Trying to build credit

[mikehartl]

Hello everyone,
I am 21 and currently a full time student enrolled in a university. I've recently discovered when I moved out 8 months ago that living on my own is VERY expensive.

I currently go to school full time and work 32 hours a week. I pay rent, utilities, a car payment, groceries, medical insurance through work, and place a percentage in a profit sharing plan that my company matches 2.71:1 (Walgreens).

So far I have been paying everything with money I make working. It is directly deposited in my checking account and I pay for everything with a debit card. I would now like to get my first credit card so I can pay urgent bills right away, then pay off the balance with my paycheck which I receive every two weeks.

I first applied for a Chase credit card and was denied, then about a month later I applied for a Discover Student Card and was also denied. I checked my credit report online and have a score of 700 with a loan that has been open for my car for a little over two years. I have absolutely no late payments on any of my utilities or loan or to Verizon for my cell phone.

I take it that I am being denied credit cards because my longest open account is 2.2 years and I do not have enough of a credit history.

My question is, what is my next step? I will most definitely be needing a credit card but I do not want to just keep applying and getting denied as this will hurt me.

Thanks for any advice,
Mike

 

[Leros]

What about getting a credit card from your university's credit union?

 

[dud]

If you want the truth ... the truth is that CCds are the devil. Avoid them like the plague ... unless you can pay the balance off each month. If you cannot then avoid!

 

[GagHalfrunt]

Get a secured card with a low limit. There's no way you'll be turned down for one of those and 6 months of clean history with that card will make it easy to get a regular card.

 

[nageov3t]

Originally posted by: dud
If you want the truth ... the truth is that CCds are the devil. Avoid them like the plague ... unless you can pay the balance off each month. If you cannot then avoid!

yes, establishing a credit history is the devil :roll:

worse case scenario, I'd look into capital one. they're like the go-to source for first time credit cards, just be responsible about your use of it :thumbsup:

 

[Leros]

Originally posted by: dud
If you want the truth ... the truth is that CCds are the devil. Avoid them like the plague ... unless you can pay the balance off each month. If you cannot then avoid!

Or he could be a responsible person. Make the same purchases he is now and then pay them off at the end of the month.

 

[mikehartl]

The credit card will be used strictly for gas, utilities and groceries depending on the month, so I have no doubt that I will be able to pay the balance off each month. Along with Capital One, what are good recommendations for a secured card with a low limit? I would like to get a regular card in the future but this sounds like a good start.

 

[skim milk]

just apply for a student credit card
I started with amex blue for students

edit: oops I should have read the OP

 

[Leros]

Originally posted by: mikehartl
The credit card will be used strictly for gas, utilities and groceries depending on the month, so I have no doubt that I will be able to pay the balance off each month. Along with Capital One, what are good recommendations for a secured card with a low limit? I would like to get a regular card in the future but this sounds like a good start.

My first credit card was a Citi Student card.

 

[CRXican]

as a college student it should be easy to get one, I'm surprised you're getting denied

my first credit card was from Capital One, $500 limit

 

[nageov3t]

Originally posted by: CRXican
as a college student it should be easy to get one, I'm surprised you're getting denied

my first credit card was from Capital One, $500 limit

I'm jealous, my first card had a $300 limit

of course, I was 16 at the time... got into a bit of trouble with it in Europe. I wasn't keeping track of what I was spending because I just assumed that once the card hit the limit, it wouldn't work anymore. lol. it was a good shock seeing that bill in the mail.

 

[Colt45]

I thought they put $500 student/starter visas in cracker jack boxes.

 

[Excelsior]

I got a Citi MTV-U card no problem just a couple of years ago. It was basically my first card. They gave me a $1000 limit. It is alright.

 

[nageov3t]

Originally posted by: Colt45
I thought they put $500 student/starter visas in cracker jack boxes.

I thought they kinda cracked down on that a bit with the whole credit meltdown thing

 

[Cal166]

I have done this for my sister when she was in the same situation. I would add her as an authorize credit card user on my account, she would get a credit card in the mail, with that she would use it to open department store credit card, two at least. Waited 4-6 months later, she tried again and she was approved.

