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kostyan1992
Posts: 71
Registered: ‎04-06-2014
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What CC should my friend get? Has ZERO credit.

[ Edited ]

So I have a friend who is 26 and he doesn't have a credit card or any credit history whatsoever. He currently lives with his parents and earns around 15k/yr and thinks that a credit history is pointless, that people can easily live off of cash. He doesn't go to school either. I really want him to get a credit card so he can at least build a credit history, which card should I push him to open? He is complete blank slate, untouched credit history. Something with gas cash back (he delivers packages for his job) would be best. I was thinking Sallie Mae for the 5% cashback but I think they wont give him a card with no history. BOA Rewards? Thanks!

 

EDIT: Would like to point out he's not going to be interested in Secured Cards at all. It'd be a breakthrough convincing him to app for anything in the first place.

Chase Freedom: $2200 ||| Citi ThankYou Preferred: $1000 ||| Barclaycard SM: $950 ||| Cap1 QuickSilver: $300

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dbutterworth1988
Posts: 6
Registered: ‎01-15-2014
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Re: What CC should my friend get? Has ZERO credit.

Here is a little of my story. I moved here last year from Germany. It was a rough start because my perfect payment history and my cards from there weren't worth anything over here.

The card I started with was a capital one credit card unsecured. Even with no history and a job that didn't pay me well they gave me a shot.
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milkshakes
Posts: 143
Registered: ‎01-11-2014
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Re: What CC should my friend get? Has ZERO credit.

does he have a checking acct?? id push for something that's within his same bank if possible. so freedom, cash rewards, etc. it also may or may not slightly raise his chances of getting approved if he has an existing relationship with the bank.

 

i agree you should stick with cash back. id stray away from sallie mae only because you can't actually get the cash out, so it might feel less real for him (though he can use the credits to pay down his CC, but it does feel less "rewarding" of sorts).

 

also, perhaps there's a reason he's staying away from credit. if you do press him for a card, be sure that you know he's mature enough to manage his credit wisely

      
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kostyan1992
Posts: 71
Registered: ‎04-06-2014
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Re: What CC should my friend get? Has ZERO credit.


milkshakes wrote:

does he have a checking acct?? id push for something that's within his same bank if possible. so freedom, cash rewards, etc. it also may or may not slightly raise his chances of getting approved if he has an existing relationship with the bank.

 

i agree you should stick with cash back. id stray away from sallie mae only because you can't actually get the cash out, so it might feel less real for him (though he can use the credits to pay down his CC, but it does feel less "rewarding" of sorts).

 

also, perhaps there's a reason he's staying away from credit. if you do press him for a card, be sure that you know he's mature enough to manage his credit wisely


The Sallie Mae not being able to take cash out wouldn't be a problem for him. The problem for him would be the (low?) chances of getting approved for it because he has 0 credit.

 

Also he doesn't have any checking accounts.

Chase Freedom: $2200 ||| Citi ThankYou Preferred: $1000 ||| Barclaycard SM: $950 ||| Cap1 QuickSilver: $300

EX08 FICO: 728 (7/20) ||| TU08 FICO: 738 (8/13)

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isuspectnargles
Posts: 46
Registered: ‎04-19-2014
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Re: What CC should my friend get? Has ZERO credit.


kostyan1992 wrote:

milkshakes wrote:

does he have a checking acct?? id push for something that's within his same bank if possible. so freedom, cash rewards, etc. it also may or may not slightly raise his chances of getting approved if he has an existing relationship with the bank.

 

i agree you should stick with cash back. id stray away from sallie mae only because you can't actually get the cash out, so it might feel less real for him (though he can use the credits to pay down his CC, but it does feel less "rewarding" of sorts).

 

also, perhaps there's a reason he's staying away from credit. if you do press him for a card, be sure that you know he's mature enough to manage his credit wisely


The Sallie Mae not being able to take cash out wouldn't be a problem for him. The problem for him would be the (low?) chances of getting approved for it because he has 0 credit.

 

Also he doesn't have any checking accounts.


No checking or savings? That is a common question on credit card applications. If the answer is no, most banks will do an immediate decline.

 

I think you are fighting for a lost cause. At some point in a few years your friend will need credit and will realize its importance then; if you want to help him you can cosign for him when that day comes. Until then, for someone who (a) thinks credit is pointless, (b) has no bank accounts, and (c) will refuse to put down a deposit for a secured card, there aren't too many products that will help them.

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takeshi74
Posts: 2,377
Registered: ‎06-05-2013
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Re: What CC should my friend get? Has ZERO credit.

[ Edited ]

kostyan1992 wrote:

EDIT: Would like to point out he's not going to be interested in Secured Cards at all. It'd be a breakthrough convincing him to app for anything in the first place.


The usual suggestions -- secured and/or credit unions with more lax requirements -- for building/rebuilding may be necessary.

 

You can't push a rope.  Your friend has to be self-motivated.

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Creditaddict
Posts: 19,573
Registered: ‎10-23-2007
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Re: What CC should my friend get? Has ZERO credit.

Sounds like he needs a checking account more than a credit card!

What does this person do with paychecks? how do they pay for anything? all through mom and dad at 26?

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ceemee2203
Posts: 201
Registered: ‎07-27-2012
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Re: What CC should my friend get? Has ZERO credit.


isuspectnargles wrote:

kostyan1992 wrote:

milkshakes wrote:

does he have a checking acct?? id push for something that's within his same bank if possible. so freedom, cash rewards, etc. it also may or may not slightly raise his chances of getting approved if he has an existing relationship with the bank.

 

i agree you should stick with cash back. id stray away from sallie mae only because you can't actually get the cash out, so it might feel less real for him (though he can use the credits to pay down his CC, but it does feel less "rewarding" of sorts).

 

also, perhaps there's a reason he's staying away from credit. if you do press him for a card, be sure that you know he's mature enough to manage his credit wisely


The Sallie Mae not being able to take cash out wouldn't be a problem for him. The problem for him would be the (low?) chances of getting approved for it because he has 0 credit.

 

Also he doesn't have any checking accounts.


No checking or savings? That is a common question on credit card applications. If the answer is no, most banks will do an immediate decline.

 

I think you are fighting for a lost cause. At some point in a few years your friend will need credit and will realize its importance then; if you want to help him you can cosign for him when that day comes. Until then, for someone who (a) thinks credit is pointless, (b) has no bank accounts, and (c) will refuse to put down a deposit for a secured card, there aren't too many products that will help them.


+1 to everything but the italicized portion. It is almost always never a good idea to cosign for someone. Even when that someone is a family member.

 

Anyway, you might think you're doing your friend a favor, but I'm not sure. He's 26, still living with his parents, not going to school and only making $15k/yr. I don't think he's ready for the responsibility of a credit card.

Current Cards: AMEX Green, AMEX BCE ($15.2k), AMEX SPG ($6k), Arrival ($7.5k), Merrill+ ($7.5k), Freedom ($5k)

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parakleet
Posts: 1,135
Registered: ‎04-13-2013
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Re: What CC should my friend get? Has ZERO credit.


takeshi74 wrote:

kostyan1992 wrote:

EDIT: Would like to point out he's not going to be interested in Secured Cards at all. It'd be a breakthrough convincing him to app for anything in the first place.


The usual suggestions -- secured and/or credit unions with more lax requirements -- for building/rebuilding may be necessary.

 

You can't push a rope.  Your friend has to be self-motivated.


+1


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Airforcekid
Posts: 50
Registered: ‎04-14-2014
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Re: What CC should my friend get? Has ZERO credit.

I would convince them to join a good credit union such as penfed,NFCU etc then work on credit later.

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