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Frequent Contributor
moondog7324
Posts: 488
Registered: ‎04-09-2008
0

Re: The joys of hunting for a credit card with no credit history (Yikes!)

[ Edited ]

Look at it this way, If someone doesn't have enough disposable income to save $50. a paycheck into a savings account, you have no business getting credit cards, Because if you don't have the money to save, you don't have the money to pay debt- a chargeoff waiting to happen. $50  a paychck- assuming you get paid everyother week:smileyfrustrated:uppose you start Jan1:

Oct 2010- $1000 savings- open secured card

Oct 2011- card goes unsecured-  savings =$2300, 1 year of perfect credit history

Jan 2012- savings = $2600+interest (nice down payment for a car)

more importantly you've created good habits, haven't paid "annual or montlhy fees" with a subprime card

The timeframe can be expediated if you have some savings now tha you can use.(or can afford to place more each pay)

the key is using this account solely to rebuild your credit and to save.

 I like the $1000 benchmark, It shows you can handle 4digit credit lines and you won't get utilization out of whack as eqasily as a $300 card.

Secured cards are not automatic, and you can get denied one, that's why Iike establishing a relationship- I even told the NFCU reviewer that's what I wanted to do if I go denied for a regular card- she said she would note my app. It's worked for me.

Message Edited by moondog7324 on 12-12-2009 10:40 AM
Established Member
Dunadan
Posts: 19
Registered: ‎12-10-2009
0

Re: The joys of hunting for a credit card with no credit history (Yikes!)

Sounds like a pretty well thought out plan.

I am an AU on my mother's card as of Saturday, and am currently looking at Credit Unions.  I suppose telling them I'm a full time student part time woker looking to build credit is the best way to approach this no?

Senior Contributor
BungalowMo
Posts: 4,243
Registered: ‎05-01-2008
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Re: The joys of hunting for a credit card with no credit history (Yikes!)


Dunadan wrote:

Sounds like a pretty well thought out plan.

I am an AU on my mother's card as of Saturday, and am currently looking at Credit Unions.  I suppose telling them I'm a full time student part time woker looking to build credit is the best way to approach this no?


That sounds like a great approach.  And the save $1000 for secured...another win - win situation!



Starting Score: 07/2011 TU 732 - EQ 717 - EX 702
Current Score: 06/2014 TU 739 - EQ '08 709 - EX 721
Goal Score: 850

Bury me in the garden...last app 06.18.14

Regular Contributor
CMS2012
Posts: 116
Registered: ‎04-15-2009
0

Re: The joys of hunting for a credit card with no credit history (Yikes!)

I was in the same boat you are in last year.  18, a freshman in college and no credit history.  I applied for a BOA student card and they offered me 95/500, I turned it down. I then tried for a Discover card and was denied for that card.  I then applied for a Citi Student card and was initially denied because  I did not have established credit but I called their CS line and asked them to please give me a chance. How was I going to establish cerdit if no one will extend credit to me.  After about a week of sending them verification that I was enrolled in college they finally approved me with me an intial CL of $700. I now have a $1,500 CL with them.

 

Fast forward to today 12/30/2009, Not only do I have the my Citi card, but I also have BOA, Discover, Macy's, Macy's Visa, Capital One, State Farm Visa, HSBC, Barclay's Financing Visa, New York and Company Mastercard and several store cards.  (I know this seems like a lot of cards to have, but I guess my intent at the time was get these cards as soon as possible before the credit market stopped lending! But now my goal is to see which cards will grow with me the best and close out the rest.  I will never close Citi, they have definitely earned my loyalty)

 

I never use my cards for purchases unless I have the money in my checking account to PIF and I rotate my cards so that each one gets used every 3-4 months. To date, I have never been late on a payment and have a perfect payment history.

 

I would suggest calling Citi and asking for a recon.  They were the first CCC to give me a chance even at the height of the credit crunch.

 

 I can definitely relate to your frustration, but once you receive your first card and establish about 6-7 months of good payment history you will be all set!

 

I hope this helps!

 

 

 

 

Valued Member
MrNoCreditMan
Posts: 37
Registered: ‎12-10-2009
0

Re: The joys of hunting for a credit card with no credit history (Yikes!)


moondog7324 wrote:

1. There is nothing wrong with a secured card, especially when starting or rebuilding credit.

2. Join a Credit Union- there are many based on locale, job, military etc. (if you have any close family member in the service- I highly reccomend NFCU)

3. Open a savings account this account will be only used for credit building- Put $50 a pay into this account- more if you can afford it..

4. When you reach $1000 ask for a secured credit card at the CU, you will have shown discipline and responsibilty by making those regular deposits.

5. Enjoy your new card- never let the balance get above $300, and try to pay in full each month to avoid finance charge.

6. Stop applying for credit elswhere- too many inquiries will get you denied everytime.

7 Keep making those regular savings deposits and wait until 13 months to apply for another credit card(if you want one)

8. You can get decent scores with just a few really good accounts!!


Seems like a very good plan. Thanks for this. I too am having alot of trouble obtaining a CC. 

Established Member
Dunadan
Posts: 19
Registered: ‎12-10-2009
0

Re: The joys of hunting for a credit card with no credit history (Yikes!)

Joining a Credit Union really helped me attain a credit card.  I appreciate all the advice i got, its all helped a lot, and i hope it helps you as well Mr.NoCreditMan!

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