topic Re: Trying to get my first credit card in Credit Cards

Trying to get my first credit card

Anonymous — Thu, 28 Jan 2016 21:18:40 GMT

I recently started a management consulting job, and I travel all the time. Getting the credit card points and frequent flyer miles is supposed to be one of the big perks of the job, but I have never had a credit card before. As a result, I do not have any revolving credit history (just two very small student loans), and I've been using a corporate card to cover the expenses. I recently applied for the Chase Freedom card, but was denied. I had a very informative conversation on the reconsideration line, but Chase said they need to see some sort of revolving credit history.

I have employment, a solid income...but no revolving credit history. Does anyone had advice on what credit card I should pursue to establish history?

Re: Trying to get my first credit card

Anonymous — Thu, 28 Jan 2016 23:29:05 GMT

Welcome to the board, Ryan!

The good news is that there are a lot of options that have lower initial requirements than the Chase Freedom. The trick is figuring out where you fit in. Worst case scenerio, you need to start with a secured card (where you make a deposit that the card issuer holds as a guarantee while you prove yourself credit-worthy). But there's a good chance you won't even need to do that.

A lot of banks have tools on their websites that allow you to see what cards you pre-qualify for. You enter some basic information, and they do a soft pull of your credit (soft pull, meaning that it doesn't impact your credit report at all). And then they'll tell you, based on that information, what cards (if any) you appear to qualify for. It's not a guarantee that you'll be approved, but it's about the best indicator you can get.

For instance, go to capitalone.com. Then hover your mouse over "Credit Cards" on the menu bar. Then select "See If You're Pre-Qualified" from the drop-down menu. That'll give you a better idea where you're at right now.

Good luck!

Edit: I should add that if you do apply, then they'll do a hard pull of your credit, which will show up on your report and impact your score. But that's just part of the process.

Re: Trying to get my first credit card

wmweeza — Thu, 28 Jan 2016 23:34:33 GMT

Also you could go the secured card route. I started out that way.

Two options with Bank of America:

Apply for a card, they will probably decline you but offer you a secured card, the standrad one is a $99 deposit for a $500 CL. It does unsecure and grow fairly well if you pay on time.

Second: Apply for the secured card and put down a significant deposit, they'll make your secured line equal to your deposit (I have heard random stories of starting lines bigger then the deposit). 6 months to a year from now you'll have a great unsecured card.

That's just my 2 cents

Re: Trying to get my first credit card

SouthJamaica — Thu, 28 Jan 2016 23:55:35 GMT

@Anonymous wrote:
I recently started a management consulting job, and I travel all the time. Getting the credit card points and frequent flyer miles is supposed to be one of the big perks of the job, but I have never had a credit card before. As a result, I do not have any revolving credit history (just two very small student loans), and I've been using a corporate card to cover the expenses. I recently applied for the Chase Freedom card, but was denied. I had a very informative conversation on the reconsideration line, but Chase said they need to see some sort of revolving credit history.

I have employment, a solid income...but no revolving credit history. Does anyone had advice on what credit card I should pursue to establish history?

It's best to start out with a Capital One card.

Re: Trying to get my first credit card

Anonymous — Fri, 29 Jan 2016 01:07:49 GMT

I recommend to apply for the capital one Platinum. Use it for 2-3 months then hop on LIVE CHAT and ask to be upgaded to a Capital one QuickSilver with no annual fee. (just to get rewards for using the card)

If you dont get approved for the Platinum then apply for the Cap. one secured (if still avaiable). It should use the same hard point pull as the one used on the Platinum apply you just did. However, you might be able to get the Platinum right off the bat with a smaller credit limit like $500.

Just stay with capital one because there the easiest for many.

Stay away from companies like credit one or any tailered specfically for "bad credit" as they are rip offs in the credit world.

After you get some months in with cap. one you can try other companies pre quail tool or just try for the Capital One Venture but it will take some time to get good enough history for the cards you want.

