Suggestions for Someone with No Credit History...Nada

[satio]

Trying to help a young fellow with no credit, nada, on any of the three CRAs.

He has a banking history with Wells Fargo but only option with them is a secured card which from what I read they take some significant time to unsecure. 

I have gotten him on track to making regular deposits into savings each pay period and being attentive to paying all his bills on time but none of that builds any history.

With no credit history at all and the result being no score at all, what course(s) of action do others recommend?

I did things for my own kids so they had some history by the time they reached college age which is not the case for this fellow.

He is 21, working full time as an apprentice for couple of years, and going to trade school in the evening as a component part of his apprenticeship.

Given no scores, I would expect his only options for revolving accounts would be secured cards. Discover perhaps?

Suggestions welcomed.

[Rudy1]

I would first start with a secured card wherever he banks in this case Wells Fargo just because of the history or if you don't like that option you can add him as an authorized user on your card just to build history he won't even have to use it once he has enough history he will most likely be able to get a starter un secured card.

[Anonymous]

DISCOVER secured isn't a bad way to go. Those will graduate with responsible use and become a real card with a good limit that can be kept long term. Other lender's secured cards or starter cards often get stuck in starter land and have to be cancelled if the cardholder can get good cards later on and wants to rid themselves of starter cards.

[kerplunk]

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@Anonymous wrote:

DISCOVER secured isn't a bad way to go. Those will graduate with responsible use and become a real card with a good limit that can be kept long term. Other lender's secured cards or starter cards often get stuck in starter land and have to be cancelled if the cardholder can get good cards later on and wants to rid themselves of starter cards.

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I recommend this.

[AllZero]

You read right about Wells. It might take a while before it graduates.

I would also recommend BoA. Have young fellow go in branch and open up a checking or savings account with BoA. At the same time, apply for their secured card. If eligible, he might get the $99 deposit, $500 credit limit card.

[Citylights18]

Another option is a credit union with the lower APR cards but more respectable SL.

[ChargedUp]

Even with no credit history, he may be able to pull a Capital One Platinum without a deposit. It'll more than likely be a bucketed, low limit card but he'll probably get "credit steps" to earn at least one modest CLI and in time, he can convert it to a regular, no AF Quicksilver. 6-9 months later and he could probably get in with BoA, Citi or Amex unsecured. Wait 12 months and he could likely get in with Chase.

If he has any military affiliation from family, have him join Navy Federal CU. They're a great place to begin building credit.

Aside from the Cap One card, if he does have to do the secured route, Discover is a great card to invest in and will graduate in a respectable amount of time. Discover doesn't usually bucket their cards, so his CL will grow with prudent use and timely payments. BoA's $99 for $500 isn't a bad way to go either, and BoA credit limits grow quite nicely from personal experience. Discover and BoA both give SP CLI's.

[satio]

All good solid feedback appreciated and will share the guidance.

I am a big proponent of "community" and enjoy the fellowship and positive helps that this forum membership provides.

Onward!

[bourgogne]

imo the greatest and fastest way to scores and good ones are often au cards.  gift him a few of yours.  when the cards come to you destroy them.  you will have zero exposure and he will have scores.  its the best way to fast track someone into credit.  see my post in the approval section.  3 au cards from mom and even with a trashed profile with no credit he was able to bag a $16k ax card.

[Anonymous]

Try Self lender & secured CC from Discover. They most like will give him a chrome card seeing how he's a student.. Authorize user can give him a big boost but he still needs accounts in his own name which self lender/CC can do.