So... I need to get a good credit history going

[TridenT]

I've been reading secured credit cards are about the only way for me to start. Anyone have suggestions on one to use or who to go with?

I can't seem to find anyone who has had a good experience...

 

[OCGuy]

I don't know anyone who has had a bad experience.....

The easiest would be to use your normal banking institution where your checking account is. Otherwise Capital One works.

 

[blackangst1]

Make sure the secured card actually REPORTS to all 3 bureaus. Should be good to go.

 

[fralexandr]

you're in college right?
apply for a college/student credit card.

http://www.creditcards.com/college-students.php
I'm currently using a citiforward i got in college (was citi mtvU) and had 0 credit history.

If your parents have a Costco Amex and you get along with them, you could sign up under them (as a secondary member). It's a somewhat easy way to get an amex with cashback and extended warranty (for electronics i think) and credit history if you're not in college, but I think your parents would get your bill included in theirs, and I think cashback is shared.
http://www.fatwallet.com/forums/finance/635563/

Obviously, Visa/Mastercard might be better as a first card, since Amex/Discover aren't accepted at as many places.

an article from forbes about building credit from no history
http://www.forbes.com/sites/jasonco...-ways-to-obtain-a-credit-card-with-no-credit/

 

[TridenT]

I don't know anyone who has had a bad experience.....

The easiest would be to use your normal banking institution where your checking account is. Otherwise Capital One works.

I applied for a student one that my bank "sponsors". It's a visa student credit card. There's no annual fee associated with it. I get the decision in 7-10 days. My bank used to be a small one, until it in the past 5-10 years it has gobbled up half the banks in the PNW.

 

[XavierMace]

It's not Grandpoint Bank is it?

 

[TridenT]

It's not Grandpoint Bank is it?

No. It's Umpqua Bank.

 

[Herr Kutz]

I've been reading secured credit cards are about the only way for me to start. Anyone have suggestions on one to use or who to go with?

I can't seem to find anyone who has had a good experience...

I applied and was accepted for a discover card roughly one year ago with no credit history at age 24. Similar to you, I simply wanted to start a credit history and increase my score. Before the statement date, I pay off a portion of my balance so utilization is ~10% or lower. As soon as the statement is issued I pay it off completely. My credit limit was fairly low ($500), but I requested an increase after 7 months and was bumped to $1500 which definitely helps with the utilization aspect.

Discover now includes FICO score (from Transunion, I believe) on the monthly statements, and mine is slightly over 720. I still only have the one card with no other loans/mortgages/cards and have I think 4 hard pulls: one for the credit increase and three when I was first applying for cards.

Oh yeah, my APR sucks, but I don't plan on paying interest.

 

[TridenT]

I applied and was accepted for a discover card roughly one year ago with no credit history at age 24. Similar to you, I simply wanted to start a credit history and increase my score. Before the statement date, I pay off a portion of my balance so utilization is ~10% or lower. As soon as the statement is issued I pay it off completely. My credit limit was fairly low ($500), but I requested an increase after 7 months and was bumped to $1500 which definitely helps with the utilization aspect.

Discover now includes FICO score (from Transunion, I believe) on the monthly statements, and mine is slightly over 720. I still only have the one card with no other loans/mortgages/cards and have I think 4 hard pulls: one for the credit increase and three when I was first applying for cards.

Oh yeah, my APR sucks, but I don't plan on paying interest.

Yeah, I'm just trying to get a good credit history for when I buy a house. I figure 25%+ down on the house, a good credit history, and a nice paying job should be able to let me get the lowest possible fixed mortgage rate. But, maybe it won't...

 

[Herr Kutz]

Yeah, I'm just trying to get a good credit history for when I buy a house. I figure 25%+ down on the house, a good credit history, and a nice paying job should be able to let me get the lowest possible fixed mortgage rate. But, maybe it won't...

Ditto--except I'll likely only hit 20% down before buying.

 

[boomhower]

If you decide on a secured card I'd go with either Wells Fargo or BOA. Both can eventually unsecure.

 

[XavierMace]

No. It's Umpqua Bank.

Oh, the Worlds Greatest Bank (TM).

 

[Fenixgoon]

get a student credit card or similar. basically, it's like any other CC just with a low credit limit (mine was $1000).

let's you use a CC without allowing you to screw yourself too badly.

 

[alangrift]

I recommend going with a credit union they have very good contracts.

 

[xeemzor]

I'll give you a line of credit with competitive 250% APR rates.

 

[OCGuy]

Usually when you are told you will receive a decision in 7-10 days, and not an instant approval, it is because you are being sent a denial letter that conforms to Regulation B/ECOA.

On a student card they are possibly verifying your school attendance; fingers crossed for you.

On a side note, student card approvals heavily weigh the school you say you attend and its tier level. Not fair, but there is a real reason they do that.

 

[SparkyJJO]

If you get a card, PAY IT OFF when you get the statement every month.

Don't get in the habit of keeping even a small balance on it as there is no long-term benefit to doing so. Some people say your score will be better if you do, but that's a bunch of bull crap.

 

[Clinkster]

fralexandr had the best advice.

Get a student VISA/Mastercard. Put small stuff like bills/gas on it, don't max it out, and pay it off every month.

 

[OCGuy]

If you get a card, PAY IT OFF when you get the statement every month.

Don't get in the habit of keeping even a small balance on it as there is no long-term benefit to doing so. Some people say your score will be better if you do, but that's a bunch of bull crap.

Sorry, this is false. Having open credit that does not report a high balance (different than limit and current balance), why would you be more credit worthy for a house than someone who from time to time carries balances?

