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 918190 times)

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 #1020 on: May 13, 2013, 09:26:40 AM »
Get a copy of your credit report and see for yourself.
Love me or hate me. I still love you.

Offline htg123

  • Dansdeals Platinum Elite
  • ****
  • Join Date: Jun 2012
  • Posts: 324
  • Total likes: 8
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: New York
Re: Credit Card For Beginners
« Reply #1021 on: May 13, 2013, 09:28:50 AM »
what about the other question

Offline smaxber

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Mar 2013
  • Posts: 1432
  • Total likes: 3
  • DansDeals.com Hat Tips 4
    • View Profile
Re: Credit Card For Beginners
« Reply #1022 on: May 13, 2013, 10:10:55 AM »
lol, You have no idea. Opened 16 today, this is serious stuff :P

Wow! Maybe you'll consider throwing some in for me  ;D

There has to be something more to this trade than just clicking submit. You HUCA also for them?

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 #1023 on: May 13, 2013, 09:09:44 PM »
Do all CC issuers automatically backdate the history for an Au?
How long does it take?
"להסתובב זה לא אומר להיות חופשי"

Offline MEIR613

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Aug 2012
  • Posts: 4593
  • Total likes: 6
  • DansDeals.com Hat Tips 7
    • View Profile
Re: Credit Card For Beginners
« Reply #1024 on: May 13, 2013, 09:20:01 PM »
Do all CC issuers automatically backdate the history for an Au?
How long does it take?
No.

Only Amex AFAIK


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 #1025 on: May 13, 2013, 09:20:47 PM »
No.

Only Amex AFAIK
Aw, really. So when does it start?
"להסתובב זה לא אומר להיות חופשי"

Offline Shreknit

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Apr 2013
  • Posts: 1180
  • Total likes: 2
  • DansDeals.com Hat Tips 3
    • View Profile
Re: Credit Card For Beginners
« Reply #1026 on: May 13, 2013, 10:08:37 PM »
Aw, really. So when does it start?

Dov I see your very active all of a sudden. Trying to get to 1000 by next week?

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 #1027 on: May 13, 2013, 10:10:53 PM »
Dov I see your very active all of a sudden.
Huh?
Trying to get to 1000 by next week?
No. Im always active at this time of day. Im nocturnal  :D
"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 #1028 on: May 13, 2013, 11:22:08 PM »
Dov I see your very active all of a sudden. Trying to get to 1000 by next week?
The poor kid just turned 18...  :'(
He's been on the sidelines all this time...

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 #1029 on: May 13, 2013, 11:25:58 PM »
The poor kid just turned 18...  :'(
He's been on the sidelines all this time...
+1
Thanks for the backup.
"להסתובב זה לא אומר להיות חופשי"

Offline smaxber

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Mar 2013
  • Posts: 1432
  • Total likes: 3
  • DansDeals.com Hat Tips 4
    • View Profile
Re: Credit Card For Beginners
« Reply #1030 on: May 13, 2013, 11:34:19 PM »
The poor kid just turned 18...  :'(
He's been on the sidelines all this time...
Lol

Offline jaywhy

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Sep 2012
  • Posts: 3767
  • Total likes: 68
  • DansDeals.com Hat Tips 7
    • View Profile
Re: Credit Card For Beginners
« Reply #1031 on: May 14, 2013, 12:00:06 AM »
+1
Thanks for the backup.
Props for being on the sidelines this whole time without even playing the game.  :)

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 #1032 on: May 14, 2013, 12:45:48 AM »
i recently received an ITIN in lieu of a SSN. I became an AU on Amex cards of two different ppl. How long will it take to affect my credit score? Does it make sense that Amex made a hard pull on me? coz i applied for a discover student card and got denied, they told me to call Transunion, and they told me i had too many pulls on my name. I  did apply for capital one secured a month ago and they still havent made a decision. but transunion said I have another pull on my name, they wont tell me who its from.
My sister was declined by both BOA and capital one (for the secured card). I added her as an AU on my starwoods account and 5 months later she was approved for a gap card.

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 #1033 on: May 14, 2013, 02:49:53 PM »
Props for being on the sidelines this whole time without even playing the game.  :)
Thanks
"להסתובב זה לא אומר להיות חופשי"

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 #1034 on: May 14, 2013, 05:13:08 PM »
Is there a problem with applying (and hopefully even getting) 2 secured cards?
Also, do i have to keep them for a certain amount time? Regarding both the bank and my CS.
"להסתובב זה לא אומר להיות חופשי"

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 #1035 on: May 14, 2013, 05:39:06 PM »
Is there a problem with applying (and hopefully even getting) 2 secured cards?
Also, do i have to keep them for a certain amount time? Regarding both the bank and my CS.
After a few months with the secured card you should have no problem getting a regular card, so why pay an annual fee for 2 cards?

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 #1036 on: May 14, 2013, 05:45:00 PM »
After a few months with the secured card you should have no problem getting a regular card, so why pay an annual fee for 2 cards?
1st of all, wont that build credit faster?
2nd the second is a better offer and i didn't see it before.
"להסתובב זה לא אומר להיות חופשי"

Offline dsw193

  • Dansdeals Platinum Elite + Lifetime Silver Elite
  • *****
  • Join Date: Feb 2013
  • Posts: 649
  • Total likes: 7
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: Brooklyn, NY
Re: Credit Card For Beginners
« Reply #1037 on: May 14, 2013, 05:54:51 PM »
1st of all, wont that build credit faster?
2nd the second is a better offer and i didn't see it before.
getting second will lower your already low age.

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 #1038 on: May 14, 2013, 06:22:36 PM »
getting second will lower your already low age.
-1
Not is he just got his first.

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 #1039 on: May 14, 2013, 06:36:52 PM »
-1
Not is he just got his first.
Apple bank takes a couple of days to review app, and i just also applied for the LAN but got denied. What should i do? Retry (with higher income)?
"להסתובב זה לא אומר להיות חופשי"