What is a good credit card for a person with no credit history?
Micah asked:
I’ve applied for two student cards, one with Chase bank and one with discover, and have be denied a credit card both times due to lack of credit history. What is a card that will allow me to build good credit so i can get a better card?
James
I’ve applied for two student cards, one with Chase bank and one with discover, and have be denied a credit card both times due to lack of credit history. What is a card that will allow me to build good credit so i can get a better card?
James
Tags: Build Credit, Discover, Student Cards
October 17th, 2010 at 1:30 pm
You will probably have to start with a secured card — you pay a deposit which is held as collateral against the line of credit. Start with a $100 or $200 limit. Use the card and pay the balance in full every month. In about a year, you should be able to get a regular card and/or convert the secured card to a regular account.
October 19th, 2010 at 12:56 am
Get a credit card from local bank and pay it in time. You also can use this service to avoid common mistakes while buiding credit and pre-estimate future scores for different scenarios of payments – credit-report-score.10001mb.com
October 21st, 2010 at 11:00 pm
You have three options at this stage:
1:) Get a co-signer
2:) Get added as an “authorized user” to someone else’s credit card
3:) Get a Secured Credit Card, where your balance will be equal to a deposit, minus the enrollment fee. Usually you’ll get $125 in credit for a $200 deposit. Be careful though, many of these can have ridiculous fees.
You can check out secured cards here:
Personally I suggest getting added as an authorized user on a parent’s card in addition to the secured card.
October 24th, 2010 at 10:18 pm
I agree with most of the other answers – you can get a secured card, you can get added as an authorized user, and I would like to add one more – you can try for a department store card.
October 27th, 2010 at 7:28 am
It is best if you have a checking and savings account before applying for credit and you have to have a job.
Then there are two ways you can go –
(1) Ask one of your parents to add you to one of their credit cards – make sure the history is good – because it will be reported to your file in its entirety on the next billing statement. Then apply for a student credit card.
(2) Apply for a Capital One Student Credit Card – they almost never turn anyone down. They just approved my daughter today. Her 18th birthday was yesterday and she has NO credit. There is a link to the application page in the source section of this post.
Good luck to you!