topic Re: What CC should my friend get? Has ZERO credit. in Credit Cards

What CC should my friend get? Has ZERO credit.

Kostya1992 — Sat, 26 Apr 2014 09:55:10 GMT

So I have a friend who is 26 and he doesn't have a credit card or any credit history whatsoever. He currently lives with his parents and earns around 15k/yr and thinks that a credit history is pointless, that people can easily live off of cash. He doesn't go to school either. I really want him to get a credit card so he can at least build a credit history, which card should I push him to open? He is complete blank slate, untouched credit history. Something with gas cash back (he delivers packages for his job) would be best. I was thinking Sallie Mae for the 5% cashback but I think they wont give him a card with no history. BOA Rewards? Thanks!

EDIT: Would like to point out he's not going to be interested in Secured Cards at all. It'd be a breakthrough convincing him to app for anything in the first place.

Re: What CC should my friend get? Has ZERO credit.

dbutterworth1988 — Sat, 26 Apr 2014 10:28:43 GMT

Here is a little of my story. I moved here last year from Germany. It was a rough start because my perfect payment history and my cards from there weren't worth anything over here.

The card I started with was a capital one credit card unsecured. Even with no history and a job that didn't pay me well they gave me a shot.

Re: What CC should my friend get? Has ZERO credit.

Anonymous — Sat, 26 Apr 2014 10:28:53 GMT

does he have a checking acct?? id push for something that's within his same bank if possible. so freedom, cash rewards, etc. it also may or may not slightly raise his chances of getting approved if he has an existing relationship with the bank.

i agree you should stick with cash back. id stray away from sallie mae only because you can't actually get the cash out, so it might feel less real for him (though he can use the credits to pay down his CC, but it does feel less "rewarding" of sorts).

also, perhaps there's a reason he's staying away from credit. if you do press him for a card, be sure that you know he's mature enough to manage his credit wisely

Re: What CC should my friend get? Has ZERO credit.

Kostya1992 — Sat, 26 Apr 2014 10:42:48 GMT

@Anonymous wrote:
does he have a checking acct?? id push for something that's within his same bank if possible. so freedom, cash rewards, etc. it also may or may not slightly raise his chances of getting approved if he has an existing relationship with the bank.

i agree you should stick with cash back. id stray away from sallie mae only because you can't actually get the cash out, so it might feel less real for him (though he can use the credits to pay down his CC, but it does feel less "rewarding" of sorts).

also, perhaps there's a reason he's staying away from credit. if you do press him for a card, be sure that you know he's mature enough to manage his credit wisely

The Sallie Mae not being able to take cash out wouldn't be a problem for him. The problem for him would be the (low?) chances of getting approved for it because he has 0 credit.

Also he doesn't have any checking accounts.

Re: What CC should my friend get? Has ZERO credit.

Anonymous — Sat, 26 Apr 2014 10:50:36 GMT

@kostyan1992 wrote:
@Anonymous wrote:
does he have a checking acct?? id push for something that's within his same bank if possible. so freedom, cash rewards, etc. it also may or may not slightly raise his chances of getting approved if he has an existing relationship with the bank.

i agree you should stick with cash back. id stray away from sallie mae only because you can't actually get the cash out, so it might feel less real for him (though he can use the credits to pay down his CC, but it does feel less "rewarding" of sorts).

also, perhaps there's a reason he's staying away from credit. if you do press him for a card, be sure that you know he's mature enough to manage his credit wisely
The Sallie Mae not being able to take cash out wouldn't be a problem for him. The problem for him would be the (low?) chances of getting approved for it because he has 0 credit.

Also he doesn't have any checking accounts.

No checking or savings? That is a common question on credit card applications. If the answer is no, most banks will do an immediate decline.

I think you are fighting for a lost cause. At some point in a few years your friend will need credit and will realize its importance then; if you want to help him you can cosign for him when that day comes. Until then, for someone who (a) thinks credit is pointless, (b) has no bank accounts, and (c) will refuse to put down a deposit for a secured card, there aren't too many products that will help them.

Re: What CC should my friend get? Has ZERO credit.

takeshi74 — Sat, 26 Apr 2014 14:30:36 GMT

@kostyan1992 wrote:
EDIT: Would like to point out he's not going to be interested in Secured Cards at all. It'd be a breakthrough convincing him to app for anything in the first place.

