Advice for Friend Applying with No Credit

[Anonymous]

Care credit will approve you for something if you go through the doctor. Just helped someo me with no credit at all get $500

[Anonymous]

Thanks!!! Yes he is a student! I'll have him cold app for a student card.

I'll let him know about care credit. Is there a place to apply or just go t o the doctor's office for something and pay then?

[Anonymous]

Sugar STOP!!!
Hold on just a moment ( I just wanted to say Sugar Stop☺)

I won't go into great detail ( I hope, never know once I start) I've developed the Gemini method...(2 or more objectives, 1 stone😉)

The reason I said STOP...before he uses all his dough securing just one TL....let's see if we can double or triple up, on the same funds.

Step 1 IMO has to be a SSL (generally $500 is minimum) we want one that releases the 'held' 💰 as payments are made monthly....

Open a Savings account at CU:A
Immediately borrow/establish a $500 SSL

Now we have an established installer on credit profile

Step 2
Take $200 or the $500 loan proceeds
Establish a secured CC with Discover/Citi/etc

Step 3
Take the remaining $300 or the $500 loan proceeds
Establish a 2nd secured CC with CU:B/Bank of choice

Where are we?

We've got 3 TLs...2 CCs & 1 loan reporting
All on the same $500 out of pocket ( which comes back as it's security deposits only)

Anyway, Yes there is a small payment due towards the loan ( which is going to serve the DUAL purpose of showing small usage and build positive on-time history)

Allow these 3 TL's to report 6-8 months and adding an additional CC for a 3rd revolver will NOT be a problem, and won't require a deposit

* There are longer more detail versions of this method if required if you look at my old post.

___

Even if your pal, saves another $100
Securing two $200 CCs IMO is golden as it beef up the profile with 2 TLs reporting and aging together
Again, after 8 cycles, he'll likely have a score and profile decent enough to secure an unsecured 3rd either way

Best of luck

[Manonfire]

It's unfortunate his parents are "anti credit". I lost out on many years because I wasn't responsible with mine. I am back on the path to rebuilding though.  Atleast your friend is still eager to try regardless. He's got a fresh start and a secured card is a good place to start.

[Anonymous]

Read Gemini's post and take it as gospel.  Also convince your friend to become a transactor and *not* a revolver and to keep those 2 cards open the rest of his life.  Credit cards are only for managing spend, getting rewards and building credit for your future.  They are never for buying things you cannot pay cash for today.

[Anonymous]

It's so unfortunate that so many ppl become "anti-credit" generally due to one of 2 things

A) Blindly listening to Dave Ramsey types that rant and rave for entertainment purposes, which go es them a platform to make 💰, whether they practice what they preach or not is irrelevant... like the POINT if Maywather (sp) vs McGregor the other day was a PAYDAY for them, nothing more...if Dave doesn't have a rant or an enemy topic = no entertainment= no check

B) You have folks that got burnt, burnt themselves... whatever the details aren't important, what's important is that they now have GIVEN UP and made
'da credit Da' Evil 😈

Ala Kathy Bates as the mother of the WaterBoy I'm the Adam Sandler movie

'da Foosball..dem females and day dare Credit all 'da Devil day what Momma say

It's FEAR, laziness and being too stubborn to learn a new skill, even if one has to ERASE what they thought/ felt and just pay attention and learn the correct way

But this is often too high a burden, that being leaving behind possibly a damaged understanding to start fresh...that's why the isms persist (racism, sexism, agism etc) ppl find get so difficult to erase bad programming and start fresh so they just make IT the enemy and hunker down on ignorance...

Human beings really, start checking out on learning new stuff with great attention at about 3rd grade, from there forward it's mail it in, get the grade, avoid as much extra attention as possible....prior to that we don't know any better, so we WANT to tie our own shoes and pour our own drink

But about 9 we start to figure out how to do less and less actual new learning...we want the grade mind you but if 15 minutes of cramp and is enough to get by, that's the beginning of our educational end

Ask me how much Spanish, I know after a few years of h/s AND 2 years of required study in college 'B' grade average, very little new knowledge....we can get through but what are we learning and what do ppl become comfortable with...2 different worlds

[BronzeTrader]

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@Anonymous wrote:
Hello,

I'm new to credit myself however when I started my journey I had the pleasure of being co-signed to a car loan months before I applied for any cards. I also helped a few friends apply for cards that had really thin files.

