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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 918647 times)

Offline nobiggy

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Re: Credit Card For Beginners
« Reply #900 on: May 06, 2013, 03:30:29 PM »
stop trying to get 3 cards at a time. how are more rejections going to help you?
try for 1-2.


so which 2 from AMEX or which 2 from Chase?

Offline davidch

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Re: Credit Card For Beginners
« Reply #901 on: May 06, 2013, 09:45:48 PM »
I have a gap store card, and I want to know if my credit will get ruined If  I payed a bill a day late?

Also what does it mean to pay a little before the statement closes and a little after?

Offline MEIR613

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Re: Credit Card For Beginners
« Reply #902 on: May 06, 2013, 10:52:22 PM »

so which 2 from AMEX or which 2 from Chase?
Chase - Freedom/UA

Amex - SPG/PRG

Offline nobiggy

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Re: Credit Card For Beginners
« Reply #903 on: May 06, 2013, 11:36:17 PM »
Chase - Freedom/UA

Amex - SPG/PRG
what about Delta  gold??

Offline MEIR613

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Re: Credit Card For Beginners
« Reply #904 on: May 06, 2013, 11:39:24 PM »
what about Delta  gold??
DL miles aren't worth much.

Offline Shmulyg

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Re: Credit Card For Beginners
« Reply #905 on: May 06, 2013, 11:47:00 PM »
I have a gap store card, and I want to know if my credit will get ruined If  I payed a bill a day late?
If by a day late you mean the minimum payment a day after it is due, you bet.

Also what does it mean to pay a little before the statement closes and a little after?

Basically you want to keep your utilization ratio down. So if you're spending more than 10-30 percent of your available credit, you don't want that reported to the credit bureaus. One way to do that is by paying before the statement closes (as that's when they usually report to the bureaus),
Your statement closing is the end of the monthly billing cycle.
The balance on your card when the statement closes is whats reported to the credit bureau.

Its best to only have a small balance at that time.
In order to do that, you need to either
A) not spend alot on the card during the monthly billing cycle
B) Pay off the high balance before it closes so it doesnt get reported.

Offline bubbles

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Re: Credit Card For Beginners
« Reply #906 on: May 07, 2013, 08:38:33 AM »
If by a day late you mean the minimum payment a day after it is due, you bet.

They won't for sure report it as late if you're only off by a day

Offline greatdeals

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Re: Credit Card For Beginners
« Reply #907 on: May 07, 2013, 08:56:37 AM »
I am a stay at home mother
I have been an authorized user for
many many years
I would like to open up my own credit card so I can
get the bonus also
but I don't have my own income
is there any way to get my own credit card?

Offline Marco Polo

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Re: Credit Card For Beginners
« Reply #908 on: May 07, 2013, 08:57:53 AM »
I am a stay at home mother
I have been an authorized user for
many many years
I would like to open up my own credit card so I can
get the bonus also
but I don't have my own income
is there any way to get my own credit card?
You can put down any income the household generates. It does not need to be specifically yours.
Quaerite et Invenietis.

Offline Shmulyg

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Re: Credit Card For Beginners
« Reply #909 on: May 07, 2013, 09:42:32 AM »
They won't for sure report it as late if you're only off by a day
True. They may cut him some slack. I was addressing more the affect a late payments has on your credit history than his specific case. I stand corrected. Though i would probably advise him to call and give a reason why he was late and promise it won't happen again blah blah blah...

Offline davidch

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Re: Credit Card For Beginners
« Reply #910 on: May 07, 2013, 09:51:32 AM »
 ;) thanks a lot guys. I geuss ill give it a try, and call them, being that I never got any email regarding that my due date is coming up.

Offline Shmulyg

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Re: Credit Card For Beginners
« Reply #911 on: May 07, 2013, 09:54:49 AM »
;) thanks a lot guys. I geuss ill give it a try, and call them, being that I never got any email regarding that my due date is coming up.
If you play innocent, and get a somewhat caring rep, that should do it. Good luck!

Offline greatdeals

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Re: Credit Card For Beginners
« Reply #912 on: May 07, 2013, 10:31:20 AM »
Quote
You can put down any income the household generates. It does not need to be specifically yours.

what do I put down for employer? my husbands employer?

Offline meshugener

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Re: Credit Card For Beginners
« Reply #913 on: May 07, 2013, 10:32:45 AM »
Yes
Love me or hate me. I still love you.

Offline smee123

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Re: Credit Card For Beginners
« Reply #914 on: May 07, 2013, 04:40:22 PM »
Yes
And when you call recon and they ask if that's where you work?

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Re: Credit Card For Beginners
« Reply #915 on: May 08, 2013, 12:37:34 AM »
what do I put down for employer? my husbands employer?
No. leave blank.  household income IS your income.  and you have no employer.  if it's a required box, write in 'housewife' or 'homemaker'.  Your work number is same as home.  If it's not a required box, leave it blank if you have no answer.
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Offline hershy

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Re: Credit Card For Beginners
« Reply #916 on: May 08, 2013, 08:33:42 AM »
You can put down any income the household generates. It does not need to be specifically yours.
Can I include my monthly food stamps and sec. 8 ? 😋
Short and to the point.

Offline Shreknit

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Re: Credit Card For Beginners
« Reply #917 on: May 08, 2013, 08:37:50 AM »
Can I include my monthly food stamps and sec. 8 ? 😋

Yes there's a special section for welfare applicants 😜

Offline lfas25

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Re: Credit Card For Beginners
« Reply #918 on: May 08, 2013, 08:54:05 AM »
Can I include my monthly food stamps and sec. 8 ? 😋

They actually have a special credit card for ppl that are on government programs, there's no af, 100k sign up bonus, 3x on groceries, rent and gas. And if your trying to open a business they give you 10% cash back on office supplies. If you book an airline ticket you get 5x points, and has primary insurance on car rentals.

But this card is only available if you have no credit history and on every government program out there with no income on your tax return.
I only paid 15% by switching to dansdeals

Offline Achas Veachas

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Re: Credit Card For Beginners
« Reply #919 on: May 08, 2013, 10:01:27 AM »
They actually have a special credit card for ppl that are on government programs, there's no af, 100k sign up bonus, 3x on groceries, rent and gas. And if your trying to open a business they give you 10% cash back on office supplies. If you book an airline ticket you get 5x points, and has primary insurance on car rentals.

But this card is only available if you have no credit history and on every government program out there with no income on your tax return.
Yup! Used to have it, but then i got FR'd and couldn't prove that i had 0 income so they shut me down  :'(