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I Need to get Approved for Credit Card! Help!

Discussion in 'After Hours Lounge (Off Topic)' started by Joshua Clinard, Oct 24, 2004.

  1. Joshua Clinard

    Joshua Clinard Well-Known Member

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    I have never had a credit card before, but I need to get one for emergencies. I have had checking accounts for about 8 years, and I don't have bad credit either. I checked my credit report yesterday, and it was clean. Actually, there was nothing in it, which was kinda suprising, because about 1,000 dollars of my college tuition was sent to a debt collection agancy a year ago, and it took me over 6 months to pay it. I also had a cell phone with Sprint for over a year, and I always paid the bill on time. Anyways, I applied for a Student Visa Gold at bankofamerica.com yesterday. I was denied, and I have no idea why. I know a girl that was accepted for the same card a year ago, and at the time, she didn't have a job, and she was living with her parents. I actually do have a job, even though I only make about $2,500 a year. So what I need to know is, are there any credit cards that offer fast approval, that I might qualify for? I'm a full time student, working 20 hours a week, and living with relatives. I don't need much. I just want a semi-low interest rate. I don't need a large credit limit, since this is just for emergecies. $500 would be perfectly adequate. If anyone knows any offers that I might qualify for, please post a link to the application form.
     
  2. Henry Gale

    Henry Gale Well-Known Member

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    Do you have one now? Ask at your bank or credit union about a credit card.
     
  3. Jerry Klawiter

    Jerry Klawiter Well-Known Member

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    Forget the credit card and save a few dollars in the bank.
    I mean we are only talking about $500...
    This is no reason for a credit card, the bank account would serve your credit in a positive manner as well.
     
  4. Joshua Clinard

    Joshua Clinard Well-Known Member

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    Thanks for the help. [​IMG] Did I mention I needed this for an EMERGENCY? I only make about $200 a month! And I usually can't keep more than $75 in the bank at one time, but I could pay a small monthly minimum payment.
     
  5. Malcolm R

    Malcolm R Well-Known Member

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    Advice withdrawn.
     
  6. KrisM

    KrisM Well-Known Member

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    I had a tough time getting my first card and I had a vehicle that was paid for and was working full time. I was also 24.
    It's kind of embarassing but I had to get my parents to co-sign on a credit application to buy a $400 mattress. I didn't need the credit as I had the money in the bank, but I wanted to do something to start a credit rating. Sure enough I paid off the mattress a couple off months later and applied for a Visa card and got it no problem.
    An empty credit report is not a good thing for a credit card company. You may have hard time getting a credit card if your monthy income is only $200.

    Regards
    KrisM
     
  7. Jerry Klawiter

    Jerry Klawiter Well-Known Member

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    I read your post as a need future uses.
     
  8. James T

    James T Well-Known Member

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    If you had an account with your bank for eight years, you should have no problem obtaining a card from your bank. What are your previous jobs and how do they compare with your friend who got a approved for a Gold card? The more experience, the better.

    MBNA is a fairly easy company to obtain a CC from if you don't want one from your bank.
     
  9. Greg Haynes

    Greg Haynes Well-Known Member

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    I work for Bank of America. We do accept high risk and little credit customers that usually get $300-$500 credit limits. I am not sure why yours was denied.
     
  10. Leila Dougan

    Leila Dougan Well-Known Member

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    I second (third?) the recommendation to talk with your bank. That's how I got my first credit card. I got from my credit union and the limit was $500. After using that for about a year, I was able to qualify for higher limit cards fairly easily.

    Just curious, but you work 20 hrs a week and only make $200 a month?? Do you get any other sort of compensation that could possibly be considered as income as well?
     
  11. Matt Gordon

    Matt Gordon Well-Known Member

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    I strongly recommend NOT getting a credit card... for the same reason I advise people who don't like snakebites to not play with snakes.

    Put yourself on a budget and save up the $500 in a place from where you can easily get it if you need it.
     
  12. Joshua Clinard

    Joshua Clinard Well-Known Member

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    I haven't had an account with the same bank for 8 years. I have switched bankd several times. But thanks for the suggestions. I will talk with the bank later today. The web site may have not been the right way to do it.
     
  13. Drew Bethel

    Drew Bethel Well-Known Member

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    You should be able to get a subprime card from Ameriquest or Capital One...though you will have a higer interest rate. But the interest rate is irrelevant...you want a card for emergencies first and foremost.

    You need to get a card and build some credit history. Put small purchases like gas on it and pay it off every month. You'll be in much better shape in the years to come.

    God forbid if you want to purchase a house or car and don't have established credit.
     
  14. AjayM

    AjayM Well-Known Member

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    You're a HUGE credit risk, you have no credit and you don't make any money. Even a $500 limit on a card is 2x your monthly income.

    You don't want to save the money, yet you are willing to send in "small monthly minimum payments". You realize that with a 20+% interest rate (for a subprime credit card) the VAST majority of the money you send for a "minimum payment" will go towards interest and not towards principle. If you saved it ahead of time you don't have to pay all of that interest, in the end you'll save hundreds if not thousands of dollars. And then it becomes a big deal to get yourself out of the endless hole.

