

Step 1 - Try and get added as an Authorized User (AU) on an established credit card. This card should be kept in good standing and preferably have a low credit utilization ratio.
Some have had success with Amex to get your card backdated to the primary cardholders "member since" date. Having this done will increase your credit history to that of  the account holders first Amex card.
UPDATE Amex no longer backdates any cards. Any authorized user card will show up on the AUs report as a new account, opened on the date that the AU was added. Amex is now one of the worse choices to get added as an AU to, for credit building purposes.
Chase, Citi, Bank of America and others are more likely to show the full history of the primary cardholder on the authorized user's report than Amex is.

Additional Option - In conjunction with being added as an AU, you can  sign up for a secure credit card.
A secured credit card works almost like a debit card (you need to lay out your credit limit), but this functions as a regular credit card and will help build your credit score.

Step 2 - Once you are setup as an AU, it is best to wait a few months before applying for your first card.

Your first card should be a store credit card, which are easier to get approved for, especially with very limited credit history.
Some of the store cards people apply for are Old Navy, Gap, Banana Republic, Kohl's, Macy's, Target etc. While these cards will not give you major signup bonuses to travel with, they do give you access to exclusive promotions and other perks when purchasing from the store.

Additional Options - The CapitalOne Journey card seems to be easier to get approved for, though understand they will pull your credit from all three agencies, while most banks only pull from one.

Discover has a student card you can apply for here. This can also be an easier option to getting approved for your first card. Their regular IT card (not student) seems to be pretty easy to get approved for with little to no credit history as well.

Step 3 - Pay your bill before your statement closes (cut off date), but leave a minimal amount remaining to be paid after your statement closes. This will help ensure that you have both a low CC utilization while establishing a good credit payment history. (This applies to new spending from this month.  Anything already 'due' should be paid in full.)

Step 4 - After using your first card for a few months, you will be ready to apply for the cards you will have read and heard so much about. Remember that getting accepted for a credit card is a combination of many factors like credit history and your credit score, but it is also dependent on the income that you claim* you make.  Income is not part of your credit report or score.

Step 5 - This is a brief synopsis of what to do when applying for credit cards. There are additional factors one should understand before applying for credit cards. DDF is a great resource and there are many people willing to answer your questions (which you should ask, albeit after attempting a search) 

*If you are under 21, you are legally only allowed to report personal income. Personal income, however, can include allowances and scholarships.
If you are over 21, you can claim any income which you have reasonable access to in order to pay back the bill, which includes the income of others in the household (spouse/parent), or anyone supporting you. Additionally, while most banks will not have you verify your income, it does happen and you should be prepared to show them. This is particularly prevalent with American Express, and is known as a Financial Review (FR).
« Last edited by S209 on September 09, 2018, 01:45:26 AM »

Author Topic: Credit Card For Beginners  (Read 527685 times)

Offline davidrotts63

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: May 2017
  • Posts: 6746
  • Total likes: 709
  • DansDeals.com Hat Tips 25
  • Gender: Male
    • View Profile
  • Programs: Hertz Gold, Hyatt Member, BA Blue, Ebay banned, Amazon Prime
Re: Credit Card For Beginners
« Reply #4350 on: January 09, 2018, 02:55:35 PM »
DS just applied for a Chase Freedom card. He is an AU on a few of my cards (Amex, Citi) but this was his first attempt to get his own card. He got denied right away. He is a student with minimal income.
Did we make a mistake by applying for Chase Freedom?
What is the minimum income requirement?
Freedom isn't that easy, recon.
(Quit) pulling out the flowers, and watering the weeds. -Peter Lynch

Offline Whatsapp

  • DansDeals Copper Elite
  • *
  • Join Date: Jan 2018
  • Posts: 3
  • Total likes: 0
  • DansDeals.com Hat Tips 0
    • View Profile
Re: Credit Card For Beginners
« Reply #4351 on: January 09, 2018, 03:04:31 PM »
Ok thank you!

