Limited Credit History, How to Get Started

[Creditaddict]

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@Anonymous wrote:

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@Anonymous wrote:

I was actually just looking at the Zync card and couldn't figure out if there was any difference between it and the Blue Cash card. Assuming the rewards and cash back benefits are comparable, the only noticeable difference is a $25 annual fee for the Zync.

What do you get for the $25 annual fee? Does that just enable them to lower the minimum score needed to qualify (i.e. is the Zync just an easier-to-qualify-for version of the Blue Cash card for people who don't qualify for the Blue Cash)?

Or am I missing something?

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Zync is a charge card.   You have to pay in full every month.   All the charge cards have a fee.

Blue Cash is a credit card, you can carry a balance and pay interest when you want.

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besides it being a charge card, the blue doesn't really start to earning more than 1% back until after you have cleared $6500 in spending... Zync is 2% in all the "pack" categories that you sign up for.

[Anonymous]

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@Creditaddict wrote:

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@Anonymous wrote:

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@Anonymous wrote:

I was actually just looking at the Zync card and couldn't figure out if there was any difference between it and the Blue Cash card. Assuming the rewards and cash back benefits are comparable, the only noticeable difference is a $25 annual fee for the Zync.

What do you get for the $25 annual fee? Does that just enable them to lower the minimum score needed to qualify (i.e. is the Zync just an easier-to-qualify-for version of the Blue Cash card for people who don't qualify for the Blue Cash)?

Or am I missing something?

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Zync is a charge card.   You have to pay in full every month.   All the charge cards have a fee.

Blue Cash is a credit card, you can carry a balance and pay interest when you want.

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besides it being a charge card, the blue doesn't really start to earning more than 1% back until after you have cleared $6500 in spending... Zync is 2% in all the "pack" categories that you sign up for.

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Don't forget to add that some of the pack categories cost additional fees.

[Anonymous]

Ahh, that makes sense. Sounds like the perfect card to start with then. Do you know if Amex ever allows people to upgrade their Zync to a real CC without an annual fee, or should we be expecting to eventually close the Zync account when we are ready to get a real CC to replace it?

[Anonymous]

There is debate on upgrades for Zync. But I am pretty sure if you can upgrade it would be for another Charge Card not a Credit Card.

[larinoriani]

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@Anonymous wrote:

Ahh, that makes sense. Sounds like the perfect card to start with then. Do you know if Amex ever allows people to upgrade their Zync to a real CC without an annual fee, or should we be expecting to eventually close the Zync account when we are ready to get a real CC to replace it?

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Before even trying to apply for a prime card, I would start building some credit of herself first. Most issuers like to see at least six months of "own" credit history. When I came to this country in 2001, I couldn't get anything until 2003 which was when Macy's gave me my first $200 CL store card.After six months I applied for a First Premier (which is a high fee card) but a good builder card, I kept that card for almost a year, and I was on my way. I bought a house in 2005.

 Secured cards are other good builder options.

Chi va piano, va lontano. (who goes slow, go further) in Italian.

[Anonymous]

Thanks larinoriani, that makes sense. Do you think the Zync card is a decent starting point since she already has some history being an AU on my two cards (both in good standing with zero issues)? Or should we look for more straight-forward Secured Cards first?

[Creditaddict]

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@larinoriani wrote:

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@Anonymous wrote:

Ahh, that makes sense. Sounds like the perfect card to start with then. Do you know if Amex ever allows people to upgrade their Zync to a real CC without an annual fee, or should we be expecting to eventually close the Zync account when we are ready to get a real CC to replace it?

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 Secured cards are other good builder options.

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Yes I would put my cash into a secured card LONG before I took a First Premier card... but if all else fails, they are a way to build at a high cost

[Anonymous]

What do you mean by a "First Premier" card? Are you referring to the Zync card?

[Creditaddict]

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@Anonymous wrote:

What do you mean by a "First Premier" card? Are you referring to the Zync card?

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No First Premier is a bank... it's the lowest end of the credit card spectrum you can go in my opinion, but with that said after my ch 7 they were my first credit card.

the latest card first premier is pushing is $700 CL with initial fees of $175.

I would rather see myself putting $300 into a savings account with Capital One and getting a secured card, then you get your money back later!

[Anonymous]

Ahh, I see, thanks. But what do you think about trying for a Zync card as a first option? Do you think there's a chance she could get approved for that right away with her limited credit history? If so, is that a decent first step?