Credit cards for low income earners & new to credit?

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frobot
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Credit cards for low income earners & new to credit?

Postby frobot » Thu Feb 16, 2012 1:56 pm

I have been trying like crazy to get approved for a credit card but no one will approve me. I have no credit history, this will be my first card.

  • I'm 20 years old, earn $18,000/year income, $400/month rent.
  • I have no checking/savings account or any type of bank accounts.
My plan is to use a credit card to buy a new computer then probably not ever use it again.

What would be a good card, and why am I not getting approved?


Celestine
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Postby Celestine » Fri Feb 17, 2012 10:17 pm

First... Why don't you have any checking/savings account opened? Most, if not all, credit card applications have a field asking if you have checking/savings account. So maybe that is why no lender wants to approve you.

Second... Opening a credit card account just to buy a new computer is a bad idea. Save up for that new computer every paycheck instead of using a credit. Even if you are approved for a credit card, which I am skeptical about, most that have no credit history will only have $200-300 credit limit.

Third... Please don't tell me that you are storing your money under your pillow or bed. That is pretty much a big NO-NO. Open a money market account, savings account (very low interest rate unless you have big money on the account), online savings account (this one has higher interest rate), or even a checking account. If you are a college student, there are several banks that offer college checking/savings account.
"Nearly all men can handle adversity, but if you really want to test a man's character - give him power." - Abraham Lincoln

frobot
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Postby frobot » Sat Feb 18, 2012 12:58 pm

1 - I planned on going to the bank today to open an account. I just recently got a job.

2 - It is an expensive computer and I need it ASAP, and even a 300 dollar limit will help me out, and I wouldn't mind building a little credit too.

3 - My job pays me on a debit card so my money is safe.

Celestine
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Postby Celestine » Sun Feb 19, 2012 8:22 pm

frobot wrote:1 - I planned on going to the bank today to open an account. I just recently got a job.

2 - It is an expensive computer and I need it ASAP, and even a 300 dollar limit will help me out, and I wouldn't mind building a little credit too.

3 - My job pays me on a debit card so my money is safe.


Great to know you decided to open an account today. That's the start.

Now... If the $300.00 credit limit has been reached and not paid off by the due date, then you will be destroying your credit even before you build it. If you want to build a good credit history, then you better not think of going over the credit limit set by lender and not pay it off by the due date.

Good to hear that your cash is stored in your employer issued debit card. Now, after you open an account in the bank; ask your employer if there is an option of direct deposit. Use that option, if available, to automatically transfer the pay check funds to your bank account.

A question... Do you really NEED that expensive computer? For your studies? For your work? Or a less expensive computer will suffice? let me guess about the computer... is it a Macintosh?

I'll be nosy but... for what type of task do you need that expensive computer?
"Nearly all men can handle adversity, but if you really want to test a man's character - give him power." - Abraham Lincoln

Money card
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Postby Money card » Sun Feb 19, 2012 11:52 pm

Frobot everything celestine mentioned to you he/she is 1million percent correct I couldn't have said better myself.

You mentioned you are 20 years old, I will assume you live home with your parents. Why are you being charged 400 a month? If you are not with your parents then I understand.

When you decide to open a checking account if you want a card for just 1 purchase I would recommend a debit card.

If you are looking for your first credit card, you want to use to it to build credit and are not going to cancel it. I would suggest your local bank.

Another suggestion would be Orchard Bank which are for people who are just starting out and and low income earners.

Last suggestion would be a store credit card.

frobot
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Postby frobot » Mon Feb 20, 2012 6:43 pm

I need an expensive computer for graphics development and programming. A cheaper one would work, but I want to go big because this computer will be my future. I'm planning on having one that is high end for years to come.

I'm either going with the Alienware Aurora or doing a custom build.

I live with my parents, but the 400/month covers everything I need.

I already have a debit card because my job gave me one. The reason I want a credit card is so I don't have to wait another month or two to get going with what I want to do, and also to build some credit.

I have applied for dell and best buy cards, alone with some random cards I found online, none accepted. Also went to a local bank and they won't give me one if I have no credit history.

Celestine
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Postby Celestine » Mon Feb 20, 2012 11:08 pm

frobot wrote:I need an expensive computer for graphics development and programming. A cheaper one would work, but I want to go big because this computer will be my future. I'm planning on having one that is high end for years to come.

I'm either going with the Alienware Aurora or doing a custom build.

I live with my parents, but the 400/month covers everything I need.

