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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 918186 times)

Offline DovtheBear

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Re: Credit Card For Beginners
« Reply #1100 on: June 04, 2013, 11:08:07 PM »
A friend of mine has no Credit History, has never been an AU (as far as he knows) yet decided to apply for Starwoods.
He applied on his 18th birthday, putting down $100,000 in income and close to $500,000 in assets, when he makes no money, and owns the shirt on his back.
He was instantly approved for a $10,000 CL and $2,000 withdrawal.
1)Does this make (any) sense?
2) What should he do now?
"להסתובב זה לא אומר להיות חופשי"

Offline MEIR613

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Re: Credit Card For Beginners
« Reply #1101 on: June 04, 2013, 11:12:40 PM »
A friend of mine has no Credit History, has never been an AU (as far as he knows) yet decided to apply for Starwoods.
He applied on his 18th birthday, putting down $100,000 in income and close to $500,000 in assets, when he makes no money, and owns the shirt on his back.
He was instantly approved for a $10,000 CL and $2,000 withdrawal.
1)Does this make (any) sense?
2) What should he do now?
1)Yes
2)Start spending

Offline Moshe123

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Re: Credit Card For Beginners
« Reply #1102 on: June 04, 2013, 11:13:07 PM »
A friend of mine has no Credit History, has never been an AU (as far as he knows) yet decided to apply for Starwoods.
He applied on his 18th birthday, putting down $100,000 in income and close to $500,000 in assets, when he makes no money, and owns the shirt on his back.
He was instantly approved for a $10,000 CL and $2,000 withdrawal.
1)Does this make (any) sense?
2) What should he do now?

Lol!

Not do AP!

I guess that you should give it a shot with those numbers...

Offline DovtheBear

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Re: Credit Card For Beginners
« Reply #1103 on: June 04, 2013, 11:21:05 PM »
2)Start spending
Why?
Lol!

Not do AP!

I guess that you should give it a shot with those numbers...
Is it inadvisable to go the regular route (GW, BB, AP)?
"להסתובב זה לא אומר להיות חופשי"

Offline Shmulyg

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Re: Credit Card For Beginners
« Reply #1104 on: June 05, 2013, 12:01:24 AM »
Why?
To earn the 10k + 15k.

Is it inadvisable to go the regular route (GW, BB, AP)?
No AP. BB, yes, if done slowly. GW, AFAIK it's safe if done slowly.

Offline DovtheBear

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Re: Credit Card For Beginners
« Reply #1105 on: June 05, 2013, 12:02:55 AM »
To earn the 10k + 15k.
No AP. BB, yes, if done slowly. GW, AFAIK it's safe if done slowly.
Oh, okay.
Is this an advisable method for a beginner?
Why doesn't anyone else do it?
"להסתובב זה לא אומר להיות חופשי"

Offline Shmulyg

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Re: Credit Card For Beginners
« Reply #1106 on: June 05, 2013, 12:41:52 AM »
Oh, okay.
Is this an advisable method for a beginner?
Why doesn't anyone else do it?
He should check his credit report. Something is amiss.

Offline DovtheBear

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Re: Credit Card For Beginners
« Reply #1107 on: June 05, 2013, 12:43:20 AM »
He should check his credit report. Something is amiss.
Oh there is?
I was wondering why this wasn't a recommended method.
While on the subject, how does one assuage his conscience in regard to lying.
"להסתובב זה לא אומר להיות חופשי"

Offline tuvz

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Re: Credit Card For Beginners
« Reply #1108 on: June 05, 2013, 12:47:55 AM »
A friend of mine has no Credit History, has never been an AU (as far as he knows) yet decided to apply for Starwoods.
He applied on his 18th birthday, putting down $100,000 in income and close to $500,000 in assets, when he makes no money, and owns the shirt on his back.
He was instantly approved for a $10,000 CL and $2,000 withdrawal.
1)Does this make (any) sense?
2) What should he do now?



Buy a lottery ticket :)

Oh there is?
I was wondering why this wasn't a recommended method.
While on the subject, how does one assuage his conscience in regard to lying.

Theres a couple of threads about this and a general "is it ethical" thread.

Offline Shmulyg

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Re: Credit Card For Beginners
« Reply #1109 on: June 05, 2013, 12:48:46 AM »
While on the subject, how does one assuage his conscience in regard to lying.
Lol!

Offline glasses dude

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Re: Credit Card For Beginners
« Reply #1110 on: June 05, 2013, 02:05:33 AM »
Lol!
I suspect he's serious but he's young so he'll learn

Offline Thingywingy

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Re: Credit Card For Beginners
« Reply #1111 on: June 06, 2013, 02:09:59 AM »
Buy a lottery ticket :)

Buy me a lottery ticket!
I am sometimes accused of overthinking things. I am still mulling over whether that accusation has merit.

Offline avadah

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Re: Credit Card For Beginners
« Reply #1112 on: June 07, 2013, 02:04:32 AM »
I know I'm supposed to hold onto my first card for my credit history but I want to downgrade it to avoid the annual fee. Would it be considered the same card or a new one?

Offline Shmulyg

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Re: Credit Card For Beginners
« Reply #1113 on: June 07, 2013, 06:52:55 AM »
I know I'm supposed to hold onto my first card for my credit history but I want to downgrade it to avoid the annual fee. Would it be considered the same card or a new one?
Usually the same, but depends on the issuer.

Offline avadah

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Re: Credit Card For Beginners
« Reply #1114 on: June 07, 2013, 08:47:08 AM »
Capital 1

Offline raphy781

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Re: Credit Card For Beginners
« Reply #1115 on: June 07, 2013, 10:05:05 AM »
Capital 1
Is it the secured card?

Offline avadah

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Re: Credit Card For Beginners
« Reply #1116 on: June 08, 2013, 03:04:24 PM »
No it's the venture card.

Offline avadah

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Re: Credit Card For Beginners
« Reply #1117 on: June 08, 2013, 03:06:00 PM »
If I get approved instantly for a credit card does that mean there was no hard pull?

Offline U-no-me!

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Re: Credit Card For Beginners
« Reply #1118 on: June 08, 2013, 03:12:57 PM »
If I get approved instantly for a credit card does that mean there was no hard pull?

There was.
Vote U-no-me '14!

Offline mnscout

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Re: Credit Card For Beginners
« Reply #1119 on: June 08, 2013, 08:31:48 PM »