    I know this sounds a little harsh, but if there was one thing I could tell my younger self it would be NOT to screw up when it came to managing credit. It will haunt and follow you around for YEARS if you make even a minor misjudgement (such as getting trapped into making "small minimum monthly payments").

    If you still want to pursue the CC, then try Household bank, maybe Orchid...or just do a google search on credit cards, there are tons of "info" sites around that gather information (including bad/no credit type issuers).

    Andrew
     
  15. Matt Gordon

    Matt Gordon Well-Known Member

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    If you've kept up on your utilities and rent for two years, you don't need a "credit record" to buy a house. So the concept of "establishing credit" is history.
     
  16. Drew Bethel

    Drew Bethel Well-Known Member

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    You will not get a prime rate for a home or auto loan without established credit...it's called subprime. Though credit history is one of several factors used to assess your credit score.

    Regardless of what people say, it's nice to have a credit card for emergencies and to establishing a history of consistently paying off money loaned to you (ie. from using the credit card). If you take ill or have an emergency your first instinct is to survive first...

    If you misuse your credit card and carry a never-ending balance like most Americans - then that's on you. Avoiding a credit card doesn't teach you about finance...that's something you need to educate yourself with on your own time.
     
  17. Gary->dee

    Gary->dee Well-Known Member

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    Ok keeping in mind that this advice/method is basically the long way of attaining credit, it will at least eventually get you a Visa, Mastercard or Discover card. But it won't be right away. However, in the process you'll be building your credit history and hopefully if you pay your bills on time and don't mess anything up, you'll get yourself a decent credit score(between 550-600).

    1) Go to a department store and get their credit card.

    -Macy's, Bloomingdales, JC Penny, Sears, whatever. If you can get a store card through them you're on your way.

    -Once they give you the card, charged something on it, perhaps a coat, shoes, something not that expensive(not over $100) so you can pay it off easy and quick.

    2) Go to a jewelry store and also apply for their own store credit card.

    -Again, buy something from the jewelry store using their card. A watch... earings for your mom, etc. but nothing over $100.

    *Basically try to apply for a card at any store that has their own credit card. They make it a lot easier to get than a major credit card and it all goes towards your credit history. Another example, need something fixed on your car immediately? Apply for a Firestone card or the like at a major auto repair chain.

    3) Make sure you pay these credit card bills on time and ideally, pay them off quickly so the interest won't eat you up. This is key. Part of a credit report/score also indicates whether you just pay the minimum or pay more than the minimum so keep that in mind.

    Once you've had a store card or two and you've been making payments or better yet paid them off, try again to apply for a major credit card like Visa, MC, or Discover. Be patient though, don't just immediately apply for a major credit card because sometimes credit reports take a little time to get the latest story on your credit history.

    At any rate, the above method is the way in which I gradually accumulated a large number of credit cards and eventually went into debt, forcing me to declare bankruptcy so...be careful! [​IMG]
     
  18. Tim Abbott

    Tim Abbott Well-Known Member

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    Drew, I'm sure it's with the best of intention, but you are spreading serious mis-information.

    First, what do you consider established credit? People with no tradelines or credit scores (i.e. no credit cards) can qualify for A paper loans all day long. As Matt said, it is called alternative credit (verify with phone bill, internet, rent, electricity, water, heat etc.) and it is done quite often.


    Josh - your best bet is a combination of a couple of ideas. First, put away some money (as little as $100-$500). Once you have a balance in that neighborhood, your local bank should be willing to give you a secured credit card. Basically, they will give you a credit limit of whatever you have on deposit, but you won't be able to touch the money. They know they will get their money if you ever skip town and don't pay. Over time, it should become an unsecured card, so you have access to the limit and the money as well. This will give you access to a card fairly soon and keep you out of trouble, as you know you have the cash.

    Good luck.
     
  19. Matt Gordon

    Matt Gordon Well-Known Member

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    Problem is, with a $500 emergency, and only $75 in "extra" income at a time, he absolutely will be carrying a balance like most Americans. That's why a healthy emergency fund is really useful. I'm a prime example: I just today paid a $949 car repair bill in cash, thanks to having an emergency fund in place and ready to go.

    IMHO, getting a credit card to learn about how to handle/manage credit is like giving an eight year-old a Long Island Iced Tea to teach him how to "handle his liquor."

    If there's one thing (okay, maybe two) that my life has taught me about money (by learning from plenty of mistakes), it's this:

    Payments keep you POOR.

    Your single most powerful tool for generating wealth is your income (duh), and when that money's already spoken for before your paycheck hits the bank, you're severely handicapping your chances of making that money behave. Money is a wonderful slave, but a terrible master.
     
  20. Jeff Ulmer

    Jeff Ulmer Well-Known Member

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    I don't if the same applies where you are or not, but up here your credit report will also show if you are declined credit, which can scare off potential creditors or cause them to up your rates.

    I would agree with Gary>Dee about looking at cards carried by the store. Make small purchases and pay them off.

    Even if you can get a card, I would also advise doing some form of saving, even if it is minimal ($5-10 a month). That way you at least have something to fall back on without borrowing at 20+ percent. I suspect that you will have a hard time getting a reasonable rate without some kind of credit history.
     

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