Credit Card Problems...

Remove all ads!

Well, I didn't want to resurect my almost year old thread about credit cards, so I'm starting a new one.

Here's the problem: I know what card(s) I want, the problem is that no one wants to give a fast food worker a card. I've tried to get a "student" visa card, but they rejected me because I'm not a student. (Who would have guessed that they would actually check!?) So far I've tried three different VISAs, one Discover, and two AMEX card applications, and all have been rejected...one was even rejected "for having too many checks in to my credit history"! How stupid is that? How am I supposed to build credit if no one will approve me for a card?

 

Credit inquiries add up. Having been a lender in my past, shopping for too much credit is a red flag that most cc companies will reject you for. The first thing you need to do is build a credit history...Odd to say, but you can't get a credit card without a credit history. There are exceptions (college being one), but for the most part, you have to have it to get it. Here's a few tips for building credit history...But bear in mind, these won't work if you already have bad credit.

Here's some advice for building a credit history:

1) Get a department store credit card (if they even still make them anymore...You don't see them as much. Make one purchase a month and always pay it off completely. This will help boost your credit rating.

2) Get a gas card. I'm pretty sure these report to credit bureaus. Just make sure to pay them off every month.

3) Finance something...It doesn't have to be big, try one of those same as cash deals for furniture or an appliance that costs over $200. Something you already have the money to purchase outright. When the time to make the payment comes, pay it off completely.

4) (Least recommended) Get someone to co-sign a loan or credit account for you. The upside: you begin to build a credit rating. The downside: most lenders look down on credit bureaus that have all joint accounts...Unless the other person is your spouse. When you choose a co-applicant, choose seomeone that has good credit.

Anyway, I hope this helps.

 

Strangely enough, the best way to build credit is student loans. That sucks for people that aren't students.

Have you tried a debit card? Every bank I'm familiar with will give you either a MC or VISA debit/credit card whenever you open up a checking account with them.

 

Yes, I have a Debit card from my bank that has the Visa logo on it. But I never thought that using my bank account could help build/kill credit.

 

I agree with Kitrax about the bank cards. Yes, it's a credit card, yes it's accepted everywhere credit cards are, yes it looks like you have a credit card, but there's one small problem - it's not really a credit card. One purpose of a credit card is to buy stuff that you don't have the cash on hand to pay for right away. You can argue that if you don't have to cash, then you shouldn't buy it, but the problem with that thinking is life doesn't work that way.

Take this simple example. I have a job. I use a car to get to work. If my car breaks down, I have to fix it, or else I don't get to work. Now, if I only had a bank card, and didn't have the money in the bank to pay for the repairs, I'm SOL. However, with a credit card I can charge the repairs, and then pay them off over the course of the next couple of months. So, while a bank card works the majority of the time, there are times when you need a traditional credit card.

 

I don't think debit cards affect your credit rating. However, apparently you can get a "secured credit card".

From here. It relates to recovering from a bad credit rating, but presumably it would work for establishing an initial credit rating as well.

 

I forget how many points are deducted every time you check your history. OR someone checks it for you.

Right now, you need to build some credit. Take out a $500 loan, and setup direct-debit repayment. Basically, you have to pay money for credit. People have to make money off you, first. When you repay that loan, take out another. You can get to the point where you have two loans out at the same time.

You get so many points for each payment you make, on time. While you have these loans out, your credit rating will plummet. As you repay them, it will rise higher than it was before. Then you can get your cards.

You can always get a secured card through a bank you have an account with. Just give them $800, and you'll have an $800 spending limit. It's real easy, and they don't have any problems with it at all. Credit cards are really a "loan", anyways.

 

Kitrax, I had the exact same problem at your age Now I'm worth over 70,000 in credit cards and I bought my house without a job or money The secured card is definatly the way to go, at least for me it was. After about six months you should recieve better offers from other companies, pick the best one and wait another six months. Bye this time you should get even better offers. Pick the best one and cancel the secured card. Keep up this process and your payments and you should be sitting pretty in a few years

 

Well, I'm one of those who were burned by credit cards and it will be a while before I can even think about getting one. So temporarily I'm of the mind that I'm never going to get one. Mind you, I'll admit it was my own fault for being dumb, and I do know that they can be of great assistance in dire straits so I'm not irrational about them.

 

I don't have any credit cards. My wife has a Discover for emergency uses only. It seldom gets used. We have a debit card with the Mastercard logo attached to a checking account.
We don't need a credit card for everyday use. Let me say that again, WE DON'T NEED A CREDIT CARD FOR EVERYDAY USE.
I asked a friend of mine who teaches consumer economics about this, this is what he said...
Manage your money wisely, you'll be just fine. You are still young, you DO NOT need a credit card.
Contrary to what mostly everyone will tell you, you don't need to build up your credit. right fromt eh start. You'll do it automatically when you buy your first car, take out your first mortgage, rent your first apartment. And most of those will not require you to have much of a credit history.
Go buy a car. Buy a new car. If you can make payments on time every month and even pay a little more form time to time, you will be just fine later on in life.