Re: Trying to get my first credit card

myjourney — Fri, 29 Jan 2016 01:20:12 GMT

Welcome to the forum

1) apply for the Discover secured card or Cap1 with $39 AF or both

2) if secured open it with a decent amount enough to cover your travel expenses

3) use it for 4-5 months keeping UTL at statement cut under 10%

4) app Amex gold or plat whichever travel perks best fits your needs

5) 6 months later pick between a hotel card you stay at or CSP, Prestige, Premier

More info needed

Do you know your scores? (Fico only)

Any other TL's I.E. auto etc etc beside SL?

No baddies correct?

Re: Trying to get my first credit card

Anonymous — Fri, 29 Jan 2016 02:29:44 GMT

Leave capital one as a last resort, just my opinion. You sound like someone that will be spending quite a bit, and can take the fast track to great credit. Capital one will not work with you in the future for big credit limit increases, or interest rate reductions. They are however, excellent at approving people, reporting to the bureaus, and honoring the limits they issue to folks. I wont hate a person for starting out with capital one. But long term, they are not worth your time.

I like the idea of Bank of America, Discover, etc. I would go for them first and if you cannot get approved, then go for capital one.

What are your scores, where are they from, what is your average age of accounts, and how many inquiries do you have? Any late payments on anything in your history?

Does this corporate card have any ties to your reports? It might be helpful if it did.

Also you could always call back to chase and try for a 2nd recon. They have approved folks in the 500-600 range for the freedom card. Are you a member at any local credit unions? It may help you out to go to your current bank and apply for a card with them. They can use some of your checking account history as leverage to open an account.

TLDR, is there anyone that you can have add you as an authorized user, someone that is meticulous with their credit and does not carry large balances compared to their limits? After trying for BOA and Discover, if that fails, anyone that may be willing to cosign? If not, then consider capital one.

Re: Trying to get my first credit card

Anonymous — Sat, 30 Jan 2016 00:48:24 GMT

Everyone,

Thank you for all of the responses. New to the community, and really impressed with everyone's eagerness to help.

Credit scores are mostly from credit karma

Transunion: 670, Equifax: 653. On the recent denial for Chase Freedom, the letter said my Equifax was a 594, which was surprising. Apparently this is because Equifax doesn't show that I've begun to make student loan payments.

My current accounts are just two small student loans for about 3K, which recently came out of their deferred period. I've only had to make one payment on each so far; however, I even made a payment during the grace period. I only took out the loans to begin establishing credit, and I could pay them off in full at any time.

I have two recent hard credit pulls: one in June/July for an apartment that I signed on, and then the second is from the unsuccessful bid at the Chase Freedom.

Tomorrow, I think I'm going to go to capital one and my personal bank (TD Bank) talk with a representative about my situation. I'd really like to skip the secured card step, and go straight to unsecured and potentially receive rewards. But at this point, I'll take anything. I'm hoping TD Bank might be able to take my savings/credit accounts into consideration (Chase said they would have done the same, but I do not have an account with Chase).

Do the trips to CapOne and TD seem like good ideas?

Re: Trying to get my first credit card

happypill — Sat, 30 Jan 2016 17:09:39 GMT

Welcome ryan10, I agree this is a great community. I'll second what others have said that Capital One is a great first step. Whatever they start you out with, they will reward you quickly with higher limits if you use their card. I went from a $200 secured card to a $3k QS1 to a $5k Venture to a $30k Venture in the span of about 12 months. As a consultant with all your travel, you'll have a chance quickly for much higher limits, no matter what you start out with. It's probably true that Capital One may night give huge credit increses to cards you have, but they are more than happy to approve you for a new card at a higher limit in just a few months. That said, Capital One isn't necessarily known for favoring thin credit files (without much history like yours), so you may have to start out with a secured or maybe platinum.

Discover loves people with thin files. This biggest problem with Discover for someone who travels a lot is that they are not as widely accepted as VS/MC. This used to be a huge problem to the extent that a business traveler wouldn't even consider Discover. I think that has improved a lot recently, but for business travel it's still a distant 4th behind Amex/VS/MC. Still, it might be a good starting point and they do sometimes counter-offer with a secured card if they don't approve you right away.

