Trying to get my first credit card

[Anonymous]

Welcome!  First thing we did when our daughter turned 21 was told her to apply for a credit card.  She was almost done with her junior year in college and other than student loans had to credit history.  We suggested she apply for a Capital One card since they are usually very friendly to young people with little credit history.  She applied and as approved.  At 1.5% cash back it is a good all around card.  Hope this helps and good luck

[SouthJamaica]

---

@Anonymous wrote:

Everyone,

Thank you for all of the responses.  New to the community, and really impressed with everyone's eagerness to help.

Credit scores are mostly from credit karma

Transunion: 670, Equifax: 653.  On the recent denial for Chase Freedom, the letter said my Equifax was a 594, which was surprising.  Apparently this is because Equifax doesn't show that I've begun to make student loan payments.

My current accounts are just two small student loans for about 3K, which recently came out of their deferred period.  I've only had to make one payment on each so far; however, I even made a payment during the grace period.  I only took out the loans to begin establishing credit, and I could pay them off in full at any time.

I have two recent hard credit pulls: one in June/July for an apartment that I signed on, and then the second is from the unsuccessful bid at the Chase Freedom.

Tomorrow, I think I'm going to go to capital one and my personal bank (TD Bank)  talk with a representative about my situation.  I'd really like to skip the secured card step, and go straight to unsecured and potentially receive rewards.  But at this point, I'll take anything.  I'm hoping TD Bank might be able to take my savings/credit accounts into consideration (Chase said they would have done the same, but I do not have an account with Chase).

Do the trips to CapOne and TD seem like good ideas?

---

Absolutely not. Your trips to the banks would be a waste of your time.

1. At TD Bank they'll talk you into applying, because they get 'points' or whatever for talking people into applying for credit cards. But their credit card is hard to get, you won't get approved, and you'll wind up with a wasted inquiry on your EX.

2. At Capital One you're wasting your time. They can't do anything for you there. Just go online and apply for the Platinum. It's their worst card, but it's the easiest to get. Then when you've had that for 6 months call and upgrade it to a Quicksilver.

[Callandra]

---

@SouthJamaica wrote:

---

@Anonymous wrote:

Everyone,

Thank you for all of the responses.  New to the community, and really impressed with everyone's eagerness to help.

Credit scores are mostly from credit karma

Transunion: 670, Equifax: 653.  On the recent denial for Chase Freedom, the letter said my Equifax was a 594, which was surprising.  Apparently this is because Equifax doesn't show that I've begun to make student loan payments.

My current accounts are just two small student loans for about 3K, which recently came out of their deferred period.  I've only had to make one payment on each so far; however, I even made a payment during the grace period.  I only took out the loans to begin establishing credit, and I could pay them off in full at any time.

I have two recent hard credit pulls: one in June/July for an apartment that I signed on, and then the second is from the unsuccessful bid at the Chase Freedom.

Tomorrow, I think I'm going to go to capital one and my personal bank (TD Bank)  talk with a representative about my situation.  I'd really like to skip the secured card step, and go straight to unsecured and potentially receive rewards.  But at this point, I'll take anything.  I'm hoping TD Bank might be able to take my savings/credit accounts into consideration (Chase said they would have done the same, but I do not have an account with Chase).

Do the trips to CapOne and TD seem like good ideas?

---

Absolutely not. Your trips to the banks would be a waste of your time.

1. At TD Bank they'll talk you into applying, because they get 'points' or whatever for talking people into applying for credit cards. But their credit card is hard to get, you won't get approved, and you'll wind up with a wasted inquiry on your EX.

2. At Capital One you're wasting your time. They can't do anything for you there. Just go online and apply for the Platinum. It's their worst card, but it's the easiest to get. Then when you've had that for 6 months call and upgrade it to a Quicksilver.

---

There was another poster here who tried many times to get a card from TD Bank (she banked with them for years) and even after establishing some credit, she still couldn't get approved (I think her name was Killer Queen -- not sure if she ever did get a card from them). Probably not worth the time to try to deal with TD Bank. Their cards don't look impressive and there are easier approvals with better rewards. 

