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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 918466 times)

Offline sky121

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Re: Credit Card For Beginners
« Reply #1140 on: June 16, 2013, 07:22:16 PM »
Quick question.. if i use GC or AP to meet a spending threshold do i need to wait till the bill comes or can i put that $1000 or whatever and pay the bill before it even comes. or will this not give me the signup miles??

You don't have to wait until the bill comes but I would wait until the charge actually posts before paying it.
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Offline money spender #4

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Re: Credit Card For Beginners
« Reply #1141 on: June 16, 2013, 07:34:04 PM »
You don't have to wait until the bill comes but I would wait until the charge actually posts before paying it.

thank you very much for your prompt reply!!

another questions if i may...

if i sign an AU on a card is that double the points? meaning if i get an ink bold and get the 50k or 60 bonus can i get it again if i sign an AU in the first 90 days and spend another 5k?? i figure im probably dreaming since it woulndt make much sense but figured i would ask.

Offline Shmulyg

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Re: Credit Card For Beginners
« Reply #1142 on: June 16, 2013, 07:41:31 PM »
thank you very much for your prompt reply!!

another questions if i may...

if i sign an AU on a card is that double the points? meaning if i get an ink bold and get the 50k or 60 bonus can i get it again if i sign an AU in the first 90 days and spend another 5k?? i figure im probably dreaming since it woulndt make much sense but figured i would ask.
Indeed you are.

Offline YT

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Re: Credit Card For Beginners
« Reply #1143 on: June 18, 2013, 07:48:50 AM »
So I finally got my first cards and I want to pay off the bill but it wont let me because it says the minimum payment due is $0. How do I pay off the balance if the whole charge is pending? Also the payment due date is the 24th so what if it is still pending by the 24th?

TIA

Offline Saver2000

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Re: Credit Card For Beginners
« Reply #1144 on: June 18, 2013, 08:19:11 AM »
So I finally got my first cards and I want to pay off the bill but it wont let me because it says the minimum payment due is $0. How do I pay off the balance if the whole charge is pending? Also the payment due date is the 24th so what if it is still pending by the 24th?

TIA
Which bank?

Offline sky121

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Re: Credit Card For Beginners
« Reply #1145 on: June 18, 2013, 09:13:33 AM »
So I finally got my first cards and I want to pay off the bill but it wont let me because it says the minimum payment due is $0. How do I pay off the balance if the whole charge is pending? Also the payment due date is the 24th so what if it is still pending by the 24th?

TIA

The charge is still pending ? Wait until it posts. If it's Chase or some others you can pay it in the bank.
"Not all who wander are lost"

Offline YT

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Re: Credit Card For Beginners
« Reply #1146 on: June 18, 2013, 09:50:38 AM »
Which bank?

Chase.

Is there a way to pay it online tho?

Offline sky121

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Re: Credit Card For Beginners
« Reply #1147 on: June 18, 2013, 09:54:58 AM »
Chase.

Is there a way to pay it online tho?

Wait until it posts.
Or maybe try to send payment to a credit card in the pay bills section and add the card as a separate account.
"Not all who wander are lost"

Offline YT

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Re: Credit Card For Beginners
« Reply #1148 on: June 18, 2013, 10:18:33 AM »
K thanks.

Also I'm  just kinda scared because I want to start buying GCs with my two cards but I'm afraid if I buy tons of GCs they're going to question me on it.  I bought a couple things here and there on each of the cards but if I start exclusively buying GCs from now on are they going to shut me down?

Offline sky121

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Re: Credit Card For Beginners
« Reply #1149 on: June 18, 2013, 10:20:18 AM »
K thanks.

Also I'm  just kinda scared because I want to start buying GCs with my two cards but I'm afraid if I buy tons of GCs they're going to question me on it.  I bought a couple things here and there on each of the cards but if I start exclusively buying GCs from now on are they going to shut me down?

Keep using your cards for everyday purchases and don't go crazy with the gift cards and you should be ok.
Chase is more lenient with these things than other banks IMO.
"Not all who wander are lost"

Offline YT

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Re: Credit Card For Beginners
« Reply #1150 on: June 18, 2013, 10:24:14 AM »
Keep using your cards for everyday purchases and don't go crazy with the gift cards and you should be ok.
Chase is more lenient with these things than other banks IMO.

So each of your cards you do actual spending on?
Do you have any cards that you only use with AP/GC/Vanillas?

Offline DovtheBear

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Re: Credit Card For Beginners
« Reply #1151 on: June 20, 2013, 12:44:37 AM »
Is there a suggested percentage (of CL) to let the statement close with?
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Offline MEIR613

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Re: Credit Card For Beginners
« Reply #1152 on: June 20, 2013, 12:47:09 AM »
Is there a suggested percentage (of CL) to let the statement close with?
More than 90% of the CL should be open.

Offline jj1000

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Re: Credit Card For Beginners
« Reply #1153 on: June 20, 2013, 12:48:16 AM »
Is there a suggested percentage (of CL) to let the statement close with?
Sure $1 to what ever your CL is.

Mainly try to keep it below 10% and you should be great. But why not $1...
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Offline DovtheBear

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Re: Credit Card For Beginners
« Reply #1154 on: June 20, 2013, 12:52:46 AM »
More than 90% of the CL should be open.
Meaning only 10% used?
Sure $1 to what ever your CL is.

Mainly try to keep it below 10% and you should be great. But why not $1...
I thought they report a Utilization Score (something like that) and if its too low its not good?
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Offline MEIR613

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Re: Credit Card For Beginners
« Reply #1155 on: June 20, 2013, 12:54:08 AM »
Meaning only 10% used?I thought they report a Utilization Score (something like that) and if its too low its not good?
Yes, you should close your statement with less than 10% credit utilization and at least one dollar spent.

Offline jj1000

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Re: Credit Card For Beginners
« Reply #1156 on: June 20, 2013, 12:55:34 AM »
I thought they report a Utilization Score (something like that) and if its too low its not good?
They do report your utilization score. I've never heard that before, but I'm no expert.
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Re: Credit Card For Beginners
« Reply #1157 on: June 20, 2013, 01:42:59 AM »
Yes, you should close your statement with less than 10% credit utilization and at least one dollar spent.
Okay, great to know.
Thanks.
They do report your utilization score. I've never heard that before, but I'm no expert.
Your type of non-expert I trust. ;)
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Re: Credit Card For Beginners
« Reply #1158 on: June 22, 2013, 12:10:00 AM »
Meaning only 10% used?I thought they report a Utilization Score (something like that) and if its too low its not good?

In all honesty, I usually have tremendously low UR and I'm too lazy to remember to make small charges on all my credit cards (all 2 dozen of them at any given moment), and I haven't noticed that they would penalize me for it in any way, shape and form. So while UR that's too low might not be good--theoretically--it's not nearly as bad as high UR; now that will really screw up your AOR game. And btw, 10% is not low anyway. 

Offline A European

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Re: Credit Card For Beginners
« Reply #1159 on: June 22, 2013, 11:02:44 PM »

Is it a problem if i pay my business credit card with a personal checking account ?

Also could I link my wife's personal checking account to my business credit card (Or My personal )?

All chase CC and checking accounts .
« Last Edit: June 22, 2013, 11:05:59 PM by A European »