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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 918677 times)

Offline shimino1

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Re: Building credit for those who cant get a credit card
« Reply #760 on: April 10, 2013, 07:21:06 PM »
Great question and I am not sure.

Thanks for the honest answer לא הביישן למד.
maybe the rebbe can answer

Offline CountValentine

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Re: Building credit for those who cant get a credit card
« Reply #761 on: April 10, 2013, 07:26:16 PM »
לא הביישן למד.
=Not shy studied?
Only on DDF does 24/6 mean 24/5/half/half

Offline ari2955

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Re: Building credit for those who cant get a credit card
« Reply #762 on: April 10, 2013, 07:27:20 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?

my business cards with Amex do not backdate to my personal cards, looks like bus and personal card dates have no connection

Offline shimino1

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Re: Building credit for those who cant get a credit card
« Reply #763 on: April 10, 2013, 07:50:28 PM »
=Not shy studied?

"he who is shy will never lern" as in don't be afried to admit to not knowing somthing cuz that's the only way to lern

Offline shimino1

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Re: Building credit for those who cant get a credit card
« Reply #764 on: April 10, 2013, 07:51:43 PM »
my business cards with Amex do not backdate to my personal cards, looks like bus and personal card dates have no connection
:'( but thanks for answer

Offline shimino1

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Re: Building credit for those who cant get a credit card
« Reply #765 on: April 10, 2013, 07:52:38 PM »
my business cards with Amex do not backdate to my personal cards, looks like bus and personal card dates have no connection
would it help for getting a bus card?

Offline CountValentine

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Re: Building credit for those who cant get a credit card
« Reply #766 on: April 10, 2013, 07:55:10 PM »
"he who is shy will never lern" as in don't be afried to admit to not knowing somthing cuz that's the only way to lern
TY, Google fails me again.
Only on DDF does 24/6 mean 24/5/half/half

Offline smaxber

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Re: Building credit for those who cant get a credit card
« Reply #767 on: April 10, 2013, 09:54:23 PM »
I'm in the same boat as OP.
did a 3 BM got denied. Huca no luck. SM no luck. Even visited a branch.

I'm only 20 so I know in general they have some age restrictions regarding that, but the main reason is because I don't have long enough credit history. I have a citi dividends from October plus some AU which isn't of help.

Anyone have opinions on other type of cards I might be suitable for (BOA or Barclay)? Some store cards were mentioned as well ( target and gap)

Offline bubbles

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Re: Building credit for those who cant get a credit card
« Reply #768 on: April 10, 2013, 10:24:18 PM »
I'm in the same boat as OP.
did a 3 BM got denied. Huca no luck. SM no luck. Even visited a branch.

I'm only 20 so I know in general they have some age restrictions regarding that, but the main reason is because I don't have long enough credit history. I have a citi dividends from October plus some AU which isn't of help.

Anyone have opinions on other type of cards I might be suitable for (BOA or Barclay)? Some store cards were mentioned as well ( target and gap)

Do you have any negatives or bad accounts on your report? I find it interesting that you're an AU plus you have your own CC for 6 months and can't get approved for a card. I don't think a store card is the way to go for you anymore at this point.

Offline smaxber

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Re: Building credit for those who cant get a credit card
« Reply #769 on: April 10, 2013, 11:07:55 PM »
Do you have any negatives or bad accounts on your report? I find it interesting that you're an AU plus you have your own CC for 6 months and can't get approved for a card. I don't think a store card is the way to go for you anymore at this point.

Not that I'm aware of. I have 100% paying on time. Utilization is about 50% on $3,000 CL. I dont know what can hurt me because as far as I know being an authorized user does not have any effect on one's credit...

Offline lcyitz

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Re: Building credit for those who cant get a credit card
« Reply #770 on: April 10, 2013, 11:25:14 PM »
Not that I'm aware of. I have 100% paying on time. Utilization is about 50% on $3,000 CL. I dont know what can hurt me because as far as I know being an authorized user does not have any effect on one's credit...
AU does help it just takes longer, best bet will be ask a friend or s/o to put you as a joint cardmember it will boost your credit pretty fast in my experience.

Or just apply for a gap card and see what happens

Offline Yeki89

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Re: Building credit for those who cant get a credit card
« Reply #771 on: April 10, 2013, 11:31:13 PM »
Target card is much more useful that Cap1 in the long-haul.
I use it to buy $5 items on target.com :)

Offline smaxber

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Re: Building credit for those who cant get a credit card
« Reply #772 on: April 10, 2013, 11:38:38 PM »
AU does help it just takes longer, best bet will be ask a friend or s/o to put you as a joint cardmember it will boost your credit pretty fast in my experience.

Or just apply for a gap card and see what happens

My credit score is perfect. I just need credit HISTORY. Any advice on that?

Offline Moshe123

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Re: Building credit for those who cant get a credit card
« Reply #773 on: April 10, 2013, 11:40:01 PM »
My credit score is perfect. I just need credit HISTORY. Any advice on that?

That is the solution for this.

Offline Marco Polo

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Re: Building credit for those who cant get a credit card
« Reply #774 on: April 10, 2013, 11:40:08 PM »
My credit score is perfect. I just need credit HISTORY. Any advice on that?
Time.
Quaerite et Invenietis.

Offline lcyitz

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Re: Credit Card For Beginners
« Reply #775 on: April 10, 2013, 11:47:50 PM »
My credit score is perfect. I just need credit HISTORY. Any advice on that?
Joint cardmember will give you HISTORY so will AU just will take longer.

Offline smaxber

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Re: Credit Card For Beginners
« Reply #776 on: April 11, 2013, 12:06:05 AM »
Thank you all

One other thing. Does Amex look at AU in general? Or only for their own cards or neither ?

Offline shimino1

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Re: Credit Card For Beginners
« Reply #777 on: April 11, 2013, 12:35:46 AM »
Does citi backdate with AU or is that just Amex?

Offline shimino1

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Re: Credit Card For Beginners
« Reply #778 on: April 11, 2013, 12:38:00 AM »
also is it significly better to be joint cardholder then AU? as in worth nagging family member to call and wait on the phone etc'

Offline lcyitz

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Re: Credit Card For Beginners
« Reply #779 on: April 11, 2013, 12:39:30 AM »
also is it significly better to be joint cardholder then AU? as in worth nagging family member to call and wait on the phone etc'
Yes. All they have to do is request a form full it out then send it back.