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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 918279 times)

Offline CountValentine

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Re: Credit Card For Beginners
« Reply #780 on: April 11, 2013, 12:49:50 AM »
Let me give you the facts on AU’s. All my kids are AU’s on several of are cards. None of them are joint card holders. They all have FICO’s above 800. None of them have ever been denied a card they applied for and most of the time it is an instant approval.
Only on DDF does 24/6 mean 24/5/half/half

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Re: Credit Card For Beginners
« Reply #781 on: April 11, 2013, 01:04:56 AM »
Let me give you the facts on AU’s. All my kids are AU’s on several of are cards. None of them are joint card holders. They all have FICO’s above 800. None of them have ever been denied a card they applied for and most of the time it is an instant approval.

thanks I guss it's just a patience game

Offline yuneeq

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Re: Credit Card For Beginners
« Reply #782 on: April 11, 2013, 01:07:50 AM »
Started wiki.
Waiting to get slaughtered!
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Re: Credit Card For Beginners
« Reply #783 on: April 11, 2013, 01:19:20 AM »
Waiting to get slaughtered!
Ok I am game.  :)
AFAIK Amex no longer back dates when you are added as an AU. You (primary card holder) are going to have to call to try and get this done.

If you want more just let me know.  :P
Only on DDF does 24/6 mean 24/5/half/half

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Re: Credit Card For Beginners
« Reply #784 on: April 11, 2013, 01:27:39 AM »
Added and fixed things up.
« Last Edit: April 11, 2013, 01:45:56 AM by Dan »
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: Credit Card For Beginners
« Reply #785 on: April 11, 2013, 01:38:44 AM »
What is a good income to write down? What companies if any ask for verification of income?

I know many noobs write down for say a gap card they make $5K a year and wonder why they were denied...
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Re: Credit Card For Beginners
« Reply #786 on: April 11, 2013, 01:45:17 AM »
Added a fixed things up.

Where/ what exactly?

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Re: Credit Card For Beginners
« Reply #787 on: April 11, 2013, 01:46:55 AM »
See my 5 step program to your left <--

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Re: Credit Card For Beginners
« Reply #788 on: April 11, 2013, 01:48:00 AM »
Getting added to say a Citi, BOA or Chase as an AU card works great. Your CR will show the since open date as that of the primary card holder. Another not confirmed trick is once added as an AU have yourself removed and then added again. You will now have two of the same accounts on your CR (one closed and one open) but both will count towards your length of history.
Only on DDF does 24/6 mean 24/5/half/half

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Re: Building credit for those who cant get a credit card
« Reply #789 on: April 11, 2013, 03:16:11 AM »
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
IME, it's not. I often advise friends on building their credit and the consensus i picked up is that Cap1 Journey is easier for n00bies to get approved for than store CCs.

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Re: Credit Card For Beginners
« Reply #790 on: April 11, 2013, 03:38:46 AM »
IME, it's not. I often advise friends on building their credit and the consensus i picked up is that Cap1 Journey is easier for n00bies to get approved for than store CCs.
personally i would stay far away from cap1. I would quicker advise you to do a discover student (IT) card
« Last Edit: April 11, 2013, 12:31:50 PM by Dan »
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Re: Credit Card For Beginners
« Reply #791 on: April 11, 2013, 07:28:48 AM »
Another not confirmed trick is once added as an AU have yourself removed and then added again. You will now have two of the same accounts on your CR (one closed and one open) but both will count towards your length of history.
Can confirm it worked for me

Offline shimino1

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Re: Credit Card For Beginners
« Reply #792 on: April 11, 2013, 07:54:02 AM »
Getting added to say a Citi, BOA or Chase as an AU card works great. Your CR will show the since open date as that of the primary card holder. Another not confirmed trick is once added as an AU have yourself removed and then added again. You will now have two of the same accounts on your CR (one closed and one open) but both will count towards your length of history.
you seem to know a lot about AUs, can you explain way youd want to have a closed and an open acount as AU? is it that 2 is better then one? in that case shuld i get added on to 3 or 4 cards as AU (providing of course that they have good credit?

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Re: Credit Card For Beginners
« Reply #793 on: April 11, 2013, 07:55:03 AM »
Can confirm it worked for me
With what compeny plz?

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Re: Credit Card For Beginners
« Reply #794 on: April 11, 2013, 07:55:49 AM »

Offline shimino1

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Re: Credit Card For Beginners
« Reply #795 on: April 11, 2013, 07:56:39 AM »
Amex SPG
thanks anyone know if this works for citi?

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Re: Credit Card For Beginners
« Reply #796 on: April 11, 2013, 08:00:47 AM »
I can get added on to brand new Spg as AU (only amex card in family) will that help me at all? or at least for amex

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Re: Credit Card For Beginners
« Reply #797 on: April 11, 2013, 08:28:57 AM »
I can get added on to brand new Spg as AU (only amex card in family) will that help me at all? or at least for amex

Yes
For all cards.

Also get a Cap1 IMO.

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Re: Credit Card For Beginners
« Reply #798 on: April 11, 2013, 08:45:31 AM »
can there be a problem if added as AU on too meny cards (3 or 4)?

Offline yuneeq

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Re: Credit Card For Beginners
« Reply #799 on: April 11, 2013, 08:51:59 AM »
can there be a problem if added as AU on too meny cards (3 or 4)?

Yes. You might get accepted to too many cc's too fast which may lead into a spiraling cc debt problem
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