topic Cards For Limited Credit? in Credit Cards

Cards For Limited Credit?

Cotton_Britches — Sat, 17 Nov 2012 20:02:52 GMT

My twenty-something nephew wants to establish his credit. His reports are empty except for one local furniture credit account that he's already paid off. He applied for a PayPal MasterCard but was turned down due to insufficient credit. He wasn't offered the Smart Connect account. Which cards should he try for next that may be willing to approve him?

Re: Cards For Limited Credit?

HiLine — Sat, 17 Nov 2012 20:04:50 GMT

Your best bet would be to either add your nephew as an authorized user or get him to apply for a secured card. Capital One also has a card that specifcally targets consumers without a credit history.

Re: Cards For Limited Credit?

Anonymous — Sat, 17 Nov 2012 20:14:07 GMT

Most any secured card will approve him since there are no negatives. And there are good ones with most major banks and many CU's.

I would pick the secured card from someone who I wanted unsecured CC from in the future.

Re: Cards For Limited Credit?

Cotton_Britches — Sat, 17 Nov 2012 20:16:48 GMT

He initially thought of First Premier until I told him how bad an idea that is. According to the First Premier website, they charge card applicants a one-time "processing fee" of $95.00! Insane.

Re: Cards For Limited Credit?

HiLine — Sat, 17 Nov 2012 20:18:48 GMT

Did you know that First Premier is the absolute worst credit card in the market?

Re: Cards For Limited Credit?

Cotton_Britches — Sat, 17 Nov 2012 20:28:51 GMT

Yes. That's why I told him to avoid it!

Re: Cards For Limited Credit?

webhopper — Sat, 17 Nov 2012 20:55:15 GMT

Secured cards and secured loans from credit union is the best way in my opinion to establish good payment history. He can start with secured and then apply for unsecured later on. Digital credit union can be joined by anyone... there are also local credit unions that have similar products. That's the route I would take.

Re: Cards For Limited Credit?

jsucool76 — Sat, 17 Nov 2012 21:01:32 GMT

I'll +1 the secured card idea. Be aware it IS possible to be denied for a secured credit card though, cap1 denied me for theirs.

If he is a member of a CU or something, I would have him go there first, and if not, see if whoever he banks with offers any secured cards or other options for those starting out.

Is he still a college/grad student or no?

Re: Cards For Limited Credit?

jsickz32 — Sat, 17 Nov 2012 21:11:39 GMT

i added my brother to two of my cards and after 2 months of them reporting he applied for macys card and bofa basic cc and was approved for both. if you can add him as a AU that should help him