Jessi said:
Thanks for posting this Paulie. I am looking at getting my first credit card (yeah I'm a late bloomer financially) and everyone is telling me to go with a low-rate student card. Is the business card just for people who are llc/incorporated? Sorry if this is off-topic and kind of stupid.
No, if you apply for a business CC account and you have no business, I cant speak for anyone other than Chase, they told me if you have no business they issue it as a regular CC account (but the card says business go figure) however the terms of a business CC account are different. A regular unsecured CC they will sell an delinquent account off to a collection agent, IIRC a business account they will go after assets.
If you have no credit, and no real credit score/report... you should probably start with a prepaid CC and use the shit out of it, and keep it paid for about 6-12 months. This will give you a good basic credit report. Then chances are good you will be able to get other standard cards easier, providing yu make enough money. Discover requires you make at least $20K to apply, but as far as I know many others don't.
Store credit cards also are a good way to beef up your credit score/report.
CC aren't like they used to be, they used to give em to anyone. Now they are a little more cautious and make ya work for it.
The good thing is, once you have one standard CC.... you'll get offered 100 more. Bank of America is kinda desperate for fresh meat, the are on the edge of going broke, they probably will issue an account fairly easy. Call em up, and talk to them before you apply because when they turn you down, it dings your credit score a tiny bit.
CitiBank seems always eager too.
For a first card, call around to BoA, CitiBank, and a few others and tell em it's your first card and if you can show a decent income, I don't see why any of them won't issue you a low limit CC account to build on.
Any credit is good credit, gas cards, stores like wal mart or best buy, target or sears. They all build up a good score.
But a prepaid visa card is a good way to get your foot in the door. If you use it and keep it paid, within a year you'll be able to get any card you want.
Baby steps.