I don't understand (credit card)


Turkeygirl

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I just applied for my first credit card. I have no debts, all my student loans were paid off a few years ago, I have nothing I owe, I work full time. Well I call today and apparently I was unapproved/denied!!?? This is for Discover....Now I have to wait for a letter explain why.... Well does anyone have any insight? I just don't get it....what a pain....

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Yep, you probably have no credit history Ruth. Sometimes banks rule those with no credit history as worse than those with mediocre credit history. Dunno why, but that is how it is. Might check with your bank and see about getting a card tied into your banking to get your credit history started.

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I have a checking/debit card through my bank. Have never used it but do you think that would help by using it?

Nope, don't think so. Would check into getting an actual credit card with a credit line Ruth, don't think debit cards work the same, even visa debit cards because they are not charging against a credit line but rather being taken from your account, only thing visa about them is that they are accepted anywhere visa cards are accepted. Some banks will offer credit cards through them and even tie in overdrafts to a credit card, they were called "all in one" cards when I opened my first visa account through the bank I had checking with. Back when I was establishing my credit it was advised to me to buy something with my first credit card and carry a balance on it paying the monthly payments for a short time and then pay it off. Did just that and never had any issues with credit.

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Your checking/debit card will not help your credit at all.

Get some bills put in your name.

Go to your bank and have them put a credit card on your bank account.

Take out a small personal loan from the bank to buy something, or just put that money in your savings account and pay that loan for the next 2 years with the money you got.

You need to owe somebody something and make those payments to build your credit.

Need to do anything you can to build credit, you'll start small and work up, but if you ever want to finance a house, car, land or any other large purchase, this little stuff will help. At least thats my personal experience.

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Agree with above posts, no credit is often viewed as worse off the medium to poor credit. A small personal loan from the Bank or a secured CC may be your best bet in order to establish some credit. You seem like the kind of consumer the CC companies hate! I closed my discover card years ago because I never used it, now it seems like its accepted a fewer and fewer places. Used to be affiliated with Sears, they had a limited rewards program back then as well. My visa card now gives me points for every purchase. I exchange them for cash once or twice a year.

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Everyone has pretty much covered all the bases. Try getting a card from your favorite stores that you shop at frequently. They all have one, for example Gander Mountain, Bass Pro, Cabelas, Sams Club or just plain old Sears. Start making a few purchases and pay off the debt each month ON TIME. You really need to start something soon for you will want to buy your own place one day and no credit means no home loan.

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It's been said before but a straight out response.....

Whatever credit card, small personal loan or any other form of credit you get, DO NOT pay it off month to month. Just make minimum payments on it for months, but best for a year or more.

Credit companies want to see you can make a payment every month, not that you can pay in full every month.

Lowes or Home Depot will give credit cards out to anyone (in my experience) Plus, for your first purchase on their cards, you typically get 10% off the bill and if its over $250 or so, you get zero interest for 6 or 12 months. Go get one of thier cards, buy a grand worth of wood and build a sweet deer stand or addition to the barn. Pay the minimum payments on the card till the last month of the zero interest deal and then pay it off that month. And never use it again. Then find another store that has the same deal going on and redo the process. That way you are building credit but not out any interest money. Just an idea.....

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It's been said before but a straight out response.....

Whatever credit card, small personal loan or any other form of credit you get, DO NOT pay it off month to month. Just make minimum payments on it for months, but best for a year or more.

Credit companies want to see you can make a payment every month, not that you can pay in full every month.

Lowes or Home Depot will give credit cards out to anyone (in my experience) Plus, for your first purchase on their cards, you typically get 10% off the bill and if its over $250 or so, you get zero interest for 6 or 12 months. Go get one of thier cards, buy a grand worth of wood and build a sweet deer stand or addition to the barn. Pay the minimum payments on the card till the last month of the zero interest deal and then pay it off that month. And never use it again. Then find another store that has the same deal going on and redo the process. That way you are building credit but not out any interest money. Just an idea.....

That was what I meant too. You have to show that you pay on time to lenders in order to establish a good credit history. Once you accomplish that then you would want to pay off the balance on the card each month.

Also very good advice on the cabelas and others suggested IF they will give you a credit line. They offer rewards in the way of points on purchases and earn you future purchases.

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not sure if i agree with the make minimum payments each month. credit cards are usually around 19% interest which would cost you a lot of money. i've ALWAYS paid my monthly statement bill in full. i seem to have pretty good credit, i've never been denied and usually the limits they give me make me shake my head. my home loan approval was for way more than i thought i would ever want. discover doesn't seem useful around here. mastercard, visa, and american express seem to be widely excepted most places.

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not sure if i agree with the make minimum payments each month. credit cards are usually around 19% interest which would cost you a lot of money. i've ALWAYS paid my monthly statement bill in full. i seem to have pretty good credit, i've never been denied and usually the limits they give me make me shake my head.

Once you have established your credit yes, absolutely pay off the balance each month. What was being suggested above was only suggested for establishing a credit history. Don't make a huge purchase, where you will pay a ton of interest. Think my first credit purchase was for tires and even though I could have paid it outright I made minimum monthly payments for I think about 6 months and then went ahead and paid it off, never had any issues with getting approved for credit lines.

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yea the only thing i was told by a credit person was that your bank card won't help develop any credit. it wouldn't hurt if you just carried a small amount on it for months then you're only eating less than $100 in interest. then pay it off each month.

A bank visa debit card will not, a visa credit card through the bank like any other visa card will help build credit.

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I don't understand (credit card)

I just went through the same thing. Never realized what all needed credit for you to have an account... Cspire wouldn't even let me swap my phone bill from my parents to my own without credit.

I got one from capital one and don't see any problems so far. High interest rate, but no problem as long as payments are on time

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