18 years old with debt: can I get a Citi secured card?

[Anonymous]

I just turned 18, and I have almost $6,000 in debt. Credit cards, cell phones, and store charge cards. I'm ready to establish a new credit history and do things right. Do you think that CiTi will deny me of the secured master card?



edit: This post was split off from an ancient thread to begin its own thread. --hauling

Message Edited by haulingthescoreup on 11-22-2009 01:17 PM

[llecs]

If you just turned 18, then I take it you are an AU on your other CCs, including the charge cards and cell phones?

Are those cell phones reporting on your CR? I believe cell phones only report if they turned bad and were CO'd.

[DI]

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@llecs wrote:

If you just turned 18, then I take it you are an AU on your other CCs, including the charge cards and cell phones?

Are those cell phones reporting on your CR? I believe cell phones only report if they turned bad and were CO'd.

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That's correct.  Many young people ruin their credit with cell phones before getting a credit card.    

[llecs]

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DI wrote:

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@llecs wrote:

If you just turned 18, then I take it you are an AU on your other CCs, including the charge cards and cell phones?

Are those cell phones reporting on your CR? I believe cell phones only report if they turned bad and were CO'd.

---

That's correct.  Many young people ruin their credit with cell phones before getting a credit card.    

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I figured. However the age of majority is 18 and technically OP shouldn't have any debt to his/her name because he couldn't sign any contracts.

[DI]

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@llecs wrote:

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@DI wrote:

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@llecs wrote:

If you just turned 18, then I take it you are an AU on your other CCs, including the charge cards and cell phones?

Are those cell phones reporting on your CR? I believe cell phones only report if they turned bad and were CO'd.

---

That's correct.  Many young people ruin their credit with cell phones before getting a credit card.    

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I figured. However the age of majority is 18 and technically OP shouldn't have any debt to his/her name because he couldn't sign any contracts.

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I've heard numerous times some high school students receive credit card offers in the mail.  But of course that was before the new credit card act.  

[Watchmann]

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@Anonymous wrote:
I just turned 18, and I have almost $6,000 in debt. Credit cards, cell phones, and store charge cards. I'm ready to establish a new credit history and do things right. Do you think that CiTi will deny me of the secured master card?

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Since you want to do things 'right', that would mean paying off the $6,000 in debt that you have incurred.  You should do that BEFORE you seek new credit.  Get on a cash basis and pay down the debt and stop using credit until that is done, then apply for new credit.  New credit can wait for now.  Eighteen years old and $6,000 in debt does not auger well for the future unless you get on the straight and narrow and get your current debt under control.

[Jazzzy]

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@Watchmann wrote:
Since you want to do things 'right', that would mean paying off the $6,000 in debt that you have incurred.  You should do that BEFORE you seek new credit.  Get on a cash basis and pay down the debt and stop using credit until that is done, then apply for new credit.  New credit can wait for now.  Eighteen years old and $6,000 in debt does not auger well for the future unless you get on the straight and narrow and get your current debt under control.

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+1...totally agree. Do some reading on the "Rebuilding Your Credit" forum.

Have you pulled your FICOs and credit reports?

[Anonymous]

Ok, I don't have a job and I get an allowance and that will take awhile to pay all that off. So it just seems much better if I start off with a secured card and pay the balance off in full each month. I would only make small purchases. I'm even considering CH7. But I will be graduating from HS soon and I will need to get an apt and a car also a student loan. I plan on having a job soon.

[Anonymous]

I've got my cell phone bill disputed and they have agreed to remove it off my credit report and let the collection agencies know. My score with EXPERIAN is 507. I don't know about EQUIFAX. Transunion 521. I just want to get my FICO score up! When I turn 18, i'll most likely apply for the Citi Secured Mastercard or the Orchard Bank Secured Mastercard.

[DI]

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@Anonymous wrote:

Ok, I don't have a job and I get an allowance and that will take awhile to pay all that off. So it just seems much better if I start off with a secured card and pay the balance off in full each month. I would only make small purchases. I'm even considering CH7. But I will be graduating from HS soon and I will need to get an apt and a car also a student loan. I plan on having a job soon.

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You are moving too fast too soon.  You're going to get yourself in a big mess.  Are you not planning to attend college? If you are, you shouldn't put a job before college.  You do not want to be dependent on a job while in college.  If you create so many responsibilities early on, you will find yourself having to work more and eventually withdraw from college.  You're 18...  chill out!  Good luck!! 

Message Edited by DI on 12-19-2009 04:45 PM