NO Credit AT ALL, Who to apply with?

[Anonymous]

If he has a decent income and no bad credit orchard bank will more thank likely give him a $1,500 credit limit @ 14.9% with a $39 annual fee.  Its not bad for a first card and will help him establish credit.

[Anonymous]

website for orchard bank:

www.orchardbank.com

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:
I've noticed that credit card companies love to approve students for cards. I had tons of offers coming in the mail when I was in college, but I never took advantage of them because I didn't feel I needed a credit card. Once I graduated, although my income went up and nothing negative had been added to my credit report, the offers stopped coming in... I find it all somewhat strage, but then again, I find a lot of the things credit card companies do kinda strange...

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This isn't strange at all.... credit card companies assume that most students' parents will help pay off any debt racked up on their cards, especially when the nasty collectors start calling....

Students should apply and get a card (w/ no AF, if poss) that they use to buy pizza every few months, then PIF it.... great way to build up credit history. 

Message Edited by writemikep on 10-27-2009 01:43 PM

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That makes sense. I wish I had thought to do that ("apply and get a card (w/ no AF, if poss) that they use to buy pizza every few months, then PIF it.... great way to build up credit history.") way back in the day. 

[Anonymous]

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@Anonymous wrote:
Quark4...I'm really impressed with your high credit scores! awesome job! I was just wondering what have you done to keep up such good scores. I'm getting my credit back and learning as i go any tips would be helpful and again great job.

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Thanks for the compliments, KMF. I'll be happy to pass on whatever I know. Here are the rules I follow:

1. Always PIF. Always! Barring a medical emergency, there's NO REASON that warrants spending more than you can afford. Learning to suppress the urge to spend is how 80% of the world lives. And they do just fine. Our American dictum, "I'm going to buy it because I deserve it" was given to us by CC companies, and we were suckers to fall for it. Don't take the CC companies' bait.
2. Subscribe to online statements from all creditors and utility companies. When the monthly statement notification shows up in your inbox, LOG ON TO THE COMPANY'S WEBSITE IMMEDIATELY and schedule a payment. If you postpone this till the evening, or till you finish that movie playing in the family room, you'll forget to do it. You can schedule payments in the future, close to the due date. My last late payment (2 days late) was in 2003, when some utilities still sent paper statements.
3. Be miserly about credit inquiries. Don't let creditors pull your credit unless you're finally about to make the purchase. I didn't get pre-approvals for a home loan till the day before my real estate agent wrote the offer.
4. Keep your debt ratio pretty low. For details of how to do this, see rule number 1.
5. Subscribe to a 12-dollar credit report monitoring plan and use it actively. MyFICO's offering is too expensive. Look elsewhere.
6. Spend a couple of hours tending your credit each month.

Keep in mind that credit is a privilege. Like all privileges, it comes with responsibility. You will have to work hard for it. I spend about 3 hours every month making sure mine is healthy. This includes reading my credit reports, going through all CC charges, setting up each statement's payment as soon as the statement is available, and rate-shopping for credit (when needed) without actually applying.

And NEVER, EVER CARRY A BALANCE.

Good luck! If you need someone to discourage you from making a purchase on instalments, send me a PM!

[haulingthescoreup]

JaneKathleen, congratulations! Another testimonial for reasoned persistence.

Most CC decisions these days are made by computer. Those who have credit profiles that are a bit different from the mainstream may well be rejected by the computer, but approved by a human.

[Anonymous]

If you have no credit at all, or bad credit, you have to start somewhere.  I ran into this problem.  I had to get a prepaid credit card for about $500.  You put the deposit down first, then they issue a card for that amount.  I went through HSBC.  Yes it sucks to have to pay a deposit and an annual fee ($35), but it's a great way to start somewhere.  Pay all of your bills with it for 2-3 years and make your payments on time and in full.  HSBC reports to the 3 major credit bureaus so if you keep your account in good standing, after 2-3 years you will begin to show a good credit history.  I recently upped my credit line from $500 to $2500 (by depositing the additional 2K) and they boosted my credit line to $8,000.  This was after paying on time for over 24 months.  Everyone's situation is different of course, but worst case scenario you can get a secured credit card to start building/rebuilding your credit.  It takes time and you have to start somewhere.

Chris

[TangMeister]

The credit union route is great advice.  Personally, if I was just starting out with no credit history and they have the funds, I'd opt for a secured credit card from a major bank or large credit union (if they won't approve an unsecured card).  Prime over sub-prime is always a great choice....even if it *IS* a secured card. Even PenFed offers a card for people beginning their credit journey.  Good luck to your friend, OP!

[Anonymous]

I had the same issue and I applied for a secured credit card with CitiBank.  The fees were lower than other banks I looked into and it put the money into a CD so that it earned interest.  After 18 months if you have no late fees, they will give you an unsecured credit line.  CitiBank report to all 3 credit bureaus monthly and so it will improve your credit score relatively quickly.

[haulingthescoreup]

If you're building or rebuilding, and you have to go with one of the Fun Cards to get back in the game, so be it. But stop at two cards, and let them do their thing for you.

We have so many posts from members with a fistful of rebuilders, and now they have moved beyond them, and they don't want to close them.

Two cards are all you need, for six months, or ideally for a year, to show lenders that you now know what's what. Don't overburden yourself. Don't even get in the trap of store cards and whatnot, unless that's all you can get. Just two cards, period.

Having more is like having six pairs of crutches. Makes no sense.

[Anonymous]

Thanks Quark4 i appreciate all the helpful tips. Right now i have 2 cc's. Do you think i need any more or should i just manage them well by keeping balances low and paying them in full? That is all i have that is reporting to the credit bureau right now. Do you think there is anything else i need to get to improve my score or will just time and keeping balances low on my cards do it? Also i will soon be needing an auto loan. Do you think that will hurt my score or help? I'm not sure if they will look at it like im needing more money or a good thing that i am establishing different kinds of credit? I had to file bk jan '08' and my scores range from 620-650 and am just trying to do all i can to get to my initial goal of 700 now that i know more about how important my credit is. Thanks for taking the time to help.