I'm 22 years old and have never had a credit card. I decided recently that I'd like to get one. I applied to my bank, and today received a letter saying I'd been rejected. They mentioned that they look at criteria such as income (about $14.5k last year for me, I mostly work part time because I'm a student), how long you've been at your current residence (12 years), how long you've had your current job (6 years), etc. This just seems like bull****. I have plenty of irresponsible friends who have no trouble getting credit cards.

Anyway, so it seems I'll need to do something else to get one. What should I be looking for? I hardly know anything about credit cards.

Keep in mind I'm in Canada if that makes a difference.

Some credit card companies are far more restrictive of who they pick than others. You'll probably have to go with a pretty small card to start with (low credit limit) since you have no credit history. I'm not sure how it is in Canada, but I get at least a couple card applications in the mail a month. Those are usually the ones that are more open and willing.

Just make sure there's no yearly fee for having the card, and that you pay it off every month so you don't get stuck with the generally outrageous interest rates found on such cards.

Try Capital One.

If you follow their rules, they're pretty awesome and they'll give anyone credit.

just make your payments on time

Oh, but don't pay everything off every month.

You have to hold a debt something like 6 months for a credit agency to really give a **** about it.

Capital One doesn't exist here, to my knowledge.

As for the credit limit thing, I'm not worried. I only really want the card for ordering stuff online and emergencies while traveling and the like. I'm also planning on paying it off right away, so the actual interest rate shouldn't be a problem.

credit card rule #1

Don't take it to the bar. You'll regret it.

so true. thankfully, the highest i've ever racked up on a tab is $80.

Get a debit card. They work online.

Only generates credit if you have a savings account, and then it's very little.


Ask your parents if they can get your name on a card for one of their credit cards. If they have good credit, it'll work out better.

There's a USPS postal card, and my work keeps sending me brochures. So one day I signed up. Decline.

The next week I got another brochure.

They send you prepaid envelopes.

I like filling them with leaves and sending them back.

Kick ***.

you should write numbers on the leaves with dollar signs and attach a note saying "it really does grow on trees!"

credit cards are evil....every friend I know at university who had one or got one while they were there ended up getting into £1-2k worth of debt with an interest rate of 15%+, most spent years paying them off.

as for me I've just got a debit card that is also a visa card and works on any internet site I've ever come across. Ok, so I haven't got a huge overdraft (£100), but I've been offered more but I don't want to take it because of the risk of using it. I just make sure I don't go over the limit, it was hard at uni but I managed it (noodles ftw).

I do also get my fair share of things through the post offering credit cards, capital one is a favourite but there are plenty of others, at least there were, now I'm in geneva I let my parents deal with all my junk mail :D.

I'm not sure why they keep sending me stuff, as a PhD student I'm only on £14k a year (tax free) it's not like I'm earning a lot or anything.

As for getting declined, you do need to build up a credit history before they give you some cards, start with a small overdraft and go from card to card every year or so if you really want one. Also, banks may be a little bit more choosey on who they give cards to now, what with the financial crisis and all, the ripples of which will spread right down the chain.

[edit] as for what rob does with the prepaid envelopes, awesome idea, I have a savings account I could do that with :D[/edit]

With who, all I've got is a solo card and a lot of places don't like them.

If you get a credit card - pay it all off every month. I've never heard what Rob talked about, but I can guarantee a few years down the line, if you pay off 100% of everything every month, you'll get some amazing credit card offers. If they see you not paying it off constantly, they'll peg you as an easy target, which might be why you get more initially. But trust me, do the math, you'll end up paying so much more for anything you buy if you leave it for later.

Also, debit cards do NOT generate credit history. So while I prefer using my debit card, I make all gas purchases on my credit card, and then pay it off at the end of the month. This way they can see that I am regularly using it, and regularly paying it off, and I can slowly build a good history.

If you get one, have someone who knows what they're doing read over the details of the application before you accept. There's a lot of ways they can screw you over, and you won't even see most of them until it's too late.

