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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 918298 times)

Offline raphy781

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Re: Building credit for those who cant get a credit card
« Reply #740 on: April 10, 2013, 02:48:40 PM »
AU is not sufficient. You need to be either an individual account holder or a joint.
./experience
-1 If you're an AU with Amex they report the account activity to the credit bureaus. I'm not sure exactly how much of an impact this has though.

Offline yaakov s

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Re: Building credit for those who cant get a credit card
« Reply #741 on: April 10, 2013, 02:59:27 PM »
AU is not sufficient. You need to be either an individual account holder or a joint.
./experience
-1
With Chase Meshugener is correct . Maybe once in a while AU slips through to get approval .

Not enough familiar with other card companies.

Offline Moshe123

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Re: Building credit for those who cant get a credit card
« Reply #742 on: April 10, 2013, 03:00:05 PM »
-1

Several people that I know couldn't get credit from Chase in the beginning because they were only an AU on a card even for many months.

Offline yaakov s

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Re: Building credit for those who cant get a credit card
« Reply #743 on: April 10, 2013, 03:02:55 PM »
Several people that I know couldn't get credit from Chase in the beginning because they were only an AU on a card even for many months years.

Offline meshugener

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Re: Building credit for those who cant get a credit card
« Reply #745 on: April 10, 2013, 05:13:10 PM »
First of all who said we were talking about Chase?
I said use the AU to be able to get a valuable store card like from Gap (lots of cardmembers only promos) or Target (5% off and free shipping with no minimum) and then move onto AMEX or Chase.

Plus being an AU on AMEX before getting your own card is very beneficial due to the backdating process.
Save your time, I don't answer PM. Post it in the forum and a dedicated DDF'er will get back to you as soon as possible.

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Re: Building credit for those who cant get a credit card
« Reply #746 on: April 10, 2013, 05:50:15 PM »
AU is not sufficient. You need to be either an individual account holder or a joint.
./experience
Some of us have a little more experience and you can say this all you want and you will still be wrong.  ;)
Only on DDF does 24/6 mean 24/5/half/half

Offline Moshe123

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Re: Building credit for those who cant get a credit card
« Reply #747 on: April 10, 2013, 05:52:17 PM »
Some of us have a little more experience and you can say this all you want and you will still be wrong.  ;)

Both are probably right. YMMV. For Amex It's enough, for Chase not. IME.

Offline meshugener

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Re: Building credit for those who cant get a credit card
« Reply #748 on: April 10, 2013, 05:53:11 PM »
Some of us have a little more experience and you can say this all you want and you will still be wrong.  ;)
you really want to start up with me today?
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Re: Building credit for those who cant get a credit card
« Reply #749 on: April 10, 2013, 05:56:41 PM »
you really want to start up with me today?
Nothing to start about. The proof is in the pudding.  :P
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Offline bubbles

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Re: Building credit for those who cant get a credit card
« Reply #750 on: April 10, 2013, 06:04:53 PM »

Besides for only costing 1 pull, a Gap or Target card is much more useful that Cap1 in the long-haul.

I still feel the one pull per bureau is not a factor for your first card, but if it's just as easy to get approved for a store cc as the journey card than I can definitely hear that it's more useful in the long run

Offline jwilliams1

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Re: Building credit for those who cant get a credit card
« Reply #751 on: April 10, 2013, 06:06:14 PM »
First of all who said we were talking about Chase?
I said use the AU to be able to get a valuable store card like from Gap (lots of cardmembers only promos) or Target (5% off and free shipping with no minimum) and then move onto AMEX or Chase.

Plus being an AU on AMEX before getting your own card is very beneficial due to the backdating process.

So if i have been an AU since november on an amex- do you suggest i try to get my own gap card- OR become an AU on gap and then apply for my own card how much later?

Offline bubbles

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Re: Building credit for those who cant get a credit card
« Reply #752 on: April 10, 2013, 06:07:55 PM »
So if i have been an AU since november on an amex- do you suggest i try to get my own gap card- OR become an AU on gap and then apply for my own card how much later?

Didn't you say that you already tried applying for store cards but were rejected? Is Gap in particular an easier card to get?

Offline jwilliams1

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Re: Building credit for those who cant get a credit card
« Reply #753 on: April 10, 2013, 06:11:35 PM »
Didn't you say that you already tried applying for store cards but were rejected? Is Gap in particular an easier card to get?

that was in the beginning of my AU on amex days. Now it is 6 months later of activity on that amex. I assumed it helps...
And i Used gap generically cause Dan mentioned it as an example

Offline shimino1

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Re: Building credit for those who cant get a credit card
« Reply #754 on: April 10, 2013, 06:30:28 PM »
I'm no expert at this but let me ask you a question that may have been overlooked, are you sure that the owner of the Amex card you are on as AU has a good credit score?

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Re: Building credit for those who cant get a credit card
« Reply #755 on: April 10, 2013, 06:31:48 PM »
I'm no expert at this but let me ask you a question that may have been overlooked, are you sure that the owner of the Amex card you are on as AU has a good credit score?
Also when you were added as an AU did they back date your card to the owners date?
Only on DDF does 24/6 mean 24/5/half/half

Offline shimino1

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Re: Building credit for those who cant get a credit card
« Reply #756 on: April 10, 2013, 06:33:33 PM »
Also when you were added as an AU did they back date your card to the owners date?

still new to the forum what's backdating?

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Re: Building credit for those who cant get a credit card
« Reply #757 on: April 10, 2013, 07:04:41 PM »
still new to the forum what's backdating?
The owner has card with an issue date of 2000. You are added as an AU and your date also shows as 2000. You then apply for a card on your own and it also shows a date of 2000. Great for your credit history and FICO.
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Offline shimino1

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Re: Building credit for those who cant get a credit card
« Reply #758 on: April 10, 2013, 07:11:50 PM »
The owner has card with an issue date of 2000. You are added as an AU and your date also shows as 2000. You then apply for a card on your own and it also shows a date of 2000. Great for your credit history and FICO.

wow sounds great only problem is the only old Amex cc I can get added on is a business card which dosent help my credit score would it still help for issue date?

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Re: Building credit for those who cant get a credit card
« Reply #759 on: April 10, 2013, 07:13:45 PM »
wow sounds great only problem is the only old Amex cc I can get added on is a business card which dosent help my credit score would it still help for issue date?
Great question and I am not sure.
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