topic Re: First Credit Card in Credit Cards

First Credit Card

Anonymous — Thu, 15 Aug 2013 15:57:04 GMT

So I'm finally looking to get my first credit card (26yo btw). It looks like one of the better ones out there for my situation is CSP. Although I'm thinking I won't be able to qualify.

What really pushed me over the edge to do this is my new location I'll be in charge of paying rent each month of $1100 for 4 people. The payment can be via credit card without any fees at a local bank. So it's a decent opportunity for me to get a lot of points/cb.

I'm unsure of my credit, but to the best of my knowledge there has never been anything I've done to hurt it. I'm not sure what background info is needed, but I'll give a little.

I had a $13k car loan (cosign) which I paid off early 2 years ago. I have no debt to my name, just graduated college, trying to get a salaried job and will probably make $15k this year. I've got about $15k saved up. Other than some minor bills in the past (comcast/utility bills), I am likely to not have much of a credit history.

So, what's my first step of action? Should I try to do a soft pull credit check and see what my number is? Just apply through chase? Or is there another card that would be best for my situation and still earn me points? It's my understanding if I apply for the CSP and don't qualify, I may just qualify for the Chase Freedom. Is a secured credit card my likely or only route?

I've been reading through some of the advice so far and it seems like an active forum full of great help. So the good news with me is financially, I'm in a good position, but I probably should have been taking advantage of building my credit earlier.

Re: First Credit Card

myjourney — Thu, 15 Aug 2013 16:22:25 GMT

@Anonymous wrote:
So I'm finally looking to get my first credit card (26yo btw). It looks like one of the better ones out there for my situation is CSP. Although I'm thinking I won't be able to qualify.
What really pushed me over the edge to do this is my new location I'll be in charge of paying rent each month of $1100 for 4 people. The payment can be via credit card without any fees at a local bank. So it's a decent opportunity for me to get a lot of points/cb.

I'm unsure of my credit, but to the best of my knowledge there has never been anything I've done to hurt it. I'm not sure what background info is needed, but I'll give a little.

I had a $13k car loan (cosign) which I paid off early 2 years ago. I have no debt to my name, just graduated college, trying to get a salaried job and will probably make $15k this year. I've got about $15k saved up. Other than some minor bills in the past (comcast/utility bills), I am likely to not have much of a credit history.

So, what's my first step of action? Should I try to do a soft pull credit check and see what my number is? Just apply through chase? Or is there another card that would be best for my situation and still earn me points? It's my understanding if I apply for the CSP and don't qualify, I may just qualify for the Chase Freedom. Is a secured credit card my likely or only route?

I've been reading through some of the advice so far and it seems like an active forum full of great help. So the good news with me is financially, I'm in a good position, but I probably should have been taking advantage of building my credit earlier.

Welcome to the forum

CSP may not be the right card for you just yet because Chase likes to see 6-12 months of CC history befroe handing out 5K limits.

However I think freedom may be a good fit and a stepping stone to CSP.

What we need to be of better help is more info

INQ's in the last year?

Any baddies?

Scores?

Re: First Credit Card

webhopper — Thu, 15 Aug 2013 16:23:42 GMT

Since you're in a great financial position.. What Bank did your car loan go through?

Who do you use for your banking and savings accounts?

Are you eligible to become a member of a Credit Union?

Re: First Credit Card

JonStur — Thu, 15 Aug 2013 16:26:40 GMT

You are guaranteed one free credit report each year (google it but I think it's annualcreditreport.com), just to know what's there. As for the CSP, that's their highest personal card with a $5000 starting limit I believe. Generally they like to see some history with other limits like this before approval. There have been cases I believe where others have gotten lucky, but they are the exceptions not the rule.

Re: First Credit Card

Anonymous — Thu, 15 Aug 2013 16:44:10 GMT

I'm a member of a credit union and wouldn't have a problem getting a cc through them, but they offer zero incentives or rewards.

I'm wondering if my best bet would be to try to switch to another local bank or credit union that offers a credit card with rewards and put my checking with them as well.

Is the chase freedom a long shot as well?

As far as INQs - I don't think I have had one in the last few years, maybe one when I rented this house but I don't think so.
Nothing else bad, and I was unsure if i should check my score before applying or not. So I annualcreditreport.com the way to go in doing so?

Re: First Credit Card

myjourney — Thu, 15 Aug 2013 16:52:57 GMT

Score can be purchased here.

The free credit report only shows what your CR's look like from all 3 CB's

Freedom may be a good choice but until we know your scores I don't recommend you apply for any cards.

Re: First Credit Card

09Lexie — Sat, 17 Aug 2013 20:53:16 GMT

Welcome to the forum. Chase will require 6-12 mos of rev history for all their cards. You might get around that if you had a banking relationship with substantial funds on deposit.

Since you have a CU, start there-after 6 mos if solid payment history apply for Freedom, Discover etc. you could also try BoA secured card - it will graduate after a year or so.

We all have to start somewhere and if you are willing to be patient I'm sure the outcome will be positive.

