So I applied for my first credit card through my bank, which I have been a member of for about... 15 years. Started a savings account with them in the 2nd grade so that should be about 15 years now.. wow.

But anyways I got their response in the mail today.. denied on the basis of insufficient credit.

All I could do was laugh, uh duhh its my first credit card you idiots. I guess my money in my bank account isn't enough to back it up, which I have a good amount of.

Good news is they also found no credit history on file with either of the three credit check companies. Which means no one has been using my name on random credit applications.


so it looks like I just might have to break down and get a best buy credit card or something like that in a month or two.

You may have to start with a secured card, the self righteous will comment on how you should never have a credit card but the undeniable truth is you have to have a credit card. I have found the debit cards are getting squeezed by gas stations, hotels and rental car companies I imagine others will do the same.

I had the same nonsense happen to me a few years ago when I first took the plunge. Your best bet is to get a Capital One crap card for a few months and build up your report. Then you can get a proper credit card

__________________
1982 300GD Carmine Red (DB3535) Cabriolet Parting Out
1990 300SEL Smoke Silver (Parting out)
1991 350SDL Blackberry Metallic (481)

"The thing is Bob, its not that I'm lazy...its that I just don't care."

What is a secured card?

I pay for everything with cash which is cool. But I do think I will need to safely build my credit.


I've been told to stay away from capital one by all means

As I understand it, you put money into the credit card account in the same way that you do a bank account. This money is secured against your credit card, and it becomes your credit limit. It allows you to start building a positive credit history. After using one for a while you could then apply for a traditional credit card and leverage the good credit history you've built.

__________________
Jonathan

2011 Mazda2
2000 E320 4Matic Wagon
1994 C280 (retired)

pretty much what I do with my debit card... would a bank offer that?

The Don,
I think your bank should be able to issue you one. I'm surprised they did offer you this option. I have never had one, but I didn't get a credit card till I was 26 or 27. Basically, as described before you will depsoit a certain amount with your bank. I think $500 is the traditional amount. That is the max you can charge on your card. You will repay whatever amount you charge during a month. This will help you build up credit. Some use credit card to build a history of credit, hopefully good. This will help if ever buying a car, house, other large purchases and buissiness startups.
Tom

Be forewarned though...the second you get one card your put on other card companies radar. You will get offers for more cards every other week from insitutions you've never even heard of. Don't cave, just stick with one or two. (Or 3 or 4 depending on who you are)

__________________
1982 300GD Carmine Red (DB3535) Cabriolet Parting Out
1990 300SEL Smoke Silver (Parting out)
1991 350SDL Blackberry Metallic (481)

"The thing is Bob, its not that I'm lazy...its that I just don't care."

I get a **** ton of capitol one things a week and I just shred them in my awesome shredder.

That's about the truth. I have three or four. I planned on three. One for a general use or personal use card. One for emergency, meaning is clear and not used or used spareingly, then paid off every month. Then is car breaks, or other emergency it is used. The third was planned as a buisnees card. It easier to track business purchases, expensies and any interest on that card can/could be considered a bussiness expense, I think.
Even cards I discontinued send me card offers and 'new' cards. Monthly, I the same offer for cards. Also, check around and see what interest rates and fees are charged. Most people keep their first card. My second one was a low interest of 10% at the time. I think it was bought out by other companies three or four times.
Tom

A secured card is secured against collateral like a house or a paid-off car, or a trust fund. Stay away.

----------------

It sounds like you have great financial habits, but just not the track record. This will help a lot within 120 days.

A suggestion, after all my credit was wiped out 10 years ago by identity theft and other assorted nastiness:

1. Get a Blue American Express Card. Right now they are free. Explain that you usually pay in cash and so you have insufficient credit.
THEY WILL LOVE YOU.

2. Request the minimum credit limit of 500 bucks. Buy gas and a cheese sandwich or something. Then charge it. Wait three days. Call the customer service number from a land line. Register your checking account with them and use it for free to pay off your account.

