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Cards For Limited Credit?

Frequent Contributor

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?
“Faith is taking the first step even when you don’t see the whole staircase.”
Message 1 of 9
8 REPLIES
Blogger

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.

Message 2 of 9
Senior Contributor

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.

 

 

Message 3 of 9
Frequent Contributor

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.

“Faith is taking the first step even when you don’t see the whole staircase.”
Message 4 of 9
Blogger

Re: Cards For Limited Credit?

Did you know that First Premier is the absolute worst credit card in the market? Smiley Wink

Message 5 of 9
Frequent Contributor

Re: Cards For Limited Credit?

Yes. That's why I told him to avoid it!  Smiley Wink

“Faith is taking the first step even when you don’t see the whole staircase.”
Message 6 of 9
Moderator Emeritus

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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Message 7 of 9
Super Contributor

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? 

Message 8 of 9
Valued Contributor

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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Message 9 of 9