Not only does it factor into the score, but from a practical standpoint, how have you proven to me as an underwriter that you have the ability to pay back money that you borrowed, since I cannot see that you do actually use the card between reporting periods?

Edit: In reality this is taken care of when you get a car or some other installment loan that shows you have the willingness to repay debts, I was being very specific as far as correcting your statement

 

[SparkyJJO]

Sorry, this is false. Having open credit that does not report a high balance (different than limit and current balance), why would you be more credit worthy for a house than someone who from time to time carries balances?

Not only does it factor into the score, but from a practical standpoint, how have you proven to me as an underwriter that you have the ability to pay back money that you borrowed, since I cannot see that you do actually use the card between reporting periods?

If I borrow over the course of the month, and pay it off entirely the next month when the bill arrives, and repeat that process over and over, then that should prove I very well am trustworthy to pay my debts. Actually, it does, given how good my credit score is.

There certainly is record of the card being used. You don't have to carry a balance for that. Not sure where you got the idea that they cannot see that you use a card if you don't carry the balance. They have record of every single transaction you make.

So, no, you absolutely do not have to carry a balance and pay interest on your purchases to have a good credit score. They WANT you to carry a balance and pay interest as that benefits them, but there is no reason to from the cardholder's standpoint. Carrying a balance and paying interest just raises your costs. Why would you want to pay more than the asking price for everything?

 

[OCGuy]

If I borrow over the course of the month, and pay it off entirely the next month when the bill arrives, and repeat that process over and over, then that should prove I very well am trustworthy to pay my debts. Actually, it does, given how good my credit score is.

There certainly is record of the card being used. You don't have to carry a balance for that. Not sure where you got the idea that they cannot see that you use a card if you don't carry the balance. They have record of every single transaction you make.

So, no, you absolutely do not have to carry a balance and pay interest on your purchases to have a good credit score. They WANT you to carry a balance and pay interest as that benefits them, but there is no reason to from the cardholder's standpoint. Carrying a balance and paying interest just raises your costs. Why would you want to pay more than the asking price for everything?

What I do involves determining creditworthiness. Believe me, if Bank of America reports to Transunion/Equifax/Experian that you have a zero balance at the end of every month, then nobody else has any idea what you do between cycles.

I'm not advocating paying interest or carrying a balance intentionally. In the real world people carry debt, so they don't have to actually try. Rich people carry even more debt.

In the world of ATOT, I know nobody has to stoop to that level.

 

[Aaviel]

Sorry, this is false. Having open credit that does not report a high balance (different than limit and current balance), why would you be more credit worthy for a house than someone who from time to time carries balances?

Not only does it factor into the score, but from a practical standpoint, how have you proven to me as an underwriter that you have the ability to pay back money that you borrowed, since I cannot see that you do actually use the card between reporting periods?

Edit: In reality this is taken care of when you get a car or some other installment loan that shows you have the willingness to repay debts, I was being very specific as far as correcting your statement

Is your second sentence missing some words? The reason why someone with $0 balance is better than someone with a $10 balance is because they are fundamentally different and likely will have better credit performance. In reality- having a "small balance" could marginally affect your actual credit score in a positive way, but not in a meaningful one.


Also, you can (now) see the total payments made on a card between reporting periods, so spending / paying off will be view able by the underwriter.

 

[SparkyJJO]

What I do involves determining creditworthiness. Believe me, if Bank of America reports to Transunion/Equifax/Experian that you have a zero balance at the end of every month, then nobody else has any idea what you do between cycles.

I'm not advocating paying interest or carrying a balance intentionally. In the real world people carry debt, so they don't have to actually try. Rich people carry even more debt.

In the world of ATOT, I know nobody has to stoop to that level.

I'm thinking we have a miscommunication here.

I'm not saying pay it off before each month end so there is nothing on the bill. I'm saying use the card, and when you get the statement for your usage of that month, pay that full amount off within the 20ish day period before interest kicks in.

My card never reads $0. But the total interest I have paid them is $0 because I pay the billing cycle's balance off each time I get the statement.

 

[blackangst1]

If I borrow over the course of the month, and pay it off entirely the next month when the bill arrives, and repeat that process over and over, then that should prove I very well am trustworthy to pay my debts. Actually, it does, given how good my credit score is.

There certainly is record of the card being used. You don't have to carry a balance for that. Not sure where you got the idea that they cannot see that you use a card if you don't carry the balance. They have record of every single transaction you make.

So, no, you absolutely do not have to carry a balance and pay interest on your purchases to have a good credit score. They WANT you to carry a balance and pay interest as that benefits them, but there is no reason to from the cardholder's standpoint. Carrying a balance and paying interest just raises your costs. Why would you want to pay more than the asking price for everything?

The bolded is 100% FALSE. The only company that would have record of the card's use is the card company. The bureaus have no idea. When it comes to credit bureaus, there is ZERO difference between someone who never uses their card and someone who pays in full before the reporting time. Zero. On the credit report is looks exactly the same-zero usage. So yes, carrying a small amount of utilization (between 1-9%) will not only show you to be more credit worthy, but its been proven you will have a higher FICO than having zero utilization.

You may have a nice FICO, but you apparently have no idea how it works.

edit: just read your clarification.

 

[Aaviel]

What I do involves determining creditworthiness. Believe me, if Bank of America reports to Transunion/Equifax/Experian that you have a zero balance at the end of every month, then nobody else has any idea what you do between cycles.

I'm not advocating paying interest or carrying a balance intentionally. In the real world people carry debt, so they don't have to actually try. Rich people carry even more debt.

In the world of ATOT, I know nobody has to stoop to that level.

This is false. Historical payment data is available.