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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 918262 times)

Offline DMYD

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Re: Credit Card For Beginners
« Reply #3400 on: October 30, 2015, 12:31:52 PM »
Compared to funding a bank account?
No they transfer balance

Offline David Smith

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Re: Credit Card For Beginners
« Reply #3401 on: October 30, 2015, 12:33:23 PM »
No they transfer balance
I'm saying, a slate balance transfer is a better option than funding a bank account with card B with 0% intro APR on purchases and using the funds to pay card A bill?
Who do you think you are fooling? You think you are going to pull a quick one on your Creator? Good luck with that.
JTZ

Offline DMYD

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Re: Credit Card For Beginners
« Reply #3402 on: October 30, 2015, 12:34:49 PM »
I'm saying, a slate balance transfer is a better option than funding a bank account with card B with 0% intro APR on purchases and using the funds to pay card A bill?
No probably not but less complicated to explain to a non ddf'er

Offline David Smith

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Re: Credit Card For Beginners
« Reply #3403 on: October 30, 2015, 12:37:04 PM »
No probably not but less complicated to explain to a non ddf'er
I would think a bank account is pretty simple (definitely simpler than MS), and can be worth over a thousand in rewards.
Who do you think you are fooling? You think you are going to pull a quick one on your Creator? Good luck with that.
JTZ

Offline Tomorrow

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Re: Credit Card For Beginners
« Reply #3404 on: November 04, 2015, 12:13:32 AM »
Does backdating an AU for a first time CC user still work at all?
Sorry if I ask so many questions, but life is short and there is so much to learn! Let's help each other be great!

Offline justaregularguy

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Re: Credit Card For Beginners
« Reply #3405 on: November 04, 2015, 12:23:05 AM »
Does backdating an AU for a first time CC user still work at all?
whoa! ur from the Dominican republic? cool! 8) sry I don't know the ans to ur question but welcome to the forums :D :D
nothings impossible- the word itself says Im possible

Offline D93

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Re: Credit Card For Beginners
« Reply #3406 on: November 04, 2015, 12:29:42 AM »
Does backdating an AU for a first time CC user still work at all?
If you can find a bank that still backdates, yes it works.

Offline Tomorrow

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Re: Credit Card For Beginners
« Reply #3407 on: November 04, 2015, 12:49:37 AM »
If you can find a bank that still backdates, yes it works.
In the wiki it says also to open a secure card. Are there any other options? And does TD offer secure CC?
Sorry if I ask so many questions, but life is short and there is so much to learn! Let's help each other be great!

Offline mmb

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Re: Credit Card For Beginners
« Reply #3408 on: November 04, 2015, 01:29:09 AM »
In the wiki it says also to open a secure card. Are there any other options? And does TD offer secure CC?
I started with the Discover card and got accepted easily but it's not guaranteed

Offline avadah

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Re: Credit Card For Beginners
« Reply #3409 on: November 04, 2015, 02:03:50 AM »
Best offer for CSP is 40K and United 30K? Do they still give bonus 5K for adding AU?

Offline David Smith

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Re: Credit Card For Beginners
« Reply #3410 on: November 04, 2015, 02:05:44 AM »
Best offer for CSP is 40K and United 30K? Do they still give bonus 5K for adding AU?
They do.
Who do you think you are fooling? You think you are going to pull a quick one on your Creator? Good luck with that.
JTZ

Offline TimT

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Re: Credit Card For Beginners
« Reply #3411 on: November 04, 2015, 02:06:57 AM »
Do they still give bonus 5K for adding AU?
yup

Offline ckmk47

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Re: Credit Card For Beginners
« Reply #3412 on: November 04, 2015, 02:10:55 AM »
Best offer for CSP is 40K and United 30K? Do they still give bonus 5K for adding AU?
When you log into your united account, they may offer you 50K. Check the United thread to see if that still works.  The business united  has 50K. But doesn't give an extra 5K for adding an AU.
My favorite cause: cssy.org

Online LoLo

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Re: Credit Card For Beginners
« Reply #3413 on: November 04, 2015, 02:12:04 AM »
Best offer for United 30K?
50k + 5k in branch, Or try to match via SM.

Offline Marco Polo

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Re: Credit Card For Beginners
« Reply #3414 on: November 04, 2015, 08:53:55 AM »
Best offer for CSP is 40K and United 30K? Do they still give bonus 5K for adding AU?
Seems like they will be bumping up the CSP bonus soon. May be worth it to wait.
Quaerite et Invenietis.

Offline D93

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Re: Credit Card For Beginners
« Reply #3415 on: November 04, 2015, 08:56:04 AM »
Seems like they will be bumping up the CSP bonus soon. May be worth it to wait.
Source?

Offline Marco Polo

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Re: Credit Card For Beginners
« Reply #3416 on: November 04, 2015, 08:57:47 AM »
Source?
FM posted it this AM. Has an "inside source" at Chase. Freedom looks like it will be bumped as well.
Quaerite et Invenietis.

Offline D93

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Re: Credit Card For Beginners
« Reply #3417 on: November 04, 2015, 08:58:49 AM »
FM posted it this AM. Has an "inside source" at Chase. Freedom looks like it will be bumped as well.
Cool! Although even if you apply now, Chase will match you with in 90 days.

Offline yochiek93

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Re: Credit Card For Beginners
« Reply #3418 on: November 04, 2015, 08:59:23 AM »
In the wiki it says also to open a secure card. Are there any other options? And does TD offer secure CC?
They do but only in branch

Offline Marco Polo

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Re: Credit Card For Beginners
« Reply #3419 on: November 04, 2015, 09:01:55 AM »
Cool! Although even if you apply now, Chase will match you with in 90 days.
True. But some people have an aversion to contacting the banks.
Quaerite et Invenietis.