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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 918169 times)

Offline Shmulie

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Re: Credit Card For Beginners
« Reply #1420 on: December 30, 2013, 09:19:11 AM »
Thanks guys for the advice one more question how much should i charge to the card a month its a 1k limit

Offline avadah

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Re: Credit Card For Beginners
« Reply #1421 on: December 30, 2013, 09:29:50 AM »
I want to downgrade my amex plat to avoid paying the  AF.
1) What do I downgrade it to.
2) Do I lose my MR points when I downgrade or do lower level cards also use MR
3) Is the AF prorated that I only pay for the months I had it
thanx

Offline Shmulie

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Re: Credit Card For Beginners
« Reply #1422 on: December 30, 2013, 04:10:05 PM »
ok so after i got the discover i decided to try and get the card i really wanted so i did a 2bm for chase freedom and SP i called them up today and they said i was declined for the SP (which i expected) but the freedom was still processing so they push it along and i end up getting the freedom with a 3k limit i then called them back and asked for the status of the SP and they went over it with me again and then denied me saying i didnt have enough of my OWN credit history and the starting limit is 5k do you guys think i should try calling back again or just give up?

Offline notanonymous

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Re: Credit Card For Beginners
« Reply #1423 on: December 30, 2013, 08:01:13 PM »
I want to downgrade my amex plat to avoid paying the  AF.
1) What do I downgrade it to.
2) Do I lose my MR points when I downgrade or do lower level cards also use MR
3) Is the AF prorated that I only pay for the months I had it
thanx
The only card you can downgrade to is the green card, which has an annual fee.  If you have the Blue (or Blue Business) MR card, you can cancel the Gold without losing points.  But in order to transfer out, you'll need one of the charge cards again.

Offline henche

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Re: Credit Card For Beginners
« Reply #1424 on: December 30, 2013, 10:30:08 PM »
I need this thread. I have a whole new ss # as nichsei melug

Offline A European

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Re: Credit Card For Beginners
« Reply #1425 on: December 31, 2013, 02:32:49 AM »
I need this thread. I have a whole new ss # as nichsei melug
Mazel tov!
;)

Offline rots5

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Re: Credit Card For Beginners
« Reply #1426 on: January 01, 2014, 03:56:26 PM »
I need this thread. I have a whole new ss # as nichsei melug
heck ya! get working!

though hold off on the plat now, until next dec.
If you have any questions please search and then ask. PM me for detailed help.

Offline avadah

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Re: Credit Card For Beginners
« Reply #1427 on: January 07, 2014, 11:06:24 AM »
I have two different accounts with chase, a csp and an ink. I'm going to cancel my csp because the af is coming up and I was wondering about transferring my points. What's the difference between combining them with my ink or transferring to my wife's csp. Would I be able to move them back to a different account of mine (ex. a new csp I have yet to sign up for) after a transfer/combination? Thanks

Offline Lou Bob

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Re: Credit Card For Beginners
« Reply #1428 on: January 07, 2014, 11:13:11 AM »
I have two different accounts with chase, a csp and an ink. I'm going to cancel my csp because the af is coming up and I was wondering about transferring my points. What's the difference between combining them with my ink or transferring to my wife's csp. Would I be able to move them back to a different account of mine (ex. a new csp I have yet to sign up for) after a transfer/combination? Thanks
Don't cancel the csp. Apply first for other cards and use/close it as leverage.

Also, transfer the points to the ink and then transfer back later
Always use an Amex, you'll thank me one day.

Offline avadah

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Re: Credit Card For Beginners
« Reply #1429 on: January 08, 2014, 09:14:58 AM »
Don't cancel the csp. Apply first for other cards and use/close it as leverage.

Also, transfer the points to the ink and then transfer back later
I meant downgrade not cancel. What's the advantage of transferring to ink instead of spouse?

Offline A European

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Re: Credit Card For Beginners
« Reply #1430 on: January 09, 2014, 10:31:02 AM »
I meant downgrade not cancel. What's the advantage of transferring to ink instead of spouse?
0

Offline Mouse

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Re: Credit Card For Beginners
« Reply #1431 on: January 10, 2014, 03:33:06 AM »
None of the chase cards give bonuses if you spend a certain amount annually? (Just want to make sure i understood this correctly http://forums.dansdeals.com/index.php?topic=25991.0 )

Offline HP58

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Re: Credit Card For Beginners
« Reply #1432 on: January 10, 2014, 04:01:09 AM »
None of the chase cards give bonuses if you spend a certain amount annually? (Just want to make sure i understood this correctly  )
People have reported getting matched to the $20k/100k Avios offer on Chase BA.

Offline Mouse

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Re: Credit Card For Beginners
« Reply #1433 on: January 10, 2014, 07:23:25 AM »
Is it worth pumping in $20k for only a chance or is it pretty common?

Offline raphy781

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Re: Credit Card For Beginners
« Reply #1434 on: January 10, 2014, 07:37:38 AM »
Is it worth pumping in $20k for only a chance or is it pretty common?
You only spend the 20k after they agree to match the 100k offer.

Offline popcorn1508

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Re: Credit Card For Beginners
« Reply #1435 on: January 10, 2014, 03:26:28 PM »
Is it worth pumping in $20k for only a chance or is it pretty common?
and even then its not worth it your better opening up a few more new cards

Offline avadah

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Re: Credit Card For Beginners
« Reply #1436 on: January 11, 2014, 06:47:18 PM »
Why?

Offline ushdadude

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Re: Credit Card For Beginners
« Reply #1437 on: January 11, 2014, 07:05:57 PM »
Why?


20k for 50k miles isn't great. You can open 4 cards with that kind of spend and get a lot more.

Offline dudi

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Re: Credit Card For Beginners
« Reply #1438 on: January 12, 2014, 01:16:17 AM »
I applied 5 days ago for chase sapphire prrefred  and chase united miles explorer using 2bm I have not heard from them anything yet is there any way to check was is the story? Also if I was denied and I'm calling the reconsideration line how does it work do I call them about each one sepratly our do I tell them I applied for two?

Offline Lou Bob

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Re: Credit Card For Beginners
« Reply #1439 on: January 12, 2014, 01:20:30 AM »
I applied 5 days ago for chase sapphire prrefred  and chase united miles explorer using 2bm I have not heard from them anything yet is there any way to check was is the story? Also if I was denied and I'm calling the reconsideration line how does it work do I call them about each one sepratly our do I tell them I applied for two?
call recon. Ask them about one.  Once that is approved,  ask about the other. If second card isn't approved, start HUCA till you get it.  Keep In mind, When approved for the first, try transferring credit from there to the second card if they don't approve it
Always use an Amex, you'll thank me one day.