getting a credit card

[Burn]

I need to get a credit card, but I have zero credit, and no co-signer.... anyone know any starter credit companies I can
try?

[VinceV]

Re: getting a credit card

Do you need it because you have no cash, or do you need it to make dealing with companies easier(hotels, airlines, online purchases, etc) If you have no cash and credit your pretty much SOL. If you need it for the other reason, you should get a secured credit card. This means that you give the credit company x amount of dollars and that is what your limit on your card is. Example you give them $500 you have a credit line of $500(which is usually the minimum), of course if you want more and have more cash available get a higher limit. This is a good way to start to get a credit rating. Remember you still have to pay your monthly statement, if you don't they will pull it out of you security deposit and possibly still give you a negative report, making it even more difficult for years to get credit. try your local bank or try providian credit or other online sources, their percentage rates will suck, but that is the price you pay for having no credit, and never pay the minimum due(stupid 100 dollar items with end up costing thousand at that rate)try to pay it all off if possible. I don't know how old you are or your situation but if you are younger, due yourself a favor and take this stuff seriously. Right now it may not seem important, but when you get alittle older having credit can make a huge difference in your life. For Example I have good credit my friend who is the same age as me( by the way I'm 32) has crap credit. I just purchased a SUV that cost almost 40K, he just got a car that cost 19k. When they are both paid for, he will have paid more for his than what I paid for mine. At 1st the difference between 4% and 20% APR doesn't seem alot but it is huge That's not cool.

[Burn]

Re: getting a credit card

exactly! i'm 19, but I've decided that if I don't start to establish credit now, i'll be SOL later on. I've got cash, I just would like to make some progress I guess......

[thetroy]

Re: getting a credit card

You should be able to get a card from just about anywhere. The only thing is it will have like a 20% or so interest rate, but that doesn't really matter since you're not going to be stupid about it anyway.

[Guest]

Re: getting a credit card

Go to www.lendingtree.com and fill out an app for a home loan. Somewhere in the process you'll be asked if you want to fill an app out for a credit card, start there. Or, not sure where you live, but go to JC Penney's or Sears and fill out an app. Be careful tho, too many credit apps in a short period will yield opposite results. ;p

Where are you from? State anyway. Sometimes it makes a difference.

Good luck!

Pat

[Spaceace]

Re: getting a credit card

When I got my divorce my credit got crushed...it was a long way back so just be careful.The way I started was I went to capital one and got just a 300.00 dollar limit card.Which is plenty because even with the best intentions...it can sneak up on you.Then I made a couple of small purchases a month (cd's,strings's,ETC)and cleared the balance each month.Finally my credit rating is back,but it was a long haul...at least your starting at zero and not in a hole.Just be careful with it and best of luck [img]/images/graemlins/smile.gif[/img]

[VinceV]

Re: getting a credit card

This is all good advice. Just like Pat said, do not apply for too many cards within a short period of time. For some reason too many inquires into your credit score looks bad to lenders too. Try a few(capital, local department stores) and if you don't get them, go get a secured credit card, and don't aplly for anything else for at least a year. On the secured card if you use it wisely and pay your bill on time, many times they will make it a regular card and raise the limit. Good Luck and be smart.

[SEEGERMANY]

Re: getting a credit card

I'll give you the same advice I gave my son as well as his young fans. Find a bank that you feel you would like to do extended business with. Establish a checking account and if possible, a savings account. Once you've entered funds in the checking account, you can apply to the bank for a credit card. They normally base your line of credit around your checking/savings account balance. My son was issued a $500 line of credit by VISA. That amount will increase over time as long as your account balances increase and you pay your credit card bills on time.

Establishing good credit is not that hard. Keeping good credit lines is the tough part and it all revolves around your spending discipline. Good luck.

[Newc]

Re: getting a credit card

Definitely get the Capital One $300 card. I had that but rarely used it. When I did use it, I paid it off all at once (can't do much with $300 anyway). Then about a year later I got a Providian Visa, and dropped the Capital One because the limit never went up. I had been sending high payments on the Providian card - $600 or more because I was buying gear with it. Then I noticed they jacked up my APR to 24% in one month and that pissed me off. I thought being a responsible cardholder earned you LOWER interest. [img]/images/graemlins/mad.gif[/img]
So I paid it off in one big-ass lump (like $1700), and didn't use it for a couple of months cuz I wanted to see if the interest rate would drop through non-use. It didn't, so I called and cancelled and told 'em I didn't appreciate them jacking up my APR in light of the huge payments I've sent.
I hated to lose that card - $6500 limit but that 24% definitely meant No USA Jackson Custom for me [img]/images/graemlins/laugh.gif[/img]

Then one day I got a pre-approved Platinum Master Card from Chase in the mail. No app, no nothing. Just a card and a note that basically said "if ya want it, call the number to activate it, if not, toss it".

So here I sit with a $5000 Chase Platinum MC - all from a simple $300 Capital One card I got when I was making $8 an hour in a warehouse.

Also, as long as you have a job, take $60 a week out of your check and put it aside and DO NOT spend it not even for guitars.
Do that for the next 5 years and you'll be sitting on over $15K in CASHOLA. I can pretty much guarantee that there won't be too many other 24 year olds with that kinda bankroll.
5 years from now seems like a long way off, but look back at the last 5 years - where'd they go?
Exactly.

[Tune_Up]

Re: getting a credit card

Get a debit card instead of a credit card. A debit card will debit your checking account, so if you don't have the money in your checking account then you can't spend it. It may keep ya from going into a boat load of debt.

[Guest]

Re: getting a credit card

Defeats the purpose of building credit tho, I think that was the intent here.

Good idea tho...

Pat

[paige]

Re: getting a credit card

The best way to do a credit card and build credit is to get a secured card. All it is a credit card that a local bank bank will give you but you have to secure with cash, A $300.00 dollar limit means they have $300.00 cash of yours. It's safe because you always have the money so you don't get in over your head. I've seen too many people in deep sh!t from credit cards. It's easy to say you won't, but alot harder when it's in your wallet.

[SeventhSon]

Re: getting a credit card

Simplest way to build up credit is to go to your bank and say, "can I have a $500 loan?" They'll say "What for?" You say, "To build up my credit history."

Then they'll set up the loan, put the $500 into a checking or savings account, and you make sure that you never touch that $500 except to pay down the loan.

Basically what Paige said.

[Deneb]

Re: getting a credit card

Do you have a checking and a saving or checking OR a savings account? Start at the bank you're a member at, ask if they have credit cards, not debit cards. You'll be asked to fill out an ap et cetera, and you should get it.

OR you could start a savings account and then try to get a small loan (some banks lend 500 or 1000 as their lowest rate) and then have them take the payments out of your savings account (or Checking, Checking has better interest lowering effect on the rate) and just put the loan money in there, and let it pay itself off.

Don't go to online sites to do this or that, start at your financial institution. They know your money better than anyone else since you bank with them, and they probably have the best chance to help you.

I started with my bank the day I turned 18, got a credit card with a 300$ limit, and a loan for 1000$. The next year, after the loan paid itself off, and I used my card, but never maxed it *hot can't you with only 300$!!!* And good credit practices over the years, I've got a wallet full of GOOD credit cards, a bunch of crap ass store cards (Lowes and Sears, but they are worth it when they do those 0% offers) a home loan, and whatever I need, I can get it.

[Burn]

Re: getting a credit card

I've got a checking account with a debit card, and had a savings account with a different bank, I'm thinking of trying that 300.00 capital one card.......thanks guys!