I am having an extremely difficult time applying for credit cards in order to start building my credit. I have tried random store cards and get denied due to lack of credit history. I finally applied for a secured card at Wells Fargo, which I've been banking with since 2010, and they still denied me. I have just noticed a card called, "First Progress Platinum Elite Master Card secured credit card" should I apply for it? I also read that getting denied can negatively affect my credit score. Great! Or does anyone else have suggestions on where I should go in order to start building my credit? I really would like to know how to get this ball rolling.
This sounds like you have some items you need to clear up on your credit report first. Have you viewed it in the last 6 months? Try applying for a Kohl's card by chance?
1. View updated credit report from each of three (exp/tra/equ), and also ChexSystems.
2. Dispute/Correct baddies.
3. Pay off/settle any open collections.
4. Wait 30-60 days for corrections to show on report.
5. Try again for a secured credit card. Capital One tends to be a forgiving bank and great for rebuilding. I read tons of bad reviews on First Progress/First Premier/etc type cards.
I would suggest going to annualcreditreport.com and printing all three reports. They seem to give more info.
Make a spreadsheet with the info from the credit report. This will help keep all of your items straight and when adding rows, add a few extra
if any payment is behind get theme up to date
When paying off collections always try to pay for deletion. Wait 30-60 days and save $60 and buy your three credit reports from here.
Get a cap one secured card and utilize that card wisely
Wait 6-12 months, pull scores again.
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Try and go after a Cap1 secure card. There will be a 29 or $99 deposit required for a $200 limit based off your credit score. It doesn't sound like much but long as your credit is clean and your new just starting to build by next year you'll have at least $1000+ worth of credit avalible to you. You could try for unsecure cards like Orchard Bank, (Just in the process of merging with Cap1) or Credit 1 Bank. These are sub prime lenders who usually work with people with lower credit score. Like you stated applying regardless of denied or approved does hurt your credit. It puts inquirys on your credit report. Each can hit your for 1-10 points. They will stay on your CR for 2 years and over time decrease the impact they have on your overall score.
If your main goal is just to establish credit and you don't really need it to buy anything I would go with the Cap1 Secure card. You will get approved, Then after 2-3 payments made to it, apply for an unsecure card.