Your suggestion of going into your own bank (TD Bank) if probably a good choice. Have no idea what their CC approvals are like, but at least they are seeing the regular deposits and expenditures going through your account. Another idea might be Barclay's. The pull TU which appears to be your highest score (would definitely advise ignoring Credit Karma and getting a genuine FICO right here) and if you are not approved instantly they are very friendly toward recon and are willing to give a chance to people with low inquiries and few recently opened accounts.

My suggest would be to apply with Capital One (I'm not sure about walking into a Capital One, never seen a physical location but it couldn't hurt I guess), your TD Bank, then also Discover or Barclay's. Might as well get 3 of them going at the same time to build your credit history. It's not like you're going to hurt your AAoA (average age of accounts) so let them all grow together. One thing to note is that Barclay's is taking over the Jet Blue card and should be releaseing it around March I think. Barclay's has a few pretty good travel cards in their lineup now, but if you get a card from them today, you'll probably want to wait around 6 months before trying for a second.

Good luck!

Re: Trying to get my first credit card

Chris679 — Sat, 30 Jan 2016 22:19:08 GMT

@Anonymous wrote:
Everyone,

Thank you for all of the responses. New to the community, and really impressed with everyone's eagerness to help.

Credit scores are mostly from credit karma
Transunion: 670, Equifax: 653. On the recent denial for Chase Freedom, the letter said my Equifax was a 594, which was surprising. Apparently this is because Equifax doesn't show that I've begun to make student loan payments.

My current accounts are just two small student loans for about 3K, which recently came out of their deferred period. I've only had to make one payment on each so far; however, I even made a payment during the grace period. I only took out the loans to begin establishing credit, and I could pay them off in full at any time.

I have two recent hard credit pulls: one in June/July for an apartment that I signed on, and then the second is from the unsuccessful bid at the Chase Freedom.

Tomorrow, I think I'm going to go to capital one and my personal bank (TD Bank) talk with a representative about my situation. I'd really like to skip the secured card step, and go straight to unsecured and potentially receive rewards. But at this point, I'll take anything. I'm hoping TD Bank might be able to take my savings/credit accounts into consideration (Chase said they would have done the same, but I do not have an account with Chase).

Do the trips to CapOne and TD seem like good ideas?

I would go to annualcreditreport.com and pull all three reports to make sure you don't have any negative accounts on there that are lowering your credit score and holding you back from approvals. If you have no revolving history and no negative accounts on your file I would expect to see scores in the upper 600-low 700 range. You might have an old collection like a phone bill that could be easily removed and would boost your score making it easier to get approved.

I also think Cap One is a great starting point, Walmart is another easy one to get. Once you get 6 months of revolving history you can look at something that's more in line with the rewards you want.

Re: Trying to get my first credit card

Anonymous — Sat, 30 Jan 2016 22:26:35 GMT

Welcome! First thing we did when our daughter turned 21 was told her to apply for a credit card. She was almost done with her junior year in college and other than student loans had to credit history. We suggested she apply for a Capital One card since they are usually very friendly to young people with little credit history. She applied and as approved. At 1.5% cash back it is a good all around card. Hope this helps and good luck

Re: Trying to get my first credit card

SouthJamaica — Sat, 30 Jan 2016 23:38:35 GMT

@Anonymous wrote:
Everyone,

Thank you for all of the responses. New to the community, and really impressed with everyone's eagerness to help.

Credit scores are mostly from credit karma
Transunion: 670, Equifax: 653. On the recent denial for Chase Freedom, the letter said my Equifax was a 594, which was surprising. Apparently this is because Equifax doesn't show that I've begun to make student loan payments.

My current accounts are just two small student loans for about 3K, which recently came out of their deferred period. I've only had to make one payment on each so far; however, I even made a payment during the grace period. I only took out the loans to begin establishing credit, and I could pay them off in full at any time.