I already have a debit card because my job gave me one. The reason I want a credit card is so I don't have to wait another month or two to get going with what I want to do, and also to build some credit.

I have applied for dell and best buy cards, alone with some random cards I found online, none accepted. Also went to a local bank and they won't give me one if I have no credit history.


When you told "graphics development" is it like AutoCad, Maya, and other CAD development software? Or are you referring to graphics design like Adobe Photoshop, InDesign, Illustrator, Corel Painter, etc? Or game development perhaps?

You see here that some graphics only works best to their intended application. And that Alienware Aurora is a gaming computer; it is still in the entry level to mid-ish level not a high-end one. You are buying the brandname "Alienware" on that one hence the skyrocket price.

If you are gonna do game and graphics development, then go for the cheaper one for now. With the fast paced development of computer technology today, buying an expensive computer for a newbie in game and graphics development is an overkill.

FYI. I have 7 years experience as a professional helpdesk support for Windows and Macintosh computers where graphics specs is an important requirement so I know some of those stuffs. Buying an expensive computer now as you are still a greenhorn is an overkill.

Just buy a refurbished computer from direct HP small/medium business section that is capable of running graphics rendering and other graphics stuffs. If you want Dell computers, then buy a refurbished computer direct from Dell. If the computer does not come with a good card, then buy a separate graphics card for it.

As of the time writing this response, there is a Core i7 2600 3.4GHz 8GB-RAM 1.5TB for approx $655.00.


Back on the credit card....
:D
If the lenders you applied for did not approve you for credit card, then you should wait a year or so.

Or apply to Orchard Bank for a secure credit card like Money card said. It has a security deposit though.

Here is your other option... Capital One Cash Rewards for Newcomers... try your luck on that card by Capital One.
"Nearly all men can handle adversity, but if you really want to test a man's character - give him power." - Abraham Lincoln

ivotedale
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Postby ivotedale » Tue Feb 21, 2012 1:32 am

I can vouch for the CapitalOne Newcomers card; had very little credit when applying- was instantly approved. Fast forward six months- I got approved for Amex's Zync, and eventually the Chase Freedom after that.

Gotta take small steps first, and though I am originally not US-born, I've been an American citizen since I was one or two years of age (now 24), so no worries if you "aren't new to the US" in that regard.

I didn't start getting flooded with pre-approved offers after six months of solid credit history, like others have been saying. Though since I joined American Express, it seems as if I get a Discover card letter every three days.

But again I echo, either go for a secured card, a card through whom you bank with, or a "starter" company as per CapitalOne, Orchard, etc.
Currently: American Express Blue Sky, American Express Zync, Chase Freedom Visa, Capital One Newcomers--->converted to Capital One Quicksilver Mastercard NO AF

frobot
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Postby frobot » Wed Feb 22, 2012 2:05 pm

I guess you could say I mostly work in game design, although I don't actually make video games. My main interest is simulation of natural things like fractals, oceans, clouds, terrain, atmospheric scattering, etc.

I consider the aurora near the high end. 12 gb quad channel ram, 4.1 ghz processor, gtx 560, 1 tb hd, and it comes liquid cooled.
Also I'm no newbie. Ive been programming for about 8 years now.

I checked online at dell in their refurbished computers and didn't see anything good, but I'll have to take another look. Those specs for $655 sounds MUCH better to me, and I can just upgrade as I need to.

Celestine
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Postby Celestine » Wed Feb 22, 2012 5:02 pm

frobot wrote:I guess you could say I mostly work in game design, although I don't actually make video games. My main interest is simulation of natural things like fractals, oceans, clouds, terrain, atmospheric scattering, etc.

I consider the aurora near the high end. 12 gb quad channel ram, 4.1 ghz processor, gtx 560, 1 tb hd, and it comes liquid cooled.
Also I'm no newbie. Ive been programming for about 8 years now.

I checked online at dell in their refurbished computers and didn't see anything good, but I'll have to take another look. Those specs for $655 sounds MUCH better to me, and I can just upgrade as I need to.


The $655 was an HP computer.
For the credit card... try to apply for the Capital One Cash Rewards for Newcomers to build your credit. So next time you won't have to face the same problem as you are having now. After few years, go apply for a different and better rewards card.

My overall advice to you is...don't fall prey to the notion "Cash is King" or "Credit cards are bad". In today's world, almost all major purchases requires you to have a good credit history.
"Nearly all men can handle adversity, but if you really want to test a man's character - give him power." - Abraham Lincoln



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