I need to establish some credit ~ no one will give me a card!

[MizlurksaLot]

I've always said I don't believe in credit cards, but now that I'm going to be going back to school, and I'll be needing a car I'm thinking I should get one, "just in case". I'd like to start establishing some credit too. I can't seem to get approved though. It's not that I have bad credit, it's just that I have none . Any suggestions for first time credit card holders ~ ie a card I can acctually get ?

 

[poohtown]

my first were store cards - JC Penney, Sears, etc. In no time you'll have people sending them everyday in the mail - just be careful. It's easy to go overboard.

 

[Amberle3]

I got my first credit card when I was in university. They had a special studen card, which I applied for. And waited. And waited. And called them, and they had no record of the application. So I got another form, filled it out and sent it on. And was rejected. I had wanted the card because we were going to Disneyland and I wanted to use it instead of traveller's cheques.

When we came home from the trip, there was the card sitting in my mailbox.

They had apparently rejected one application, and then approved the other (identical) one!

So take a look around wherever you're going back to school to see if they have any student credit cards. There were several displays set up for them.

 

[Dan Murphy]

Check with your bank.

 

[aynt79]

My first credit card was a Sears store card. Even though I had no credit history at the time they approved me in minutes right at the store. So you may want to try a store charge card first. I think that they wanted to see some other type of card for the application but they accepted my debit card (has the Visa logo on it). So it may help to add a debit card onto your checking account if you don't already have one.

 

[Phrebert]

Does your bank that has your savings/checking account offer a credit card? Thats how we began our foray into the world of debt.

 

[Jeanny]

does your bank have a Debit Card? if you establish a stable balance, etc, maybe you can apply for their credit card. If not, go for Sears, they have a MasterCard now.
just be very, very careful!!!

 

[FayeW]

Many banks will give you a secured credit card, you usually have to give them a set amount, like $500 - $1000 and that becomes your "credit limit". You use your card for occasional purchases, pay it off before the due date, and after a reasonable period of time ( 6 months - 1 yr) you will have established enough credit that you should be able to get a mainstream credit card. Then you would cancel your secured credit card, and they will send you your deposit back.

If you are just trying to establish some sort of credit, you can do what I recommend to my clients ( I'm a mortgage broker so I have to help repair/establish credit all the time). If you have savings, put it into a locked in type of investment ( here in Canada we have G.I.C's: Guaranteed Investment Certificates) and then use the investment as security on a loan of the same amount. You can actually leave the "borrowed" money in the bank account and have the payments automatically withdrawn from it, then you don't even have to think about making the payments. The banks usually agree to this because they have the secured in a locked in investment that you can't touch, so they know that even if you default on the payment they will get their money back. Again, it usually takes between 6 mths to a year to establish the credit adequately, and all it has cost you is a little bit of interest ( meantime, you are still earning interest in the money you invested for the security!)

I use these techniques all the time, and it works well here in Canada. Hope this has been helpful.

 

[MizlurksaLot]

I've applied for a few store cards and couldn't get them either ~ may have something to due with my extremely low yearly income - probably under 17,000 maybe under 16,000 that's working 40+ hours a week when I start school I'll be switching to part time, so I definitely need to get a card ASAP I'm not too worried about going "overboard" I actually hate to shop I have a check card through my bank, I'll have to check with them about a credit card.

 

[onecoolmama]

I got mine Freshman year of college. No job or money, but they approved me baecuse I went to that school. DH got his freshmant year of college too. And he was approved for 8k!!! No job, no money.

Look for offers that come in the mail. I think that is going to be your best bet.

(just so you know...everytime you apply for new credit..10 points gets taken off your credit rating.)

 

[ead79]

PM on the way

 

[Kitty 34]

I had the same problem years ago. They wouldn't give me any credit 'cause I didn't have credit!! It was nuts!! Finally JC Penny issued me a card. I still frequent their store!

My DS on the other hand was literally handed two different cards while at college.

 

[onecoolmama]

Originally posted by Kitty 34
My DS on the other hand was literally handed two different cards while at college.

This is what I am saying. Nuts to give stuggling college students money in the form of plastic

 

[MizlurksaLot]

Originally posted by onecoolmama

(just so you know...everytime you apply for new credit..10 points gets taken off your credit rating.)

I did actually know that, I've actually only applied for about 5 including store cards in the last 5 years. I'm just frustrated because everyone keeps telling me to apply for store cards, and the stores that they've recommended won't give me one. I posted because I just got an email rejecting my application for an offer I got in the mail. If I'm going to go to school, I need to have a credit card, guess I'm just getting a little worried . I don't want a credit card to go on shopping sprees, I just want one in case financial aid checks don't come in time (I'd use them to make payments on my card if that happened), or in case something would happen to my car ~ I can take the bus to some of my classes, but some of them will be farther away ~ no bus route

 

[cassie]

I had trouble getting a credit card after my divorce in the early 80"s. When I bought my first home, they were bending over backwards to issue me a card.

My DD and her husband spent the first 8 years of marriage in Germany...DSL is a German national. When they moved here they could't get credit without any American credit. She went online and applied to every credit card company til one gave her a card. Mind you, it was at a high rate, but just to use it and pay it off every month started them on to a line of good credit. After a year they were able to buy their first home.

 

[onecoolmama]

My only other thought..(it is late and I have been up since 3:30am) is a secured credit card. Again, I dont know much about them, but I know almost anyone can get them.

If I think of anything else, I will let you know...but I probably should go to bed. Since i have to get back up again.

 

[Nancy]

Have you tried Capitol One? They aren't the greatest company but I know they have given credit to kids i work with that are just starting out. Usually a very low credit limit...one got 300.00, one got 250.00...another got 1,000.00! (The kids at work all talk to me like I'm their Mom) Even with a low credit limit at least you would be able to establish credit.

I got my first card at 18 from my bank..it was a Master Card. I also was able to persuade a bank to give me a car loan at 19 with no co-signer. I did have a full time job, but only for about 3 months back then....I wonder if a bank would do that now?

 

[MizlurksaLot]

Yes , you definitely should go to bed Up since 3:30 ? Thanks, and Sleep Sweet

 

[Az Pirates]

I think it used to be easier to get dept. store cc's than it is now.

I worked in the credit office of a dept. store in college. We pulled all our own reports and approved or declined right there. We would give a $200 firm limit for people just trying to establish credit.

Now I think most stores send the apps. through a central location where they go by strict guidelines and are less likely to help people out.