Approved for amazon visa with NO credit history OR income!! Tips on building good credit?

[Anonymous]

Wow. I am surprised. I received an email today that I was approved for the chase amazon visa. $500 limit. Unsecured!!!

I can't believe it! Most people were saying that my only chance at building credit would be a secured card. Considering the fact that I have no income, and living off of $500 a month cash assistance (welfare) from the government for a family of 3... So I put my "yearly income" on credit card applications as $6000 just based off of cash assistance. And I have no credit history whatsoever...

And kaboom! Approved for UNSECURED, no annual fee, chase amazon rewards visa! Considering I had a chase banking account for several years, so maybe that's why? But I always have less than $1000 in it, because, well, I'm poor. So I have no idea on what basis they approved me, but wow, that's great! I can now see the card added in my online chase account.

Now, what are some tips on building excellent credit?

Obviously, don't buy more than you can afford, that's a given. But what about.. should I buy as little as I can on the card? Or as much as I can as long as I pay it off? Or does it matter?

For example, my bills so far include $80 a month car insurance, $30 prepaid phone bill, and diapers... I mean, I could just buy $0.99 baby wipes, and just buy them once a month on my credit card and pay it off... but will that really be better for my credit score, or will making more purchases be better?

[newhis]

With only 1 card I think the best you can do is buy something, let it report and then PIF.

Try to always report a low balance. If you use the card for more than, say $40, pay it down before the statement close date.

I read somewhere that you need at least $2 for the card to report as 1%, less than that will report 0%.

Reporting $2-$10 I think will be the best you can do now.

If your file is new and this is the first TL you have, then you will get a FICO score after 6 months. You can apply for other cards at that point. For a better profile you need 3 credit cards.

If you can save a little over $500, you can do the secured loan technique to get extra points for having a loan. Good luck.

[Anonymous]

Congratulations OP! I am really happy for you! I believe the advice given by the previous poster is good. Hoping that your credit score continues to grow. 

[Anonymous]

Wow congrats op that is really good!

I am very intrigued though.. how does $500 support a family of 3?

[washpadude]

Happy to hear you found a way in, and with Chase. Nice going streampaw!

[Anonymous]

Well, we also get an additional $500 a month as food stamps. But we (boyfriend, baby and I) live with my boyfriend's parents who provide most of the food as well, so the only things I spend food stamps are optional foods like snacks. My regular monthly spendings include car insurance for $80, phone bill $30, and diapers, which range, but somewhere around $50ish. I also buy other things on occasion like clothes or baby stuff. I don't actually buy used, because I find new stuff at about the same price. I am very into couponing, and I am able to combine coupons to get some items for free, or even make money by getting the items.

[Anonymous]

I don't know what region of the United States you're in.. Midwest 9 degrees… can't walk parking lots for deals now… but my local swap meets have tide and diapers for a few bucks less then Walmart or Target and it is Cash and Carry, they don't charge sales tax etc.

I know this is a site dedicated to credit building credit rebuilding and so on but saving the money you do have should always be more important and that goes for balance transfers and whatever else you are using your credit "power" on.

[SouthJamaica]

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@streampaw wrote:

Wow. I am surprised. I received an email today that I was approved for the chase amazon visa. $500 limit. Unsecured!!!

I can't believe it! Most people were saying that my only chance at building credit would be a secured card. Considering the fact that I have no income, and living off of $500 a month cash assistance (welfare) from the government for a family of 3... So I put my "yearly income" on credit card applications as $6000 just based off of cash assistance. And I have no credit history whatsoever...

And kaboom! Approved for UNSECURED, no annual fee, chase amazon rewards visa! Considering I had a chase banking account for several years, so maybe that's why? But I always have less than $1000 in it, because, well, I'm poor. So I have no idea on what basis they approved me, but wow, that's great! I can now see the card added in my online chase account.

Now, what are some tips on building excellent credit?

Obviously, don't buy more than you can afford, that's a given. But what about.. should I buy as little as I can on the card? Or as much as I can as long as I pay it off? Or does it matter?

For example, my bills so far include $80 a month car insurance, $30 prepaid phone bill, and diapers... I mean, I could just buy $0.99 baby wipes, and just buy them once a month on my credit card and pay it off... but will that really be better for my credit score, or will making more purchases be better?

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Congratulations.

Try to use it a little every month, but pay it off right away, before the statement. It doesn't matter if it's the diapers, or the telephone bill, or the insurance.

Then one month let a little bit report on the statement, and pay it off right away after the statement.

See which way your FICO score is higher, with a little bit on the statement, or zero on the statement. 

Then follow that pattern for 6 months.

At that point see what your scores are; it may be time to apply for a second card.

[fltireguy]

OP - Congrats on the approval. Hopefully the limit will grow with time (Chase can be stingy with their CLI's from what I understand). 

It seems that, of ALL of the Chase cards in existence, that the Amazon Visa may have the easiest approval criteria (hey, they gave me one, and that is the ONLY Chase card I can get approved for, period)

[pc01user]

Nice going! Use the info on this forum and you will have A1 credit in no time. Just take it slow.