how do i get a credit card in my name?

MRT144 · April 11, 2003, 04:38

well i finally want to start building up good credit so i figure i need a credit card to help. Ive applied to two places already and got rejected so now i dont know where else to go...

who offers young students like myself credit cards?

MikeH · April 11, 2003, 05:18

I got mine from my bank, the others wouldn't give me one 'cause I had no credit history. Oh the irony of it.

MRT144 · April 11, 2003, 05:21

yes, that is the same exact problem im running into. no credit history! ahrg! the annoyance!

MikeH · April 11, 2003, 05:23

Try your bank, even if the rate is a bit ****, keep it for a few months then get a real one.

Rogan Josh · April 11, 2003, 05:31

I just went and asked and they gave me one. That was quite a few years ago though - maybe the banks have changed thei policy now, but I would have thought that if you are paying a stable income into your account they wouldn't have a problem.

These days I am getting tons of letters each week offering me new credit cards.

Urban Ranger · April 11, 2003, 05:35

If you have a full time job, they'll give you one. If you are a U student at a respectable place, they'll give you one. If you are a bum, they won't.

Frankychan · April 11, 2003, 05:53

At my college campus, they have stands where they offer credit cards to students....what sucks is that nowadays you need a credit card to do things. A lot of students have commited suicide because of the hidden dangers to credit cards.

Watch out and happy hunting.

(oh yeah, look for the APR. My first credit card was 24%...I'm still paying it off

)

MRT144 · April 11, 2003, 06:29

well i plan to use it only for large purchases such as a laptop and music equipment. otherwise im going to use my check card which acts as a debit card.

Skanky Burns · April 11, 2003, 06:35

I tend to use my credit card for everyday purchases (so I don't pay any bank fees for each purchase) and then pay off the entire lot at the end of the month. I also got a credit card with 48 days interest free, so I have yet to pay any interest on my credit card despite constantly using it this past 4 years.

MikeH · April 11, 2003, 06:57

You have to pay charges for using a debit card?

SpencerH · April 11, 2003, 07:12

I was in the strange situation of having a European credit card but couldnt get an american one when I moved back here because my american credit history was too old. 'You dont have a credit card so you cant get a credit card'. Talk about catch-22! Some banks will give out secured credit cards to folks with no credit-history. In that case the credit limit is a function of how much money you agree to lock-up in their bank. I thought that sucked. I built up my credit with a chevron card that can be used at chevron stations. After 6 months with positive cash flow into my bank account and the gas card my bank issued me an unsecured card. How nice of them! One thing to do is to get a small loan then pay it back quickly. It'll cost you a few dollars but it gives you a credit history. The banks see that you're sensible with your money. Also, dont always pay off your cards. Leave a little money outstanding. You'll accrue interest on it but pay it all off next bill period. Again, the credit card companies like that and your credit rating will go up.

Rogan Josh · April 11, 2003, 07:58

Quote:

Originally posted by SpencerH
Also, dont always pay off your cards. Leave a little money outstanding. You'll accrue interest on it but pay it all off next bill period. Again, the credit card companies like that and your credit rating will go up.

I always pay my bills straight away so as not to accrue interest, and it hasn't hurt my credit rating. In fact, they keep putting up my credit limit without asking and I keep asking them to put it back down again, because I don't think it is a good idea to have such a huge credit limit on a card.

Lincoln · April 11, 2003, 09:00

Don't fall into the credit trap. Only use the card when you have money in the bank to repay what you are spending with the card. To build up your credit get a card from an oil company and repay it promptly or get a loan from your bank that is based on your savings and pay that back promptly. But don't fall into the trap! When I was your age my bank mailed me a Master Card without asking. But they learned a valuable lesson (and so did I). I do all my business with cash now including buying a home. It is the only way to go and you can use a debit card to rent a car or whatever.

Bereta_Eder · April 11, 2003, 09:07

I wont get a credit card even if they have to walk over my dead body (well in that case maybe)

i know not happy people with credit cards!

Sava · April 11, 2003, 09:13

It's good to have some credit, or else you risk disrupting your chances for home ownership and good auto loan rates in the future. Capital One gave me my first credit card, although by that point I had already paid off my first car, so I had established credit. Once you get a card, use it for your regular expenses, but pay it off immediately. Doing this builds up good credit. Also, if you are smart at such management, you can actually make money by taking advantage of the delayed payment.

SpencerH · April 11, 2003, 09:49

Quote:

Originally posted by Rogan Josh

I always pay my bills straight away so as not to accrue interest, and it hasn't hurt my credit rating. In fact, they keep putting up my credit limit without asking and I keep asking them to put it back down again, because I don't think it is a good idea to have such a huge credit limit on a card.