I have two recent hard credit pulls: one in June/July for an apartment that I signed on, and then the second is from the unsuccessful bid at the Chase Freedom.

Tomorrow, I think I'm going to go to capital one and my personal bank (TD Bank) talk with a representative about my situation. I'd really like to skip the secured card step, and go straight to unsecured and potentially receive rewards. But at this point, I'll take anything. I'm hoping TD Bank might be able to take my savings/credit accounts into consideration (Chase said they would have done the same, but I do not have an account with Chase).

Do the trips to CapOne and TD seem like good ideas?

Absolutely not. Your trips to the banks would be a waste of your time.

1. At TD Bank they'll talk you into applying, because they get 'points' or whatever for talking people into applying for credit cards. But their credit card is hard to get, you won't get approved, and you'll wind up with a wasted inquiry on your EX.

2. At Capital One you're wasting your time. They can't do anything for you there. Just go online and apply for the Platinum. It's their worst card, but it's the easiest to get. Then when you've had that for 6 months call and upgrade it to a Quicksilver.

Re: Trying to get my first credit card

Callandra — Sun, 31 Jan 2016 02:58:46 GMT

@SouthJamaica wrote:
@Anonymous wrote:
Everyone,

Thank you for all of the responses. New to the community, and really impressed with everyone's eagerness to help.

Credit scores are mostly from credit karma
Transunion: 670, Equifax: 653. On the recent denial for Chase Freedom, the letter said my Equifax was a 594, which was surprising. Apparently this is because Equifax doesn't show that I've begun to make student loan payments.

My current accounts are just two small student loans for about 3K, which recently came out of their deferred period. I've only had to make one payment on each so far; however, I even made a payment during the grace period. I only took out the loans to begin establishing credit, and I could pay them off in full at any time.

I have two recent hard credit pulls: one in June/July for an apartment that I signed on, and then the second is from the unsuccessful bid at the Chase Freedom.

Tomorrow, I think I'm going to go to capital one and my personal bank (TD Bank) talk with a representative about my situation. I'd really like to skip the secured card step, and go straight to unsecured and potentially receive rewards. But at this point, I'll take anything. I'm hoping TD Bank might be able to take my savings/credit accounts into consideration (Chase said they would have done the same, but I do not have an account with Chase).

Do the trips to CapOne and TD seem like good ideas?
Absolutely not. Your trips to the banks would be a waste of your time.

1. At TD Bank they'll talk you into applying, because they get 'points' or whatever for talking people into applying for credit cards. But their credit card is hard to get, you won't get approved, and you'll wind up with a wasted inquiry on your EX.

2. At Capital One you're wasting your time. They can't do anything for you there. Just go online and apply for the Platinum. It's their worst card, but it's the easiest to get. Then when you've had that for 6 months call and upgrade it to a Quicksilver.

There was another poster here who tried many times to get a card from TD Bank (she banked with them for years) and even after establishing some credit, she still couldn't get approved (I think her name was Killer Queen -- not sure if she ever did get a card from them). Probably not worth the time to try to deal with TD Bank. Their cards don't look impressive and there are easier approvals with better rewards.

I think you could get a QS1 or Platinum too with your loan history. Use that for 6-12 months (preferably 12 months) responsibly and you can pretty much get any card you want after that. Many of us here had to start with no/little rewards so it's not a big deal. One year of lesser/no rewards for a lifetime of great rewards is a decent ratio IMO. Good luck.

You could also try for BoA's secured card and add the 3-2-1 rewards on it.

Re: Trying to get my first credit card

fot1 — Sun, 31 Jan 2016 03:33:27 GMT

This is one of the few times I would recommend them but like others have said Cap one. If denied I would call the EO number and ask them to give the platinum instead. I have seen many people with low scores get the QS cards. %1.5 cash back is a decent start for a travel card.

