Credit Cards

I have no credit, and I want to start building some. A week or two ago I applied for Chase Sapphire, and after that I immediately knew it was a stupid idea. I have no credit, and I'm reading story's about people will good credit getting declined.

So of course, I get the letter in the mail saying I was declined due to lack of credit history.

Before I just go blindly apply for another one, I wanted to know peoples opinion. I heard if I apply for too many credit cards in a short period of time that really hurts your credit. So I'm just looking for some advice here.


Thanks

Go down to a local credit union and tell them, im assuming you are young, and want to start earning credit. You can get a card with a limit, ive had a CC since I was 18. It had a $500 limit so they knew they were only "risking" $500 on me. Had it for 6 years and never had an issue with the limit. I hit it once but called them and paid it off with my debit card so there never really was an issue. I havent removed the limit since I had it and frankly i dont think I will raise it above $1000. If i need to buy something over $1000 then I have my debit card, plus what the heck can you buy over $1000 online anyways? I also am very responsible and take care of my bills since i am an accoutant lol. Never had a late payment or anything. They actually ask me all the time if i want to raise the limit and im thinking about it just in case i get caught somewhere and need more than $500 and my debit card doesnt work for whatever reason

Local places will be a lot more understanding then a "national chain" CC.

What livinloud said. If you have the money for something and are wanting to buy it, use your credit card and pay it off right away. Good way to build credit, safely Time is a massive factor in your credit score, so making and paying off purchases early on in life will help a lot.

Apply for a student credit card, they're used to giving it to people with no credit. They didn't even request proof of enrollment when I applied.

Im guessing an amex is out of the question?

Stick with Visa and MC, no others.

You get a card and essentially not accrue any balance, that's how you raise credit. Some cards you can simply not use at all, others nonuse doesn't help you any, so then you use it and pay it off completely immediately.

Weird... usually those credit card companies try to rope in students for a credit card as fast as possible.

Some rules to remember about improving your credit with credit cards:

- Remember to pay on time. That's what builds your credit.
- You don't need to make payments to accrue a good credit rating, and you probably shouldn't either. Just pay on time.
- Don't max out your spending on the card. I would try to stay under 50%. Maxing or getting close to maximum makes you look like a credit risk.
- Don't acquire multiple credit cards. Try to stick to just one if you can do it. Each additional one dilutes your credit rating. I have two because I wanted an American Express card from Costco for rewards and so I didn't need to use a check card to pay for the bills. Otherwise, I stick with my Visa.

As stated above, get a Visa or Master Card as your first card. All the others are hit or miss for whether they'll be accepted. Try to get one with a rewards program. I think mine has a rewards program fee of about $20/year, but usually earns me $100+ per year.

Hey! i live in the UK, im 23 now. but here is my experience of getting my first credit card and why i wanted one.

Well basically i wanted a credit card to build myself some credit history so one day i could get a good mortgage!

I started off with a basic card with no good deals and a rate of 40% APR. basically i had to be really smart with it so that i didnt owe a fortune, i used it for 3 months and payed it off, then u climb from there keep trying to get new cards with better and better rates till u can get to the top of the credit card tree! now my card is 17% and has 0% APR for 18 months! great card Cheers!

How long did it take to build up that much credit?

Hi there, well for example.
i think i was 19 or 20 years old i had no credit and i applied for a Vanquis granite card which was about 40%APR with £250 spending limit. i used it for a few months buying small things and paying off my balance to avoid paying interest, after a few months of doing that, i payed off the card in full making sure it had a £0 balance. then i applied for a card with a better rate, and used that for a while.
I then applied for a credit card with another bank and they gave me a card with £500 spending limit and used that for a while and kept asking for credit limit increases. i ended up with a £2000 limit then finally a £4500 limit and was getting 23% APR once you do this, dont use up your whole limit, having a large limit and using it often and paying it off, making sure you dont go anywhere near your limit shows the banks you can handle money well and dont just spend spend spend.
Finally i applied for a new card and got my 17% APR rate with 0% interest on spending for 18 months and also 0% on balance transfers for 18 months, so i moved the entire balance of my old card, maby £500 to my new 0% card, cut up all my old cards and kept this one with my good rates. im 23 now. and applying for a mortgage atm in reality it probably doesnt take this long to build up good credit. i just went about it slowly and carefully.

