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I want to apply for my first credit card.
- I applied like 2 years ago for one and got rejected because i didnt have enough credit history
-I bought a new car ( my mom is the cosigner but ive made all the payments, and used checks with my name from my bank account)
-Never late on payments
- Got an offer in the mail but says "subject to approval"
-If I get rejected will that affect my credit????? Ive been trying to be REALLY careful about my credit
THANKS
PS Which credit cards are a good option for beginners?

2007-07-31 04:42:48 · 20 answers · asked by Anonymous in Business & Finance Credit

20 answers

Congratulations to you for handling your credit carefully. Here are some common rules to live by.

(1) Toss every credit card "offer" into the trash. As you guessed, it is not an "offer" but a "solicitation" for you to apply. The sender bought your name and address (see below).

(2) Every time you apply for a credit card or a loan, you damage your credit rating -- you lose FICO points (google to learn more about what makes your score go up and down). Therefore, never apply for a loan or credit card unless you really want it and know that you will receive it.

(3) Never ever ever give away your name and address, much less your telephone number(s) or Social Security Number. Never. For example, when you go to a fair, you'll see "giveaway" booths, where they give away a trip to Tahiti or a new car to the "winner". NEVER fill out the card -- it's a rip to get your name, address, etc.

(4) Meet your banker. Seriously, go to your local bank and meet your branch manager and assistant (often called a Financial Services Manager, or FSM). Tell your banker about your financial goals, and ask for advice on which credit card to start with. Before you accept the advice, decide whether your trust and can get along with this bank manager. If not, visit other local banks until you find someone who is helpful and trustworthy. Then apply for a credit card through your local bank.

(5) If your banker recommends that you not apply for a credit card yet, then apply for a debit card. It looks like a credit card but is really a check card, that takes money from your checking account.

(6) Learn as much as you can about how credit cards and loans work, how interest is calculated, the terms that are used (like "compounding" and "APR").

(7) Finally, and perhaps most importantly, make it a habit every year (use April 15, because it fits) to "ask" for a copy of your credit report from all three reporting agencies (Equifax, TransUnion and Experian -- remember these names). You are entitled to a free report every year, under the Fair and Accurate Credit Transaction Act (FACT Act) of Dec 2003. Your banker will give you the website for the "Central Source" and will help you read and analyze your reports, looking for and correcting errors (this is REALLY IMPORTANT) and obtaining your FICO score (without damaging your score). (See how important it is to have a good, helpful banker.)

Here are the FICO score ranges:

850 = maximum possible
750 to 849 = excellent
660 to 749 = good
520 to 659 = fair
350 to 519 = poor
350 = lowest possible

Good luck!

2007-07-31 05:09:58 · answer #1 · answered by Tim F 5 · 1 0

With a co-signer its questionable whether it will be considered or not.

Capital also offers a guaranteed car for those with no credit or bad credit. Depending on there special of the day crap you can put up a small amount of cash and get a credit card.

Some of their plans are like you send them $600 and you get $1200 worth of credit. Your credit card is like a real credit card with a $1200 limit.

If you do qualify your regular card your limit will be about $500. What you need to do then is charge stuff and pay if off immediately to build on your credit. When they see you use the car and pay it off they will eventually raise your max limit.

But you MUST be smart with your card. It's not there to purchase something you want because you don't have the cash. The card once established should only be used for stuff you have to have now and don't have the cash. New tires on the car, or a car repair. And then you need to pay it off when you get paid. The card is an insurance policy so to speak.

Using you credit is bad. Establishing you credit is good if you want to purchase a home, a new car, furniture, etc. But the credit card is the quickest method of ruining your credit. And... the more credit cards you have the worse your credit risk can be. To much credit brings down the rating, because it shows how quickly you can go into debt and become a risk.

Guard your credit just like you do you bank account. Our lives virtually revolve around that damn credit score.

Good luck.

2007-07-31 04:57:36 · answer #2 · answered by Panama 4 · 0 0

Yes, if you get rejected it IS bad on your credit report. Banks, lenders, whoever looks at your credit also stays on your report. You should go to annualcreditreport.com (NOT freecreditreport.com, that is NOT free). This site allows you to view your credit from all 3 agencies online free once a year.

