Credit Cards to get in order to build your credit

Discussion in 'Other Credit Card Programs' started by vardievard, Oct 2, 2012.  |  Print Topic

  1. vardievard

    vardievard Active Member

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    A co-worker from the Australia doesn't have the best credit yet, around 650. Even though she owns multiple properties back home and has a high yearly income, she still cannot get approved for any of the cards with sign up bonuses. So which cards would you recommend she go after to build her credit?
     
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  2. olmangsr

    olmangsr Silver Member

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    I think the easiest way is to start with the bank you already have some relation with (like checking or savings).my first card was a BoA cash reward and about 7-8 month later had my first PR gold Amex...
    If u have chase even better since they have pretty decent rewards cards for no annual fee and normally they are easier to get approved for,then you can go for the "big" ones too like sapphire preferred...
     
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  3. cvarming
    Original Member

    cvarming Silver Member

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    If she has great credit in Australia and an Australian amex, then she can use the amex international transfer to get a US issued amex based on the existing relationship with amex in Australia. Otherwise I would highly recommend starting out with a bank where she has an existing relationship (like direct deposit of paychecks, etc.) to get a no annual fee credit card.
     
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  4. rodeojones

    rodeojones Silver Member

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    My 18 year old son recently approached me about getting his first card and was hoping it could have some rewards attached to it. I was told the Delta Gold Skymiles card is one that someone with little or no credit could get. He hasn't applied yet so I cannot confirm.
     
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  5. TheTravelAbstract

    TheTravelAbstract Silver Member

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    I think that is anecdotal evidence, exceptions to every rule and such, and most AMEX cards require excellent credit.

    I know capital one and Discover have the choice to to find credit cards for people with "average" or "no credit" on their website.

    Of course you can apply for Chase, Citi or AMEX cards and even though they disclose you need excellent credit they do approve people who do not have excellent credit.

    I know it can be frustrating to miss so many points and miles but sometimes it is better to play it slow.
     
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  6. deant
    Original Member

    deant Milepoint Guide

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    You are better off applying for a card that does not require "excellent" credit. Rationale being that IF you get declined, you have a hard pull on your credit report which will be a negative for any other bank.
     
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  7. edekba

    edekba Gold Member

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    Amex Prepaid used to help ppl with no Prior Amex relationship ... something about building your credit file within Amex directly but no via the CRA. However I do not see that information anywhere anymore.

    But I would suggest open a card with a Bank that she has an account with already & just take it slow.
     
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  8. servo

    servo Silver Member

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    If it were me, I'd join a credit union that has a rewards cc and try to get one from them. As deant said, it's better to get a card to start out with that isn't for excellent credit when you have "no credit" or minimal credit history, because the decline on the credit report (which can be deduced by a lender - hard inquiry with no open or closed line) is more harmful to someone with minimal credit history than to someone with 20 years of history and 15 cards active.
     
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  9. edekba

    edekba Gold Member

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    Chase Freedom has a pretty low requirement I think ... & no annual fee.

    Maybe do that & open up a checking account for Chase's bonuses as well
     
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  10. booyaa
    Original Member

    booyaa Silver Member

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    I'd second this.

    The idea to build credit generally revolves around having a no annual fee card that you will just keep forever as it becomes the basis for your credit history/length. No annual fee cards will also generally have lower credit requirements from bank's perspective.

    Amex: Blue Cash or Blue Sky.

    Bank of America: BankAmericard Travel Reward or BankAmericard Cash Rewards.

    Citi: Citi Forward card.

    Capital One: VentureOne card.
     
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  11. edekba

    edekba Gold Member

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    or Amex HHonor ... gives you access to AXON/GLON awards
     
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  12. TheTravelAbstract

    TheTravelAbstract Silver Member

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    While it is true that no annual fee cards are catered to people with a different credit profile I would not say people without excellent credit can get approved when all public material points to excellent credit as a prerequisite.

    Again the anecdotal evidence supports the theory that you would not need excellent credit to get approved, after all there is more to getting approved then just your credit score, but the official material says excellent credit.

    I would search the cards specifically designate for fair/good/average credit to be on the safe side.

    YMMV
     
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  13. booyaa
    Original Member

    booyaa Silver Member

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    YMMV is key, as with everything that has to do with credit and credit cards.

    Judging from the OP's co-worker's scenario, her score range is not because of negative info, but rather a lack of credit history/length. Given so, in my opinion and experience, the cards I mentioned should not be out of reach.

    But again, YMMV.
     
  14. memonrau

    memonrau Active Member

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    Worst case she could go with a secured credit card. I got one a few years ago through Wells Fargo. But it comes with a $30 annual fee (I think)
     
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  15. josinei

    josinei Active Member

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    My goodness. Just pingback. So easy to bust your credit score without all this crap of secure card or transferring credit from another country.
    Just have someone with a excellent credit score to add you on one of their credit card account and in less them 2 months your credit score goes all the way up. You don't need to have that deduct card just your name as authorize user for a couple of months until you get approved for re cards you want.
     
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  16. vardievard

    vardievard Active Member

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    i was under the impression that if you're an added user on a card it does not show on your credit report. in experience sometimes to add user just simply gave name and no socsec#. how does the score go up then?
     
  17. cvarming
    Original Member

    cvarming Silver Member

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    It depends on the card issuer. Some issuers reports to authorized users credit reports and others don't. Amex does, but I don't think Chase does.

    BTW. the credit card issuer doesn't need the SSN to report. Name and address is sufficient.
     
  18. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    I have someone as an authorized user of my SPG Amex who does not have a SSN. And Amex didn't ask for one. Not sure how they could report it. Do credit bureaus track people without SSN?
     
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  19. edekba

    edekba Gold Member

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    I added my mom to my Chase UA card (For the bonus miles), required a SSN & it showed up on her CRA file.
     
  20. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    So if she were to apply for the same card, would Chase deny her the bonus?
     
  21. edekba

    edekba Gold Member

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    ... no clue. Didn't really think about it as she's not into this as me. I told her i was adding her and she didnt even get the card, received it, activated it, and then shredded it. =)
    Then i had a CK alert for her and noticed a Chase account being open and i was like oh ... okay
     
  22. cvarming
    Original Member

    cvarming Silver Member

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    She should still be able to apply as a first time card holder and get the bonus.
     

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