Offline shwarmabob

  • Dansdeals Platinum Elite + Lifetime Gold Elite
  • ******
  • Join Date: Dec 2014
  • Posts: 841
  • Total likes: 44
  • DansDeals.com Hat Tips 0
  • Gender: Male
    • View Profile
Re: Credit Card For Beginners
« Reply #4352 on: January 09, 2018, 04:06:39 PM »
Freedom isn't that easy, recon.
so what should he start with?

Offline Pad18

  • Dansdeals Platinum Elite + Lifetime Silver Elite
  • *****
  • Join Date: Apr 2014
  • Posts: 575
  • Total likes: 47
  • DansDeals.com Hat Tips 6
    • View Profile
  • Location: United States
Re: Credit Card For Beginners
« Reply #4353 on: January 09, 2018, 04:14:18 PM »
from the wiki :

Quote
Your first card should be a store credit card, which are easier to get approved for, especially with very limited credit history.
Some of the store cards people apply for are Old Navy, Gap, Banana Republic, Kohl's, Macy's, Target etc. While these cards will not give you major signup bonuses to travel with, they do give you access to exclusive promotions and other perks when purchasing from the store.


Offline davidrotts63

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: May 2017
  • Posts: 6746
  • Total likes: 709
  • DansDeals.com Hat Tips 25
  • Gender: Male
    • View Profile
  • Programs: Hertz Gold, Hyatt Member, BA Blue, Ebay banned, Amazon Prime
Re: Credit Card For Beginners
« Reply #4354 on: January 09, 2018, 04:21:58 PM »
so what should he start with?
Discover, capital one...
(Quit) pulling out the flowers, and watering the weeds. -Peter Lynch

Offline ludmila

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Aug 2012
  • Posts: 5090
  • Total likes: 262
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: IND
  • Programs: Hilton Diamond,Marriott Platinum,SPG Platinum.
Re: Credit Card For Beginners
« Reply #4355 on: January 10, 2018, 01:09:53 AM »
so what should he start with?
For me the Freedom card was the first I got to my daughter , she was an authorized user on our Amex cards for a few years, but that was 2 years ago . She had instant approval with a $2000 CL.
I was the Best,still the Best, and will always be the Best.
Pele Good,Maradona Better, George Best.

Offline mmgfarb

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Dec 2015
  • Posts: 7642
  • Total likes: 644
  • DansDeals.com Hat Tips 4
    • View Profile
Re: Credit Card For Beginners
« Reply #4356 on: January 10, 2018, 01:13:02 AM »
so what should he start with?
You can try recon for the freedom first, if he's over 21, he can count the household income as his own. If you can't get it approved, get an amex like an everyday, they're usually pretty easy if you already have some credit history with AU'S.
"JS [is] a fetid cesspool of unvarnished linguistic manure, with lots of useless drivel and post-padding." -Moishebatchy

Offline davidrotts63

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: May 2017
  • Posts: 6746
  • Total likes: 709
  • DansDeals.com Hat Tips 25
  • Gender: Male
    • View Profile
  • Programs: Hertz Gold, Hyatt Member, BA Blue, Ebay banned, Amazon Prime
Re: Credit Card For Beginners
« Reply #4357 on: January 10, 2018, 06:43:09 AM »
You can try recon for the freedom first, if he's over 21, he can count the household income as his own. If you can't get it approved, get an amex like an everyday, they're usually pretty easy if you already have some credit history with AU'S.
Usually if you have a little credit, one of the everydays would show as a preapproval, (with an an increased bonus.) and that would make approval easier, but with out a little credit (ie. AU) Amex likely won't approve.
(Quit) pulling out the flowers, and watering the weeds. -Peter Lynch

Offline mmgfarb

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Dec 2015
  • Posts: 7642
  • Total likes: 644
  • DansDeals.com Hat Tips 4
    • View Profile
Re: Credit Card For Beginners
« Reply #4358 on: January 10, 2018, 09:02:40 AM »
Usually if you have a little credit, one of the everydays would show as a preapproval, (with an an increased bonus.) and that would make approval easier, but with out a little credit (ie. AU) Amex likely won't approve.
OP said that he was already an AU on some their cards....
"JS [is] a fetid cesspool of unvarnished linguistic manure, with lots of useless drivel and post-padding." -Moishebatchy

Offline PillanSmye

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Aug 2015
  • Posts: 1101
  • Total likes: 66
  • DansDeals.com Hat Tips 1
    • View Profile
Re: Credit Card For Beginners
« Reply #4359 on: January 10, 2018, 10:42:53 AM »
so what should he start with?

