Hello all! I'm not sure if this would be the right section to post this since it's technically "building" credit instead of "rebuilding".
My GF is very new to credit. She has ZERO tradelines. Basically a blank slate. When opening up her checking account, she also applied for a CC which got denied. I'm sure it was becuase of having no credit history.
My question to you all is, What is the best way to go about starting her credit? I was thinking of having her sign up for a secured card with BofA. So far she just has that one inq from BofA.
You have 3 choices.
1) Secured Credit Card - You give them a certain amount of money and you can borrow against it then pay it back. Some companies will let that graduate to an unsecured after x amount of time (1+ year)
2) Go through a credit union (preferably one you have an account with!). That is how I started with no credit history. That $500 unsecured credit card has landed me a $1,000 Chase Freedom, $700 Walmart Store Card, $1,500 Discover IT Card, and a $1,000 American Express BCE.
3) If you have a credit card (and are responsible with it!!! No derogs, no lates, no baddies at all with the account!!!) You can add her as an AU (If you are willing to risk it! This is a very weighted decision!) This will give her a good history to start with!
Starting Score: 637Your GF has 4 options:
1. Put a lot of money in her banking account
2. Getting added as an authorized user
3. Obtaining a secured card
4. Obtaining a studetn card if she is a college student
I cover more details about these options on my blog if you're interested:
http://hiepsfinance.wordpress.com/credit-builders/applying-for-credit-cards/
@ObeyJohnny12 wrote:
@Siopao wrote:Hello all! I'm not sure if this would be the right section to post this since it's technically "building" credit instead of "rebuilding".
My GF is very new to credit. She has ZERO tradelines. Basically a blank slate. When opening up her checking account, she also applied for a CC which got denied. I'm sure it was becuase of having no credit history.
My question to you all is, What is the best way to go about starting her credit? I was thinking of having her sign up for a secured card with BofA. So far she just has that one inq from BofA.
I think getting a secured card trough BofA is a great idea since they are her primary bank, they are more willing to help her through that option. There's also Cap One's secured which is a great way to build credit, unfortunately it doesn't graduate so once she reaches primeville she can simply close it. Still think BofA secured is a great option since it graduates and she can add the 123 rewards to it after having for a certain amount of time.
One drawback of this card though is that it is reported as a secured card. If you get a Capital One secured card it will be reported as a regular credit card. 
@angelcred10 wrote:if your sister had no
scorehistory how'd she get approved for a student card through them.. heard they still need a decent score anyway.
Student cards belong to a different category. They often bear more default risk, but since the amount of risk is limited because of low credit limits, and since the potential reward is huge because the student is likely to build further relationship with the bank, many creditors are willing to go that route.