Is it possible to get a no fee credit card for someone with no credit?

[balloonshark]

One of the fast rules I live by is that I don't buy anything on my cards that I can't afford to pay cash for now. So, do what you have to in order to ensure you can do this. If you need to, you may also be able to get the credit card company to change the payment due date each month to a date that works better with your pay dates.

The card companies WANT you to buy things against yet-to-be-realized future income as they know it is a statistical certainty something (i.e. unexpected repair, utility, or medical bills, being laid off work or demoted, having to help family, etc.) will come up that will force you to make a partial payment. And, once you start paying interest to them, it is a very slippery slope. The balances expand very rapidly at 20-30% interest, and they know once you begin making partial payments eventually your payments will tend to trend more towards minimum payments which makes them more money.

When it comes time to start looking for a better card than the one you have, since your current card is Capital One look at Capital One's offerings first. Closing a card account will hurt your newly built credit, but Capital One may let you "upgrade" to a better card without showing an account closure on your newly built credit history. In a few years, this won't matter as much, but for now it is something you have to consider.

Thanks. I do plan on paying the card off every month. It's only purpose will be to build credit, be a safer option when shopping or paying bills online and to get a better card with rewards.

I didn't even see Capital One's other cards. I thought they only offered 3 when I first signed up. So what would be the best way to move to another bank/card? Would I really have to wait a few years before switching? Or would it best to keep the account open and open one with another bank in a year? If so can I limit the credit limits with both since I don't want a ton of credit available to me. Or will that hurt my credit?

 

[Steltek]

Thanks. I do plan on paying the card off every month. It's only purpose will be to build credit, be a safer option when shopping or paying bills online and to get a better card with rewards.

I didn't even see Capital One's other cards. I thought they only offered 3 when I first signed up. So what would be the best way to move to another bank/card? Would I really have to wait a few years before switching? Or would it best to keep the account open and open one with another bank in a year? If so can I limit the credit limits with both since I don't want a ton of credit available to me. Or will that hurt my credit?

When you are first starting out, unfortunately you don't have as much choice as to the cards you can get. That will change in the future, though. Most of the big card companies (Capitol One, Chase, Citibank, Visa/Mastercard, American Express) have tons of cards covering every thing you could possibly imagine.

You only have to wait as long as it takes to meet the minimum credit score requirements for the card that you want. Yes, you can keep the Capital One account if you get another one (it never hurts to have a backup for an emergency), but it isn't a good idea to have a bunch of open accounts you aren't using because that hurts your debt to credit ratio (a.k.a your credit utilization ratio) which is used in part to figure credit scores. The credit card companies will set the credit limits (you normally have no say-so over this, though you can usually request increases), and sometimes they will themselves increase or decrease them depending upon credit scores and their own internal standards.

And, keep in mind, credit cards are only part of it. It is harder to build good credit with just credit cards if you pay them off every month than it is by also taking out and timely repaying a loan or mortgage from a bank. So, when you eventually take out a car loan in the future or a bank loan, pay it back and do it timely.

All told, it sounds like you are off to a good start as you are thinking about these things up front. A lot of people don't, and they are the ones you see being chased by creditors or filing bankruptcy (often multiple times, as they seem to never learn these lessons).

One other thing I've seen recently is that an increasing number of employers are running credit checks to determine who to hire for jobs. Keeping a good credit history is definitely going to be more important going forward.

 

[Muse]

Thanks for the tips Muse. I did apply for a CC where I have my checking account but was declined because of "Limited credit experience". I then tried at Capital One as suggested in this topic and they gave me a card. I only have a $300 credit limit but I can get a credit bump after my first 5 on-time monthly payments. I can use this card for a year and then look for something better.

I'll also look into setting up auto payments. I believe they have the option but I will have to change how I receive my check. This was something that I didn't really want to do but it looks like I may not have a choice.

Trust me, autopay is something you should set up on your CC's, and I think every thing! Utilities, CC's, gym membership, internet service... everything!

