Q&A: How do i get approved for credit?
Question by cherryblossom80555: How do i get approved for credit?
Im trying to build up my credit history but ive tried about 5 credit card and non approved me. i even tried a credit card that says it will approve credit for people with “Fair Credit”. im 18 and ive never had credit or anything under my name and i dont understand why they dont approve me? sure i dont have credit but i dont have bad credit eather. how am i suppose to start building credit if no one approves me? you have to start some where dont you?
I checked my Credit History and just like i thought is says i have 0 Accounts in good standing and 0 accounds in bad standing.
Best answer:
Answer by grierGRIER h
Credit cards are an important means of establishing credit history. Using them responsibly, controlling your spending habits and not misusing them will always help the cause. Here are few things to keep in mind before you apply for a credit card.
It is always better to use a credit card which is issued in your name. The simple reason being, it helps establish credit history for you. Use the correct identity, and get credit card issued for proper name, social security number, and address.
Decide what type of credit card you need and don’t get impulsive about obtaining it. Have patience and compare various offers that suit your choice.
The APR of credit card is a very important point not to be missed by any credit card owner. There are various types of APRs, like the 0 intro APR, regular APR, APR for cash advances, APR for purchases, APR for balance transfer etc. These APR contro what interest you pay on your credit card outstanding balances. Get compelte idea about the APRs that will affect you during your credit card ownership.
If you are getting a reward credit card, make sure you know how the rewards will be redeemed and using the credit card at what locations or merchants will help you get the maximum reward benefits. Another thing to watch out is the limitations to the reward program. Check carefully about what limits the rewards like minimum reward points, blackout dates, redemption locations, choice of airlines etc. If you have bad credit, then apply online at: http://www.credit-card-gallery.com/PrePaid_Card.html
What do you think? Answer below!
Do you work? One way to possibly receive a card is to borrow money from someone and approach the credit card co. and tell them you can put so many dollars on the card. I think they will likely go for it. It will give you a start. Make sure you always pay on time because there is a record of your credit for businesses to see when you apply for credit. If you paid on time then it will give you a number for credit if you were late it will show and your number for credit will be lowered.
Tips for getting first credit card: http://www.bankrate.com/brm/news/DrDon/20070308_first_credit_card_tips_a1.asp
And you can also go to the banks’ websites to see the FAQs about credit card, or directly call the banks asking how or why u r rejected.
I’m 18, too and as a student, I prefer using debit card, at least I can limit my spending 🙁
Ok, I have some tips to help you.
First, do you have a checking account? If not, that’s a gppd start. While opening a checking account doens’t directly build credit, it does allow you to establish a relationship with a bank to become a preferred customer. Banks love catering to their customers especially preferred customers. Whether it’s loans or some other financial product, if you already have an account, it’s like what Christopher Walken told Leonardo DiCaprio on the movie Catch Me If You Can; “It’s like being a member of their club” It’s a little easier if you have an account at a bank, you have the inside track to get a loan because you’re already an account holder. Another important thing with a checking account is that it helps you do the most important thing you can do to build credit: PAY ON TIME. That’s the most important thing that you should do with any and every future credit account that you get, pay on time.
Another thing by opening up an account at a bank, is that it could help you get approved for something that you’ve been denied 5 times already: A credit card. Granted, it would more than likely be a secured credit card, but you have to start somewhere. You can think of this as building credit with a savings account, because that’s pretty much how it works: a deposit is placed upfront usually tied to either a savings account or a certificate of deposit which is used as collateral to get a credit line. The deposit wouldn’t be able to be used to pay the minimum payment or the balance unless it went delinquent and then they would have to use the collateral. The good part about it is that the collateral gains interest while you build credit and you’re able to increase the credit line on your own by adding more to the collateral. A good rule of thumb would be to make small purchases that can be paid off on time every month to keep the balance low, if not paid off. Then usually after 9-18 months depending on the credit card company, either a better card is offered, or the current card changes to a regular one. Also, you get your collateral back with some interest added to it. Also the higher you make your credit limit when you add to the collateral, the better it looks when it reports to your credit. I’ve posted links to several banks that offer secured cards. You might want to try Citi and Bank of America, those are my personal recommendations.
After you’ve built up history with a major credit card after about a year or so, then you may want to either apply for another secured card and repeat the process and then a department store card. That way you have 2 major and 1 dept store card.
Another way to build credit would be with a secured loan, which works the same way as the secured credit card, but you just repay a certain amount every month. Take the proceeds from the loan and place it in a short term certificate of deposit to not only make money for you, but insure that you’ll be able to pay it off later. Make sure that you pay for it at least a year and a ½ before paying it off in full for it to show on your report.
Also, if you’re paying rent, utlities, cellphone, insurance, etc, enroll with PRBC to have it reported as alternative credit. There’s a lot that’s covered in the website that I didn’t get a chance to talk about, I suggest that you check it out.
I hope this answer helps.
Good luck!
try orchardbank
Start off with a secured credit card. Thsi will help you. If in school try Discover Student card. Or evern you bank.
Try applying for a student credit card. They usually do not require credit history, and give great benefits w/ no annual fee. Here’s a more in-depth look at student credit cards, that you may want to look at:
http://collegesoup.net/financials/student-credit-cards