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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 918561 times)

Offline MeirS

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Re: Credit Card For Beginners
« Reply #1440 on: January 12, 2014, 03:25:16 AM »
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
If the first card is not approved, don't mention the second card, just HUCA.

Offline avadah

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Re: Credit Card For Beginners
« Reply #1441 on: January 12, 2014, 07:52:48 AM »

20k for 50k miles isn't great. You can open 4 cards with that kind of spend and get a lot more.
I thought it's a bonus of 100k after spending 20k

Offline ushdadude

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Re: Credit Card For Beginners
« Reply #1442 on: January 12, 2014, 08:00:02 AM »
I thought it's a bonus of 100k after spending 20k

You get the first 50k after spending just 2k so the additional 50k will cost you 18k

Offline avadah

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Re: Credit Card For Beginners
« Reply #1443 on: January 12, 2014, 08:30:59 AM »
You only spend the 20k after they agree to match the 100k offer.

So this is getting matched for 100k after spending 20k or getting matched for 50k after?

Offline dudi

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Re: Credit Card For Beginners
« Reply #1444 on: January 12, 2014, 09:03:41 AM »
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
I should call them already now? Our wait until I'm declined?

Offline raphy781

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Re: Credit Card For Beginners
« Reply #1445 on: January 12, 2014, 09:05:10 AM »
I should call them already now? Our wait until I'm declined?
No reason to wait although today is Sunday so they're closed.

Offline ushdadude

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Re: Credit Card For Beginners
« Reply #1446 on: January 12, 2014, 10:20:30 AM »
So this is getting matched for 100k after spending 20k or getting matched for 50k after?

IIRC the 100k offer is for 50k initially. I would spend 2k to meet original offer and then sm for larger offer

Offline dudi

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Re: Credit Card For Beginners
« Reply #1447 on: January 13, 2014, 01:44:03 PM »
Did a 2bm on my wife's name a week ago with chase been waiting it said will let me know in two weeks today one of them switched to 7-10 days which means declined . now today the whole morning chase have been calling my wife she was working so she couldn't answer is this normal that they call you? What do they want? What should I be telling them?

Offline moka

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Re: Credit Card For Beginners
« Reply #1448 on: January 13, 2014, 11:03:18 PM »
I have a freedom with $500 cl. I'm trying to transfer some credit from my ba. They keep telling me they can't transfer credit unless I close the card. Any helpful ideas?

Offline Shmulyg

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Re: Credit Card For Beginners
« Reply #1449 on: January 14, 2014, 01:00:17 AM »
I have a freedom with $500 cl. I'm trying to transfer some credit from my ba. They keep telling me they can't transfer credit unless I close the card. Any helpful ideas?
It's standard. They won't let you go under $500.

Offline moka

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Re: Credit Card For Beginners
« Reply #1450 on: January 14, 2014, 01:10:35 AM »
It's standard. They won't let you go under $500.
im trying to transfer $1500 credit from my ba which has a cl of $11500

Offline Shmulyg

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Re: Credit Card For Beginners
« Reply #1451 on: January 14, 2014, 01:18:35 AM »
im trying to transfer $1500 credit from my ba which has a cl of $11500
Sorry, i misunderstood you. The rep. may be making the same mistake as i did. I would HUCA. AFAIK, this is unheard of.

Offline wayfe

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Re: Credit Card For Beginners
« Reply #1452 on: January 14, 2014, 02:24:21 AM »
How does a balance transfer work- is there a fee from the bank paying off the balance or a fee from the bank receiving the payment? Both? Can I transfer any balance or does it need to be an overdue balance? If I pay off the transfer right away do I still get charged interest?
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Offline zh cohen

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Re: Credit Card For Beginners
« Reply #1453 on: January 14, 2014, 11:37:22 AM »
How does a balance transfer work- is there a fee from the bank paying off the balance or a fee from the bank receiving the payment? Both? Can I transfer any balance or does it need to be an overdue balance? If I pay off the transfer right away do I still get charged interest?

The bank paying off the balance basically sends a check on your behalf to the other bank,  then charges you the about they paid plus a fee (a certain percent of what they paid).

You can transfer any balance.

No.  (you'll only pay the balance transfer fee)

Offline wayfe

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Re: Credit Card For Beginners
« Reply #1454 on: January 14, 2014, 05:26:48 PM »
The bank paying off the balance basically sends a check on your behalf to the other bank,  then charges you the about they paid plus a fee (a certain percent of what they paid).

You can transfer any balance.

No.  (you'll only pay the balance transfer fee)

thanks
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Offline wayfe

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Re: Credit Card For Beginners
« Reply #1455 on: January 17, 2014, 12:20:24 PM »
Can you do a balance transfer to an account with no balance or overpay with the transfer? Will that cause any problems?
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Offline dudi

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Re: Credit Card For Beginners
« Reply #1456 on: January 19, 2014, 02:41:48 PM »
Could I donate money on a web site to make up for the spending in the first month or two of the credit card to get my bonus miles?

Offline raphy781

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Re: Credit Card For Beginners
« Reply #1457 on: January 19, 2014, 02:42:55 PM »
Could I donate money on a web site to make up for the spending in the first month or two of the credit card to get my bonus miles?
Yes.

Offline dudi

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Re: Credit Card For Beginners
« Reply #1458 on: January 19, 2014, 03:02:48 PM »

Offline dudi

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Re: Credit Card For Beginners
« Reply #1459 on: January 20, 2014, 12:57:50 AM »
If one does not have a SSN yet and puts himself as a AU would that build up his credit? If yes how would they know it's me?