The usual suggestions -- secured and/or credit unions with more lax requirements -- for building/rebuilding may be necessary.

You can't push a rope. Your friend has to be self-motivated.

Re: What CC should my friend get? Has ZERO credit.

Creditaddict — Sat, 26 Apr 2014 14:31:30 GMT

Sounds like he needs a checking account more than a credit card!

What does this person do with paychecks? how do they pay for anything? all through mom and dad at 26?

Re: What CC should my friend get? Has ZERO credit.

ceemee2203 — Sat, 26 Apr 2014 18:21:45 GMT

@Anonymous wrote:
@kostyan1992 wrote:
@Anonymous wrote:
does he have a checking acct?? id push for something that's within his same bank if possible. so freedom, cash rewards, etc. it also may or may not slightly raise his chances of getting approved if he has an existing relationship with the bank.

i agree you should stick with cash back. id stray away from sallie mae only because you can't actually get the cash out, so it might feel less real for him (though he can use the credits to pay down his CC, but it does feel less "rewarding" of sorts).

also, perhaps there's a reason he's staying away from credit. if you do press him for a card, be sure that you know he's mature enough to manage his credit wisely
The Sallie Mae not being able to take cash out wouldn't be a problem for him. The problem for him would be the (low?) chances of getting approved for it because he has 0 credit.

Also he doesn't have any checking accounts.
No checking or savings? That is a common question on credit card applications. If the answer is no, most banks will do an immediate decline.

I think you are fighting for a lost cause. At some point in a few years your friend will need credit and will realize its importance then; if you want to help him you can cosign for him when that day comes. Until then, for someone who (a) thinks credit is pointless, (b) has no bank accounts, and (c) will refuse to put down a deposit for a secured card, there aren't too many products that will help them.

+1 to everything but the italicized portion. It is almost always never a good idea to cosign for someone. Even when that someone is a family member.

Anyway, you might think you're doing your friend a favor, but I'm not sure. He's 26, still living with his parents, not going to school and only making $15k/yr. I don't think he's ready for the responsibility of a credit card.

Re: What CC should my friend get? Has ZERO credit.

parakleet — Sat, 26 Apr 2014 21:03:27 GMT

@takeshi74 wrote:
@kostyan1992 wrote:
EDIT: Would like to point out he's not going to be interested in Secured Cards at all. It'd be a breakthrough convincing him to app for anything in the first place.
The usual suggestions -- secured and/or credit unions with more lax requirements -- for building/rebuilding may be necessary.

You can't push a rope. Your friend has to be self-motivated.

Re: What CC should my friend get? Has ZERO credit.

Anonymous — Sun, 27 Apr 2014 01:51:53 GMT

I would convince them to join a good credit union such as penfed,NFCU etc then work on credit later.

Re: What CC should my friend get? Has ZERO credit.

Remember0 — Sun, 27 Apr 2014 02:04:46 GMT

For what it's worth, I've had Citi approve some of my friends who had 0 credit for $700 unsecured (after requesting their SSN card and maybe DL/Passport to serve as ID). They were students though.

My first card was Capital One. $300, but unsecured lol.

Not sure if it's going to be different if not a student, but I think Citi is worth a try. Don't apply for something too fancy though. Just their regular Thank You card or something imo.

I'm guessing CapOne will definitely approve for $300. And that 15k...it might have to be a tad higher. Is that pre-tax or after tax? For CC apps, you want to use pre-tax income.

Re: What CC should my friend get? Has ZERO credit.

Pat94108 — Sun, 27 Apr 2014 02:22:06 GMT

@takeshi74 wrote:
@kostyan1992 wrote:
EDIT: Would like to point out he's not going to be interested in Secured Cards at all. It'd be a breakthrough convincing him to app for anything in the first place.
The usual suggestions -- secured and/or credit unions with more lax requirements -- for building/rebuilding may be necessary.

You can't push a rope. Your friend has to be self-motivated.

+2 A friend of mine moved here from Canada a year ago, he started with a secured card with BOFA then a few months later got a Discover It with a CL of $750 then a few months after got his secured card upgraded to a non-secured card and shortly after that applied and got a Capital One with a $3000 limit, all this happened within 10 months.