This friend is different they have no credit what so ever. I tried all the various prequalification sites Capital One, AMEX, Chase, Discover, and BOA. They all say they can't find any offers.

They bank with TCF so I was thinking of telling them to join a CU and applying with them. Not sure if that helps or not with brand new credit.

Any suggestions or experiences with this. Just want to help get them started.

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It is not hard at all as long as you manage it well.  First, parents can add the junior as an AU to establish credit.  Then you can also apply for secured credit.  The best place to start is where you bank.  

I have a minor who was my AU for two year.  When the minor turned to 18 years of age, we went to our local Bank of America and got the BA cash rewards card at the branch.  The minor already has own bank account there.  Within a year, the minor already has 6 credit cards all unsecured.  All major ones, AmEx, Citi DC, BA 3/2/1, Discover and Barclay.   We even received offer to apply for PRG, but we ignored it.

Good luck.

[Anonymous]

Wow! That is awesome Gemini

Thank you for laying that out. So far I told him to put the 300$ aside and to save so this plan will work perfect once he gets to 500$ Im going to look up your original post so I can see which CUs and read up on how to and such.

His parents credit views seems like it's option B but that's just my speculation from what I've heard from them.

Yep Gubmint. I essential said that I use my cards as if they are my debit card and then use my bank funds to pay for the card payments. That it's not a loan just a different use of funds for the time while building. Also to never let more than 30% report to the CB's. I know it shouldn't be that high but I just wanted to give the highest threshold.

Thanks BronzeTrader! That gives me hope for them to build a nice credit profile. I didn't even think of some of those cards like Barclays, Citi or BA 1/2/3. Once they build I'll have a better suggestion pull

[Anonymous]

Ok Sugar I'm a let's play with the cards and Energy & Effort we have TODAY because we might not have it tomorrow... momentum is a mother

We don't want your friend in the bench...heck no, ppl get comfortable on the bench

I spoke of ideal and IF he had access ( some students have graduation/ birthday gift money at their disposal etc) if not no biggie we don't burn TIME on my team, we play...😎

He needs to build a monthly habit of saving ANYWAY so here's my NEXT ( again only the motivated can mess if me excuse makers get excused) plan for his situation

Go ahead make us of what he has TODAY...
secure TL #1
Commit to SAVE $12/wk = $50/mo
In 4-6 months he has enough to secure TL #2

( Remember at this point TL#1 is 4-6 old)

Continue with the great life skill of SAVING a few bucks, just $12/wk again $50/mo

Generally after 6 more months a 3rd secured CC likely isn't necessary ( but if needed/wanted the cash is available) as importantly the exercise double bills as providing access to security funds to build credit but also programs one to SAVE 💰 so one isn't dependant on CCs for "any" issue that comes up

Because the 3rd 'win' is after the accounts unsecure the person has a mini emergency fund of $500-$1000 a number that SADLY too many Americans can't put their hands on in a pinch

I PREACH this savings/payment training as a way for a person to build themselves an emergency fund so that a flat tire or a deductible doesn't REQUIRE a CC transaction throughout one's entire life

I don't judge, parents etc per se but if we can help reprogram/recondition how young ppl ENTER adulthood BEFORE they get in trouble, before issues pop up ...why not, have them better prepared and equipped.

Ppl say 'oh my goodness I didn't KNOW the tire was going to go flat, etc' and the TRUTH tires go flat it's a part of life it shouldn't be LIFE changing

As responsible adults, we have prepare for the things that we KNOW happens and not pretend that cars need maintenance and flats happen, tags need renewal, insurance has to be paid every year, kids go to summer camp and may need braces, man/woman up be the Captain of the ship

My only point is ppl spend like it's no tomorrow, then are SHOCKED at the 'surprises' of regular life, if a young person starts the discipline early he/she will save themselves a LOT of headache and stress later

That way your friend lives better and his parents grandkids get a better shot at picking up superior habits😎

[Anonymous]

This makes me want to stop thinking about my credit decisions and just ask Gemini101 for a financial plan.