I just turned 18 and want to apply for a credit card, i have no credit history, what do i do?

I have applied for discover and have gotten turned down and also a visa from bank of america and am still waiting.what would you recommend i do?

I have to make decisions everyday on whether to approve or deny people that apply for credit. If I had to give advice to people that are trying to start out building credit, this is the advice that I would give:

1. Open a checking account- While opening the account doesn't directly build your credit, it does create a relationship between you and the bank by being an accountholder. Banks love to cater to their preferred customers that have accounts in great standing by offering loans and credit cards. Also, having a checking account not only helps manage your money, but it gives you the most powerful tool in building credit, a checking account to help pay your bills on time. Most banks and credit unions offer online banking with billpay that can make it easy for you to pay your bills on time, which is important in building credit.

2. Open a secured credit card- Secured credit cards are the easiest credit cards to get, mainly becuase a security deposit is placed upfront in order to establish a line of credit in the same amount. For example, if you deposit $250, your credit limit is $250, and so on. The deposit isn't used to pay for any of the purchsases on the card unless, it was charged off and sent to collections, so you would have to repay it just like a regular card either in full or minimum monthly payments. The deposit is sometimes linked to a savings account, so it earns interest while you're building credit, so the deposit isn't sitting there. You can think of this as building credit with a savings account. The more you deposit, the higher your limit, which is good for your score because it creates a cushion between the total debt you owe and the credit you have available. Also, by continuing to add to the deposit, you're also creating an emergency fund at the same time. A good way of using the card is by making small purchases ($20/month max) and paying on time every month while adding to the deposit. Usually after a year or so, the card either converts or upgrades to a regular card, and most importantly, the deposit is given back, which you can place in a savings account as an emergency fund.

3. Enroll with PRBC- PRBC is America's Alternative Credit Bureau, providing a helpful service to the over 50 million people with limited or no credit history. If you pay your monthly bills on time, PRBC can help you build credit to qualify for a mortgage and better interest rates.On-time payments for the following bills are not reported to the traditional credit bureaus:

Rent
Cable
Phone
Daycare
Insurance
Electric
Natural Gas
Cell Phone

The only time your payments for these bills are reported to the other credit bureaus is if they're missing or late.With PRBC, your on-time payments count. You build credit for paying your bills on time, even if you have no credit history. PRBC offers two simple ways to start building credit today.

In closing, just a few more things to keep in mind.

-Don't spend more than 30% of your combined available credit on all your cards.

-Only apply for credit when necessary.

-Dont close unused accounts.

-Pay on time

Hope this helps...

Thanks for reading and...

Good luck!

First be sure that you can handle a credit card. It's not a toy and you do need to pay back any money you take out.

That being said, start small. You can goto your bank (where you have a checking/savings account) and speak with them about applying. You might start off with something small like a $500 limit, but with time they will increase it if you show you pay your bills and stuff.

A good way to build credit without going into debt is to only use the card for gas. You need to buy this anyway so you will already have the money. This will help you pay it off on time each month and build your credit.

Good luck.

Why in the world do you want a credit card?
So you can get up to your eyeballs in debt like the rest of us fools?

Read the other Q&As on this thread, and then tell me if you really want a credit card.

You need to find specific cards that will help you build credit. Keep using your bank visa to help. There are specific cards that students can apply that will give you like $500 credit limit that will help you build your credit...just make sure you pay off your balance on time and you'll be building your credit in no time!

get a student card.

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http://www.bestcreditrates.net

Prepaid credit cards are good, buy one through your bank. Obtaining a regular credit card, could put you in credit card hell. The prepaid ones will help you learn how to spend wisely.

Try getting a store card from Target, etc. If that doesn't work, look for a secured credit card.

Start off with a Department store card like Macy*s. All you need is a US Address, Credit or Debit Card with a Visa or MasterCard logo. and a Passport, US Drivers License, US State ID card. Military ID, or Greencard. If you're a US citizen; have YOUR Social Security Number available. (The whole number) If Canadian citizen; have your Social Insurance number available. (The whole number) Everyone else; have your TAX ID number available.(The whole number)

Be careful of them though. They are easy to get; but often at a price. Such as high interest rates. The going rate for a store card is around 20-25% APR. As well as starting off with a low credit limit. Around $100-200. Depending on what kind of history you have. Don't compare the interest of Store cards to the major credit cards because you will be disappointed every time. Also; do read the Terms of Service Agreement. Find out what the APR is. Is there a grace period for payments? If so how long? Is there a yearly fee for the card? What kind of perks are offered with the card? How often do you find yourself shopping in the store? Is there an ID theft protection policy?

Also steer clear of Capital One as your primary credit card. They are a high risk lender; and dont report your credit limit; which will hold your credit score back some. Instead they report the high credit; which is the most you've ever charged to the card. So if you only charged $200 to the card; and the balance is $200 then that looks like your using all of your available credit. Even though you might have a$1000 credit limit. They don't report the limit. just the high credit. Secondly. Maybe have your parents co sign on a loan for you. maybe a $1000 and then sit it in a savings account. Leave it there. Pay it back. At the same time you have something out there. As well as your building credit; and accruing interest on the $.

Also don't apply for credit too much at one time. 3 times a year max. Less is better.

capital one has credit cards designed for no credit or bad credit just be carefull when applying for credit to many requests can hurt your credit

My son is 19 and he has a checking account. He was able to get a Visa credit card through his bank but has a $500 limit. I also had to be on the account. If you do get one, just be really careful not to charge more than you can pay for.

Check into the cards that are for students. Or try a Wal-Mart credit card instead.

These are cards that are typically geared towards those with little to no credit history.

Also, some cards offer plans that require a co-signer like a parent or guardian. These are also meant for people with no credit history.

Good luck, and be responsible with the card.

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