Edit: typo

Re: First Credit Card

cottoncrown — Thu, 15 Aug 2013 18:29:44 GMT

With your income I don't think CSP would be a good choice regardless. Putting rent on it would help but unless you spend all of your income on dining/travel it wouldn't be worth it. You likely would qualify for Discover you should check their pre-qualified site. It doesn't have an annual fee and has lots of different categories for 5% cash back throughout the year. It would be a good start without having a secured card.

Re: First Credit Card

improvingmycredit — Thu, 15 Aug 2013 18:40:30 GMT

@09Lexie wrote:
Welcome to the forum. Chase will require 6-12 mos of rev history for all their cards. You might get around that if you had a banking relationship itch substantial funds on deposit.

Since you have a CU, start there-after 6 mos if solid payment history apply for Freedom, Discover etc. you could also try BoA secured card - it will graduate after a year or so.

We all have to start somewhere and if you are willing to be patient I'm sure the outcome will be positive.

Lexie is a absolutely right. With no revolving credit, it is very difficult to get a revolving line of credit with rewards cards. First thing is to establish a revolving credit history. Fortunately, Chase Freedom and Discover like to see just a few good months of revolving history before they will grant a CC.

Get the CU card asap. Shoot for a 2-3K limit minimum. Make a few charges and PIF for the next 3-4 months. Once you have this solid history, app the Freedom and Discover. Though they are the same catagory type CCs, they will help you build a solid, well rounded profile that any lender would love to see.

As another poster stated, the CSP might not be the best fit for you with current income, but there are other good travel/rewards cards out there that might better fit the bill.

Post after thought.

Other starter cards with AFs are also immediately available to you right now with current profile.

CapOne QuicksilverOne comes to mind. This will also do the trick for the 3-4 months to establish a revolving credit history.

But I'd think you'd rather do better to try and establish this with a no AF card like the CU.

Good Luck!

Re: First Credit Card

fargobzn — Thu, 15 Aug 2013 20:19:35 GMT

I was in a similar situation a while back with no revolving history. I ended up getting the Cap One Cash Rewards card(now quicksilverone) and after two months with that card I applied for the Discover It and was approved.

That said I did have a few negatives so maybe you could get in with Discover right away if your report is clean. Like another poster said you can always check with Discover and Chase to see if you are prequalified for anything.

Re: First Credit Card

MissCredit9 — Thu, 15 Aug 2013 21:21:17 GMT

I think you should apply for a Capital One Quicksilver One. You would get rewards for every purchase to convert into things that might be useful to your situation like cash back. If you get denied you can always go for a secured card or unsecured credit union card. You should at least try for a rewards card at first. One hard pull even if denied will not hurt you much in the long run. Its worth the risk considering the amount of money you will be pumping through the account.

Re: First Credit Card

MissCredit9 — Thu, 15 Aug 2013 21:24:39 GMT

@fargobzn what was your initial credit limit on Cap1 if you dont mind?

Re: First Credit Card

angelcred10 — Thu, 15 Aug 2013 22:48:15 GMT

First step is CHECK YOUR CR

you could even do something like Credit Karma which is not a true representation but will give you an idea of what agencies might look at.

as some other posters have stated, annualcreditreport or wherever that site is should also be part of this process.

If you can avoid something like those Annual Fee cards or cards where you need to basically have a down payment (secured card) that would be ideal.

The one [rewards card] I started with is Capital One Journey (I'm a student however)

I've since set that as only payment for a few recurring bills (DirecTV and Phone)

After a few months I definately feel graduated!

Re: First Credit Card

fargobzn — Fri, 16 Aug 2013 02:34:35 GMT

@MissCredit9 wrote:
@fargobzn what was your initial credit limit on Cap1 if you dont mind?

$500

Re: First Credit Card

Rhaeny — Fri, 16 Aug 2013 02:55:12 GMT

You can get your reports from free from https://www.annualcreditreport.com/cra/index.jsp

You can sign up for free to get some monitoring on your credit at Credit Sesame which is Experian or you can use Quizzle

For TU you can use Credit Karma

You can get your EQ score from here.

But I would start with the annual credit report to see what is on your report. Then sign up with those free services for monitoring. Then you will have an idea what your score is and what's on your reports. The scores from Credit Sesame, Quizzle and Credit Karma are all fake so don't put a whole lot of weight to them. However the score you buy from here is a real Fico score. From that point people will be able to give you some better advice as to where to app to avoid unnecessary hard pulls.

Re: First Credit Card

Anonymous — Sat, 17 Aug 2013 19:52:53 GMT

With the annual credit report website, should I get all of them? Should I get one now just to see where I'm at so that way I can see how much it might improve in say 6 months?

Also, thanks everyone for the advice. I'm reading up as much as I can in my spare time.

Re: First Credit Card

Anonymous — Sat, 17 Aug 2013 20:43:55 GMT

Well, I've tried two credit scores and can't get either one of them to work. It looks like I have to mail in a bunch of information. I'm trying to figure out what that means other than this will be a long process.

Re: First Credit Card

09Lexie — Sat, 17 Aug 2013 20:58:00 GMT

It sounds like your identity needs to be verified. You can download the form and mail in your verification documents . They will send you your reports shortly.