What company will give you a credit card when you have no credit?
- Thursday Jan 29,2009 09:37 PM
- By diddy
- In Others
I am 19 years old with little to no credit history. I was able to get a credit card through a department store but was declined for a credit card through the bank (where i work none the less!) and for another one through a store.
I am not desparate for money. My reasoning is to build my credit score. I would perfer not to take out a loan to build credit until i actually have something i need a loan for.
So… Does anyone know of a credit card company that will give someone like me credit card? I dont want to keep applying if I am just going to get rejected everytime. Thanks!!
19 Years, Build Credit, Credit Card Company, Credit History, Credit Score, Department Store, Money, Need A Loan
One Comment
The first two posters did not mention that Capital One currently reports the current balance as the credit limit giving the appearance that the account is at the limit, which isn't good for a credit score. This has been also made public, and Capital One will not start reporting correct credit lines until later this year or the beginning of next year. I understand in your question that you applied for a credit card through your bank and was declined. You may want to check with your bank again to see if a secured credit card is offered.
Secured credit cards are easy for people with little credit to get approved for mainly because they require a deposit usually tied to a savings account as collateral to establish a line of credit. The deposit isn't used to pay for the balance on the account unless it's severely delinquent and/or it's charged off. 2 major benefits of secured cards is the minimal chance of getting declined and also the ability to control the credit line by adding to the deposit. In a sense, you could very well "customize" a credit card by adding to the deposit to increase the limit, which looks good on a report. If you're saving for a major purchase let's say like a down payment on a car or a house, a secured card not only helps you save that money, but you can also build credit at the same time. Another benefit of a secured card is that the deposit gains interest just as a savings account would while you're building credit.
A good practice in using the card would be to make a small purchase ($20/month) that can be paid off on time every month while adding to the deposit to increase the credit line. Usually after a year of doing this, the card either will convert to a regular card or a better card will be offered. and more importantly, the deposit is no longer needed and is given back. Now not only you would have a high limit credit card, you'd also have a nest-egg saved up as well. Something to think about.
Hopefully this answer will help
Good Luck!
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