Re: Trying to get my first credit card

Anonymous — Sun, 31 Jan 2016 04:34:39 GMT

Here's how the bank visits went today:

1.) TD Bank: really got the feeling that they didn't care whether or not I was approved. They wanted to jump into the application process, and eventually they said that the safest bet would be to go for a secured card.

2.) CapOne: They said they wish I had gone there first before applying for the Chase Freedom...said they are more understanding of situations like mine. They thought that if I'm worried about another hard pull, I should wait a couple months and then apply for the QS1.

I'm thinking about applying for the CapOne secured card. At this point, I need to put the rewards on hold and take the safer bet. However, I still have some concerns about a secured card. I would be willing to put down a good deposit (~1.5-2K) in order to get close to the maximum credit line of 3K. But, I'm not sure what happens when I graduate from the secured card.

They said that I can "upgrade" cards, but does that mean I can get my deposit back? If not, would I have to close out the secured card and then apply for an unsecured card? If the answer is yes, what implications does closing a secured card have, besides reducing my AAoA?

Many thanks for all the responses so far!

Re: Trying to get my first credit card

myjourney — Sun, 31 Jan 2016 05:18:27 GMT

Hi Ryan,

Long time no see...Lol jk

Does this ring a bell?

1) apply for the Discover secured card or Cap1 with $39 AF or both

2) if secured open it with a decent amount enough to cover your travel expenses

3) use it for 4-5 months keeping UTL at statement cut under 10%

4) app Amex gold or plat whichever travel perks best fits your needs

5) 6 months later pick between a hotel card you stay at or CSP, Prestige, Premier

Now to answer your questions

Opening a secured card with a good deposit insures you'll have the credit needed for your travel expenses

AAoA will not be hurt when you close it because it will report up to 10 years and have no other effect other than you being back to one open TL

2 on CR's tho (1) reporting as open (1) reporting as closed

Upon closing you would be refunded your deposit back

Upgrading with Cap1 means applying for an unsecured card

Weather you apply now or in 4 months really makes no difference in your case .....you have no credit or history so you have to look for the type of banks willing to take a chance

Banks with secured cards... easy approvals and willing to take a chance with no credit history Cap1, Discover and BofA although BofA can be iffy sometimes

Re: Trying to get my first credit card

myjourney — Sun, 31 Jan 2016 05:28:57 GMT

Learning curve

Also to note you gave me FAKO scores .....No no no

Do not think FAKO scores compare or are close to true Fico scores

CK scores can be +/- 50-100 points as evident on your freedom app denial letter

I'd bet my reputation that all of your scores are in the high 500's maybe 600 at best

That being said sometime soon invest in pulling your other 2 true Fico scores to see where you are as a guideline of where you want to be

Re: Trying to get my first credit card

Anonymous — Sun, 31 Jan 2016 09:32:46 GMT

@Anonymous wrote:
Everyone,

Thank you for all of the responses. New to the community, and really impressed with everyone's eagerness to help.

Credit scores are mostly from credit karma
Transunion: 670, Equifax: 653. On the recent denial for Chase Freedom, the letter said my Equifax was a 594, which was surprising. Apparently this is because Equifax doesn't show that I've begun to make student loan payments.

My current accounts are just two small student loans for about 3K, which recently came out of their deferred period. I've only had to make one payment on each so far; however, I even made a payment during the grace period. I only took out the loans to begin establishing credit, and I could pay them off in full at any time.

I have two recent hard credit pulls: one in June/July for an apartment that I signed on, and then the second is from the unsuccessful bid at the Chase Freedom.

Tomorrow, I think I'm going to go to capital one and my personal bank (TD Bank) talk with a representative about my situation. I'd really like to skip the secured card step, and go straight to unsecured and potentially receive rewards. But at this point, I'll take anything. I'm hoping TD Bank might be able to take my savings/credit accounts into consideration (Chase said they would have done the same, but I do not have an account with Chase).

Do the trips to CapOne and TD seem like good ideas?

Welcome Ryan,

Here's a couple of things you can do today that should help.

