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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 533504 times)

Offline as2

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Re: Credit Card For Beginners
« Reply #4455 on: February 27, 2019, 08:43:29 AM »

 
I spend a lot each year on my CC with my business with various shipping carriers like UPS/FEDEX/USPS. I have come across 2 cards with the best bang for your buck. The chase business ink (3x) and the Amex gold (4x). Issue is they are both capped out at 150k spend. If I am spending a million dollars a year on shipping whats the best way to go about maximizing these bonuses. Is there any other cards that offer these benefits or a way that I can have multiples of the current cards as I keep maxing out the 150k spend.


If wrong thread please direct me to correct one
Keep in mind, you can split your spend between multiple (even of the same) cards.
Memories last forever, make them while you can.

Offline a good yeshiva bachur

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Re: Credit Card For Beginners
« Reply #4456 on: February 27, 2019, 09:01:43 AM »
Keep in mind, you can split your spend between multiple (even of the same) cards.
every AU gets his own 150K limit?

Offline as2

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Re: Credit Card For Beginners
« Reply #4457 on: February 27, 2019, 09:03:51 AM »
every AU gets his own 150K limit?
Most definitely not, but you can hold more than one of some cards.
Memories last forever, make them while you can.

Offline mmgfarb

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Re: Credit Card For Beginners
« Reply #4458 on: February 27, 2019, 12:00:15 PM »

 
I spend a lot each year on my CC with my business with various shipping carriers like UPS/FEDEX/USPS. I have come across 2 cards with the best bang for your buck. The chase business ink (3x) and the Amex gold (4x). Issue is they are both capped out at 150k spend. If I am spending a million dollars a year on shipping whats the best way to go about maximizing these bonuses. Is there any other cards that offer these benefits or a way that I can have multiples of the current cards as I keep maxing out the 150k spend.


If wrong thread please direct me to correct one
Just get multiple BGR's and Inks.
"JS [is] a fetid cesspool of unvarnished linguistic manure, with lots of useless drivel and post-padding." -Moishebatchy

Offline davidch

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Re: Credit Card For Beginners
« Reply #4459 on: February 27, 2019, 01:41:42 PM »
Just get multiple BGR's and Inks.


How many inks can one get?

Offline mmgfarb

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Re: Credit Card For Beginners
« Reply #4460 on: February 27, 2019, 02:50:18 PM »

How many inks can one get?
As many as they'll approve you for
"JS [is] a fetid cesspool of unvarnished linguistic manure, with lots of useless drivel and post-padding." -Moishebatchy

Offline Willie

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Re: Credit Card For Beginners
« Reply #4461 on: February 28, 2019, 02:22:05 PM »
Looking to open up a new card to make some extra cash. Have an excellent credit score and looking for the best spending bonus at the moment. Hope to sell the points right when I hit the spending bonus, with which card would I make the most from the spending bonus... TIA!

Offline Joel2

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Re: Credit Card For Beginners
« Reply #4462 on: February 28, 2019, 10:01:43 PM »
Looking to open up a new card to make some extra cash. Have an excellent credit score and looking for the best spending bonus at the moment. Hope to sell the points right when I hit the spending bonus, with which card would I make the most from the spending bonus... TIA!
Chase SP
If your under 5/24

Barclays A+

Offline jose34

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Re: Credit Card For Beginners
« Reply #4463 on: March 17, 2019, 08:46:38 AM »
Chase SP
If your under 5/24

Barclays A+

Any Amex can work as well since Amex is still valued as a Chasse points are.

Offline chief_mag

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Re: Credit Card For Beginners
« Reply #4464 on: May 07, 2019, 08:18:39 PM »
Got the Ink Preferred a year and a half ago, I would like to apply for the Ink Cash based on the fairly recent DDMS post.
Just getting somewhat conflicting messages from @Dan. In the post: “You can receive a signup bonus on each type of Ink card once every 24 months for each business that you manage.”

In the Comments:It’s buried in the fine print when you click on apply.
That being said, if you are approved you should get the bonus either way


Does he more or less mean: "your chances of approval are very low, but if you get lucky, you'll get lucky the whole way" ?

TIA
« Last Edit: May 07, 2019, 10:03:09 PM by chief_mag »

Offline Mo2

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Re: Credit Card For Beginners
« Reply #4465 on: May 07, 2019, 09:54:02 PM »
Got the Ink Preferred a year and a half ago, I would like to apply for the Ink Cash based on the fairly recent DDMS post.
Just getting somewhat conflicting messages from @Dan. In the post: “You can receive a signup bonus on each type of Ink card once every 24 months for each business that you manage.”

In the Comments:It’s buried in the fine print when you click on apply.
That being said, if you are approved you should get the bonus either way


Does this more or less mean: "your chances of approval are very low, but if you get lucky, you'll get lucky the whole way" ?

TIA
The Ink preferred is an different type than the ink Cash (or Ink Unlimited) so why would there be any issue?
I got both the Ink Unlimited and Ink Cash for both me and DW for for both our sole proprietor businesses within a few months without any issues

Offline chief_mag

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Re: Credit Card For Beginners
« Reply #4466 on: May 07, 2019, 10:06:56 PM »
The Ink preferred is an different type than the ink Cash (or Ink Unlimited) so why would there be any issue?
I got both the Ink Unlimited and Ink Cash for both me and DW for for both our sole proprietor businesses within a few months without any issues
Oh, of course. I totally misread originally.
My bad.

Offline shmoe joe

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Re: Credit Card For Beginners
« Reply #4467 on: May 07, 2019, 11:13:29 PM »
Planning to close spg personal and business. Any way to do it without effecting my credit?
give some love (likes) to a brother!

Offline mochjas

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Re: Credit Card For Beginners
« Reply #4468 on: May 15, 2019, 04:44:56 PM »
Planning to close spg personal and business. Any way to do it without effecting my credit?
Transfer the personal credit line to a different amex. The biz closing wont hurt you at all but you might as well transfer the CL so you dont lose it

Offline justmeha

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Re: Credit Card For Beginners
« Reply #4469 on: June 24, 2019, 08:19:30 PM »
i am a au on a chase biz card and have a student card as well whats the chances of getting the freedom/unlimted