Topic Wiki

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 918377 times)

Offline Saver2000

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Apr 2011
  • Posts: 7660
  • Total likes: 47
  • DansDeals.com Hat Tips 0
    • View Profile
Re: Credit Card For Beginners
« Reply #920 on: May 08, 2013, 10:11:01 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.
Is this a joke?

Offline Saver2000

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Apr 2011
  • Posts: 7660
  • Total likes: 47
  • DansDeals.com Hat Tips 0
    • View Profile
Re: Credit Card For Beginners
« Reply #921 on: May 08, 2013, 10:11:52 AM »
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.
-1

Offline lfas25

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Sep 2012
  • Posts: 2122
  • Total likes: 62
  • DansDeals.com Hat Tips 13
    • View Profile
Re: Credit Card For Beginners
« Reply #922 on: May 08, 2013, 10:19:36 AM »
Is this a joke?

Do you seriously need to ask that?
I only paid 15% by switching to dansdeals

Offline Saver2000

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Apr 2011
  • Posts: 7660
  • Total likes: 47
  • DansDeals.com Hat Tips 0
    • View Profile
Re: Credit Card For Beginners
« Reply #923 on: May 08, 2013, 10:28:57 AM »
Do you seriously need to ask that?
Didn't mean to ask it as a question.  Was pointing out that its a joke, bec this is a thread for beginners many of them wont know that it's a joke.

Offline meshugener

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Feb 2012
  • Posts: 6887
  • Total likes: 62
  • DansDeals.com Hat Tips 4
  • Gender: Female
    • View Profile
  • Location: DDF
  • Programs: Amex Platinum, Chase Freedom 10X10 Exclusives, Avis Presidents Club, National Executive, Hertz 5 Star, Hilton Gold, Accor Platinum, Hyatt Platinum, Marriott Silver, SPG Gold, Club Carlson Gold
Re: Credit Card For Beginners
« Reply #924 on: May 08, 2013, 04:57:52 PM »
Can I include my monthly food stamps and sec. 8 ? 😋
Yes.
Its the law.
Lenders are required to consider public assistance income the same way as any other income.
If they deny you credit because part (or even your whole) income is earned from government assistance, you have the right to sue them.

Love me or hate me. I still love you.

Offline raphy781

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Feb 2013
  • Posts: 1524
  • Total likes: 4
  • DansDeals.com Hat Tips 3
    • View Profile
Re: Credit Card For Beginners
« Reply #925 on: May 08, 2013, 07:07:40 PM »
Which credit card is good for beginners? Babies R us didn't approve me.
If all else fails you can apply for secured credit card. They have an annual fee (around $30), but you are a basically guaranteed to get approved.

Offline ckmk47

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Aug 2012
  • Posts: 7961
  • Total likes: 1044
  • DansDeals.com Hat Tips 3
  • Gender: Female
    • View Profile
  • Location: brooklyn
Re: Credit Card For Beginners
« Reply #926 on: May 09, 2013, 02:23:55 AM »
Saveer2000
What's wrong with 'household income' being jointly the housewifes'?  They have a joint tax return (I'm guessing) so the income is shared.  It should pass a F/R.  It certainly works nicely on applications.  No job on application, yet have an  income.  get approved for cc's.
My favorite cause: cssy.org

Offline Saver2000

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Apr 2011
  • Posts: 7660
  • Total likes: 47
  • DansDeals.com Hat Tips 0
    • View Profile
Re: Credit Card For Beginners
« Reply #927 on: May 09, 2013, 03:15:53 AM »
Saveer2000
What's wrong with 'household income' being jointly the housewifes'?  They have a joint tax return (I'm guessing) so the income is shared.  It should pass a F/R.  It certainly works nicely on applications.  No job on application, yet have an  income.  get approved for cc's.
Sorry, I misunderstood your post. I just reread it, and now I understand what you're saying.

I thought you meant to say "household income is your income (as opposed to including your wifes salary in that amount ) ".

Offline rots5

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Jul 2011
  • Posts: 7996
  • Total likes: 27
  • DansDeals.com Hat Tips 17
    • View Profile
    • Custom Cakes for Every Occassion
  • Location: Monsey
Re: Credit Card For Beginners
« Reply #928 on: May 09, 2013, 07:41:48 AM »
i have to pay for a hotel, which card?

ink bold
spg
PRG
amex platt
hyatt
SP

TIA
If you have any questions please search and then ask. PM me for detailed help.

Offline Moishebatchy

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Jun 2011
  • Posts: 7278
  • Total likes: 151
  • DansDeals.com Hat Tips 23
    • View Profile
  • Location: Jerusalem
  • Programs: Arzei Makolet Platinum, Yossi's Makolet Silver, Yesh! Gold, Rav Kav Dirt
Re: Credit Card For Beginners
« Reply #929 on: May 09, 2013, 08:36:09 AM »
i have to pay for a hotel, which card?

ink bold
spg
PRG
amex platt
hyatt
SP

TIA

Which hotel?

