Credit card with no credit history

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gilgamesh
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Credit card with no credit history

Post by gilgamesh » Tue May 15, 2018 8:31 am

There is working history since 2015, which shows up on social security site. Has joint banking records for years with spouse. Excellent credit rating for spouse.

But, no personal credit card history or personal loan history.

What’s the best way to build up own credit history? Any CC recommendations?

student
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Joined: Fri Apr 03, 2015 6:58 am

Re: Credit card with no credit history

Post by student » Tue May 15, 2018 8:40 am

You may want to ask the question at https://creditboards.com/forums/
One way is to start being an authorized user in your spouse credit card. Another way is to a secured credit card but only work with a reputable place. Another possibility is apply for an American Express charge card. It used to be easier to get approve as they want the annual fee. I am not sure about the current practice.

Rupert
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Re: Credit card with no credit history

Post by Rupert » Tue May 15, 2018 8:42 am

Often your own bank will issue you a credit card even if you have no credit history. That might be a place to start.

BeneIRA
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Re: Credit card with no credit history

Post by BeneIRA » Tue May 15, 2018 8:49 am

Discover IT is a good place to start since the rewards are competitive and Discover is not too strict about approving people with little credit history. American Express is also very loose with their standards for approving someone, so you also may want to start there. Capital One is another one that would probably offer a small credit limit on the Quicksilver or VentureOne cards. Lots of choices for someone with little to no history.

gilgamesh
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Re: Credit card with no credit history

Post by gilgamesh » Tue May 15, 2018 9:14 am

Thank you all

https://www.annualcreditreport.com

This site is legit right?

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Alexa9
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Re: Credit card with no credit history

Post by Alexa9 » Tue May 15, 2018 9:20 am

gilgamesh wrote:
Tue May 15, 2018 9:14 am
Thank you all

https://www.annualcreditreport.com

This site is legit right?
Not sure, www.creditkarma.com is good

Rupert
Posts: 3665
Joined: Fri Aug 17, 2012 12:01 pm

Re: Credit card with no credit history

Post by Rupert » Tue May 15, 2018 9:22 am

gilgamesh wrote:
Tue May 15, 2018 9:14 am
Thank you all

https://www.annualcreditreport.com

This site is legit right?
Yes, that's the official free credit report site sanctioned by the federal government.

masteraleph
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Joined: Wed Nov 04, 2009 9:45 am

Re: Credit card with no credit history

Post by masteraleph » Tue May 15, 2018 9:24 am

gilgamesh wrote:
Tue May 15, 2018 9:14 am
Thank you all

https://www.annualcreditreport.com

This site is legit right?
Yes. It is the official place to receive your credit report from each of the 3 agencies, once per year, for free. Note, though, that may not include your credit score, and they’ll all try to upsell you on some service. You don’t have to do all of them at once- you can do one every 4 months if you want.

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obafgkm
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Location: Pennsylvania

Re: Credit card with no credit history

Post by obafgkm » Tue May 15, 2018 9:25 am

gilgamesh wrote:
Tue May 15, 2018 9:14 am
Thank you all

https://www.annualcreditreport.com

This site is legit right?
Yes, it is entirely legitimate. It was created by under federal law to provide free credit reports once a year. Why it doesn't have (1) a more intuitive website name or (2) a U.S. Government web address is another question.

Nate79
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Location: Portland, OR

Re: Credit card with no credit history

Post by Nate79 » Tue May 15, 2018 9:56 am

First step I would do is create an account at credit Karma to understand actual credit history and credit score. If this person still has a spouse with credit cards I would look to be added as an authorized user on all accounts. The accounts should be active and most will report to her credit report and thus giving them some credit history. If they are not in a big hurry this can help build some credit history in only a few months. Whether or not it would be enough to get approved for their own credit card I'm not sure.

Big Dog
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Re: Credit card with no credit history

Post by Big Dog » Tue May 15, 2018 9:58 am

check with your bank. You can usually get a small ($500) card to start building a history.

rotorhead
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Re: Credit card with no credit history

Post by rotorhead » Tue May 15, 2018 10:25 am

Credit card with no credit history
Post by gilgamesh » Tue May 15, 2018 9:31 am

There is working history since 2015, which shows up on social security site. Has joint banking records for years with spouse. Excellent credit rating for spouse.

