Post # 1
As FI and I are starting our plans to get our own place, car, etc; we’ve been running into a pretty big problem. Neither of us has credit. I have a pretty steady job, and go to school part-time but I never had to take school loans out and never had a reason for a credit card. I even tried to apply for a secured credit card with my bank (Banco Popular) and they turned me down because I don’t have any credit history. Also, both of our parents have pretty bad to not so good credit so we can’t even ask them to co-sign on something to help get us started.
I don’t know what to do. I live in an area with no BoA, no Citi, and no C1. Pretty much no major big name bank. I’d have to apply online for something from them and I don’t even know if it will go through because it looks like BoA’s system lost my application along the lines X__X.
Post # 3
I have no credit because I just moved to the US and my SSN isn’t even two years old yet. I just got a secured credit card which is meant for building credit or restoring credit. I applied online and was approved. You have to make a deposit and the amount of credit they give you is dependent on the balance. I use it for gas and groceries and pay it off immediately. Depending on your spending, you can build credit within months to a year it seems. I went with Capital One because it had good ratings on Credit Karma.
Post # 4
@RyuKokoro: You should be able to get a “start-up” credit card with Capital One. When I was 18, it was my first credit card. I started off with a $200 limit, but was able to use it to build history and over time, they increased my limit. Don’t bother with store credit cards for establishing credit history – I know plenty of my friends with no credit history got denied for store credit cards for that reason. Capital One is your best bet.
Post # 5
- Wedding: October 2013 - Dalhousie Castle
I had to build credit when I first moved to the usa. I started with a capital one credit card that had a $500 limit and paid it off every month. Do not carry an balance on these type of cards because the interest is ridiculous! Then went on from there, quite quickly my credit limit increased and I got better offers.
Post # 6
Do you think if I apply online it will make a difference if I get the card or not? I had a horrible experience with Bank of America this way. I don’t have the opportunity to visit one physically.
Post # 7
Try applying for Amazon or the PayPal visa credit card. My son has a PayPal CC and he had no credit when he got one. It’s extremely easy to move money around with it and it has low interest.
Post # 8
I was approved for the PayPal credit card when I didn’t have any credit. My brother recently went to a lending company and just got a loan for a few hundred dollars in order to establish credit. Maybe you could do something like that?
Post # 9
@RyuKokoro: My SIL had this problem too. She applied for a Wells Fargo secured card online (https://www.wellsfargo.com/credit-cards/secured/) and got one. I have used Wells Fargo online for 6 years now and love them!
Post # 10
@RyuKokoro: can you apply for a regular credit card? Like a capital one? I got approved for one of those when I was 18.
Post # 11
My FI was approved for a secured capital one card when she didn’t have credit. Applying online vs in person doesn’t matter at all (well, it shouldn’t!)…I’ve applied to 3 of my credit cards online for the bonus rewards.
Also, what about store credit cards? They tend to be a little more lenient, I think because they want you to screw up =P
Post # 12
@RyuKokoro: You can totally apply online or over the phone – google “low credit credit cards” and just get one or two of the entry, high interest ones – and pay it off every month, or keep a small balance month to month!
Getting cell phones in your own name helps also (but not as much).
Store credit cards can be useful for this too but they’re sometimes harder to get than a regular credit card.
Post # 13
Thank you all for your helpful suggestions. I called Capital One today and unfortunately because I do not live in one of the 50 States (I live in a US territory) I cannot apply for their cards 🙁
I will be calling Wells Fargo tomorrow and hopefully that will be a lot less disappointing. If not..I’ll try Paypal. I really appreciate all of your tips. It really gave me a bit of hope when I had no idea what I was going to do financially.
Post # 14
@RyuKokoro: I don’t mean to be harsh but when you wrote
never had a reason for a credit card
Isn’t this a reason? That was one a few reasons why I opened a credit card when I was 18/19.
Post # 15
Do you have a checking account? direct deposit through your job? I’d go in and talk to someone at your bank and see if they can help you get started. We all start somewhere.
Post # 16
@RyuKokoro: Don’t feel too bad, I have student loans (which I pay way more than the minimum each month), a credit card (I’ve carried a balance on but always pay more than the minimum), never been late on rent, and I STILL didn’t have good enough credit to get a car loan without a cosigner (my mother).
Despite what most people think, credit cards and student loans will not HELP your credit, they can only hurt it if you don’t pay.
The only thing to help your credit is to get a personal loan and pay it back. You just may have to take on a higher interest rate for not having credit.