You mean you don't want your pay checks (or any other checks) going directly into your checking account? Why not?

 

[Muse]

If so can I limit the credit limits with both since I don't want a ton of credit available to me. Or will that hurt my credit?

Why are you afraid of high credit limits? You don't trust yourself? Self trust is the best kind. I have some cards with really high credit limits, others with lower, but I never challenge any of them.

I haven't paid any credit card interest ... ever! Highly unlikely I ever will.

 

[balloonshark]

When you are first starting out, unfortunately you don't have as much choice as to the cards you can get. That will change in the future, though. Most of the big card companies (Capitol One, Chase, Citibank, Visa/Mastercard, American Express) have tons of cards covering every thing you could possibly imagine.

You only have to wait as long as it takes to meet the minimum credit score requirements for the card that you want. Yes, you can keep the Capital One account if you get another one (it never hurts to have a backup for an emergency), but it isn't a good idea to have a bunch of open accounts you aren't using because that hurts your debt to credit ratio (a.k.a your credit utilization ratio) which is used in part to figure credit scores. The credit card companies will set the credit limits (you normally have no say-so over this, though you can usually request increases), and sometimes they will themselves increase or decrease them depending upon credit scores and their own internal standards.

And, keep in mind, credit cards are only part of it. It is harder to build good credit with just credit cards if you pay them off every month than it is by also taking out and timely repaying a loan or mortgage from a bank. So, when you eventually take out a car loan in the future or a bank loan, pay it back and do it timely.

All told, it sounds like you are off to a good start as you are thinking about these things up front. A lot of people don't, and they are the ones you see being chased by creditors or filing bankruptcy (often multiple times, as they seem to never learn these lessons).

One other thing I've seen recently is that an increasing number of employers are running credit checks to determine who to hire for jobs. Keeping a good credit history is definitely going to be more important going forward.

Thanks for your answers Steltek. I thought I remembered that having a bunch of credit available on multiple cards was a consideration when applying for a loan. I didn't think about it directly hurting my credit score.

 

[Lost_in_the_HTTP]

Thanks for the tips Muse. I did apply for a CC where I have my checking account but was declined because of "Limited credit experience".

Cool, now you change banks for your checking to one without sticks up their butts.

Search for 'current bank bonuses' and you'll find a few websites that detail various bonus programs where banks pay you to open accounts with them. I already got a $100 and $250 recently and am now working on one for $300 from Chase bank. You have to jump through some hoops, but they're pretty simple.

I'll also look into setting up auto payments. I believe they have the option but I will have to change how I receive my check. This was something that I didn't really want to do but it looks like I may not have a choice.

Paying a CC bill has nothing to do with your paycheck. Decent banks have simple on-line bill paying abilities that can be scheduled.

Cap One should have a way to set an automatic transfer from your checking or savings account.

 

[balloonshark]

Why are you afraid of high credit limits? You don't trust yourself? Self trust is the best kind. I have some cards with really high credit limits, others with lower, but I never challenge any of them.

I haven't paid any credit card interest ... ever! Highly unlikely I ever will.

Some of it is self trust and removing the temptation but with my income I would rather keep it low. I would rather have just enough to pay my bills, do my normal online shopping and every once in a blue moon have enough to upgrade my tv or computer.

Trust me, autopay is something you should set up on your CC's, and I think every thing! Utilities, CC's, gym membership, internet service... everything!

You mean you don't want your pay checks (or any other checks) going directly into your checking account? Why not?

Right now I get my check on a debit card. I've been using it to shop and pay bills to "shield" my debit card connected to my checking account. As you know overdraft fees are insane if I make a mistake or my card is stolen online. I know it's not ideal but it seems like the best way forward until I get a higher credit limit. I do plan on using the new CC now which will mean I'm not using the "paycheck" debit card until I need to make a major purchase. I hope that makes sense.

