Advice and Questions on Building Credit From Scratch

[EAJuggalo]

My credit union offers auto loans, mortgages and CC to it's customers.  I was able to get an auto loan with a rate 9% less than what the dealer was offering me.  The loan officer at the CU flat out told me that the only reason I got approved with no credit score was because I've had a checking and saving there for over a year.  CC rates range from 10-14% with no annual fee, cash advance fee or balance transfer fees.  I don't qualify right now but plan to app for one in early summer.

I've had much better service from my CU than I ever received at any of the big banks I had accounts with previously, and if you choose a CU that participates in ShareBranch you can go anywhere in the country and find a CU to use as if were your own.

[Anonymous]

Thanks to the advice. I have decided to go ahead and apply for the Cap1 Journey Student Credit Card, which if accepted, will be my first card.

I've looked through the application and want to clear up a few questions before I go ahead and apply. Want to make sure I get this right the first time.

Monthly Rent

• I currently live off campus with my mother to save money. So this would be $0, correct?

Income

• My income is pretty small as it is just from working on campus right now, so around $200 a month.
• However, in some other threads, it appears to me that financial aid in the form of scholarships and grants (aid that does NOT have to be repaid) can be considered as part of my income. Is this indeed true? If so, that would add up to $35,000+ (scholarships + grants for 2015-2016 year) for me. That seems like a lot to put as income for a college student. Just wanted to double check that.
  I'm not 21 yet so I obviously can't include financial contributions from my mother.

Question Regarding "Do you have any bank accounts"?

• I currently only have a checking account. Would that be an issue (not having a savings)? I don't think it would be much of a problem for me to open up a savings account if necessary. 
• That's pretty much it. If anyone has any others suggestions or advice, I'm all ears.

[Anonymous]

HI Thunder12, Did you get approved for this card? If yes did it help your credit and did you see a big improvment?

[Anonymous]

Welcome to the rat race.

First, I want to ask: Do you have ANY Student Loans that you applied for and received as Fin. Aid? If so, you might already have a credit history that can work in your advantage. If that's the case, pull your FICO numbers and see where you stand. Also, get your Annual Credit Report and see what your history currently looks like. You can request this report once a year for free. A second request will cost you.

Second, do you have a bank account with any banks? If so, how long? I would talk to your bank to see if you pre-qualify for any of their bank CCs. Don't apply, mind you, just find out if your credit worthy in the eyes of lenders.

The first card I APP'd and received was Discover Student. Nowadays it's Discover It for Students(with 1%, 5% Cashback) and Cap. One Platinum Rewards that are Student friendly CCs, IMHO. Discover is the better choice. They will grow the limit as you grow and mature into your credit profile.

My situation was working PT plus whatever I got from Fed. Work/Study. It came out to 250-300 weekly.

Good luck.

[Anonymous]

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@Anonymous wrote:

"You may want to consider secured cards that will graduate to unsecured." 

That is what I was orginally thinking.

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If you go the secured card route - DO NOT apply for the Captial One secured card.  As much as I love Capital One - I have had their secured card since 2012 and they do not and will not upgrade this card to an unsecured card.  So they have my $800 deposit and I can't get it back until I close the account.  I am currently shopping for a home so I do not want to take any chances of having my scores impacted by closing my oldest credit card.  But as soon as we close on this house - I am getting rid of the secured card.  

Good luck!! I wish you all the best in your credit journey.