But, no personal credit card history or personal loan history.

What’s the best way to build up own credit history? Any CC recommendations?
If you have joint banking record with your spouse, you should be able to easily get a credit card from your bank; albeit with a fairly small limitation to start.

I opened a checking account, linked to our account, for my college student niece who was living with us at the time; to make it easy for her parents to transfer money to her. It worked very well. She was issued a debit card for the account, which was quite handy. Year or so later, at my insistence, she applied for and was issued her own credit card with $1,500 limit. After one year the limit was increased to $2,800. It's working very well for her; and she is merrily building her own credit history.

Try your bank first. You might be pleasantly surprised.

gilgamesh
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Joined: Sun Jan 10, 2016 9:29 am

Re: Credit card with no credit history

Post by gilgamesh » Tue May 15, 2018 11:40 am

Person has been an autorized user with spouses credit card for years too. Therefore, I’ll look into checking credit score as it sounds like she may already have one. The short working history may not matter much...she might be eligible to apply for a regular card.

I’m reluctant to suggest a bank CC, as even debit card’s from banks are issued by MasterCard and I wonder whether a bank issued CC will carry equal weight to build credit. (Edit: sounds like it will, so a definite option)

Thank you all!

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JoMoney
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Re: Credit card with no credit history

Post by JoMoney » Tue May 15, 2018 11:47 am

My first credit card was with a local bank, they gave me a card with a very low limit (but no required security deposit).
I see Capital One offers a "secured" MasterCard with no annual fee, and the amount of security deposit may be flexible based on credit worthiness. I use Capital One for other banking / credit and have been happy with them, so if I had to start over again building credit, their secure card might appeal to me (especially since there's no annual fee).
https://www.creditcards.com/no-credit/
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

takeshi
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Re: Credit card with no credit history

Post by takeshi » Tue May 15, 2018 10:39 pm

Credit unions can also be a good place to look if the person qualifies for membership at one with more lax approval criteria. I'd also suggest Discover for someone with a thin/new but clean (no late payments, chargeoffs, etc) credit profiles.

Be aware that many secured cards still require credit approval though the approval criteria may be easier than an equivalent unsecured card.
BeneIRA wrote:
Tue May 15, 2018 8:49 am
American Express is also very loose with their standards for approving someone, so you also may want to start there.
Their charge cards generally have easier approval criteria. However, not all of their credit cards do.
gilgamesh wrote:
Tue May 15, 2018 11:40 am
Therefore, I’ll look into checking credit score
Be aware that there are different scoring models. Currently the most used model for credit cards is still FICO 8. Also note that even with a given model like FICO 8, a person will have a score with each of the 3 major CRA's: TransUnion, Experian & Equifax. Credit Karma was suggested above but CK provides TransUnion and Equifax VantageScores which are not used by most creditors for credit card decisions.

The reason why you want to be careful about scoring model is that different models will evaluate the data in a credit report different. Two different models can produce very different scores in some cases.
gilgamesh wrote:
Tue May 15, 2018 11:40 am
I’m reluctant to suggest a bank CC, as even debit card’s from banks are issued by MasterCard and I wonder whether a bank issued CC will carry equal weight to build credit. (Edit: sounds like it will, so a definite option)
Noted your edit but just to clarify: Debit cards just happen to use the payment processing networks of MasterCard and Visa. However, that does not mean that the credit cards issued by the same banks carry any less weight.

longleaf
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Re: Credit card with no credit history

Post by longleaf » Wed May 16, 2018 10:53 pm

I got Discover Secured It which gives 2% back on gas & restaurants and 1% back on everything else. I got an email a week or so after I got the card stating that my rewards would be doubled my first year. Absolutely no credit history and put $2500 (the maximum) as the deposit. This is probably the most secure and highest yielding investment I could have made with the $2500.

I pay the bill in full and pay ahead often.

Good luck
Frugality, indexing, time.

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