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What CC should my friend get? Has ZERO credit.

Established Contributor

What CC should my friend get? Has ZERO credit.

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.

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Message 1 of 22
21 REPLIES
Established Member

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.
Message 2 of 22
Regular Contributor

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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Message 3 of 22
Established Contributor

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.

TU08 FICO850
EX08 FICO850
EQ08 FICO850

Message 4 of 22
Valued Member

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.

FICO 646EX 649EQ 630TU | Walmart 677TU | CreditKarma 641TU | Quizzle VantageScore 680 | Current Goal 700

NavCheck $15k | NFCU cashRewards $9k | Capital One Plat $2.85k | Citi $2.8k | CareCredit $2.7k | Capital One QS1 $2.6k | Walmart $2k | Chase Amazon Rewards $1k
Message 5 of 22
Senior Contributor

Re: What CC should my friend get? Has ZERO credit.


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.

Message 6 of 22
Epic Contributor

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?

Message 7 of 22
Highlighted
Regular Contributor

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 Everyday ($15k), AMEX BCE ($20k), Amex Platinum, Arrival ($11.5k), Merrill+ ($7.5k), Freedom ($5k), Double Cash ($6.5k)

2/16 - 864 Fico EQ (CITI); 818 Fico Ex (AMEX)
Message 8 of 22
Valued Contributor

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


Gardening since 7/16/14
Current: EQ 711 7/13/14; EX 724 TU 721 6/19/14
Goal: 760+
Message 9 of 22
Established Member

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.

NFCU Cashrewards $3,500| Navcheck $7,500| Discover IT $500| AMEX $6000| CS:724
Message 10 of 22