Tips To Get Approved For Your First Credit Card
Welcome to credit.
How do I build credit? By having credit cards.
How do I get approved for credit cards? By having credit.
Are you new to credit and confused on how to jump onto this bandwagon? Follow me for shortcuts on how to build credit at 18 so that you can eventually apply for your own credit cards.
Store Card
Store cards are cards issued by a store or a brand. These include Home Depot, Costco, Amazon, Gap, Lowe’s, and more. Store cards are made to be used within the designated store or branch, but often, these cards can be used as regular credit cards.
The good thing about them is that they are easy to get approved for, though usually for a low credit limit.
Store cards are good credit boosters but are not permanent solutions, definitely not according to Store cards are good credit boosters but are not permanent solutions, definitely not according to FICO which does not even count them as regular cards. A few months in, do apply for a regular credit card.
Piggybacking- Authorized User
For this very common method, you’ll be needing a friend or relative. You will be piggybacking on their credit card.
By being added as an authorized user to someone’s credit card, that credit card and its history get reported to the credit bureaus and make its way onto your credit report. Best is if you can get added to two cards.
By being added as an authorized user to someone’s credit card, that credit card and its history get reported to the credit bureaus and make its way onto your credit report. Best is if you can get added to two cards.
In that case, make sure that the card has been open for at least two years, so that it has enough established credit history. However long the card has been open for, that’s how much credit history you will have. Also, everything will be reflected on your report, the good and the bad.
Never add yourself to a card that has less than perfect payment history or that has a high balance. It would do more harm to your credit than good.
Once you’ve been added, the card will usually show up after 30 days. You can check your report daily on Wallethub to see when the card shows up.
Once that’s done, you have enough of a credit background to apply for a beginners’ credit card. Two such options are the Discover It card or the Capital One Students Journey.
Once that’s done, you have enough of a credit background to apply for a beginners’ credit card. Two such options are the Discover It card or the Capital One Students Journey.
| Bank Will Report | Credit History Will Be Back Dated | |
| Amex | Yes | No |
| Barclay | Yes | Yes |
| Bank of America | Yes | Yes |
| Chase | Sometimes | Yes |
| Citi | Yes | Yes |
| Capital One | Yes | Yes |
| Discover | Yes | Yes |
| HSBC | No | No |
| US Bank | Yes | Yes |
Bank Relationship
It’s all about sweetening up:
Banks appreciate their good customers and like to keep them happy. Use this to your advantage.
If you know you have a good banking relationship with a specific bank, meaning you have over $10,000 in your bank account,or maybe even $1500, and best of all with Bank of America, Chase, or Wells Fargo, try applying for a credit card with them.
They may very well approve you.
If you do get declined, call them up and point out your banking relationship with them. Ask them to reconsider your application and say you’d like to prove your credit worthiness to them.
If one representative refuses to have it reconsidered, try calling again to speak to other rep’s.
Secured Credit Card
Easier to get approved for, a secured credit card is another way to start up your credit.
The way a secured card works is that you must give a deposit of the amount requested by the bank. That deposit amount then becomes your credit limit. You’re basically using your own money that the bank is lending to you.
The pros of a secured card is that it is easier for a beginner to get approved for one.
The cons are that you may feel like your money is locked up and also, you may not 100% definitely get approved for the card.
Taking that into account, a secured card is a pretty decent way to start building credit.
Before you go ahead with this one, make sure you know if and what the card fees are, make sure the card you’re applying for is one that gets reported to the credit bureaus, and make sure you apply for a secured card from a reliable issuer.
I do believe that you can get your credit off the ground and ready for your first credit card. One you can call your own!