No Fee Secured Credit Card?

[ducklite]

My son wants to establish credit, and so needs to open a credit card account. Because he currently has NO credit, his bank won't give him one. Does anyone know of any bank that offers a no fee secured credit card? The interest rate doesn't matter as he'll only charge something small and pay it every month so there will be no interest.

TIA!

Anne

 

[reeeoga]

Go to the nearest Tech school or University. They have credit card apps from well known card companies. THe interest rates will be 19% to 24%. Also try Sears, Home Depot, Lowes, or other such places.

I started with a University Visa card at 19% . I bought a TV with it, paid it off, then a VCR, paid it off, etc etc.

Hope this helps

 

[ExPirateShopGirl]

If he's in college, credit card companies always have a booth or two set up at the beginning of each semester. They are eager to get student business. Good way to start, especially if he intends to use it infrequently and pay it off in full when he does use it.

 

[M 'n C]

My brother is having the same problem. He actually got turned down for a discover student card because he doesn't have any credit. I think my dad is going to look into co-signing on a card to help him get one. Maybe you can try that route.

 

[summerrluvv]

www.orchardbank.com is a good starter card, however there is an annual fee and sometimes a processing fee. You have to start somewhere though. Usually banks and credit cards have no fee secured cards.

 

[aynt79]

My first credit card was a Sears card (the one you could only use at Sears).I was 18 with probably no credit history and I got it no problem. The only thing they wanted to see at that time was another card with my name on it, and my debit card counted as that.

 

[ducklite]

Thanks everyone. I think I'm going to have him open an account with my credit union (the Disney Credit Union--our checks are SOOOO Kewl!) and then we can apply jointly for a VISA or Mastercard through them.

Anne

 

[bavaria]

Anne, you may also want to check out Bank of America. I am trying to build up my credit in the US and they intially offered me a 'starter' card with no fee. I have no credit history in the US as I just started working here last year after working/living in other countries for 20 years. (Right before they approved me for a zero interest rate platinum card, but that's another thread! )

 

[Evil Queen]

My credit isn't great, so I do have the secured from Orchard, and will try to get the secured Bank of America after our WDW vacation.

 

[AuroraBorealis]

Citibank has a student card that I got when I went to college to build my credit. The credit line was very low, but it didn't matter because I only charged things I could pay off in full. I didn't have to have a parent co-sign and I just had to prove I had a bank account to get it. I did a lot of research to find a good card and am glad I picked this one.

The card also offered special student "discounts" on certain websites and stores. Porbably an effort to get you to spend more, but it was worth it when I had to buy textbooks from barnesandnoble.com

Statements were also broken down by category (Merchandise, Services, Gas, Food, etc.) to help track where you were spending. Citibank also occasionly send out helpful little pamphlets like "A Student's Guide to Using Credit Wisely" and "Budgeting 101" or something like that. Overall, I feel it was a great card for a college student. I actually still use the card and Citibank increased my limit several times because I paid it off in full each month.

I've been very happy with Citibank and I'd recommend them to anyone.

 

[disneysteve]

My son wants to establish credit, and so needs to open a credit card account. Because he currently has NO credit, his bank won't give him one.

Wow! That certainly isn't what we keep hearing. The credit card companies seem ready and willing to give a card to anybody with a heartbeat. I know people who have received pre-approved applications for their dogs! And college students with no credit, no money and no income seem to have no trouble getting cards.

If his bank won't give him a card, just apply elsewhere as others have suggested. You shouldn't need to go the secured card route. You can also search options at cardweb.com.

 

[ducklite]

Wow! That certainly isn't what we keep hearing. The credit card companies seem ready and willing to give a card to anybody with a heartbeat. I know people who have received pre-approved applications for their dogs! And college students with no credit, no money and no income seem to have no trouble getting cards.

If his bank won't give him a card, just apply elsewhere as others have suggested. You shouldn't need to go the secured card route. You can also search options at cardweb.com.

He gets pre-approved applications in the mail fairly often, but they all have annual fees.

We'll look at the site you suggest--thanks!

Anne

 

[monarchsfan16]

Someone passed along this link to me. It's got rates for most of the student credit cards that are available.
I'm a student and get credit card apps all the time. I'm actually looking into getting a "real" card myself (hence the website), but haven't done so yet. I did end up with my first one this summer though, because I'm working for a department store and they apply our associate discount to our credit card bill

 

[Poohnatic]

I established through my employer (Gimbels, remember them?) and JC Penney's. Ironically, I went in to pay a bill and the friend with me was a student with no job and they gave him a card instantly.

It's a start to have that dept store card and those have no fees.

Suzanne

 

[HappyLawyer]

another bove for orchard bank

 

[ducklite]

He applied online yesterday for a BoA Gold card and was denied because he has no credit file.

We looked at Orchard Bank, but they have an annual fee and seem more directed at people with impaired credit than no credit.

I think we'll persue the idea of him opening a joint account with either myself or DH, and let him build a credit history that way. Then he should have no problem getting his own card after a year or two.

Anne

 

[Evil Queen]

He applied online yesterday for a BoA Gold card and was denied because he has no credit file.

We looked at Orchard Bank, but they have an annual fee and seem more directed at people with impaired credit than no credit.

I think we'll persue the idea of him opening a joint account with either myself or DH, and let him build a credit history that way. Then he should have no problem getting his own card after a year or two.

Anne

Yes, orchard is used for that alot (like me), but Bank of America offered me their secured, I just have to wait to get those extra funds, because I've heard many folks don't get their cards for 4 weeks in most cases. I can't see my secured deposit not being available that long. But will get that one after the Disney trip in Sept.

My son also, is having a hard time getting a card, but due to no credit history is having a hard time. He too will try to get one through BofA after Disney trip. He won't touch Orchard.

 

[disneysteve]

How bad are the annual fees? Might it not be worth paying $30/year to establish his credit? And if he can get a card with some type of reward or cash back, he might be able to balance out that fee.

I just got the Marriott Premier card. It has a $65 fee but once a year they give you a certificate for a free room up to a category 4 hotel, which is worth up to about $250, so the fee is irrelevant to me. Just an example - he may not qualify for that particular card but you get the idea.

 

[ducklite]

How bad are the annual fees? Might it not be worth paying $30/year to establish his credit? And if he can get a card with some type of reward or cash back, he might be able to balance out that fee.

The sedured cards offer nothing back. COnsidering he'll probably only charge $15 a month or so, to pay between $30 and $80 for a secured card is crazy.

I just got the Marriott Premier card. It has a $65 fee but once a year they give you a certificate for a free room up to a category 4 hotel, which is worth up to about $250, so the fee is irrelevant to me. Just an example - he may not qualify for that particular card but you get the idea.

He won't qualify on his own for anything but a secured card with an annual fee, which is why he and I will jointly get a card with no fee. For his spending level, rewards really wo'nt matter at this point in the game.

Anne

 

[summerrluvv]

Dept. stores typically are more lenient on their terms for qualifying for a card. Maybe he could try Target or JC Penney. Those were my first when I had no credit back in the day.