3. For the first three months, pay your bill off on the 1st and 15th.

Check your credit and you will discover AmEx has increased your credit limit and created a FAVORABLE increase on your credit report.

AmEx used to charge for this service, now they don't but people still thiunk they do.

These guys are AMAZING, when they are in your corner. They took on the Chinese government for me once on disputed hotel charges and WON!

After this, the biggest problem will be the solicitation letters from credit card companies. DO NOT throw them away, but send a certified letter back to the company mentioning the credit card number they gave you in the letter and tell them you REFUSE it. Tell them you are declining their credit card because you have a credit card from American Express that fills all your needs. THIS IS TIME CONSUMING BUT IT MAKES THE DIFFERENCE!!

Within another three months you'll get a solicitation from your bank. These guys all get the same lists.

Then go in and negotiate. If you don't get what you like, don't refuse it in person, but send a certified letter to the credit office of the bank and tell them that their terms in their recent solicitation were not what you needed and your Amex credit arrangement is more flexible and suits you better.

They'll start calling you to get you to sign up. You really know they are trying hard when they hook up a young female to talk with you.

If you don't have a bank account that works off an ATM with a limit, then you might need a VISA card. But that's your decision.

I went from not so good credit to terrific credit in about three years. By terrific I mean a very large credit limit that I never asked for and just asked them to limit so it is not too tempting.

And I still only have one credit card and enough customer points to buy a MAC Book if I wanted. Eggs in one basket? Maybe. But it forces spending discipline so I buy the things that I want and not the frivolous ones. And the money's there.

It sounds like you have great financial habits, but just not the track record. This will help changhe that.

Good luck!

PS: Pick up pennies and pop bottles. I did this for a day once near fast food restaurants and was amazed to see quarters lying on the ground in the parking lot!

In a city with 22% unemployment, are people too proud to pick up a quarter?

__________________
Strelnik
Invest in America: Buy a Congressman!

1950 170SD
1951 Citroen 11BN
1953 Citroen 11BNF limo
1953 220a project
1959 180D
1960 190D
1960 Borgward Isabella TS 2dr
1983 240D daily driver
1983 380SL
1990 350SDL daily driver alt
3 x Citroen DS21M, down from 5
3 x Citroen 2CV, down from 6

In 1994 no one had ever heard of my wife, (age 30) because she was new here, from Peru.


She could not get credit either.


So I had her get a credit card from Nordstrom's with a $300 limit, to get her started.


After that: She's off like a prom dress.



She loved the shoes.

__________________
1991 560 SEC AMG, 199k <---- 300 hp 10:1 ECE euro HV ...

1995 E 420, 170k "The Red Plum" (sold)

2015 BMW 535i xdrive awd Stage 1 DINAN, 6k, <----364 hp

1967 Mercury Cougar, 49k

2013 Jaguar XF, 20k <----340 hp Supercharged, All Wheel Drive (sold)

Credit cards suck. That is all.

__________________
1984 300SD Orient Red/ Palomino
1989 560SEC
2016 Mazda 6 6 speed manual
1995 Ford F-150 reg cab 4.9 5speed manual

an amex blue.. interesting...

yet I don't have a landline

but I do like the idea of a Blue card... I only use my debit card(I keep a 20 in my wallet in case I need cash) for every purchase. I could be racking up points and building my credit.. and I never spend more than $500 a month at all.. lol I just stash it away... maybe tomorrow I will inquire with amex and see what I need.

hmm they dont seem to list the Black card.. lol... Gee I know a few people with those, thats a credit card lol.. metal and shiny black.. but they are business owners and do need that kind of card.

That's the somewhat detailed, no-baloney strategy that worked for me. Good luck.

__________________
Strelnik
Invest in America: Buy a Congressman!

1950 170SD
1951 Citroen 11BN
1953 Citroen 11BNF limo
1953 220a project
1959 180D
1960 190D
1960 Borgward Isabella TS 2dr
1983 240D daily driver
1983 380SL
1990 350SDL daily driver alt
3 x Citroen DS21M, down from 5
3 x Citroen 2CV, down from 6