Secrets of How To Get a Credit Card With No Credit In 2013

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twiney
 
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Secrets of How To Get a Credit Card With No Credit In 2013

Postby twiney » Thu Oct 31, 2013 8:07 pm

It feels like a catch 22. Every card you read about says you need "good" or "excellent" credit to get it. There's nothing for people who have no credit. If you google that all that shows up are a list of fee laden subpar programs and I don't feel I should have to stoop that low just to get my foot in the door.

What's the secret? How did you guys get started?

I am a middle-aged adult and never had to use credit before so I don't have any history. Obviously, i missed my opportunity in college to get one because then it would have been easy (from what I gather banks approve you for those even with no credit).

But what am I supposed to do now?!?!? I'm not in school and can't apply for those. I can't apply for all the others I see advertised. What does that leave me for options?

Some list "fair credit" for the requirements do I have a shot with them or am I in the same category as delinquents who have flaked on their debt? That's so not fair if it's the case.


DavidNY
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Postby DavidNY » Thu Oct 31, 2013 8:32 pm

I'd recommend the Bank of America Secured Visa card.

twiney
 
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Postby twiney » Thu Oct 31, 2013 11:51 pm

People are saying that Bank of America's says "SECURED" on your credit report and I don't want that. This is what someone said yesterday.

My BOA secured card show up on my Experian credit report as “Secured Card” and all others as “Revolving Accounts”. I was denied a loan because they knew I did not have a real “unsecured” credit history even though I have a history of 6 months of on time payments with BOA.

takeshi
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Postby takeshi » Fri Nov 01, 2013 10:27 am

Secured and/or credit unions (and other financial institutions that you already have an established relationship with) are the typical recommendations.

twiney wrote:If you google that all that shows up are a list of fee laden subpar programs and I don't feel I should have to stoop that low just to get my foot in the door.

Unfortunately, fee laden, subpar and even deposits tend to come with the territory. You really have to decide if your pride or rebuilding your credit takes priority.

twiney wrote:What's the secret? How did you guys get started?

There is no secret. I started with a Capital One secured card with a measly limit. It graduated to unsecured eventually. However, even after 10 years of good history it never went beyond a $1,300 limit.

Also relied on USAA who was relatively generous with limits and APR's considering my credit. There's no fast and easy fix. It takes putting in the time and effort to build or rebuild.

twiney wrote:Some list "fair credit" for the requirements do I have a shot with them or am I in the same category as delinquents who have flaked on their debt? That's so not fair if it's the case.

If you don't have any derogs then you're not in exactly the same boat.

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otter
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Postby otter » Sun Nov 03, 2013 8:22 am

twiney wrote:People are saying that Bank of America's says "SECURED" on your credit report and I don't want that. This is what someone said yesterday:

My BOA secured card show up on my Experian credit report as “Secured Card” and all others as “Revolving Accounts”. I was denied a loan because they knew I did not have a real “unsecured” credit history even though I have a history of 6 months of on time payments with BOA.



I had avoided credit cards for years, but my first two credit cards I got this summer were both secured and show up as secured on my reports. I've gotten 7 cards since then(including two Amex cards) so don't believe those who say that secured cards won't help build credit. Whoever posted that comment yesterday may be way off on their denial reason. They might have had derogatory past accounts or bad utilization and blaming it on "secured"

Look at my signature and you will see having two "secured" accounts didn't deter banks from issuing me cards. YMMV, of course, but getting (and having) a secured card is preferable to having a junk card from First Premier or one of their ilk.
In my Wallet:
  • Amex PRG NPSL[3-14, bd 91]
  • Sallie Mae MC $8000[1-14]
  • Chase Freedom $4700[1-14]
  • Discover It $2750[8-13]
  • BoA UCF Alumni Cash Rewards $5000 [3-15]
Sometimes in my Wallet:
  • GM BuyPower WEMC $5000[9-14]
  • Wells Fargo Propel 365 Amex $7000[4-14]
  • Barclaycard Arrival WEMC $7000[3-14]
  • BoA Better Balance $3000[2-15]
In my sockdrawer: Amex BCE $1000[10-13, bd 91], OCCU Duck $10000 [11-13], The Sportsman's Guide Visa $8000[8-14], Chase Slate $4000 [9-14]Delta Gold Amex $2000 [2-15 bd 91], Diners Club MC $20000 [10-14] Commerce Bank Visa $2000 [3-15] Citi Double Cash $1000 [3-15]
Total CL: $90450

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Postby whit » Sun Nov 03, 2013 10:40 am

1) get a degree to get a six figure job, little or no debt, no skeletons (<-believe me)
2) get someone to place you as a au or joint if still possible, eventually apply for a cc
from same company
3) ask your banker, this is where banking with the big banks would help, don't ask for a secured cc if you have enough socked away (and you do not need to be making $$$$$ to do so if you're frugal, thrifty, etc or picky like me) by this point to get them to extend a cc to you. chase sapphire preferred/regular is the best I can think of in this situation. you have a card that needs to have at least 5k in cl..this helps jump start

lastly there is no secret but I can tell you it's not as hard as people make it seem it's just that not everyone is same and not everyone can afford to have credit cards, it's the gov being on the card companies to make sure you guys don't screw up because of things like the mortgage meltdown. economic crisis and all

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Postby MemberSince99 » Mon Nov 04, 2013 2:55 pm

Whether it says SECURED doesn't matter. It's still revolving credit that will build your history and score. And from what I've read it can graduate to unsecured with a nice limit increase after a year. Not a bad deal at all if you can get it, frankly I wish I could have started out that way instead of with Capital One which is never going to grow with you. (as Takeshi mentioned their subprime cards hit a limit and that's it).

