Looking to get First Credit Card, Help?

[ajcarter]

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@Revelate wrote:

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@ktl72455 wrote:

SDFCU  +++++++ 100%     Even BOA and cap 1 can deny for a  secured card SDFCU wont and no HP.

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Except the BOA card is better than the SDFCU for everyone who doesn't need a no forex card, and when first building a credit file inquiries are absurdly irrelevant anyway.

Really should get two anyway, BOA + SDFCU covers pretty much every everything and is an excellent combo.  Personally I think they're numbers 1 and 2 in the current secured market.  Cap One edges them out if you don't have enough cash to deposit the 300 or 250 (BOA and SDFCU minimums respectively when I last checked).

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I have never heard of the SDFCU card prior, but I'll look into it, as well as the BOA card. 

The thing is, I heard that cancelling a card can be bad - So i was hoping to get a reputable card I can keep long term, (Chase, Citi, CapOne, BoA, etc)

Also, should I apply now, wait 6 months? what's the time-frame. I am in no rush but would love to get it done before I graduate so I can have credit to eventually purchase a car and an apartment in the next few years

[ajcarter]

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@chwebb1 wrote:

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@ajcarter wrote:

I am currently a college student (19 y/o) looking to start managing my finances and in that process, would need to start building credit. Therefore, I went ahead and applied for two cards on the same day, around the same time - which was my first mistake. I applied for Discover It for Students, and Capital One Journey for students.

Naturally, I was rejected. Capital One's reasoning was: "Based on report from [credit bureau] for [name], credit bureau information is missing or unavailable"

Discover's reasoning was: "No Savings account"

I have went ahead and rectified both by getting a savings account, and calling/mailing information to all three credit bureaus (since, apparently no one knew I existed).

All of this was done in August 2013.

What do I do now? I was told wait 6 months, then I was told you don't have to wait. I need some guidance.

I don't really want a store card, but if thats my best bet- I'll do it. I really like the Discover It for Students.

All responses are greatly appreciated! Thanks in advanced!

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I didn't know Discover would decline for not having a savings account. I'd say go ahead and try for Discover again since you now have a savings account. Also, what bank(s) do you have account(s) with? You might be able to get a CC through your bank if you have decent balances in their account(s). Another card I've seen that will approve students without history is the State Farm student Visa: https://www.statefarm.com/finances/banking/credit-cards/state-farm-student-visa. I have no experience with this account (I don't have a credit card with them), but I do have a checking and money market account with them, and I've been happy with them so far.

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Yeah, I mean I did have a Savings Account - just not in the US, so I figured I didn't need to report it to them. I called them today, but they are closed because the holiday so I will call back and see if they can do a "Recon" of some sort.

I currently have Barclays Savings (in the US) and Chase Checking. I know Chase doesn't market to students or people without established credit, so I didn't bother apply or even looking at them until, I have at least a year or two of credit.

I just took a look at the State Farm card, but I see mixed reviews - So I am a bit skeptical. 

[armichic]

I don't think your Target debit card usage will make a difference in chances of acceptance only time and history. I would say go with a secured card and garden for a year and the offers will be better once you have solid usage and payment history.

[Revelate]

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@ajcarter wrote:

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@Revelate wrote:

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@ktl72455 wrote:

SDFCU  +++++++ 100%     Even BOA and cap 1 can deny for a  secured card SDFCU wont and no HP.

---

Except the BOA card is better than the SDFCU for everyone who doesn't need a no forex card, and when first building a credit file inquiries are absurdly irrelevant anyway.

Really should get two anyway, BOA + SDFCU covers pretty much every everything and is an excellent combo.  Personally I think they're numbers 1 and 2 in the current secured market.  Cap One edges them out if you don't have enough cash to deposit the 300 or 250 (BOA and SDFCU minimums respectively when I last checked).

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I have never heard of the SDFCU card prior, but I'll look into it, as well as the BOA card. 

The thing is, I heard that cancelling a card can be bad - So i was hoping to get a reputable card I can keep long term, (Chase, Citi, CapOne, BoA, etc)

Also, should I apply now, wait 6 months? what's the time-frame. I am in no rush but would love to get it done before I graduate so I can have credit to eventually purchase a car and an apartment in the next few years

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If you have the cash to make the deposit, get them now.  BOA's (BOFA's) secured product graduates: it was the card I started with, and I'll likely keep it forever frankly as BOFA's PC policies are pretty lenient and they go through phases where they aggressively chase the credit card market, so I expect them to be competitive over time for cards... and worst case $0 AF tradeline farm (after getting the fee removed).

You're going to have to trade up cards sometime like everyone else with the way the market is currently structured: you aren't qualified for Chase right now as an example.  Also, closing cards isn't really as big of a deal as it is made out to be: the only real downside is that you stop accruing payment history on the tradeline and it starts the 10 year clock till it drops off your credit report.

The SDFCU card starts with $0 AF but other than no graduation is darned near perfect except that BOFA's card rewards wise is simply awesome and better or equivalent for everything other than forex transactions.  I did my payment history farm with DCU (didn't know about SDFCU at the time and I do like the freebie FICO from DCU) and I'll wind up keeping the card until I need the deposit I underwrote the card with.  Hrm, if I didn't have hopes for a mortgage I should go do that, better uses for the money these days than sitting there long term .