 

[Lost_in_the_HTTP]

Having a high credit limit is not the same as having a high credit balance. They look at your responsibility with credit. You can have a $10,000 limit, but if your monthly balance is $500-$1500 and you pay it off in full every month, you'll establish a higher credit rating faster than if you have a $7500 balance and make the minimum payments. Charging things and paying them off is a lot better than just charging more stuff and getting deeper in debt.

Keep you cards open. The older the card, the better. Mine have now been open about 15 years and that shows as 'highly influential'. If I closed my oldest card and got a new one at a different bank, my rating would drop quite a bit, even if the limit were the same and I kept up the same pattern..

 

[Lost_in_the_HTTP]

Right now I get my check on a debit card. I've been using it to shop and pay bills to "shield" my debit card connected to my checking account.

You should be keeping that balance as low as possible. Transfer the bulk over to your checking account or savings account. Try to 'save' at least 5% of your pay every single month, without fail. Put that somewhere else, another account, maybe an IRA.

 

[balloonshark]

Cool, now you change banks for your checking to one without sticks up their butts.

Search for 'current bank bonuses' and you'll find a few websites that detail various bonus programs where banks pay you to open accounts with them. I already got a $100 and $250 recently and am now working on one for $300 from Chase bank. You have to jump through some hoops, but they're pretty simple.

I don't blame my bank for saying no. Other than my checking account I've had since Sept. 2016 I've been off-grid financially since sometime in 2002.

Paying a CC bill has nothing to do with your paycheck. Decent banks have simple on-line bill paying abilities that can be scheduled.

Cap One should have a way to set an automatic transfer from your checking or savings account.

See my reply to Muse. They do have auto transfer from a bank account. It would just be simpler for the time being to pay with my other debit card but I'm not sure that is possible. I have no idea if I can transfer money from my debit card into my checking and if so if there a fee. It's something I should look into. That would save me an extra trip to the atm and bank.

 

[Muse]

Do you really need that debit card? Pardon me but I'm kind of naive about them. I know they're not as secure as CCs. If you get scammed, there's not as much protection. I don't have one, don't want one, AFAIK there'd be no benefit to my having one. If your $300 limit CC is enough for you (i.e. you aren't going to charge more than that in, say, the next year) why not cancel your debit card and just use the CC? But make sure to set up autopay to pay the full balance with that CC. The CC's balance would get paid in full from your checking account each month. After a year, as I think you said, if you haven't screwed up, you can get an increase of your credit limit. If $300 is too low a ceiling for you, you could buy whatever with a check in the meantime. You said you expect to only rarely make a big purchase in the short term.

 

[highland145]

nvm

 

[Lost_in_the_HTTP]

Do you really need that debit card?

OP will have to answer, but many companies now refuse to issue paper checks and some will issue their own debit card (off their bank) for employee pay. They may not even offer Direct Deposit to an employee's bank account. Some companies are that weird. I would have them pay via direct deposit into my own checking account if possible.

Then again, the debit card that receives the employer payment could act as a layer of insulation off my main account. I did that when I was selling some stuff on that bay place. All transfers done to or from PP went to one account. Once or twice a month I would move any excess to my main account.

Example of what I would do if possible (using fictitious numbers):

$500 pay/week >> Debit Card
$400 Debit Card transfer >> Main checking account.

That leaves $100/week on the debit card for mad money, but insulates the rest.

 

[Red Squirrel]

Never had any issues getting a credit card. As soon as I turned 18 I was easily able to get one with no history. Have to start somewhere and the banks know this. Limit was low but it did not take much time to build up enough credit and get a higher limit. When I switched banks years back it was even easier. Walked out with a credit card, credit line, regular bank account and the ball rolling to get my mortgage switched over. I then cancelled the other credit line and credit card, but I had all of them going at once since I did not want to cancel right away. I was surprised at how easy it was. To be fair my credit is in the high 800 range so guess that kind of helps.