So no one cares if it's secured or not, they care how you treat it. It's FAR better than them seeing "First Premiere" or "Credit One". And a hell of a lot cheaper to boot.

As to how I started, it was way back in the day when getting cards were easier. But I would say the BofA secured, or try a credit union, or if anyone can add you as an AU on a card that reports to the bureaus you can use 6 months of history on that to get prime type cards in 6 months to a year.

As to my most recent credit journey, I'd had terrible credit until 2009/early 2010 when the bad stuff fell off. In September 2010 I had scores not much lower than I do now due to years of payment history on student loans once the bad stuff fell off. I applied for a Cap One subprime card and got that but quickly got frustrated with the toy limit that would never grow as well as the absolutely awful bottom of the barrel customer "service" they have. I just closed it in frustration and said if this is the best I can get no thanks I'll use my debit card. Now I disagree with that for a couple of reasons, security being one and credit history being the other, but I then had some revolving history and applied for a Capital One prime card and got an instant approval with a limit of 3k. I was shocked as they had refused to consider increasing the subprime card I had. Then my bank had been bombing me for months with mail requests to apply for their card (Associated) so I thought ok let's see if you really want my business or are just toying with me and I applied online and instant approval for 9k. That's what started it. I still have the Associated card, in a sense, it was rolled into my current card with them.

That's how it started out for me. From there i tried a lot of lenders, and found that GE has very generous CLI policies if you are a good spender and PIF.

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Postby Midori » Mon Nov 04, 2013 7:23 pm

twiney wrote:Some list "fair credit" for the requirements do I have a shot with them or am I in the same category as delinquents who have flaked on their debt? That's so not fair if it's the case.


If buy your groceries/a tank of gas/a muffin, do you think anyone seriously thinks, "Ew, he's paying with a card *those people* have. He must be rotten at his money management and can't get anything better, poor guy. I had no idea."

If not, why should you let the thought of, "Ewww, I'm so much better than this! Fer sure!" get in the way of things, now that you've decided to tackle establishing your credit?

A starter card is just that... it's a tool to use to get what you want. It's useful for a while, then you grow, and you can cut it loose if it's not doing you any good, and you can keep it if it's contributing to your credit limit/AAoA/credit mix, even if you don't keep your primary spending on it.

I was happy to be an AU on my husband's cards for way too long. I lost out on a lot of time because I didn't realize that credit score =/= credit history. Now I'm working hard at establishing my independent credit history. I wish I had known about starter cards that convert. Instead, I started off with a $39/year Capital One Platinum in October/November 2012 (an "ew!" card), a Citi ThankYou in January, 2013 (a "meh!" card), and by July 2013, I had picked up a $25k AmEx BlueSky (an "I'm starting to feel legit!" card).

I do wish I had known about starter cards that convert to regular cards. I would have picked up one of those in a heartbeat rather than a card with an AF that didn't grow at least a little bit with me.

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Postby Vattené » Thu Mar 20, 2014 12:36 am

Thought I'd revive this thread and throw in my two cents; hopefully twiney sees this

First of all, have you applied for anything since you posted? If so, we would be curious to see how you've gotten started.

I agree it is a Catch 22, but now that you know how the system works you can use it to your advantage. Have you considered in-store cards? That is what I used to establish a credit history, which is basically spelled out in my signature. I got approved for my first major player last month. Granted, a Discover it isn't exactly elite, but they gave me a good credit limit and they have a rewards structure that suits my needs. You don't mention a specific card you would like to shoot for, but I would guess something along the lines of a Discover it (just guessing that if your spending habits and lifestyle justified an Amex Platinum card you wouldn't just now be looking into it).

I never gave much thought to credit cards out of high school - I just associated them with debt and never gave them any consideration beyond that. I got store cards like Express and Macy's here and there mainly for the discount you get off of your purchase when you apply. Kay's was my first, and I got approved no problem despite no credit history whatsoever (albeit with a pretty low limit). As time went on I got progressively larger limits.

It was only recently that I started considering getting a credit card for the rewards, and that was just after I inadvertently got a Banana Republic card that was actually a Visa I could use anywhere (it has a rewards program applicable to the Banana Republic family of brands, and over time it basically replaced my debit card). I got my Discover three years after that first Kay's account, but I bet I could have gotten it earlier if I tried for it.

I think this would be a good route for you to consider. You should get approved easily despite having no credit history. Sure the terms are bad, but as long as you pay in full each month it won't cost you a penny (I've never paid a cent in interest or anything else to a credit card company). That should be easy for you as you're accustomed to living within your means. If you live near a Murphy's, apply for a Walmart card and take advantage of $.05/gallon off gas. The next time you buy something from Macy's, apply for a store card plus get a 15% discount. As Midori pointed out, these in-store cards would just be stepping stones. But nowadays just about every major retailer offers them, so you have plenty to chose from based on what is best for you. Before you know it you'll be getting the cards you really want with no problem.

Good luck!
-Vattené
FICO-8:
EX - 827 (4/17) | TU - 812 (4/17)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now



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