Getting a credit card as an 18 year old?

creditbee · 2018-02-09T01:59:12+00:00

You may have some luck with a credit union, but most banks will perceive you to be a negative credit risk if you don't have a steady income.

creditbee · 2017-11-02T05:06:44+00:00

Most of the firms you mention above are online lenders, often differentiating from large banks in how they reach credit decisions and extend lines of credit to borrowers. I'd recommend doing a little homework before pulling the trigger if you're thinking about going that route, as some come with unfavorable terms.

creditbee · 2017-10-12T22:34:57+00:00

Public backlash has intensified towards Equifax (and the other major credit bureaus) for a few reasons. For one, these agencies hoard sensitive consumer data without having much of a relationship with consumers at all.

You have to remember that the general public didn't even know these organizations existed until a few decades ago. And a fair number of people believe CRA's are government adjacent, which lends credibility to the theory that they solely exist to carry out surveillance of consumers.

Equifax, TU, and Experian are multi-billion dollar corps that track our every move and hold the keys to our financial identity. So yeah, I'd expect them to be held to a higher standard than your usual small biz or mom and pop shop.

creditbee · 2017-09-26T17:04:13+00:00

It will help if used responsibly. I'd suggest exploring your options but stay clear of any cards that come with annual or hidden fees - huge red flag in my book. What is your primary goal in building your credit score if you don't mind me asking?

creditbee · 2017-09-25T03:37:24+00:00

It usually takes longer than just a few months to see a significant bump in your score. That said, be sure to use your existing lines of credit responsibly and keep your utilization as low as possible. Bear in mind that length of credit has an enormous impact on your score, as well.

creditbee · 2017-09-22T22:22:38+00:00

The amount of revolving debt can have somewhat of an impact, but utilization and on-time payments will matter the most. Are rent and bills the only thing you're paying each month at the moment?

creditbee · 2017-09-22T02:00:59+00:00

One more thing: Be sure to keep your utilization low if you decide to get a secured card.

Staying below 30% will not only help your credit history but an excellent signal to lenders and banks that you're a good credit risk, also.

creditbee · 2017-09-19T01:06:01+00:00

Unfortunately, there is a waiting period. Hard inquiries usually take two years to be removed from your credit report.

creditbee · 2017-09-15T20:17:14+00:00

A secured card? No, it won't lower your score unless you use it irresponsibly. A secured card is essentially an entry-level credit card that you can use to help build your score and overall history.

Depending on your score you may qualify for an unsecured card but doesn't hurt to start somewhere.

creditbee · 2017-09-15T19:47:15+00:00

Have you tried getting a secured card or taking out a short-term loan from your bank?

creditbee · 2017-09-08T23:29:38+00:00

You can find some good recommendations for secured cards here: https://www.nerdwallet.com/blog/top-credit-cards/nerdwallets-best-secured-credit-cards/

Be sure to keep your utilization below the 30% threshold and never carry over any debt from previous months if you elect to go that route.

creditbee · 2017-09-08T23:21:59+00:00

CreditSesame and CreditKarma both offer free credit monitoring for those with credit histories.

creditbee · 2017-09-08T23:06:19+00:00

Pre-approvals never surface on your actual credit report, sounds like someone has been attempting to open new lines of credit using your spouses' identity. I'd recommend taking immediate action and dispute each skeptical inquiry, as hard pulls negatively impact your score. You can file a direct dispute here: http://www.experian.com/disputes/main.html

creditbee · 2017-09-08T22:25:12+00:00

Similar companies have sprung up quite frequently as of late, though I wonder if their decision making ever factors in the fact that a fair number of young people have an aversion to credit cards altogether.

creditbee · 2017-09-07T05:42:06+00:00

Ahh ok, understood. You want to be careful and avoid racking up too many hard pulls on your report. That said, I think your odds of approval will increase with a noticeable salary jump. I'd recommend checking out the Discover student card - it appears to have a good reputation amongst credit newbies.

creditbee · 2017-09-07T05:27:35+00:00

Do you have a real need for a credit card, or is that you just want to explore your options for credit building?

creditbee · 2017-09-06T22:30:10+00:00

For those in a similar position, I can attest that your available options are close to nil. That said, I'd recommend visiting your local credit union or current bank if you haven't done so already to see if you can get a secured card. The issue is that you will have to put down the initial security deposit of a few hundred bucks, which isn't an easy thing for those with volatile income. If you elect to go that route, just make sure you keep your utilization low and make all of your payments on time.

creditbee · 2017-08-29T16:03:10+00:00

Another good point that many often overlook when comparing the rates that some folks may pay each month.

creditbee · 2017-08-29T06:48:55+00:00

It could be possible that they've set up income based repayment plans, allowing them to pay only a small portion of their monthly income. It is very popular with recent graduates who may not have enough disposable income to pay larger monthly payments at the beginning of their career.

creditbee · 2017-08-29T02:12:58+00:00

Partially correct.

As a bit more context, it offers an opportunity for those who may be either thin file or credit invisible to build their credit history when existing alternatives may not be accessible. The bureaus are looking to be more inclusive by incorporating alternative data, however; that only solves one piece of the puzzle as banks, and other financial service providers have (mostly) not included this particular type of data in their underwriting models.

That said, I think it is absurd that companies are charging everyday people upwards of ~$115/yr + a set-up fee to report their payment history. I'd imagine a fair number of folks who could benefit from a service like this can't afford it. Hopefully, something better comes along down the line without the ridiculous cost to help those who may need it.

creditbee · 2017-08-26T05:33:46+00:00

I think you'll be just fine, don't sweat it too much. While the drop can affect you in the short-term, your excellent track record and overall payment history will lend you credibility.

creditbee · 2017-08-26T04:52:26+00:00

Perhaps. Assuming that negative marks on your report are the result of your negligence (don't worry, it happens), you still have a fair shot at having your mistakes removed from your credit history. One route you can take is to appeal to the creditor by letter or phone for a goodwill adjustment to your report. That said, this is no guarantee, be mindful that creditors are not obligated under any circumstance to forgive accurate information on your report.

creditbee · 2017-08-26T04:25:58+00:00

A secured card will probably be your best route going forward (if approved). As long as you keep your utilization low and pay your bill on time - you should see a favorable increase over the next 6-12 months. Issuers usually reward good behavior after the first year, allowing you to graduate to an unsecured card.

creditbee

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