1. Go to this link and sign up for the $1-7 day intro (be sure to call in within the 7 days and cancel and they will offer you a 50% off deal. If you can afford the $15mth you should keep it as it gives you the real scores and all 3 bureau reports monthly to guide you where you are week and strong with your credit habits.

https://www.creditchecktotal.com/homepage8?sc=678513&bcd=ad_c_sem_427_89723813832&k_id=cf1c9664-96a2-4f04-afeb-b8c0c52230be&k_kw=creditcheck%20total&k_mt=p&gclid=CjwKEAiA_ra1BRDV-byb_aDqpQoSJAA-ofB9MX-Vc2GO3xZQqStmUIHjeRGG3aIbDe3UbJ3DfMVPlxoClR7w_wcB

2. Go to this link (https://www.capitalone.com/credit-cards/) and see what Cap 1 approves you for. You'd be supprised what you may be offered and if the QuickSilver One offer comes up jump all over it. They may start you out with a small limit $300-500 but you can pay it as often as you'd like wihtin the month and it pays 1.5% cash rewards. Example; you pay for hotel & rental car and you see the amount of $250 show on the acct. Pay it immediately and you will have your full CL again to pay for more stuff just be sure to have it down 10% of your total Cl befoer it posts a statement and you're golden. A couple of months like that and you can call in for a CLI and should be approved. This card should be a STEPS program card meaning that you will automatically receive a CLI at the end of 6mths of good pays but many people report that after the 3mth period you should start asking to a CLI through your online acct and you should get 1 somewhere between the 3 & 5mth slot and then again at the 6mth taking you to the $1500-2000 limit within 6mths.

Also, if the Platinum card shows up app it too. You will get both cards wtih 1 HP on your record. This will be a STEPS card too but after the 2nd statement you can have this one upgraded (PC'd) to a regular QS card and then give it the same CLI treatment.

Best wishes in your new job and with your new credit life!!!

Re: Trying to get my first credit card

Anonymous — Sun, 31 Jan 2016 15:37:18 GMT

myjourney,

Thanks for the advice.

Couple of questions: Do you know if the discover secured "graduates" to an unsecured? CapOne made it sound like I wouldn't have to close out my secured card, but that it would be upgraded/converted to an unsecured card (like the QS1). I've also heard people on this forum talk about difficulty in getting their deposit out? That would definitely raise some flags if true...

Also, what are your thoughts on applying for both the Discover secured and QS1, GIVEN that I have a recent denial? I was thinking maybe just starting with one card would be the conservative route for now.

Re: Trying to get my first credit card

happypill — Sun, 31 Jan 2016 19:01:39 GMT

@Anonymous wrote:
myjourney,

Thanks for the advice.

Couple of questions: Do you know if the discover secured "graduates" to an unsecured? CapOne made it sound like I wouldn't have to close out my secured card, but that it would be upgraded/converted to an unsecured card (like the QS1). I've also heard people on this forum talk about difficulty in getting their deposit out? That would definitely raise some flags if true...

Also, what are your thoughts on applying for both the Discover secured and QS1, GIVEN that I have a recent denial? I was thinking maybe just starting with one card would be the conservative route for now.

You won't have any trouble getting your deposit back from Capital One, provided you don't have a balance remaining on your secured card. If you close your card, they'll send back your deposit right away, and in my personal experience, if you're closing the secured card because you opened something else with Cap One, they will expedite the return of the funds. The Cap One secured card doesn't graduate, so you'd have to apply for something else with them, but they will reward you with nice limits if you spend & take care of your cards. Not sure about the Discover, but I believe it does graduate after about a year.

Regarding your strategy, I'd suggest looking at 4-5 cards to apply for right now, and stopping once you get to 3. You need 3 cards for optimal scoring in the future and you have no AAoA worries right now so might as well get three of them growing immediately. It might be that your current profile would require you to start with secured cards and you don't want to commit that much savings towards deposits, but if you could get 2-3 unsecured cards you should go for that. Capital One, BofA and Discover are all good options for secured and/or unsecured. A CU might be good as well.