I Want a Credit Card – But I Have No Credit

I want a credit card. Yes, I just said that! I’ve been on the hunt for one, and I’ve even applied for some, but I’ve gotten denied. I have no credit (I’m 19,  my car loan isn’t in my name, and I have no other credit cards), so it is hard for me to find a card to get approved for.

Now, why do I want a credit card? And why would I want one when just the other day I gave my sister my debit card so that I would spend less? The answer is easy, I WANT CREDIT. I have no credit at all, and I know in order to get certain things in life, then credit makes things more easy. I’m already working on being more healthy, and I want to increase my financial knowledge and become more money savvy as well.

Yes, yes, most people say that you should just save up cash and pay for everything with cash, but I do think that you can use credit and loans to your own advantage (such as with low interest rates!). Also, credit is important for when you want an apartment, to buy a house, insurance, some jobs check your credit score, and so on. There are many positives of having a good credit score, so why wouldn’t I want to work towards having awesome credit?

Luckily, I do have my sister to teach me the ins and outs of having a credit card and how to use credit cards responsibly. She’s great at it and has never carried a balance, and purely uses it for the rewards. I know that I most likely won’t be able to qualify for a rewards credit card, but I hope to eventually be able to have one!

There are many credit card options out there, credit cards that gives rewards, a low interest rate credit card, high interest rate credit cards, credits cards with and without membership fees, and so on.

There are so many options out there (I do not want any annual fees that are associated with the credit card that I choose) and I just need to start looking! I want something simple, and even if my credit card limit is only $300, I am fine with that. I just want to start working towards awesome credit NOW!

What was your first credit card? What are your tips for responsible credit card use?

 

Comments

  1. I still don’t have a credit card, only debit. But I had other things in my name – car insurance, health insurance, etc. maybe your sister can report rent paid on time.
    Sam recently posted…DIY lemon sugar face scrub & brightner + a BB rantMy Profile

  2. My first credit card was an Old Navy store card. Age and on-time payments build your credit very well so don’t cancel the credit card if you find yourself not using it. Better yet, use it to pay for something like groceries or gas but pay the balance off before interest kicks in.
    debtperception recently posted…4 Month ReviewMy Profile

  3. I think your best bet is to get a “Secured Credit Card”. I know this from experience as I also have NO credit history and couldn’t even get approved for a store credit card. For a secured card, you put a certain amount of money “down” so that they have collateral if you use the card incorrectly. I’m not sure who you bank with but my secured card is through my bank. AND they will upgrade me to a “regular” card as soon as I am eligible. Email me if you have any more questions!!! I feel your pain girl! Starting credit can be very frustrating!
    Christine recently posted…How to Bargain Shop Like a BossMy Profile

  4. I think credit cards are generally bad. Even if you pay them on time, you will eventually pay a day late or a check will get lost in the main and you’ll end up paying interest and fees. Also, many people who think they will just collect the rewards an beat the credit card companies end up getting into mountains of high interest debt before they realize what is going on. Remember, the credit card companies write the rules.

    Unfortunately, you are probably right that you need to play the debt game to build up a good credit score, and with employers and insurance companies looking at credit scores this may be worthwhile (hopefully these groups will grow a brain soon and see that if someone is able to get by without borrowing money they are responsible as well.)

    If you are being turned down, however, it probably means that you are really not ready for a credit card. They want to hand these out and get you paying those fees and interest. They want you writing those convienience checks and taking those cash advances. If even they don’t want to give you even a small card, you probably don’t have a large enough income and your chances of being able to pay your debts are really low. They spend millions of dollars developing algortihms to determine these things.

    Try working for a while and paying your utilities and rent on time. Then apply for store cards and gas cards. Your wallet will be flush with plastic in no time.
    SmallIvy recently posted…Covered Call Writing, ContinuedMy Profile

  5. It’s good that you have your sister to teach you about what not to do with credit cards. I wish I had had that kind of guidance when I was in danger of running up cards.

    I guess the reason you couldn’t get the car loan in your name (and build your credit) is the same reason you can’t get a credit card. Maybe you could start off with a secured credit card. That could work.

    I was burned so badly with credit cards, I just have no desire to use one ever again.
    C The Writer recently posted…I should be able to wash my clothes whether I have money or not.My Profile

  6. Talk to your banker. If you have a long relationship with them, they might vouch for you and help you open a small credit line. This is how I opened my first credit card. At 22, I had no credit.

  7. I agree with another one of your readers, ‘Christine.’ A secured credit card is probably one of the best ways to start if you are having trouble getting approved for something with the credit card agencies. Your local bank (if you have a brick and mortar) will likely be willing to work with you to figure out what is best for you. Usually, they have an entry level card with a spending limit of 500 or 1000. Once you do well with that (at my bank at least), you are allowed to call and ask to raise the limit. Of course, since it is secured, they will have to verify that you have more savings than your limit. Once you build some nice credit through your bank or credit union (6 months or so), you should try to reapply.
    Dylan recently posted…What about the professional students?My Profile

  8. i am also in need of a credit card but i have no credits and i need someone to help me get a job that will eran me maximum credits and also to get a credit card

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