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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 918484 times)

Offline raphy781

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Re: Credit Card For Beginners
« Reply #940 on: May 09, 2013, 07:28:28 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?
If you're over 21 you can include your parents income. Under 21 it's gotta be your own.

Offline DovtheBear

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Re: Credit Card For Beginners
« Reply #941 on: May 09, 2013, 07:30:00 PM »
If you're over 21 you can include your parents income. Under 21 it's gotta be your own.
Really?
So what does the oilam suggest (im under 21)?
"להסתובב זה לא אומר להיות חופשי"

Offline raphy781

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Re: Credit Card For Beginners
« Reply #942 on: May 09, 2013, 07:31:46 PM »
Really?
So what does the oilam suggest (im under 21)?
Me too. I opened a secured card and put down like 8k as my annual income.

Offline DovtheBear

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Re: Credit Card For Beginners
« Reply #943 on: May 09, 2013, 07:33:00 PM »
but i dont have any (real) income.
"להסתובב זה לא אומר להיות חופשי"

Offline Shreknit

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Re: Credit Card For Beginners
« Reply #944 on: May 09, 2013, 07:33:46 PM »
but i dont have any (real) income.

There's plenty people who don't either and get cards.

Offline DovtheBear

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Re: Credit Card For Beginners
« Reply #945 on: May 09, 2013, 07:40:40 PM »
There's plenty people who don't either and get cards.
i know. ::) But what do they write?
"להסתובב זה לא אומר להיות חופשי"

Offline sky121

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Re: Credit Card For Beginners
« Reply #946 on: May 09, 2013, 07:41:46 PM »
i know. ::) But what do they write?

They lie?
"Not all who wander are lost"

Offline DovtheBear

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Re: Credit Card For Beginners
« Reply #947 on: May 09, 2013, 07:42:47 PM »
"להסתובב זה לא אומר להיות חופשי"

Offline raphy781

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Re: Credit Card For Beginners
« Reply #948 on: May 09, 2013, 07:44:22 PM »
::) How much?
Are you in college/yeshiva?

Offline DovtheBear

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Re: Credit Card For Beginners
« Reply #949 on: May 09, 2013, 07:45:02 PM »
Are you in college/yeshiva?
Nope (not yet). Yeshiva.
"להסתובב זה לא אומר להיות חופשי"

Offline raphy781

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Re: Credit Card For Beginners
« Reply #950 on: May 09, 2013, 07:48:33 PM »
Nope (not yet). Yeshiva.
Are you getting a degree of some sort? BTL etc.?

Offline DovtheBear

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Re: Credit Card For Beginners
« Reply #951 on: May 09, 2013, 07:51:26 PM »
Are you getting a degree of some sort? BTL etc.?
Im getting credits.  :-\
"להסתובב זה לא אומר להיות חופשי"

Offline raphy781

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Re: Credit Card For Beginners
« Reply #952 on: May 09, 2013, 07:55:06 PM »
Im getting credits.  :-\
Apply for a student card

Offline DovtheBear

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Re: Credit Card For Beginners
« Reply #953 on: May 09, 2013, 07:57:58 PM »
Apply for a student card
Yah i guess i will. Although my banker at chase said i might be able to apply soon for chase cards.
"להסתובב זה לא אומר להיות חופשי"

Offline Shmulyg

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Re: Credit Card For Beginners
« Reply #954 on: May 09, 2013, 08:19:55 PM »
Its their only card and their score is good.
So then you should be good as well.

Offline DovtheBear

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Re: Credit Card For Beginners
« Reply #955 on: May 09, 2013, 08:23:29 PM »
So then you should be good as well.
Thanks
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Offline smaxber

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Re: Credit Card For Beginners
« Reply #956 on: May 10, 2013, 10:03:18 AM »
Hey all I'm thinking of opening a card for my sister. She's 18 I'm thinking a student card. Either discover it or citi dividends....any reason to go for one over the other?
TIA

Offline Shmulyg

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Re: Credit Card For Beginners
« Reply #957 on: May 10, 2013, 10:05:11 AM »
Hey all I'm thinking of opening a card for my sister. She's 18 I'm thinking a student card. Either discover it or citi dividends....any reason to go for one over the other?
TIA
Citi Dividends is not a student card, AFAIK. Cap1 Journey is from the easiest cards to get accepted to, IME.

Offline smaxber

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Re: Credit Card For Beginners
« Reply #958 on: May 10, 2013, 10:06:34 AM »
Citi Dividends is not a student card, AFAIK.
Was "considered" at least 1 when I applied about 7-8 months ago...maybe they just help students with getting credit...