topic Re: Need My First Credit Card in Credit Cards

Need My First Credit Card

Athena123 — Fri, 06 Sep 2013 06:12:59 GMT

Hi everyone!

I'm 26 years old, a grad student, and married to a Marine and looking to build--or "rebuild" my credit so we can purchase a home.

I had a few medical collections, and one collection from a company called AFNI which gave me quite a bit of trouble, yet all collections have been paid and recently removed.

I have no student loans, and my husband and I got our first auto loan a couple months ago.

Neither of us have credit cards.

My Equifax score per this site is currently 704. (Just jumped up a couple week ago and I couldn't be happier!)

Four days ago I applied for a credit card with Navy Federal and was denied. I was under the impression that Navy Federal is generally pretty easy to get a credit card with so I was surprised.

I'm just curious if anyone has any suggestions as to how I can proceed from this point as far as finding a credit card?! My score is good now, but from my understanding it can increase even more if I add revolving credit to the equation? I would really like to be in the best possible position to purchase a home. Thank you so much for all your help!!!

Re: Need My First Credit Card

Anonymous — Fri, 06 Sep 2013 06:23:15 GMT

You need more than just a good score to get credit. You need history behind that score.

Likely NFCU denied you because of your lack of revolving credit.

What you should look into is a secured card. You secured the size of credit line you want with an equal amount of money in savings. For example locking away $500 into a savings would grant you a $500 credit line. This will build the history you need.

After even 6 months of this secured card you can find unsecured cards. Most secured cards can be unsecured after about a year.

Some mortgage companies like at least 3 years of credit history with 3 tradelines.

Re: Need My First Credit Card

Creditaddict — Fri, 06 Sep 2013 09:54:26 GMT

Did Navy pull EQ or TU? Maybe your TU is fastly different?

I would also go secure route with Navy.

also check capitalone.com for pre-approvals - don't apply for something randomly with no offer for right now.

Re: Need My First Credit Card

Athena123 — Fri, 06 Sep 2013 23:40:04 GMT

They pulled Equifax, and my Transunion FICO from this site is 685.

So... I suppose it looks like we are stuck going the secured route for now.

Do you know if it shows "secured" on your credit report or if it simply shows the account?

I'm also assuming a larger "deposit" and therefore credit line is more favorable than a small one?

Thanks again for the help!

Re: Need My First Credit Card

StartingOver10 — Fri, 06 Sep 2013 23:45:09 GMT

I don't think you should get a secured card. Why don't you try Cap 1? They have an easy process and once you have had them for six months or so, then you can probably get another card.

As to having a cc for 3 yrs before applying for a mortgage - not really. All they are looking for is a credit score and a couple of trade lines. Three will work as stated above. But you are much closer to being able to apply for a mortgage than you think. Just a little prep time and you will be ready.

Re: Need My First Credit Card

Peter1142 — Sat, 07 Sep 2013 00:14:28 GMT

Credit One will probably give you a credit card, but the fees are very high. You are best off with a secured card. You could maybe try for a Cap1 Platinum or Quicksilver One.

Mortgage requires 3 TL's that are 12-18 months, not 3 years. And that is only an issue for manual underwriting.

Re: Need My First Credit Card

fargobzn — Sat, 07 Sep 2013 00:31:12 GMT

I'd try for the Capital One Quicksilver One. My first credit card was the previous version of that card.

Re: Need My First Credit Card

shane82388 — Sat, 07 Sep 2013 02:02:44 GMT

@Peter1142 wrote:
Credit One will probably give you a credit card, but the fees are very high. You are best off with a secured card. You could maybe try for a Cap1 Platinum or Quicksilver One.

Mortgage requires 3 TL's that are 12-18 months, not 3 years. And that is only an issue for manual underwriting.

What fees? Annual fee's on Capital One basic unsecured card is only $39 i believe...not too steep of a price to pay for unsecured credit...

anyway...OP, put your info in this pre-approval form and see if capital one offers you anything https://findmycard.capitalone.com/PageVersions/LandingPages/LP_QUICK_V01.aspx

Re: Need My First Credit Card

Athena123 — Sun, 08 Sep 2013 15:54:54 GMT

Thanks for all the suggestions everyone! I'm going to try Capital One today, so hopefully that works!

