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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 918654 times)

Offline zale

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Re: building-up credit history [with CC's]
« Reply #480 on: August 01, 2012, 02:16:02 AM »
Ding, ding, ding we have a winner!!! Get backdated on a parents 30 year old Amex card and you got it made.

Chase won't let that fly. Tried that for my bro. Rep on phone said they can see on the credit report that the "mature" cards were AU cards, and not his personal cards. They were able to see only one card that was actually his, which was very new.

If you look at your credit report, you will clearly see a marked difference between the two.

Amex, Citi etc.. might let it slide, but Chase clearly will not.

Offline HelpMe

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Re: building-up credit history [with CC's]
« Reply #481 on: August 01, 2012, 02:28:09 AM »
Can we get a new forum? Maybe call it “Reading comprehension 101”.  :)
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Offline Thingywingy

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Store Credit Card to build credit
« Reply #482 on: August 02, 2012, 08:10:47 PM »
Trying to help a family member, I took the advice mentioned in these forums of getting them a store card to help build credit. I was just wondering how long to wait before applying for a regular card? Also, Does it matter how often they use the store card? They have a Target Red Card. I'm sorry if this was discussed elsewhere; I was unable to find it. Thanks!
I am sometimes accused of overthinking things. I am still mulling over whether that accusation has merit.

Offline JEWDA

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Re: Store Credit Card to build credit
« Reply #483 on: August 02, 2012, 08:23:12 PM »
They should use it every month, it helps alot. Really if that's their only card I would say to wait close to a year, but some people have luck even after 6 months.
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Offline Thingywingy

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Re: Store Credit Card to build credit
« Reply #484 on: August 02, 2012, 08:24:45 PM »
Once a month is enough?
I am sometimes accused of overthinking things. I am still mulling over whether that accusation has merit.

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Re: Store Credit Card to build credit
« Reply #485 on: August 02, 2012, 09:12:35 PM »
It doesn't matter how much you use it, just make sure to swipe at least once each billing cycle, don't use more than 10-20% of the CL, pay on time and have a good day.
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Offline Racheli

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Getting Started
« Reply #486 on: August 09, 2012, 12:29:42 AM »
Lets say I'm young so I have zero credit history, where would be the place to start that would help me build up credit ?
what are my options and which is recommended?  (I dnt want to be stuck paying for it or botching up my credit in the long run so it can't have an annual fee)

(tried bank where i have savings account they said no credit=no card)
what would be the next step?

Offline statusmiles

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Getting Started
« Reply #487 on: August 09, 2012, 12:32:10 AM »
Ask someone with a card to add you as an authorized user or get a low credit limit store card for 6 months
« Last Edit: August 09, 2012, 12:35:40 AM by statusmiles »

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Re: Getting Started
« Reply #488 on: August 09, 2012, 12:32:42 AM »
A great place to start is DDF! More specifically searching DDF ;) . There is a wealth of information here all you have to do is search in the top right corner. Here is a good place to start http://forums.dansdeals.com/index.php?topic=15983.msg219993#msg219993

Btw WELCOME!!!
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Offline zale

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Re: Getting Started
« Reply #489 on: August 09, 2012, 12:55:53 AM »
Lets say I'm young so I have zero credit history, where would be the place to start that would help me build up credit ?
what are my options and which is recommended?  (I dnt want to be stuck paying for it or botching up my credit in the long run so it can't have an annual fee)

(tried bank where i have savings account they said no credit=no card)
what would be the next step?

Go into your local Gap store and see if you can get approved for their card. If you can, that is worth more than being an AU on another account.

Offline ANONYMOUS

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Re: Getting Started
« Reply #490 on: August 09, 2012, 01:09:01 AM »
Lets say I'm young so I have zero credit history, where would be the place to start that would help me build up credit ?
what are my options and which is recommended?  (I dnt want to be stuck paying for it or botching up my credit in the long run so it can't have an annual fee)

(tried bank where i have savings account they said no credit=no card)
what would be the next step?

Capital One will almost always approve someone without any credit history (I know from experience) for this card!

The card is called "Capital One® Cash Rewards for Newcomers"

But I'm pretty sure it only comes with a $300.00 credit limit!!!

Enjoy!


Offline Dan

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Re: Getting Started
« Reply #491 on: August 09, 2012, 01:15:26 AM »
Capital One will almost always approve someone without any credit history (I know from experience) for this card!

The card is called "Capital One® Cash Rewards for Newcomers"

But I'm pretty sure it only comes with a $300.00 credit limit!!!

Enjoy!


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Offline Racheli

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Re: Getting Started
« Reply #492 on: August 09, 2012, 01:17:45 AM »
as advised i tried getting on as an authorized user on a United Chase cc and they said i would need credit history of my own to get approved...does that make sense?

also heard bad reviews about CapitalOne and there are so many options, are any of them good? which one can i get?

Offline ANONYMOUS

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Re: Getting Started
« Reply #493 on: August 09, 2012, 01:19:14 AM »
3 pulls, crappy card.

Yah Dan, but the bottom line is get the card & you get off the ground!

For someone that might have a problem doing some other options, this might be his best opportunity even though they have 3 pulls!!!

Would you agree in that case??


Thanks in advance!


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Re: Getting Started
« Reply #494 on: August 09, 2012, 01:19:42 AM »
as advised i tried getting on as an authorized user on a United Chase cc and they said i would need credit history of my own to get approved...does that make sense?
Not at all. Who's account? I guess just HUCA (hang up call again)
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Re: Getting Started
« Reply #495 on: August 09, 2012, 01:20:07 AM »
Yah Dan, but the bottom line is get the card & you get off the ground!

For someone that might have a problem doing some other options, this might be his best opportunity even though they have 3 pulls!!!

Would you agree in that case??


Thanks in advance!


Nop. GAP card.
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Offline HelpMe

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Re: Getting Started
« Reply #496 on: August 09, 2012, 01:20:33 AM »
as advised i tried getting on as an authorized user on a United Chase cc and they said i would need credit history of my own to get approved...does that make sense?

also heard bad reviews about CapitalOne and there are so many options, are any of them good? which one can i get?
Just have the account holder do it online.
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Re: Getting Started
« Reply #497 on: August 09, 2012, 01:21:13 AM »
Nop. GAP card.

Are you guaranteed to get approved with the GAP Card??

Thanks in advance!


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Re: Getting Started
« Reply #498 on: August 09, 2012, 01:23:20 AM »
Not at all. Who's account? I guess just HUCA (hang up call again)

i tried getting on my dads which would be an awesome way for me to build credit with minimal effort but they wouldn't let, i also have no income could that be the problem(college student...)?

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Re: Getting Started
« Reply #499 on: August 09, 2012, 01:25:08 AM »
as advised i tried getting on as an authorized user on a United Chase cc and they said i would need credit history of my own to get approved...does that make sense?

also heard bad reviews about CapitalOne and there are so many options, are any of them good? which one can i get?

I don't know I got this one- Capital One® Cash Rewards for Newcomers for a good friend a couple months ago & he's very happy & everything working well.

So I don't know by "bad"

But it's your choice, & I'm just trying to help!!!

Enjoy! Much Hatzlacha!!!