Offline rots5

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Jul 2011
  • Posts: 7996
  • Total likes: 27
  • DansDeals.com Hat Tips 17
    • View Profile
    • Custom Cakes for Every Occassion
  • Location: Monsey
Re: Credit Card For Beginners
« Reply #930 on: May 09, 2013, 01:54:50 PM »
Which hotel?
the pavilions in Phuket. Thru jetsetter
If you have any questions please search and then ask. PM me for detailed help.

Offline Moishebatchy

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Jun 2011
  • Posts: 7278
  • Total likes: 151
  • DansDeals.com Hat Tips 23
    • View Profile
  • Location: Jerusalem
  • Programs: Arzei Makolet Platinum, Yossi's Makolet Silver, Yesh! Gold, Rav Kav Dirt
Re: Credit Card For Beginners
« Reply #931 on: May 09, 2013, 03:01:47 PM »
the pavilions in Phuket. Thru jetsetter

SP.

Offline sky121

  • Dansdeals Lifetime 10K Presidential Platinum Elite
  • *******
  • Join Date: May 2011
  • Posts: 11513
  • Total likes: 168
  • DansDeals.com Hat Tips 12
    • View Profile
Re: Credit Card For Beginners
« Reply #932 on: May 09, 2013, 05:06:14 PM »
Is there any credit card that offers any sort of protection for Ebay?
Looking to buy a new phone for someone.
"Not all who wander are lost"

Offline Marco Polo

  • Dansdeals Lifetime 10K Presidential Platinum Elite
  • *******
  • Join Date: Jul 2012
  • Posts: 13121
  • Total likes: 49
  • DansDeals.com Hat Tips 104
  • Gender: Male
    • View Profile
Re: Credit Card For Beginners
« Reply #933 on: May 09, 2013, 05:14:44 PM »
Is there any credit card that offers any sort of protection for Ebay?
Looking to buy a new phone for someone.
Maybe PM brubenfeld :)
Quaerite et Invenietis.

Offline sky121

  • Dansdeals Lifetime 10K Presidential Platinum Elite
  • *******
  • Join Date: May 2011
  • Posts: 11513
  • Total likes: 168
  • DansDeals.com Hat Tips 12
    • View Profile
Re: Credit Card For Beginners
« Reply #934 on: May 09, 2013, 05:18:04 PM »
Maybe PM brubenfeld :)

I need a Sprint phone though. Not sure he has those.
"Not all who wander are lost"

Offline Marco Polo

  • Dansdeals Lifetime 10K Presidential Platinum Elite
  • *******
  • Join Date: Jul 2012
  • Posts: 13121
  • Total likes: 49
  • DansDeals.com Hat Tips 104
  • Gender: Male
    • View Profile
Re: Credit Card For Beginners
« Reply #935 on: May 09, 2013, 05:18:51 PM »
I need a Sprint phone though. Not sure he has those.
Think he only does Verizon.
Quaerite et Invenietis.

Offline sky121

  • Dansdeals Lifetime 10K Presidential Platinum Elite
  • *******
  • Join Date: May 2011
  • Posts: 11513
  • Total likes: 168
  • DansDeals.com Hat Tips 12
    • View Profile
Re: Credit Card For Beginners
« Reply #936 on: May 09, 2013, 05:19:57 PM »
Think he only does Verizon.

Actually he did tell me he can get ATT as well. But yeah he mostly does Verizon I guess.
"Not all who wander are lost"

Offline DovtheBear

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Nov 2012
  • Posts: 2915
  • Total likes: 9
  • DansDeals.com Hat Tips 14
    • View Profile
  • Location: ליבי במזרח ואנכי בסוף מערב
  • Programs: Regus Gold, Hertz 5 Star, National Executive, Sixt Platinum, Chase Debit, Rav Kav Emerald
Re: Credit Card For Beginners
« Reply #937 on: May 09, 2013, 07:10:51 PM »
If i dont have an income but i live by my parents, what do i put down as income?
If i can become an AU on an old card that gets maxed out and carries a balance but affects the owners score well, shoud i?
"להסתובב זה לא אומר להיות חופשי"

Offline Shmulyg

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: May 2012
  • Posts: 2216
  • Total likes: 3
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: Kan Tzivah
Re: Credit Card For Beginners
« Reply #938 on: May 09, 2013, 07:19:07 PM »
If i can become an AU on an old card that gets maxed out and carries a balance but affects the owners score well, shoud i?
How do you know it affects the owner's score well?

Offline DovtheBear

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Nov 2012
  • Posts: 2915
  • Total likes: 9
  • DansDeals.com Hat Tips 14
    • View Profile
  • Location: ליבי במזרח ואנכי בסוף מערב
  • Programs: Regus Gold, Hertz 5 Star, National Executive, Sixt Platinum, Chase Debit, Rav Kav Emerald
Re: Credit Card For Beginners
« Reply #939 on: May 09, 2013, 07:25:44 PM »
How do you know it affects the owner's score well?
Its their only card and their score is good.
"להסתובב זה לא אומר להיות חופשי"