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Frequent Contributor
Cotton_Britches
Posts: 259
Registered: ‎06-11-2008
0

Cards For Limited Credit?

My twenty-something nephew wants to establish his credit. His reports are empty except for one local furniture credit account that he's already paid off. He applied for a PayPal MasterCard but was turned down due to insufficient credit. He wasn't offered the Smart Connect account. Which cards should he try for next that may be willing to approve him?
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"I will walk by faith, even when I cannot see. Because this broken road prepares your will for me." - Jeremy Camp
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HiLine
Posts: 3,088
Registered: ‎10-19-2012
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Re: Cards For Limited Credit?

Your best bet would be to either add your nephew as an authorized user or get him to apply for a secured card. Capital One also has a card that specifcally targets consumers without a credit history.

Senior Contributor
Wolf3
Posts: 3,197
Registered: ‎01-24-2010
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Re: Cards For Limited Credit?

Most any secured card will approve him since there are no negatives.   And there are good ones with most major banks and many CU's.  

 

I would pick the secured card from someone who I wanted unsecured CC from in the future.

 

 

Frequent Contributor
Cotton_Britches
Posts: 259
Registered: ‎06-11-2008
0

Re: Cards For Limited Credit?

He initially thought of First Premier until I told him how bad an idea that is. According to the First Premier website, they charge card applicants a one-time "processing fee" of $95.00!  Insane.

_______________________________________________________________________________________

"I will walk by faith, even when I cannot see. Because this broken road prepares your will for me." - Jeremy Camp
Blogger
HiLine
Posts: 3,088
Registered: ‎10-19-2012
0

Re: Cards For Limited Credit?

Did you know that First Premier is the absolute worst credit card in the market? :smileywink:

Frequent Contributor
Cotton_Britches
Posts: 259
Registered: ‎06-11-2008
0

Re: Cards For Limited Credit?

Yes. That's why I told him to avoid it!  :smileywink:

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"I will walk by faith, even when I cannot see. Because this broken road prepares your will for me." - Jeremy Camp
Moderator Emeritus
webhopper
Posts: 7,225
Registered: ‎09-16-2011
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Re: Cards For Limited Credit?

Secured cards and secured loans from credit union is the best way in my opinion to establish good payment history. He can start with secured and then apply for unsecured later on. Digital credit union can be joined by anyone... there are also local credit unions that have similar products. That's the route I would take.

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Senior Contributor
jsucool76
Posts: 3,666
Registered: ‎12-11-2011
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Re: Cards For Limited Credit?

I'll +1 the secured card idea. Be aware it IS possible to be denied for a secured credit card though, cap1 denied me for theirs. 

 

If he is a member of a CU or something, I would have him go there first, and if not, see if whoever he banks with offers any secured cards or other options for those starting out. 

 

Is he still a college/grad student or no? 

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Valued Contributor
jsickz32
Posts: 1,987
Registered: ‎06-25-2012
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Re: Cards For Limited Credit?

i added my brother to two of my cards and after 2 months of them reporting he applied for macys card and bofa basic cc and was approved for both. if you can add him as a AU that should help him

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