How to get a Credit Card with no credit history? (to rent, good credit)

[Jerseykids2011]

I know my question is very general in scope and certainly not applicable soley to this regional forum, but I have often received excellent advice and feed back from members here, and so I am hoping to tap into this great pool of theoretical and applied wisdom;
If a person, in particular a newly naturalized American citizen, who is employed and paying the usual payroll taxes, etc., has never had a Credit Card before and has been turned down because of no credit history, what would be some possible avenues to take in order to obtain postiive credit history in order to obtain a major Credit Card?
Thanks in advance for ideas and suggestions!

[NewJerseyMemories]

Originally Posted by Jerseykids2011

I know my question is very general in scope and certainly not applicable soley to this regional forum, but I have often received excellent advice and feed back from members here, and so I am hoping to tap into this great pool of theoretical and applied wisdom;
If a person, in particular a newly naturalized American citizen, who is employed and paying the usual payroll taxes, etc., has never had a Credit Card before and has been turned down because of no credit history, what would be some possible avenues to take in order to obtain postiive credit history in order to obtain a major Credit Card?
Thanks in advance for ideas and suggestions!

Store cards (from the smaller stores) are usually easier to get. Capital One is also relatively easy to get. Once you have one card and a good payment history, you'll find it much easier to get others.

Which cards did you try to get?

[Jerseykids2011]

Originally Posted by NewJerseyMemories

Store cards (from the smaller stores) are usually easier to get.

Which cards did you try to get?

It was a Visa Card promotion from the Bank. I wonder if store cards like Target or even Lowes would work towards establishing credit? They always offer them...

[frankgn87]

My first card decades ago i got when i had no credit was a JC penny card. You are on the right track with a store card

[soug]

Try getting a parent or friend who has good credit history to cosign a card with you.

[NewJerseyMemories]

Originally Posted by Jerseykids2011

It was a Visa Card promotion from the Bank. I wonder if store cards like Target or even Lowes would work towards establishing credit? They always offer them...

I would try a smaller store first. Go to the mall and pick a small store that sells something that you like and has a credit card and ask to apply.

Or you can try Capital One. They are pretty easy to get. It is a subprime card and you might have to pay a yearly fee, but it is relatively easy to get. They have a way to check out their cards to see if you pre-qualify.

Failing that, you might have to get a secured card. But try the other ideas first.

[ocnjgirl]

You can start with a secured credit card (tied to money you have in an account) and use that to help build credit - in the meantime you will have a means to rent cars, make hotel reservations, and other things you generally need a credit card for. 10 questions before getting a secured credit card

[manderly6]

You should probably also post this in the personal finance section.

[NJGOAT]

The advice so far was good. In general here are the ways to establish credit history when you have none...

1. A secured credit card. This is basically a credit card that works almost like a "gift card". Say you have a $500 limit, you will actually pay a deposit of $500 to the credit card company. From there it works like any normal credit card. You make purchases, they appear on a statement and you make the payments. The advantage here is that pretty much anyone can get one of these. Just be sure to shop around and make sure you are getting a card from a solid company.

2. Store credit cards. These usually have much lower limits and lower credit standards which makes them easier to get. The best one to get is the one from a store that you do business with often or offers a variety of things you want. Target, Wal*Mart, JC Penney's, Macy's, etc. are all good choices. The bonus with this is that you will often get special offers and percentage off discounts when you use it at the store. The downside is, you can only use it at the store.

3. Gas station credit cards. Similar to store credit cards in most respects, but are not as common today as they used to be. The bonus here is that in an era of separate cash and credit prices, the stations own credit card always gets charged at the cash rate. On top of that you often get a bonus of some percentage back or a discount on the gallons you purchase. Why I think these are a better option then store cards is that everyone buys gas all the time, so you won't find yourself making perhaps unnecessary purchases just to build the history.

4. There is a "trick" that many people use to build an instant credit history. Say you have a relative or VERY close friend that has a credit card they have had for years and they have a perfect payment history. They can add you as an "authorized user" to their card and instantly your credit report will reflect the full history of that card. You don't even need to get your own copy of the card or even use it, you will simply gain the benefit of the other persons history. Many parents use this method to build a solid credit history for their kids.

5. Apply for a card from Capital One or another major lender. They offer a full range of cards from "subprime" low limit, low standards cards all the way up to high limit, high standards cards. When you apply they will give you offers then it is just a matter of finding the right card for you. You will most likely end up with a high interest rate and an annual fee as well as a low credit limit. The advantage here is that as you build your history they will often allow you to "grow" the card meaning higher limits, lower interest rates, no annual fees, etc.

6. If you join or a member of a credit union many of them offer credit cards as well. These will usually have better terms and lower credit requirements as you are a member of the credit union. You will also gain access to lower interest loans on things like car purchases.