I not saying it hurts your credit rating to always pay it off (as I also do) but consider this. Who do credit card companies continually target? Students and recent chapter 11 graduates. Why? Because they are often irresponsible with the cards, pay lots of interest and keep the companies in business. If you use your available credit, pay a little interest, then pay off the principle you are showing that you are a 'responsible' consumer and it improves your rating just as if you default on a payment it lowers your rating.

My Wife Hates CIV · April 11, 2003, 10:04

buy a car. take out a small personal loan and pay it back. try getting credit through sears or lowes - they give credit to anyone.

Lefty Scaevola · April 11, 2003, 10:28

Quote:

Originally posted by MikeH
Try your bank, even if the rate is a bit ****, keep it for a few months then get a real one.

A lot of smaller bank s and bank chains have dropped credit card from their services and just give you a application to some large national bank chain.

MRT144 · April 11, 2003, 10:38

Quote:

Originally posted by Lincoln
Don't fall into the credit trap. Only use the card when you have money in the bank to repay what you are spending with the card. To build up your credit get a card from an oil company and repay it promptly or get a loan from your bank that is based on your savings and pay that back promptly. But don't fall into the trap! When I was your age my bank mailed me a Master Card without asking. But they learned a valuable lesson (and so did I). I do all my business with cash now including buying a home. It is the only way to go and you can use a debit card to rent a car or whatever.

this is exactly what i plan on doing

ive seen my parents go through too much crap to be fiscally irresponsible.

Skanky Burns · April 12, 2003, 08:39

Quote:

Originally posted by MikeH
You have to pay charges for using a debit card?

We get a certain number of "free" transactions, after which each costs an extra $1. Sucky bastards.

Az · April 12, 2003, 09:07

I have a credit card, and I am into my first overdraft already.

Flubber · April 12, 2003, 12:12

I use my credit card for almost all my purchases but pay it off about every two weeks so that interest never accrues. I have now garnered enough airmiles for a trip to Hawaii.

As for debit, all my transactions are free but they charge a 10 dollar monthly fee which is waived if you have at least $1000 in your account on each day of the month. So thats what I do and the $120 that I save yearly is much more than any interest I could gain from investments or interest charges I could save by paying down debt ( my debt is at between 5.1% and 6%)

To get a credit card, simply apply to a company that is marketing to students. There are cards with lower limits available. Another simple way to get a credit rating is to put say $500 aside in a bond at a bank and then borrow $500 from the same bank but secured by that bond. There is absolutely no risk to the bank so you should get a great interest rate and the cost to you is the difference between the interest rates. You can be upfront that you are trying to establish a rating and if you find a helpful banker they should be only too happy to set it up.

MarkG · April 12, 2003, 12:22

get an amazon card!!

GePap · April 12, 2003, 12:26

do you get a fee for that, Mark?

I still have not gotten a credit card. I make all my purchases with cash.

MarkG · April 12, 2003, 12:38

Quote:

Originally posted by GePap

do you get a fee for that, Mark?

hmmm, well......, you see.....
eer

yeap

Provost Harrison · April 12, 2003, 15:49

I used to get countless offers of platinum cards when I was an impoverished student or unemployed...now I am working and have a bit of money, not a thing in the post

SpencerH · April 12, 2003, 19:24

PH, a bit of money? What happened? Last word I saw, the uni was sending some leg breakers to sort you out!

ajbera · April 12, 2003, 20:14

You're gonna need a card from a bank that caters to sub-prime (i.e., high-risk) consumers. My suggestions are to try a bank like Household bank (where I got my first card). Your APR (annual percentage rate, i.e. interest rate) will likely be a bit high, but there's probably no getting around that since you're a credit card newbie. Besides, your APR will drop as your history improves, and you can always request APR reductions from time to time (assuming you deserve it).

Other options include a secured card, where you start off with a deposit at a bank, and they base your initial credit on the deposit. Again, as your credit history improves and you pay your bills on time, your credit will increase, and you can eventually transfer the balance to an unsecured card.

Secured cards:

http://www.cardweb.com/mod_perl/card...survey/secured

There are also student cards, which are geared towards (you guessed it) students:

http://www.cardweb.com/mod_perl/card...survey/student

Just remember to a) pay your bills ON TIME, b) pay MORE THAN THE MINIMUM AMOUNT DUE (your debtload will take forever to pay off if you just pay the minimum), and c) only use it for EMERGENCIES or when you know you'll have the money in the very near future to pay the bill. It is extremely easy to get over your head with credit, and lots of young people have f*cked themselves accumulating debtloads that they can't pay off. Also, recall that bankruptcy legislation reform is around the bend, meaning that you'll have a harder time just eliminating all debt through bankruptcy, should it come to that.

Hope this helps.

Good luck.