Many big banks have STUDENT credit cards for a reason.   Bank of America, CapOne, Citi, Discover, Wells Fargo.  Lots of credit unions offer STUDENT credit cards as well.

Offline gubevo18

  • Dansdeals Platinum Elite + Lifetime Silver Elite
  • *****
  • Join Date: Apr 2014
  • Posts: 677
  • Total likes: 22
  • DansDeals.com Hat Tips 0
  • Gender: Male
    • View Profile
  • Location: here
Re: Credit Card For Beginners
« Reply #4360 on: January 24, 2018, 12:18:21 AM »
In regard to a 2\3bm being in the same day does it go by my time zone, amex time zone or Experian time zone?
A friend of mine applied at 1157 pm EST and wants to apply for another card now...

Offline Michael Smiley

  • DansDeals Copper Elite
  • *
  • Join Date: Feb 2018
  • Posts: 1
  • Total likes: 0
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: 136 misty river lane huntsville al, 35824
Looking to boost my credit rating quickly...
« Reply #4361 on: February 01, 2018, 11:26:54 AM »
 Hello all wizards of credit scores and cards! As seen in the subject title, I'm looking to find some tips on boosting my credit rating quickly...
As it turns out, I actually don't have a credit card account, yet, but will be getting one soon for myself and my business. So the question is, what are some quick tips to earn a better credit score?

 Now, I will also be purchasing a truck for my business soon, and am wondering: If I take out a loan for the truck, and pay it back instantly, (Like taking out a "fake loan,") Will I get the same credit rating, as if I had taken out the same loan, and payed it back over the specified amount of time? 36 months, 48 months, etc etc.

 Any other tips on how I should go about taking out a loan for my truck, and also just getting a good credit score in general, no matter how that may be achieved, would be greatly appreciated!

-Michael

Offline username

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Jul 2008
  • Posts: 4041
  • Total likes: 273
  • DansDeals.com Hat Tips 9
  • Gender: Male
    • View Profile
  • Location: C Heights
  • Programs: ┌──────────────────┐ │───> Ữ₴ΣЯИΛΜӘ <─── │ └──────────────────┘
Re: Looking to boost my credit rating quickly...
« Reply #4362 on: February 01, 2018, 11:49:26 AM »
^^^

Offline carolmerc10

  • DansDeals Copper Elite
  • *
  • Join Date: Feb 2018
  • Posts: 3
  • Total likes: 0
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: Virginia, USA
Re: Credit Card For Beginners
« Reply #4363 on: February 05, 2018, 07:03:01 AM »
He is a student with minimal income.
Did we make a mistake by applying for Chase Freedom?
What is the minimum income requirement?

Not sure about the minimum income requirement. But I'm pretty sure they do assess debt-to-income ratio.

so what should he start with?

I would recommend looking into student credit cards. Some good offers are listed here:
https://www.nerdwallet.com/student-credit-cards
https://effectify.com/credit-cards/student-credit-cards/

Offline davidrotts63

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: May 2017
  • Posts: 6746
  • Total likes: 709
  • DansDeals.com Hat Tips 25
  • Gender: Male
    • View Profile
  • Programs: Hertz Gold, Hyatt Member, BA Blue, Ebay banned, Amazon Prime
Re: Credit Card For Beginners
« Reply #4364 on: February 05, 2018, 08:19:09 AM »
Not sure about the minimum income requirement. But I'm pretty sure they do assess debt-to-income ratio.

I would recommend looking into student credit cards. Some good offers are listed here:
https://www.nerdwallet.com/student-credit-cards
https://effectify.com/credit-cards/student-credit-cards/
Welcome to DDF!
(Quit) pulling out the flowers, and watering the weeds. -Peter Lynch