Question
Hey guys,
I just became a U.S. permanent resident (yeah!!) and am willing to start my credit history by opening a (or a couple, if possible) credit card. I'm 18, my SSN is like a month old, but I have had my checking account with Bank of America since mid-2003.
While I really want to start with a card that earns me miles/points, I'm worried that because I have no credit history for creditors to refer to it would be hard for me to get such mileage cards like United Mileage Plus (FirstUSA/Chase). I'm not in college yet (I'm starting this September) so I'm also worried that I might not be qualified for the college cards too.
My BOA checking account doesnt have much balance (usually stays at around $200-300), and unfortunately I've had about 4 bounced check card payments over the last 2 years.......
I was thinking of just going to BOA and open their credit card (the woman there offered one for me before but I couldn't get one since I didn't have a SSN then), but I really do want those cards that I can make miles with..
Any thoughts/possibilites? Thanks a lot in advance!
Answer
Greetings,
There are banks that offer credit cards contingent upon opening a linked savings account. Generally, if you have no credit (or perhaps poor credit), your credit line on the Visa or MC card will equal the balance in the linked savings account. After time, the credit limit will increase.
It is my understanding that the credit bureaus do not distinguish such an account on your credit report and there is no way that a potential creditor will know that your account is "secured". Additionally, most of the banks offering "secured" credit cards also offer unsecured cards. Pay attention to the fees as many banks will take advantage of individuals with poor credit.
Answer
Hey guys,
I just became a U.S. permanent resident (yeah!!) and am willing to start my credit history by opening a (or a couple, if possible) credit card. I'm 18, my SSN is like a month old, but I have had my checking account with Bank of America since mid-2003.
While I really want to start with a card that earns me miles/points, I'm worried that because I have no credit history for creditors to refer to it would be hard for me to get such mileage cards like United Mileage Plus (FirstUSA/Chase). I'm not in college yet (I'm starting this September) so I'm also worried that I might not be qualified for the college cards too.
My BOA checking account doesnt have much balance (usually stays at around $200-300), and unfortunately I've had about 4 bounced check card payments over the last 2 years.......
I was thinking of just going to BOA and open their credit card (the woman there offered one for me before but I couldn't get one since I didn't have a SSN then), but I really do want those cards that I can make miles with..
Any thoughts/possibilites? Thanks a lot in advance!
Welcome to FT and welcome to the United States of america! :)
If you have any questions I've found www.creditboards.com to be an invaluable resource. However, in your situation, you'll probably find that most banks will give you a starter 'classic' card of around $500 with no credit history. If they don't, call them and ask for reconsideration. Often the computer screwed up and denied you wrongly (One time I went from denial to $2,500 in 30 seconds over the phone when the rep stated that the computer denied in error).
If that doesn't work, try to get an easy to apply for account (store or gas card) with the visa/mastercard logo on it that you can use around town.
Hope this helps! Good luck w/ your future.
Answer
I would advise you to take small steps and start building your credit by getting your first creditcard from the bank you normally do bisiness with. You indicated BOA is your bank for some while, even though you had some bad checks, BOA should be able to give you one with a very low credit line. Don't feel hurt by the low credit line. Think of it as your starting point. Eighteen, you are young so they would understand you have to climb the ladder slowly.
When you get your 1st card, use it anywhere you possibly can. AND, pay your monthly balance in FULL and ON TIME. Ahead of time may even be better. Don't do the cash advance thingy and don't just pay the minimal balance. Remember, you want to establish a perfect record in your fisst ever creditcard. I believe afer a coupld of billing cycles, when your "behavior pattern" shows as "Account in good standing," you will be ready to try the 2nd card. You probably would have to start with some "smaller" banks since they will tend to issue creditcards to new comers. Don't try your luck with those big banks yet. Chances are you won't get one from them, especially when you don't have credit history and not too much cash in your bank accounts.
This thread might help a little. (You can visit our wonderful pgary's website for some valuable info too.)
http://www.flyertalk.com/forum/showthread.php?t=401168
Just be patient. Those mile-earning deals from the big banks are not going away any time soon. They'll wait till you are ready. Good luck! :)
Answer
BofA also is the issuer of Mileage cards for America West, Alaska (I think), and US Air. Go to http://www.bankofamerica.com/creditcards or, more specifically, http://www.bankofamerica.com/creditcards/index.cfm?template=cc_airline_cards for Airline cards. You can also apply online.
If you get turned down, ask them to counter-offer another kind of card. Keep it for a year, and then you can probably qualify for a card of your choice.
Bob
Answer
Greetings! Welcome to the great ol' USofA!
I came to the United States (from Canada) when I was 21 years old so I do have some experience in the matter. I was actually a student at Columbia University (here on a visa) and then when received my MD I was given a SSN, a green card and I later applied and was accepted to become an American citizen (through Naturalization).
To establish yourself in the credit industry it would be a good idea to apply for a retail card in which you plan to use rather frequently. Shop at Macy's? Get a Macy's card. Buy gas from Mobil? Get a Mobil card. Applying for just one card will allow you to establish a credit history. Be sure to make the payments on time each month and try to use the card as frequently as possible.