 

[Xcobra]

Originally posted by: Leros

Originally posted by: dud
If you want the truth ... the truth is that CCds are the devil. Avoid them like the plague ... unless you can pay the balance off each month. If you cannot then avoid!

Or he could be a responsible person. Make the same purchases he is now and then pay them off at the end of the month.

Exactly. I dont know why people are so afraid of credit cards. Youre basically buying normal things you would buy otherwise. Just make sure you pay it off every month.

 

[rockyct]

Look into a local credit union especially one affiliated with your school. They'll often give you a credit card.

 

[bobdole369]

What about getting a credit card from your university's credit union?

This.

CC's for first timers are a bit difficult, try Target, the Walmart Mastercard, CapOne, Orchard Bank, and anything HSBC to start with. Do all the apps at once, it'll look like your shopping around and the inquiries won't hurt *quite* as much. (most companies view a bunch of inq's at once as "shopping around".)

If denied for everything, get thee a secured card from the credit union. Thats really the only way to be sure to establish a credit history. If you have relatives that trust you - see if they will add you as an "authorized user". WHich will report that card as your own on your credit report.

Utilities, rent, etc only count when you don't pay them.

 

[fleabag]

get a secured credit card, try citi bank which will take the funds you give them (secured) and deposit it into a Certificate of Deposit yielding you a rate of return of 4%. This will be an 18 month CD and after 18 months, they'll transition your Secured Card into a full on credit card. This is how I started my credit and since interest rates are super low right now, this is the best CD rate you can get ANYWHERE.

 

[BassBomb]

I got student VISA from TD Bank (Canada) easily when I started University 4 years ago. Very low limit that I used to buy gas faster and paid off every time on time. ($500 limit)

A few months later I asked for an increase to $1500 I believe... Still have that card but now I have got TD Rewards VISA which gives me 0.5~1% cash back with a $3500 limit.

 

[Injury]

If you can't get a regular card, you could try getting a gas station card. After using it for a little while you may be able to upgrade to one with a little bit higher credit limit that also acts as a Visa/Mastercard... the APR will be god awful if you're paying it off in full when you get the bill it won't matter.

If you have a savings account at a bank, go there, talk to them and see if they have any student credit cards to help you. I doubt the bank manager can do anything about it personally, but I'm certain they would rather find a solution for you than have you pull your money out and go to a different bank.

It's fairly easy to get approved for a line of credit with Dell, Old Navy, Khols, other clothing stores and such... granted it's not like you shop at these places on a regular basis and all, but even if you're only approved for a few hundred dollars, buy a couple items every few months and pay it off immediately you'll be establishing good credit.

 

[Agentbolt]

Retail cards don't count for much, unfortunately. For reasons unrelated to credit issues I declared bankruptcy in April and found myself in an odd boat, I actually had a decent credit score (650, which for someone who had a discharged bankruptcy less than a month ago seemed decent) and obviously no real credit card company was going to touch me. What I ended up doing was getting a credit card with Credit One. They'll approve absolutely anyone, but they start you off with like a 300 dollar credit limit and they're one of those cards who charge a 69 dollar annual fee, 50 dollar account set up fee, etc...

Try other avenues first, but if you get completely and hopelessly stuck, you can grab a Credit One card and pay it off every month. Just making on-time payments there for the past 6 months has helped my score more than I would've thought possible, now I can get a "real" credit card and ditch the Credit One card. I looked at the 100 bucks I paid in various fees as a fairly acceptable price to pay to get a starting point to rebuild my credit.

And I'm fairly sure there's a lot of student-oriented credit cards out there by Chase and Capital One and such. Being a full time student is something everyone loves to see (banks, insurance companies, etc...) so I'd be really surprised if you were forced to go my route.

 

[TheVrolok]

My first, and still currently only, CC is a Citi Student Dividend Platinum or something similar. Had 0 problem getting approved and they have automatically upped my credit limit every 4-6 months since I've had it.