No Credit | Completely Clean | ....

Well, assuming you have a decent, stable source of income, I wouldn't recommend you get a secured card - at least until you've exhausted all other resources.

First, try opening an account with a local credit union and tell them you want to establish your credit. They should have an unsecured Visa or MC they could start you off with - albeit maybe a lower limit initially.

Try Capital One. They are just awesome, IMO. I bet anything you'd get an unsecured card with them. May be only $200 or $500 to start with. But they are very liberal with their Credit Line Increases if you keep a good payment history. Ask for one every 6 months.

First USA is also usually pretty kind to those with new credit. Try applying for an unsecured card with them.

After 8 months of having 2-3 of these cards on your record and after getting each of them to increase your limit at the 6 month mark, you should be able to apply for some REALLY good cards, with higher limits, gold cards, platinum cards, etc. Just keep the payments ALWAYS on time, more than required, and don't go over your limit. Soon, you could have AWESOME credit.

Don't f*ck it up like a lot of us have done here on creditnet. You are so fortunate to be where you are at. Most of us would just about kill to have perfect or no credit.

 

I wouldn't recommend that anyone get a credit card from Capital One. But that's only my opinion.

Buckets

 

try a secured loan for $5k (if you dont have 5k, put the loan into the CD) or become an AU on some good cards.

Many people miss this... If you open a secured for $1000 your future limits will be based on that amount. so the higher the secured card limit, the better future cards will start.

j/m .02.....

 

Washington Mutual has a secured card program too. I dont remember the interest rate- but it is not reported as secured. They want no delinquent accounts or collection activity to be approved.

 

Re: No Credit | Completely Clean |

Why not? Just because they don't report the high credit limit? This is usually the only bitch I ever hear about Cap. One. But I don't see it as much of an issue. You just max the card out one month with stuff you would have bought that month anyway - save your cash - and then after it cycles pay it off. Then you have the high credit limit reporting on your report.

My experience with Cap. One has been just awesome! They are very liberal with CLIs, they've agreed to lower my interest rates, upped my Gold card to a platinum with a 5% int. rate decrease, done pretty much whatever I've ever asked of them. Not to mention their website is one of the easiest to use. They don't charge for online payments, you can make these (free) online payments as often as you'd like, and they post the same day you make them!

They also seem to answer their phone fairly quickly whenever I call. I like that too.

 

Re: Re: No Credit | Completely Clean |

Amazing! I have quite the opposite luck with Cap One. The last time I ever held a Cap One card was in '96/'97 -- that was from my student days, with a limit of $500. By '96 I had been working for 2 years, my income quadrupled from my student days part-time job income, yet the credit limit stuck at $500 in spite of getting on the phone and asking them for an increase.... Needless to say, I cancelled my card.

Two months later, what do you know, I get a preapproved offer from CapOne for their platinum card with a minimum credit limit of $5000/= I just filed that offer in the circular bin.

I was never late paying any of my bills, ever (knock wood!) -- if you were to suspect that perhaps my credit history played a role in Cap One's denial decision.

Individual luck, I assume ...

-- lakpr

 

Re: Re: No Credit | Completely Clean |

I just recently went through what you are starting. Friday past, after waiting 6 months I finally got a FICO score and they were pretty awesome. 700 to 750 scores respectively. What I did was get a $500 secured from Bank of America and $500 secured from Capital One. I would basically use them like crazy each month and then pay off 90% of the balance but keep a small balance alive to show usage. Using those 2 accounts alone I recieved my great scores above. I am in the process of having my house built and close in a few more months and this was a Godsend!! I am also getting authorized user priviledges on my girlfriends very low balance, long history, no lates and high credit limit platinum card which will add even more points soon. Authorized user has the bonus of getting you history (only get AU on a card with no lates and low balance and less than 30% utilization), no inquiry on your credit report (which will take points away) and a history (you gain the history of that card on your report). Anyways it worked for me and it can work for you. Like someone said earlier dont mess up cause you are in an awesome situation!!

 

Re: Re: No Credit | Completely Clean |

First Usa is very hard to get!. I do not recomend to apply for people bulding a cr history. I have been denied all my life for it! Also for Discover.

 

Re: Re: No Credit | Completely Clean |

Someone mentioned getting added as an authorized user on someone else's account (parents, spouse, sibling, etc). This is a good idea in the way that it will provide you with a credit history right away.

If you decide to do this, make sure it's someone who you know will pay their bill on time. You don't need someone else's late pays on your report. Try to get added to an account that's been open a long time, little balance compared to limit and always paid on time.

I think your idea for a secured card is another good way. From my experience, almost all secured c.c co's report it just like a regular credit card.

The difference between them is the interest rate and the fees that they will charge. First Premier will rape you (I have one- it sucks). Orchard I'm sure is about the same..

As you don't have a subprime credit history-there's no need to go to a subprime co. Almost all of the larger banks (Bank of America, First Chicago, National City) probably offer a secured card program. With none of the "application fees" involved. Good way to build credit with a prime lender.

Getting a share secured loan was another good suggestion but I think eventually you'll need a revolving line on your report.

You *might* qualify for a small cl that is unsecured through Capital One. Some people hate them, some people swear by them. I, personally, love anyone that's willing to take a chance on me with my scores and not make me feel dirty and used once it's over. I just opened a $500 cl through them with a $99 security deposit.

 

I have a Washington Mutual Secured visa card and it does report as secured. The interest rate is 16.05% and the annual fee is $35. After 18 months they review the account for possible unsecuring of the account.

 

I've known several people that got turned down from Cap1 secured due to insufficient credit.

Bank America is very easy to get.

 

richs-macy card are e-z to get if your name is in the phone book.

I'd apply at least one place even if you get denied it will start a file on you.

 

Re: Re: No Credit | Completely Clean | ....

My wife does not have any credit history either, and she did apply for Macy's card, but was denied .... "Insufficient credit history" .....

Both our names ARE in the phone book .....

-- lakpr

 

Re: Re: No Credit | Completely Clean | ....

Most of the banks will give you a $1000 limit if you deposit $1000.

If you have a blank file you need to get a secured card.

 

Re: Re: No Credit | Completely Clean | ....

Aren't there any community banks where you live? Or perhaps a credit union that you can join?

I got a secured visa for my wife to start her off on
her credit history building from my credit union. No inquiries, 100% approval, 8.9% interest rate, no annual fees ...

Been my experience that big name banks ALWAYS will ask for annual fee even on secured card (unwilling to pay fee to use my own money), and even then approval is not guaranteed ....

Small banks and credit unions are much more willing to give you a secured card, most without any annual fee ...

-- lakpr

 

Re: Re: No Credit | Completely Clean | ....

Also rodo, if you have $1000 to spare, and your primary goal being building a credit history, I suggest the following:

(1) Deposit $500 in a CD (say for 1 year) in a local community bank
(2) Take out an installment loan from the same bank, with that CD as collateral, and a pay-period coinciding with the CD's term (= 1 year)
(3) Use the remaining $500 as collateral for a secured credit card

The reason I suggest this is that, FICO seems to love "credit mix" --- instead of credit cards alone, if you have an installment loan, and make regular monthly payments on this loan, your FICO score will be higher than a simple "credit card only" tradelines.

I am currently trying this out for my wife ... by May we should pay off the loan...

Best of luck,

-- lakpr