[ajcarter]

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@armichic wrote:

I don't think your Target debit card usage will make a difference in chances of acceptance only time and history. I would say go with a secured card and garden for a year and the offers will be better once you have solid usage and payment history.

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Hmm, OK thank You! I think I'll end up applying for the BOA secrured card.

[ajcarter]

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@Revelate wrote:

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@ajcarter wrote:

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@Revelate wrote:

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@ktl72455 wrote:

SDFCU  +++++++ 100%     Even BOA and cap 1 can deny for a  secured card SDFCU wont and no HP.

---

Except the BOA card is better than the SDFCU for everyone who doesn't need a no forex card, and when first building a credit file inquiries are absurdly irrelevant anyway.

Really should get two anyway, BOA + SDFCU covers pretty much every everything and is an excellent combo.  Personally I think they're numbers 1 and 2 in the current secured market.  Cap One edges them out if you don't have enough cash to deposit the 300 or 250 (BOA and SDFCU minimums respectively when I last checked).

---

I have never heard of the SDFCU card prior, but I'll look into it, as well as the BOA card. 

The thing is, I heard that cancelling a card can be bad - So i was hoping to get a reputable card I can keep long term, (Chase, Citi, CapOne, BoA, etc)

Also, should I apply now, wait 6 months? what's the time-frame. I am in no rush but would love to get it done before I graduate so I can have credit to eventually purchase a car and an apartment in the next few years

---

If you have the cash to make the deposit, get them now.  BOA's (BOFA's) secured product graduates: it was the card I started with, and I'll likely keep it forever frankly as BOFA's PC policies are pretty lenient and they go through phases where they aggressively chase the credit card market, so I expect them to be competitive over time for cards... and worst case $0 AF tradeline farm (after getting the fee removed).

You're going to have to trade up cards sometime like everyone else with the way the market is currently structured: you aren't qualified for Chase right now as an example.  Also, closing cards isn't really as big of a deal as it is made out to be: the only real downside is that you stop accruing payment history on the tradeline and it starts the 10 year clock till it drops off your credit report.

The SDFCU card starts with $0 AF but other than no graduation is darned near perfect except that BOFA's card rewards wise is simply awesome and better or equivalent for everything other than forex transactions.  I did my payment history farm with DCU (didn't know about SDFCU at the time and I do like the freebie FICO from DCU) and I'll wind up keeping the card until I need the deposit I underwrote the card with.  Hrm, if I didn't have hopes for a mortgage I should go do that, better uses for the money these days than sitting there long term .

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Thank You! Very Informative! So Should I apply for both of them on the same day? I can do two $500 deposits.

I'd much rather keep that money in my savings (not that it makes much difference) but if thats what it takes to build credit then so be it

[SnackTrader]

No one asked this question, but it is applicable to credit card underwriting in general:

Do you have a job, or any income coming in on a regular basis? If not, that also likely was part of the reason for denial. You're doing the right thing by getting a secured card and starting your credit history early. You'll be surprised how fast a) the ages of 18-22 pass, and b) the process for turning no credit into good credit can be. My process (granted I have a $65k+ income, and a payment history with student loans) took less than a year. 

Best of luck to you, and come back often to these forums to RESEARCH! The answers in this thread are terrific, but in order to get the most out of these forums you should really read on a regular basis.

[ajcarter]

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@SnackTrader wrote:

No one asked this question, but it is applicable to credit card underwriting in general:

Do you have a job, or any income coming in on a regular basis? If not, that also likely was part of the reason for denial. You're doing the right thing by getting a secured card and starting your credit history early. You'll be surprised how fast a) the ages of 18-22 pass, and b) the process for turning no credit into good credit can be. My process (granted I have a $65k+ income, and a payment history with student loans) took less than a year. 

Best of luck to you, and come back often to these forums to RESEARCH! The answers in this thread are terrific, but in order to get the most out of these forums you should really read on a regular basis.

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I do have a job (though, I am working part time since I am school) - and in the summer I will begin working at an Accounting Firm ($30/hr) so that should be suffiencent. How would the credit card companies know if I had a job or not, I do not remember that being a question in the application process?

But thank you! I'm really trying to brace myself for financial stability so I have been doing a lot of reserach lately - and this forum definitely helps. There are just so many answers, that I was hoping if I shared my personal story, I could get a more taylored answer.

[new_earth]

I know everyone here will scold me for saying this, but you could try Credit One. They have a prequalifier so you can see if you're likely to be approved before getting a HP.

They were one of my rebuilders because at the time I did not have bulk $500+ to put towards secured cards. They charge interest from date of purchase but there are no fees until you hit one year, then annual fee and I think a monthly fee, but you just cancel before that starts. By that time you should have been approved for a much better card. 

I used it for small purchases here and there and some times to pay a bill, then would pay it right back. I might have lost $5 - $10 tops on interest with them. I'm actually about to close mine because the one year is coming up and I have plenty other much better cards now. If you do it right, it can be an OK card for building/rebuilding.