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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 918701 times)

Offline ayman

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Re: Credit Card For Beginners
« Reply #1240 on: August 21, 2013, 04:11:24 PM »
ok haven't tried yet, but saw on FT absolutely don't make up yrs and revenue for a citi business card. Write 0 yrs and 0 revenue, still gets approved.
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Offline avadah

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Re: Credit Card For Beginners
« Reply #1241 on: August 23, 2013, 02:35:18 AM »
Do CC companies only report to the bureau they pull from?

Offline ayman

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Re: Credit Card For Beginners
« Reply #1242 on: August 23, 2013, 02:39:51 AM »
No
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Offline joey123

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Re: Credit Card For Beginners
« Reply #1243 on: August 25, 2013, 01:49:22 AM »
Does becoming an AU on an Amex Business card help backdate your history or only Amex personal?
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Offline Shmulyg

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Re: Credit Card For Beginners
« Reply #1244 on: August 25, 2013, 06:51:41 AM »
Does becoming an AU on an Amex Business card help backdate your history or only Amex personal?
Amex biz cards are not reported to the credit bureaus.

Offline DovtheBear

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Re: Credit Card For Beginners
« Reply #1245 on: August 25, 2013, 11:36:31 PM »
Amex biz cards are not reported to the credit bureaus.
All biz or just AMEX?
"להסתובב זה לא אומר להיות חופשי"

Offline ayman

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Re: Credit Card For Beginners
« Reply #1246 on: August 26, 2013, 12:00:05 AM »
All biz
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Offline Shmulyg

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Re: Credit Card For Beginners
« Reply #1247 on: August 26, 2013, 04:54:39 AM »

Offline ayman

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Re: Credit Card For Beginners
« Reply #1248 on: August 26, 2013, 09:35:43 AM »
Which ones post?
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Offline lfas25

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Re: Credit Card For Beginners
« Reply #1249 on: August 26, 2013, 10:41:32 AM »
Which ones post?

I have a TD Business and they report everything in my reports.
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Offline jbizz

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Re: Credit Card For Beginners
« Reply #1250 on: August 26, 2013, 11:07:15 AM »
As far as the FAKO/FICO thing goes does anyone have an opinion on http://www.scoresense.com/help/faq.aspx?

Offline Super Speed

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Re: Credit Card For Beginners
« Reply #1251 on: August 26, 2013, 06:25:11 PM »

I have a TD Business and they report everything in my reports.
Why do you have a TD business CC, any good bonuses?

Offline lfas25

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Re: Credit Card For Beginners
« Reply #1252 on: August 26, 2013, 09:47:32 PM »
Why do you have a TD business CC, any good bonuses?

Nope. Pre-ddf
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Offline Super Speed

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Re: Credit Card For Beginners
« Reply #1253 on: August 26, 2013, 10:00:38 PM »

Offline Ddmiller999

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Re: Credit Card For Beginners
« Reply #1254 on: August 28, 2013, 04:22:52 PM »
Just thought I'd share: I applied for many credit cards but was denied bec of lack of credit history. I was 20 yrs old and applied for the State Farm student card and was accepted. Great starter card but has no perks. No annual fee.

Offline lfas25

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Re: Credit Card For Beginners
« Reply #1255 on: August 28, 2013, 04:25:36 PM »
Just thought I'd share: I applied for many credit cards but was denied bec of lack of credit history. I was 20 yrs old and applied for the State Farm student card and was accepted. Great starter card but has no perks. No annual fee.

When was this?
I only paid 15% by switching to dansdeals

Offline Thingywingy

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Re: Credit Card For Beginners
« Reply #1256 on: October 07, 2013, 02:41:48 PM »
Im helping a family member build credit...I got them a Target card in their own name about 6 months ago...should I add them as a joint cardholder 1st...or go straight to applying for an easier card like Freedom?
I am sometimes accused of overthinking things. I am still mulling over whether that accusation has merit.

Offline ayman

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Re: Credit Card For Beginners
« Reply #1257 on: October 07, 2013, 03:17:40 PM »
Got my bro a citi forward card as his first card, not store card or joint accts beforehand
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Offline Barryg

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Re: Credit Card For Beginners
« Reply #1258 on: October 07, 2013, 08:14:53 PM »
Im helping a family member build credit...I got them a Target card in their own name about 6 months ago...should I add them as a joint cardholder 1st...or go straight to applying for an easier card like Freedom?
What would be the con of adding to a card with low utilization? (don't see the 2 tzedadim here) Remembering that it's a marathon not a short race...

Offline DovtheBear

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Re: Credit Card For Beginners
« Reply #1259 on: October 08, 2013, 12:06:48 AM »
How bad is a high utilization score (a couple of months in a row)?
"להסתובב זה לא אומר להיות חופשי"