I think you could get a QS1 or Platinum too with your loan history. Use that for 6-12 months (preferably 12 months) responsibly and you can pretty much get any card you want after that. Many of us here had to start with no/little rewards so it's not a big deal. One year of lesser/no rewards for a lifetime of great rewards is a decent ratio IMO. Good luck. 

You could also try for BoA's secured card and add the 3-2-1 rewards on it. 

[fot1]

This is one of the few times I would recommend them but like others have said Cap one. If denied I would call the EO number and ask them to give the  platinum instead. I have seen many people with low scores get the QS cards. %1.5 cash back is a decent start for a travel card.

[Anonymous]

Here's how the bank visits went today:

1.) TD Bank: really got the feeling that they didn't care whether or not I was approved.  They wanted to jump into the application process, and eventually they said that the safest bet would be to go for a secured card.

2.) CapOne: They said they wish I had gone there first before applying for the Chase Freedom...said they are more understanding of situations like mine.  They thought that if I'm worried about another hard pull, I should wait a couple months and then apply for the QS1.

I'm thinking about applying for the CapOne secured card.  At this point, I need to put the rewards on hold and take the safer bet.  However, I still have some concerns about a secured card.  I would be willing to put down a good deposit (~1.5-2K) in order to get close to the maximum credit line of 3K.  But, I'm not sure what happens when I graduate from the secured card.

They said that I can "upgrade" cards, but does that mean I can get my deposit back?  If not, would I have to close out the secured card and then apply for an unsecured card?  If the answer is yes, what implications does closing a secured card have, besides reducing my AAoA?

Many thanks for all the responses so far!

[myjourney]

Hi Ryan,

Long time no see...Lol jk

Does this ring a bell? 

1) apply for the Discover secured card or Cap1 with $39 AF or both

2) if secured open it with a decent amount enough to cover your travel expenses

3) use it for 4-5 months keeping UTL at statement cut under 10%

4) app Amex gold or plat whichever travel perks best fits your needs

5) 6 months later pick between a hotel card you stay at or CSP, Prestige, Premier

Now to answer your questions 

Opening a secured card with a good deposit insures you'll have the credit needed for your travel expenses

AAoA will not be hurt when you close it because it will report up to 10 years and have no other effect other than you being back to one open TL

2 on CR's tho (1) reporting as open (1) reporting as closed

Upon closing you would be refunded your deposit back 

Upgrading with Cap1 means applying for an unsecured card 

Weather you apply now or in 4 months really makes no difference in your case .....you have no credit or history so you have to look for the type of banks willing to take a chance 

Banks with secured cards... easy approvals and willing to take a chance with no credit history Cap1, Discover and BofA although BofA can be iffy sometimes

[myjourney]

Learning curve

Also to note you gave me FAKO scores .....No no no

Do not think FAKO scores compare or are close to true Fico scores 

CK scores can be +/- 50-100 points as evident on your freedom app denial letter 

I'd bet my reputation that all of your scores are in the high 500's maybe 600 at best 

That being said sometime soon invest in pulling your other 2 true Fico scores to see where you are as a guideline of where you want to be

[Anonymous]

---

@Anonymous wrote:

Everyone,

Thank you for all of the responses.  New to the community, and really impressed with everyone's eagerness to help.

Credit scores are mostly from credit karma

Transunion: 670, Equifax: 653.  On the recent denial for Chase Freedom, the letter said my Equifax was a 594, which was surprising.  Apparently this is because Equifax doesn't show that I've begun to make student loan payments.

My current accounts are just two small student loans for about 3K, which recently came out of their deferred period.  I've only had to make one payment on each so far; however, I even made a payment during the grace period.  I only took out the loans to begin establishing credit, and I could pay them off in full at any time.

I have two recent hard credit pulls: one in June/July for an apartment that I signed on, and then the second is from the unsuccessful bid at the Chase Freedom.

Tomorrow, I think I'm going to go to capital one and my personal bank (TD Bank)  talk with a representative about my situation.  I'd really like to skip the secured card step, and go straight to unsecured and potentially receive rewards.  But at this point, I'll take anything.  I'm hoping TD Bank might be able to take my savings/credit accounts into consideration (Chase said they would have done the same, but I do not have an account with Chase).