Average credit card debt is supposedly about $15000
Card Must have no fees. Treat it as a reason to not have to carry cash and pay full amount before it is due. The danger is to see it as an easy way to get the things you dont have enough money in your back account for.
Have a few cards and all pay me for purchases. Always pay the full amount before its due and make at least a few hundred in cash back. 817/850 Credit rating

Yes, you want a MasterCard or Visa as many places won't take Discover and certainly not American Express

And just for reference; a good APR is <13%. A great one is <9%. Avoid rates >19%.

Sigurthr said:

Avoid rates >19%.

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Correction: avoid carrying a balance on your credit card.

Using a credit card is great for several reasons, but always have cash to back up your purchases. That way, APR is irrelevant. Any financial expert will tell you that using a credit card to buy things you cannot afford is a bad idea.

Cyparagon said:

Correction: avoid carrying a balance on your credit card.

Using a credit card is great for several reasons, but always have cash to back up your purchases. That way, APR is irrelevant. Any financial expert will tell you that using a credit card to buy things you cannot afford is a bad idea.

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Very true. But sometimes life throws you curve balls and you have no other recourse than credit. I'm not talking luxuries you were planning on but can no longer get, I mean medical emergencies, loss of transportation, etc. In those cases you're going to want a low rate since you may not be able to pay off the debt any time soon.

As much as I hate the debt I've accrued, I'd have been in far worse straights without the cards. For a fact I wouldn't be walking now. Fun fact; all hospitals in the US have to see you whether or not you have insurance, but not all hospitals have orthopedic surgeons on staff, and not all externally contracted surgeons accept uninsured patients unless you pay up front for their services. $15k to the hospital was unavoidable but goes on a general debt account not a card, $4k to the surgeon had to be accounted for. Had I not been able to pay the surgeon the hosp was going to decline my surgery. Glad my card has only 11% APR because I won't pay it off for 10+ yrs.

When you're barely making ends meet using a credit card is a bad idea, but having one is an excellent idea.

I've just managed to avoid having a credit card by buying those prepaid ones as I need them. No debt, no interest, much easier to manage

I pretty much avoid credit cards, payment plans, or anything with interest or that I can build up a debt on. I personally believe it will keep me financially responsible and stable. I live in Canada so healthcare isn't a worry and I have insurance on my car (though to be honest if it got destroyed I would probably celebrate).

I hated getting my phone. They bullied me pretty hard to set up automatic payment to them from a credit card. Joke is on them, I don't even have one XD

Blarg King said:

I've just managed to avoid having a credit card by buying those prepaid ones as I need them. No debt, no interest, much easier to manage

I pretty much avoid credit cards, payment plans, or anything with interest or that I can build up a debt on. I personally believe it will keep me financially responsible and stable. I live in Canada so healthcare isn't a worry and I have insurance on my car (though to be honest if it got destroyed I would probably celebrate).

I hated getting my phone. They bullied me pretty hard to set up automatic payment to them from a credit card. Joke is on them, I don't even have one XD

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The problem for me at least with prepaid credit cards were the initial fees. If I wanted a $25 card, it cost me $30. I mostly use my debit card now, it's just a lot more convenient than cash in a lot of aspects.

As for the phone plan like you were talking about. I have a Galaxy Note 3, and I use it on prepaid service. Ask anyone trying to sell you a phone and they will say it's impossible, they're all liars. I just add money to my prepaid phone plan whenever I want rather than paying $50+ a month.