However as takeshi74 nicely pointed out if your friend is not motivated, there's not much point. If he's happy with not having a credit card then let him be. He should apply for a credit card because he needs one not because you think he needs or should have one.

Re: What CC should my friend get? Has ZERO credit.

j_casteel — Sun, 27 Apr 2014 02:26:11 GMT

@kostyan1992 wrote:
So I have a friend who is 26 and he doesn't have a credit card or any credit history whatsoever. He currently lives with his parents and earns around 15k/yr and thinks that a credit history is pointless, that people can easily live off of cash. He doesn't go to school either. I really want him to get a credit card so he can at least build a credit history, which card should I push him to open? He is complete blank slate, untouched credit history. Something with gas cash back (he delivers packages for his job) would be best. I was thinking Sallie Mae for the 5% cashback but I think they wont give him a card with no history. BOA Rewards? Thanks!

EDIT: Would like to point out he's not going to be interested in Secured Cards at all. It'd be a breakthrough convincing him to app for anything in the first place.

Why not let him make his own decisions?

It's good you want to EDUCATE your friend, but you shouldn't force him into something if he doesn't want to.

Re: What CC should my friend get? Has ZERO credit.

Anonymous — Sun, 27 Apr 2014 02:30:33 GMT

@Remember0 wrote:

I'm guessing CapOne will definitely approve for $300. And that 15k...it might have to be a tad higher. Is that pre-tax or after tax? For CC apps, you want to use pre-tax income.

Cap One autodeclines for no bank accounts. No credit check, just immediate decline.

Re: What CC should my friend get? Has ZERO credit.

Remember0 — Sun, 27 Apr 2014 03:11:29 GMT

Good to know about Cap One.

I still don't get how one can live without some kind of checking account or prepaid debit card type of account. I mean does he really pay the check cashing places a percentage of his income every year to cash his checks or is he like paid directly in cash? If he's paid directly in cash, maybe he does have a good reason for wanting to stay out of the mainstream financial system?

Re: What CC should my friend get? Has ZERO credit.

youdontkillmoney — Sun, 27 Apr 2014 03:24:51 GMT

@Remember0 wrote:
Good to know about Cap One.

I still don't get how one can live without some kind of checking account or prepaid debit card type of account. I mean does he really pay the check cashing places a percentage of his income every year to cash his checks or is he like paid directly in cash? If he's paid directly in cash, maybe he does have a good reason for wanting to stay out of the mainstream financial system?

^^^^

Start with a checking and savings account at a credit union. let him try debit (visa check card) to see what it's like. Then when he is ready, a credit card from the credit union.

Re: What CC should my friend get? Has ZERO credit.

koalablue — Sun, 27 Apr 2014 04:16:28 GMT

I agree with the previous poster. Your friend really should start with at least a checking account. But if he's dead set against a checking account, he'll have a hard time getting any unsecured credit card. You can lead a horse to water, but you can't make him drink. If you tell him the options he has and he's set against doing anything, then I'd drop the subject with him.

Re: What CC should my friend get? Has ZERO credit.

lg8302ch — Sun, 27 Apr 2014 09:56:19 GMT

Just explain your friend how important credit will be at some point in his life and then let him decide. If he does not understand it then I have the feeling he is not ready for a credit card. Maybe you can convince him to get at least a checking account ? Why not a secure card ? He should understand that he needs to start somewhere and build his credit ...it is a long process and he will not be able to simply get prime cards when he feels like he wants them. If not now I guess at some point in life he will find out himself.

Re: What CC should my friend get? Has ZERO credit.

USF813 — Sun, 27 Apr 2014 14:28:10 GMT

OP, if your friend is content with a cash only lifestyle, why do you feel a need to push credit on him? Your approach seems a bit intrusive into his financial business.

Re: What CC should my friend get? Has ZERO credit.

godscountry — Sun, 27 Apr 2014 17:16:47 GMT

@USF813 wrote:
OP, if your friend is content with a cash only lifestyle, why do you feel a need to push credit on him? Your approach seems a bit intrusive into his financial business.

I kinda agree. I lived off cash for years...mainly because I was afraid of credit. I knew all these people who got into so much debt so I stayed away until I was responsible and educated enough to handle it. Its a maturity thing...and doesnt have to do with age necessarily. You cant make someone understand until they are READY to understand. If he thinks like I used to.....credit can be a scary thing until you get the full understanding.