Do the trips to CapOne and TD seem like good ideas?

---

Welcome Ryan,

Here's a couple of things you can do today that should help.

1. Go to this link and sign up for the $1-7 day intro (be sure to call in within the 7 days and cancel and they will offer you a 50% off deal. If you can afford the $15mth you should keep it as it gives you the real scores and all 3 bureau reports monthly to guide you where you are week and strong with your credit habits.

https://www.creditchecktotal.com/homepage8?sc=678513&bcd=ad_c_sem_427_89723813832&k_id=cf1c9664-96a2-4f04-afeb-b8c0c52230be&k_kw=creditcheck%20total&k_mt=p&gclid=CjwKEAiA_ra1BRDV-byb_aDqpQoSJAA-ofB9MX-Vc2GO3xZQqStmUIHjeRGG3aIbDe3UbJ3DfMVPlxoClR7w_wcB

2. Go to this link (https://www.capitalone.com/credit-cards/) and see what Cap 1 approves you for. You'd be supprised what you may be offered and if the QuickSilver One offer comes up jump all over it. They may start you out with a small limit $300-500 but you can pay it as often as you'd like wihtin the month and it pays 1.5% cash rewards. Example; you pay for hotel & rental car and you see the amount of $250 show on the acct. Pay it immediately and you will have your full CL again to pay for more stuff just be sure to have it down 10% of your total Cl befoer it posts a statement and you're golden. A couple of months like that and you can call in for a CLI and should be approved. This card should be a STEPS program card meaning that you will automatically receive a CLI at the end of 6mths of good pays but many people report that after the 3mth period you should start asking to a CLI through your online acct and you should get 1 somewhere between the 3 & 5mth slot and then again at the 6mth taking you to the $1500-2000 limit within 6mths.

Also, if the Platinum card shows up app it too. You will get both cards wtih 1 HP on your record. This will be a STEPS card too but after the 2nd statement you can have this one upgraded (PC'd) to a regular QS card and then give it the same CLI treatment.

Best wishes in your new job and with your new credit life!!!

[Anonymous]

myjourney,

Thanks for the advice.

Couple of questions: Do you know if the discover secured "graduates" to an unsecured?  CapOne made it sound like I wouldn't have to close out my secured card, but that it would be upgraded/converted to an unsecured card (like the QS1).  I've also heard people on this forum talk about difficulty in getting their deposit out?  That would definitely raise some flags if true...

Also, what are your thoughts on applying for both the Discover secured and QS1, GIVEN that I have a recent denial?  I was thinking maybe just starting with one card would be the conservative route for now.

[happypill]

---

@Anonymous wrote:

myjourney,

Thanks for the advice.

Couple of questions: Do you know if the discover secured "graduates" to an unsecured?  CapOne made it sound like I wouldn't have to close out my secured card, but that it would be upgraded/converted to an unsecured card (like the QS1).  I've also heard people on this forum talk about difficulty in getting their deposit out?  That would definitely raise some flags if true...

Also, what are your thoughts on applying for both the Discover secured and QS1, GIVEN that I have a recent denial?  I was thinking maybe just starting with one card would be the conservative route for now.

---

You won't have any trouble getting your deposit back from Capital One, provided you don't have a balance remaining on your secured card.  If you close your card, they'll send back your deposit right away, and in my personal experience, if you're closing the secured card because you opened something else with Cap One, they will expedite the return of the funds.  The Cap One secured card doesn't graduate, so you'd have to apply for something else with them, but they will reward you with nice limits if you spend & take care of your cards.  Not sure about the Discover, but I believe it does graduate after about a year.

Regarding your strategy, I'd suggest looking at 4-5 cards to apply for right now, and stopping once you get to 3.  You need 3 cards for optimal scoring in the future and you have no AAoA worries right now so might as well get three of them growing immediately.  It might be that your current profile would require you to start with secured cards and you don't want to commit that much savings towards deposits, but if you could get 2-3 unsecured cards you should go for that.  Capital One, BofA and Discover are all good options for secured and/or unsecured.  A CU might be good as well.