How Do I Get A Credit Card?

[darthmunky]

As far as I know, I do not even have any credit. I want a credit card ASAP so I can stop using other people's cards to buy stuff online. Whenever I apply for one, I get declined and I think it's due to my lack of credit. Any help?

[Flake]

Usually not having credit won't hurt you too terribly - but times is tough and credit card companies aren't taking chances right now.

Do you have a checking account with a bank? Usually the bank you use will be willing to issue you either a 'starter' credit card under a proprietary program or a normal one that either has a higher interest rate or is levied against your savings in case of default.

[StephPlusPlus]

I don't know if this is the same solution as above, but I have a debit card that is connected to my checking account. That is how I buy things on the Internet.
If you want to establish good credit, don't overdraw! I feel like if you keep up with your balance (using a debit card vs. using a credit card), it is easier not to spend money you don't have. If you can't pay off those credit card bills, your credit score will be angry.

[Bradtemple87]

+1 to Flake, My bank wells fargo started me on a college credit card years ago

[Flake]

I don't know if this is the same solution as above, but I have a debit card that is connected to my checking account. That is how I buy things on the Internet.
If you want to establish good credit, don't overdraw! I feel like if you keep up with your balance (using a debit card vs. using a credit card), it is easier not to spend money you don't have. If you can't pay off those credit card bills, your credit score will be angry.

This is partially right.

Your credit score is actually made up of several different components. Part of it is indeed your payment history: Pay for things on time and you will be viewed as a positive credit risk.

But a debit card doesn't bolster you that much since you are not demonstrating an ability to manage your credit so much as you are spending within a strict limit. Overdrafts hurt you but spending wisely doesn't help you that much.

Things that help you build credit when you don't have any:

- Having a decent balance on hand at the bank
- Paying recurring bills on time for a long period (i.e. cell phone bill, power bill)
- Rental history (a catch 22 in some cases)

But again, the easiest way for someone with no credit whatsoever in times like these is simply to go to a bank, open a checking and savings account, get a good balance in savings (at least a few grand), and then apply for a credit card from that same bank. Your rates will probably be terrible but that can only hurt you if you don't pay back your balance quickly.

Once you have any kind of credit card, save up the money for the things you want so that you can buy things with that credit card and pay them off in a timely fashion.

And don't be in a rush - credit takes time to build. But do be careful - although your debt to total credit ratio is a big part of your final credit score, raising your total credit by having multiple credit cards can easily work against you if things get out of hand. Also avoid store credit cards - they typically have lousy rates and a very low total credit amount - meaning it's easy to hurt yourself with those cards since it would only take one or two purchase to have a balance in excess of 30% of the cards total credit limit - and that kind of balance on any card can hurt you over time.

[J T]

Another thing that will really help build your credit rating is to get a loan and pay it off diligently. I bought a car when I was in my early 20s based on a small loan from the bank. I paid my monthly installments and it did wonders for my credit rating. Now I get too many credit card applications.

[MrPopo]

Another thing that will really help build your credit rating is to get a loan and pay it off diligently. I bought a car when I was in my early 20s based on a small loan from the bank. I paid my monthly installments and it did wonders for my credit rating. Now I get too many credit card applications.

This. And your first card is the toughest to get. When I was in college I applied to a ton of cards online until I finally found one that would give me a card. But once you have that card your credit will grow pretty quickly. By the time I graduated college my credit limit had gone from an initial $1000 to $8000 without me having to do anything.

[Breetai]

Why are you asking that sort of question here?

Anyway, you are Canadian. Here in Canada, credit cards do not double as debit cards like some other members here are talking about. The information about credit ratings IS pretty much the same, though.

Which bank(s) do you have your account(s) at? If you have had an account somewhere for a few years, it shouldn't be too hard to get a starter-type credit card (with a $500-$1500 limit). Ask about something like that.

[noiseredux]

there's also a Secured Credit Card to help build credit. Basically you pay like $100 to get a card with like $300 limit to start. Then slowly if you pay the shit on time they'll raise the limit and help you establish credit so you can get a "real" credit card.

[Luke]

Another thing that will really help build your credit rating is to get a loan and pay it off diligently. I bought a car when I was in my early 20s based on a small loan from the bank. I paid my monthly installments and it did wonders for my credit rating. Now I get too many credit card applications.

This. And your first card is the toughest to get. When I was in college I applied to a ton of cards online until I finally found one that would give me a card. But once you have that card your credit will grow pretty quickly. By the time I graduated college my credit limit had gone from an initial $1000 to $8000 without me having to do anything.

Credit cards are great for online shopping, but they way credit card scores work, as aforementioned, is weird.

My policy is "don't buy it unless you have the cash to pay for it", but if you're buying a home/car/boat/etc. you probably need credit. There is a term in the credit card business called a "revolver", which best describes me. I use it, pay it all off at once, and then get a new card. You are actually penalized for being responsible, and paying your bills on time. It's a fantastic business model, and a great service at that, plus...in life you're going to need credit so my advice is to use the card as little as possible on large purchases and to pay slightly above the minimum balance.