Once you have established credit you will be able to apply for a "Classic" Visa or MasterCard. In your situation, Bank of America offers a good starter card (see Gold card HERE (http://www.bankofamerica.com/creditcards/index.cfm?template=cc_visa_gold) ). This is a good way to start off; you may request to be upgraded to a higher credit limit if you continue to pay on-time. Once you have achieved a reasonably high credit limit and have received a credit report from a credit agency (See EQUIFAX (http://www.equifax.com/) ) you can be on the look out for cards with more benefits, lower rates, and higher credit limits.
Airline Reward cards, especially Platinum / Signature versions, are generally reserved for those with a long and excellent credit rating. But you might be able to have some luck with Bank of America and the US Airways Classic Visa (http://www.bankofamerica.com/usairways_site/index.cfm?template=cc_usair_classic&referralid=).
I remember it took me several years to build a good credit history; but it can be done. Start out slow and don’t open to many accounts allover the place, which really screws up your credit rating.
Answer
Don't get your hopes up too quickly, it takes time to build a credit history that allows you to get the kind of cards you want.
I've been in this country for three years, my credit history now is excellent except still way too short. When I first came, my bank gave me a check card, I applied for a credit card with them but was turned down. Well, I didn't realize the importance of starting to build a credit history, so I figured a check card lets me do everything I want anyway, so why bother? Half a year later, I even got turned down for a store card (Old Navy, IIRC).
Anyway, 15 months later with still zero credit history (that's the thing, get at least one card as soon as possible, just so the clock starts ticking), I tried again with my bank (US bank, btw), as I was getting fed up having to use my German credit card for car rentals and then after returning the car switching the bill over to my check card, and I also wanted the loss/damage waiver for rentals the US cards usually offer. Apparently I got lucky that someone with common sense at US bank looked at the application and approved me -- I had regular paychecks and a large amount in savings with them. This seems to be the exception, normally you should just expect for a computer to see "too short credit history" -> denied, and the only way to get anywhere is to get a human to review your application.
I tried for a Citi AAdvantage card last summer, with nearly a year of credit history, but that wasn't good enough. A reconsideration letter to their executive offices explaining my situation eventually got me the card, though. Just recently, with nearly two years of excellent history, I tried for one of their better cards (Driver's Edge) -- and denied again. Of course you need to make sure to avoid any kind of blemishes on your credit report (late payments in particular), but even then you also need an established history, and there's not much you can do about it but wait.
Another general word of warning: Be careful with respect to credit -- way too many people spend above their means and end up paying a lot of interest to their CC companies (or worse). Carrying a balance even at a relatively low interest rate will pretty much immediately offset all kind of rewards/miles/whatever, so make sure to always pay your bill in full (which means only buy stuff you know you'll be able to pay for when the bill arrives).
Answer
I dont think you will have a problem - the banks give credit card to high school and college students at will. They also give them to people in bankrupcty.
Answer
I dont see many unemployed high school students under 18 applying solely in their own name and getting a MC/VISA. CC issuers have a policy of actively marketing to college students, so its easy to get approved. CC issuers rarely market to non-college students with no credit history.
If you are working now, you might try applying for a gas station only CC to get something Open on your credit history. www.shellcreditcard.com has a $25 bonus till 06/30/05.
Dont department store in-store applications usually want you to show a MC/VISA ? If not, those can be a good start too.
Answer
The Shell credit card is a good choice as it's issued by Citibank. If you're approved, you might be able to switch over to one of Citi's MasterCards after a certain time.
But I still doubt that Citi would give approval for even the Shell card to someone with no credit history.
Best way to go is a secured card (Bank of America offers a great secured card program), where you put $500 to $10,000 in a savings account and are then granted a card with a credit limit equal to the amount you have on deposit. You're in essence borrowing against your own money here, but there are no interest charges if you pay in full each month. After a year, you can convert the secured card to an unsecured card once B of A sees your on-time payment history, and all the while it reports to the major credit bureaus as unsecured, giving you the opportunity to build a credit history.
Answer
My wife is a new immigrant too so I know what you're going through! I got her a secured card from BOA. The application process was quick and easy. Download and fill out the application from their website, attach a cashiers check if you want your card in a hurry and send it in. Your credit limit is the same as your deposit. My wife received her card in about 3 weeks. If you use the card responsibly and pay on time it'll change to an unsecured card after about 1 year. After that try to get an AAdvantage Mastercard from Citi. I've read that it's one of the easiest mileage cards to get. You're young so can wait a year.
Answer
BofAs Secured VISA
Prime + 10.99%
Annual/Program Fee $29
deposit between $250 and $10,000
Answer
Capitol One specializes in cards for people with poor credit. When I got out of college and had no credit they gave me a card with $60 annuall fee and no benefits. Plus the credit limit was only $300. I paid it every month. After 6 months they raised my limit and soon I had pre-approved offers from everyone, a year after that and I had all platinum cards.
It doesn't take long. Don't apply for a no-annual fee card as you may get turned down. Go to capitalone.com and get a crapy card to build your credit. After 6 months your set!
Answer
Don't apply for a no-annual fee card as you may get turned down.Getting turned down doesnt hurt your credit, as the credit report doesnt say "Turned down", "Application Declined", or anything like that. You lose just 4 points from your scores for the hard inquiry.
Answer
Many credit unions also provide good secured options, though generally you have to be a member to qualify (which means at least a savings account). We have a local credit union that offers a Visa card to members, and the terms are the same for the secured version. They simply freeze the amount of your credit limit within your savings account. They charge no annual fee, which offsets the low interest rate on their savings accounts (much less than BofA or Citi's CD).