Would the 3 trade lines include my auto loan?

Or should I shoot for 3 credit cards?

Again thank you so much for your help!!!

Re: Need My First Credit Card

Awesomely — Sun, 08 Sep 2013 18:27:15 GMT

Definitely try to get a regular Capital One credit card, if you get denied just call them and tell them your story, with your scores you should get approved.

Re: Need My First Credit Card

myjourney — Sun, 08 Sep 2013 18:29:03 GMT

@Athena123 wrote:
Thanks for all the suggestions everyone! I'm going to try Capital One today, so hopefully that works!
Would the 3 trade lines include my auto loan?
Or should I shoot for 3 credit cards?

Again thank you so much for your help!!!

Yes the 3 can include an auto....good luck

Re: Need My First Credit Card

Anonymous — Sun, 08 Sep 2013 18:30:38 GMT

@Athena123 wrote:
Thanks for all the suggestions everyone! I'm going to try Capital One today, so hopefully that works!
Would the 3 trade lines include my auto loan?
Or should I shoot for 3 credit cards?

Again thank you so much for your help!!!

I would go for 2 credit cards right now. Problem is you will likely not what the cards you can get right now in the long term. Is there a local CU you can walk into and talk about it?

Also, can you tell me whats on your credit file right now?

Re: Need My First Credit Card

JMills — Sun, 08 Sep 2013 23:51:03 GMT

Cap 1 will give you a card. My friend's husband had no credit because he just came to the states. Cap 1 gave him credit when no one would. They gave him a card for newcomers in the US, he no credit, so I'm sure you will get one. From that one Cap 1 card, it has establish a great credit score, he has now 5 cards because of it! And it hasn't been a year!. Don't do a secured card if you can get a unsecured card. Defiantly do not do Credit One, because they have so many fees!

Re: Need My First Credit Card

Anonymous — Mon, 09 Sep 2013 03:11:59 GMT

@JMills wrote:
Cap 1 will give you a card. My friend's husband had no credit because he just came to the states. Cap 1 gave him credit when no one would. They gave him a card for newcomers in the US, he no credit, so I'm sure you will get one. From that one Cap 1 card, it has establish a great credit score, he has now 5 cards because of it! And it hasn't been a year!. Don't do a secured card if you can get a unsecured card. Defiantly do not do Credit One, because they have so many fees!

Cap One for Newcomers is gone now. Unclear what is replacing it.

Re: Need My First Credit Card

Anonymous — Mon, 09 Sep 2013 03:14:49 GMT

OP,

You can apply for Cap One Journey for Students as long as you are still student. If you give more details on your credit file, I can recommend if other student cards are good shot for you. Reality is once 6 months hit, you are going to go for Navy Federal for a big limit. Although while in school, you should get the unique school ones like Citi Forward for Students.

Re: Need My First Credit Card

Athena123 — Mon, 09 Sep 2013 19:59:39 GMT

There are two items showing on my credit report.

One is my auto loan. Here is the info showing:

Opened: June 2013

Balance: $20,798

Status: Pays as Agree

Description: Auto Loan Fixed Rate

The other is a store card from when I was 18 that I had and literally never used so I closed it after six months. Here is the info:

Status as of: July 2005

Date Opened: November 2004

Date of Last Activity: November 2004

Balance: $0

Credit Limit: $200

Account Type: Revolving

Account Holder: Individual

Status: Pays as agreed

And then I have one inquiry on Transunion from purchasing my vehicle and one inquiry on Equifax from Navy Federal Credit Union.

I am still a student--in my final year of graduate school.

Let me know if you need any more info! Thank you for all the helpful responses!!!!

Re: Need My First Credit Card

Anonymous — Tue, 10 Sep 2013 05:38:38 GMT

I would try for two cards right now. Go for the cap one for students. Assuming approval, go for one more card. Reach card would be Amex charge card. Safer card would be Walmart if you would use it. In 6 months, go back to nfcu.