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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 918254 times)

Offline yuneeq

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Re: Credit Card For Beginners
« Reply #820 on: April 11, 2013, 01:18:38 PM »
Never received anything....

I was just kidding. Wiki is on the top of the the first post on this page, minimized.
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Offline Shmulyg

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Re: Credit Card For Beginners
« Reply #821 on: April 11, 2013, 01:19:36 PM »
Makes sense.
5% categories and just 1 pull sounds more useful than Cap1.
Somewhat off topic: I already have the Dicsover More card. Can i also get the Discover student (IT) card and take advantage of the 5% categories on both?

Offline rots5

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Re: Credit Card For Beginners
« Reply #822 on: April 11, 2013, 04:03:33 PM »
Somewhat off topic: I already have the Dicsover More card. Can i also get the Discover student (IT) card and take advantage of the 5% categories on both?
from what someone just emailed me, officially u need to be enrolled in school to get the IT card. Does this make sense?
If you have any questions please search and then ask. PM me for detailed help.

Offline DovtheBear

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Re: Credit Card For Beginners
« Reply #823 on: April 11, 2013, 09:05:32 PM »
Is the wiki suggesting you lie about your income?
What if you really dont have any?
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Offline jj1000

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Re: Credit Card For Beginners
« Reply #824 on: April 11, 2013, 09:15:57 PM »
Is the wiki suggesting you lie about your income?
What if you really dont have any?
I said nothing of the sort. But if you have no income you will never be approved for a good CC. If you do lie you can have the potential to be approved. Just saying it how it is.

If you want to discuss the ethics of this there is a thread for that.
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Offline DovtheBear

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Re: Credit Card For Beginners
« Reply #825 on: April 11, 2013, 09:20:16 PM »
I said nothing of the sort. But if you have no income you will never be approved for a good CC. If you do lie you can have the potential to be approved. Just saying it how it is.

If you want to discuss the ethics of this there is a thread for that.
But can they not find out?
"להסתובב זה לא אומר להיות חופשי"

Offline jj1000

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Re: Credit Card For Beginners
« Reply #826 on: April 11, 2013, 09:24:27 PM »
But can they not find out?
From who? The IRS doesn't just hand that stuff out without a subpoena.

And if they do find out you'll be in the same place as if you never falsified your income.
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Offline yuneeq

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Re: Credit Card For Beginners
« Reply #827 on: April 11, 2013, 09:31:00 PM »
But can they not find out?

They can if you get f/r'ed and you decide to send them tax returns to keep your accounts open.
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Offline DovtheBear

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Re: Credit Card For Beginners
« Reply #828 on: April 11, 2013, 09:31:32 PM »
And if they do find out you'll be in the same place as if you never falsified your income.
wheres that?
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Re: Credit Card For Beginners
« Reply #829 on: April 11, 2013, 09:32:28 PM »
They can if you get f/r'ed and you decide to send them tax returns to keep your accounts open.
Whats that?
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Offline jj1000

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Re: Credit Card For Beginners
« Reply #830 on: April 11, 2013, 09:37:16 PM »
wheres that?
A place where you don't have any good CC's

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Offline DovtheBear

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Re: Credit Card For Beginners
« Reply #831 on: April 11, 2013, 09:44:51 PM »
A place where you don't have any good CC's
So, i take it, you dont suggest it?
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Offline jj1000

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Re: Credit Card For Beginners
« Reply #832 on: April 11, 2013, 09:46:44 PM »
So, i take it, you dont suggest it?
Don't suggest writing you earn $0 a year?

Feel free to but you will not be approved for 99.9% of cards.
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Offline sky121

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Re: Credit Card For Beginners
« Reply #833 on: April 11, 2013, 09:47:05 PM »
Random q- can one bank see how much money I have in another bank?

Can they see I have another account at all?
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Offline DovtheBear

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Re: Credit Card For Beginners
« Reply #834 on: April 11, 2013, 09:47:52 PM »
Don't suggest writing you earn $0 a year?

Feel free to but you will not be approved for 99.9% of cards.
haha :D
No i meant the other way around
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Offline jj1000

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Re: Credit Card For Beginners
« Reply #835 on: April 11, 2013, 09:53:14 PM »
haha :D
No i meant the other way around
I would suggest writing you earn $50K or more. There is no best amount to write. If you write you earn a million a year they will more likely ask for proof.

Random q- can one bank see how much money I have in another bank?

Can they see I have another account at all?
I don't think so.
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Offline DovtheBear

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Re: Credit Card For Beginners
« Reply #836 on: April 11, 2013, 10:07:20 PM »
I would suggest writing you earn $50K or more. There is no best amount to write. If you write you earn a million a year they will more likely ask for proof.
 I don't think so.
Great, and Thanks alot!
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Re: Credit Card For Beginners
« Reply #837 on: April 11, 2013, 11:07:35 PM »
Random q- can one bank see how much money I have in another bank?
No.
Can they see I have another account at all?
It depends.
http://en.wikipedia.org/wiki/ChexSystems

Offline lcyitz

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Re: Credit Card For Beginners
« Reply #838 on: April 12, 2013, 12:32:09 AM »
Does a gap card non visa help build credit ?

Offline Dan

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Re: Credit Card For Beginners
« Reply #839 on: April 12, 2013, 12:33:28 AM »
Yes
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.