I applied for my credit card through the bank while I was going to school in Toronto and I was approved for it.

You are a student? try appling for a student credit card, they are usualy lower intrest rates and you generaly get approved since students tend to spend alot.

Nationwide

As far as I know, our debit cards are different from the ones in the US. They don't carry the Visa or Mastercard logo, and can only be used in stores or at bank machines. They are not accepted online.

Aglar, I'd recommend calling the company that rejected you and ask them those questions.. (or maybe you already did) Also ask if they'll let you get a lower limit card. Do they run some sort of a credit check in canada? If so, do you have any other things on your credit file that are affecting you? Because (in the US at least) even with little to no credit you should be able to get a card with at least a $300 limit. Then as you handle that responsibly, they will offer to raise your credit limit over time.

My first card was a Citicard, which I received during college. I just went to their website and was instantly approved. My limit was initially small, but it has increased by 500% since. The online services are nice as well. No complaints here (no debt either, but that has nothing to do with the card itself).

So, it's the credit card company's fault that your friends are not financially responsible enough to handle a credit card.

True, but to a certain extent he has a point. Credit cards have a very thin margin between "being responsible/getting credit" and "being stupid/getting raped". Very thin, mostly due to the retardedly high interest rates.

And if people weren't dip****s, they wouldn't spend money they don't have. Granted, the credit card companies pray on college students and want them to rack up debt, but still, you're a dip**** if you do indeed get a credit card and spend lots of money you don't have.

I agree, but the other side of the fence isn't very forgiving at all :shrug:

Tooootally false. No one in my family has ever paid anything below the full balance on their credit cards, and they all have fantastic credit. I've had a credit card myself, paid it off in full every time, for a good three or four years now, and my credit rating is already pretty good.

Also, don't bother with any sort of debit card, they do not build up credit for you (since essentially it's like writing a check, not running a credit card).

Yeah, I'm going to go in and talk with them soon. There's no way I shouldn't be able to get at least a $500 card.

Yeah, credit cards themselves are not bad. I've had a credit card for 3 years now and I've been late on payments a few times, but only recently now that i'm living and supporting myself, sometimes bills get behind. but I recently paid off my bill including my electric, phone and flight to Ontario.

it's not the card thats bad, its the people that can't handle the resonsiblity, my limit was like 1500 and now it's up to 3000. both my brother have screwed themselves over on their cards and RUINEd their credit rating, I know mines not the greatest, but I'm working on it and I'm not making the same mistakes as them.

I don't know, Something about not wanting to spend money I don't have... I hate owing people money.

Actually not totally. The longer you maintain a debt the more credit you get because you're constantly making payments. However, if you rack up at least a little bit each month that's fine too.

Don't bother with any sort of debit card? WTF?

I like spending money that I ACTUALLY HAVE, thanks.

But you don't need to pay less than the full payment to do that. All you have to do is keep using the card.



I spend money I ACTUALLY HAVE on my credit card too! I just pay at the END OF THE MONTH instead of INSTANTLY. CRAZY!!!

Besides, he's trying to build credit here.

Good luck trying to buy a house without a credit rating.

while you monkeys waggle around trying to convince someone you've never met to change a few bits in a database to make your imaginary number go from 500 to 600, so that someone else you've never met will trust you, I'll be doing something that's not totally retarded

Like paying cash rent for a house or apartment that you'll never own?

Why bob, why do you have to be READING MY MIND?

I'm with Freelancer in spirit. I've actively avoided credit cards. I think it's the wolf in sheep's clothing. However, I'm not stupid and I realize that I will need credit. I can't have my sister co-sign for every major purchase that I want.

I'm just taking my sweet *** time getting one

Like not owning a house/property, never getting a loan, and in never being able to get a decent car?

We can't all live with our parents until we're 40 like you.

How often do you check your credit rating?

Over a period of 6 months, holding a debt for more than 6 months as well as having more than one card got mine up alot higher alot faster than paying one off every time.