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What to do for no credit?

Contributor

What to do for no credit?

I'm trying to help my nephew who is 19. He is working full-time, has a checking account but has no credit. He is responsible. He tried applying for capital one, but was denied. I'm guessing he has no credit file.

If I add him as an AU on my amex and cap1 accounts, will that help him?

9 REPLIES
Valued Contributor

Re: What to do for no credit?

Yes as long as they are in good standing and not maxed out.
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Moderator Emeritus

Re: What to do for no credit?


MovingForward_2012 wrote:
Yes as long as they are in good standing and not maxed out.

Yes it will help him, but the better route is to have him establish his own cards via the secured route... Cap 1 secured is a good choice

But, you can add him to your Amex and Cap 1 and he will benefit from that


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Contributor

Re: What to do for no credit?

So, if I add him as an AU, after 6 months, should he be able to get at least a Cap1 card? Or, will he still have to go the secured route?

Super Contributor

Re: What to do for no credit?


webhopper wrote:

MovingForward_2012 wrote:
Yes as long as they are in good standing and not maxed out.

Yes it will help him, but the better route is to have him establish his own cards via the secured route... Cap 1 secured is a good choice

But, you can add him to your Amex and Cap 1 and he will benefit from that


This is the best route to go

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
New Contributor

Re: What to do for no credit?

Definitely go the secured route. Capital One has a pretty good secured product; albeit, he will incur three more hard pulls (one per bureau, Capital One is notorious for this). Since he is so young and just starting, this likely won't matter much. Also, keep in mind that Cap One's current policies do not allow graduation of their secured product.

Bank of America and Wells Fargo have pretty well known and decent secured products for those starting off. I would definitely give them some consideration.

To answer your Q - yes, AU on established cards can help individuals starting off.

Contributor

Re: What to do for no credit?

Jewelry stores are usually a good place to start a credit file.

 

I would probably apply for a bank of america card with a personal banker. Sometimes they can offer a partially secured ($100/$500) or fully secured card if declined. They'll probably be able to tell you how likely an approval would be.



I'll be in the garden... FICO Score | TU-08: 732 in May 2013
Valued Contributor

Re: What to do for no credit?

It may help him get a unsecured card in 6 months or it may not...it may take longer. If he doesn't have the funds for a secured card right now then the AU way is probably the only route right now but if he can't get a secured card right now with his own funds, I would advise against him applying for an unsecured card until he has the income to pay for the charges.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Established Contributor

Re: What to do for no credit?

Adding him as an AU will def, help him down the road but like everyone mention it's best for him to app for a secured card. The top choices is Cap One secured or Bank of America Secured. The bofa secured usually graduates within a year plus you can add the 123 rewards to it after having the card for a certain amount of time. 

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Established Contributor

Re: What to do for no credit?

Have him join the Armed Forces and join NFCU !

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