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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 918622 times)

Offline Tomorrow

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Re: Credit Card For Beginners
« Reply #4160 on: December 18, 2016, 02:49:58 PM »
Why do you have to get off the AU?
For certain reasons it's not helping my credit anymore
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 Tomorrow

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Re: Credit Card For Beginners
« Reply #4161 on: December 18, 2016, 02:50:27 PM »
I would go with either the Chase freedom unlimited or spg from Amex. Unless you want to start with a store or a secured card. How long were you an AU for?
4/5 months
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 Tomorrow

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Re: Credit Card For Beginners
« Reply #4162 on: December 18, 2016, 02:51:25 PM »
Are you just an AU . Are you starting gor your first card ? - what do you mean by new card ?
Yes, I want to, first card.
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 chaimh770

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Re: Credit Card For Beginners
« Reply #4163 on: December 18, 2016, 02:52:02 PM »
I would go with either the Chase freedom unlimited or spg from Amex. Unless you want to start with a store or a secured card. How long were you an AU for?
I was on spg for a while, have a decent credit score, what next?

Offline hide4

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Re: Credit Card For Beginners
« Reply #4164 on: December 18, 2016, 02:52:33 PM »
4/5 months
Amex usually wants to see at least 6 months these days ime. Not sure about chase.

Offline mancunian

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Re: Credit Card For Beginners
« Reply #4165 on: December 18, 2016, 03:47:11 PM »
What's IP?
And what's CFBP?

Offline David Smith

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Re: Credit Card For Beginners
« Reply #4166 on: December 18, 2016, 03:49:24 PM »
What's IP?
And what's CFBP?
Ink Plus
Check free bill pay
Who do you think you are fooling? You think you are going to pull a quick one on your Creator? Good luck with that.
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Offline LoLo

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Re: Credit Card For Beginners
« Reply #4167 on: December 18, 2016, 06:23:40 PM »

Offline devoramendy

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Re: Credit Card For Beginners
« Reply #4168 on: December 19, 2016, 12:16:39 AM »
Is there a way to find out when (what month) the 5/24 rule doesn't apply to ones account anymore?

Offline mmgfarb

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Re: Credit Card For Beginners
« Reply #4169 on: December 19, 2016, 01:18:48 AM »
Is there a way to find out when (what month) the 5/24 rule doesn't apply to ones account anymore?
Check your CR for all the cards opened in the last 24 months. The month after all your cards besides for four are older than 24 months, you'll be under 5/24.
"JS [is] a fetid cesspool of unvarnished linguistic manure, with lots of useless drivel and post-padding." -Moishebatchy

Offline syp5

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Re: Credit Card For Beginners
« Reply #4170 on: December 20, 2016, 12:38:42 AM »
If i closed the Business platinum Amex in June of 2015, Can i apply again now and get the bonus?

Offline LoLo

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Re: Credit Card For Beginners
« Reply #4171 on: December 20, 2016, 12:39:51 AM »
No. unless you have a targeted offer without language.

Offline aarondeutsch95

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Re: Credit Card For Beginners
« Reply #4172 on: December 25, 2016, 07:51:26 PM »
I applied for a CSR and got a pending review (7-10 days). Should I call recon?

Offline Lou Bob

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Re: Credit Card For Beginners
« Reply #4173 on: December 25, 2016, 09:47:43 PM »
I applied for a CSR and got a pending review (7-10 days). Should I call recon?
yes
Always use an Amex, you'll thank me one day.

Offline aarondeutsch95

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Re: Credit Card For Beginners
« Reply #4174 on: December 25, 2016, 09:53:55 PM »
yes
Does this mean I was probably declined? Or I still could hock to be approved?

Offline mmgfarb

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Re: Credit Card For Beginners
« Reply #4175 on: December 25, 2016, 10:54:32 PM »
Does this mean I was probably declined? Or I still could hock to be approved?
It means you were declined. If you're under 5/24 you may very well get approved through recon, if you don't at first, HUCA.
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Offline MoYS

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Re: Credit Card For Beginners
« Reply #4176 on: December 29, 2016, 03:25:27 PM »
For someone under 21 applying for a student cc (with no previous credit history), how (and how much) should they report their income if they are solely dependent on parental support?

Offline since1492

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Re: Credit Card For Beginners
« Reply #4177 on: December 29, 2016, 03:29:55 PM »
For someone under 21 applying for a student cc (with no previous credit history), how (and how much) should they report their income if they are solely dependent on parental support?
how much do the parents spend on him in 1 week and x 52 plus add a little bit
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Offline MoYS

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Re: Credit Card For Beginners
« Reply #4178 on: December 29, 2016, 03:34:35 PM »
how much do the parents spend on him in 1 week and x 52 plus add a little bit
Should i be concern about needing to prove this 'income', and it will be enough to get approved (even for a very low credit line)?

Offline since1492

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Re: Credit Card For Beginners
« Reply #4179 on: December 29, 2016, 03:57:21 PM »
Should i be concern about needing to prove this 'income', and it will be enough to get approved (even for a very low credit line)?
they usually don't ask for that and even if they do provide them with the cheshbonos that you made. after all the form says that you can include child support.  just a few things to keep in mind:
1)he will have to speak to them if they request to speak to someone, not the parents
2)he should apply for a beginners card for example the capital one journey not the chase sapphire reserve or look around in whichever bank for a card that doesn't need a high credit score or a beginners card
3)even though it is the first card try to make sure it has no annual fee and decent benefits because since this is his first card he should keep it open for his credit score which means he will probably have this card for many years even if he doesn't use it a lot. 1 mistake I made is that my first card charges 3% for foreign transactions which gave me issues when i went to learn in israel
 
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