* the best credit card for you to get is a secured credit card. Do a search and try to find one with no annual fees. Its basically you putting your own money on the card, so you mail the issuing bank a check for 300 dollars, and you will have a card with a 300 dollar limit. Continue using this and making the payents for awhile, then try opening another card in 6 months-a year.

Also you can get a bank account with a debit card that has a visa or mastercard logo. It has WAY less value on your credit rating though.

2007-07-31 04:48:41 · answer #3 · answered by Anonymous · 0 0

It will not affect it very much, it will just show up as a credit inquiry, it wont tell them if you were denied for the card.
I'd try to get a capital one card, they are a great company, reasonable interest, great at reversing charges if you didn't make them. English speaking cust. service reps. It really is a no hassle credit card.

If you get denied you may want to get a secured card, only front a couple hundred dollars for it, so you don't have a lot of money to spend, you will be less likely to get in debt. Use it for a while, pay it off imediately every month, then reapply for an unsecured one maybe 6months to a year later.

2007-07-31 04:48:04 · answer #4 · answered by Anonymous · 0 0

No moving money to your Capital One card won't help you just yet. You just need to pay as much as you possibly can towards your Bank of America card every month and do not use it at all. Clip coupons, downgrade your cable or cell phone package, eat mac and cheese a couple nights a week. You'll be surprised how much extra money you will have to put towards your credit card bill. That's the best way to pay it down. About the Avon account. It's time to talk to your mom. Tell her you need her to pay that off NOW it hurting your credit especially if they are calling you b/c she is late paying. You can also call Avon and see if you can be taken off the account you may need your mom's permission to do this but if you can you should and soon.

2016-04-01 03:20:37 · answer #5 · answered by Violet 4 · 0 0

No, getting rejected won't really affect your credit. It will show on your credit report that they checked your credit, and having your credit checked by anyone (whether approved or not), does tend to slighly lowere (just a few points) your credit score for awhile. But, it does not scream REJECTED on your credit report.

Any credit card is just as good as any other. I have Discover Card, Capital One, Chase, and Citibank - there is very little difference. The only thing I can warn you on is that if you intend to carry a balance, do not go with Discover as they assess their interest charges based on two months, not one, so you essentially pay twice the interest.

2007-07-31 04:46:56 · answer #6 · answered by sortaclarksville 5 · 0 0

Chances are you won't get rejected. It shouldn't affect your credit unless you inquire on a lot of credit cards. Read all the fine print, especially the fixed APR for that card. If its over 25% that is way too high. NEVER pay late if you want to keep a low interest rate and keep your good credit.

2007-07-31 04:47:49 · answer #7 · answered by Anonymous · 0 0

Citi® Bronze®/AAdvantage® MasterCard®is by far the most widely used card. It is essential for regular travelers with average credit. Its reward program gives you an additional mile per $2 spent on the card. You can collect up to 25,000 miles annually, and can be redeemed for flights on partner airlines, hotel accommodations throughout the world, and car rentals. Additional benefits are: zero liability for unauthorized transactions, travel accident insurance and various Internet account associated services. The card does not charge any annual fee. But the drawback is the minimum APR cap for cash advances, set at 19.99%.

2007-08-01 00:30:32 · answer #8 · answered by jemmy t 2 · 0 0

There is no such thing as a good credit card for beginners. Credit will always be your worst enemy because it allows you to spend more than you can afford.

Take some advice.. Don't get one you will be much happier in the long run

2007-07-31 04:52:50 · answer #9 · answered by segunitb1 4 · 0 0

Capital one is a good starter card...just make sure to request a low limit. Pay attantion to the APR and don't get one that has start-up or annual fees.

Just be careful it isn't hard to get in over your head...but it is VERY hard to dig yourself out.

And ONLY apply for 1 at a time (I sent in a couple apps at once when I was young then got approved for all of them, I am still paying for it)

2007-07-31 05:14:30 · answer #10 · answered by Tracy S 2 · 0 0

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