Hello all,

I am wondering what is required to be approved for a credit card?

I am 20 years old and attending college. I also work 20 hours a week.

I have never taken a loan for anything, nor am I (or have I ever been) in debt. I've never so much as bounced a check.

At the same time, however, making just over minimum wage I'm not exactly rich. I also have no credit history. So I know that's not very good.

Is it possible that I could get a credit card from my bank?

Frankly I don't even intend to use it in any kind of normal situation. I think it's a poor idea to let your self pay interest. However, around 3 months ago a personal emergency situation came up in which I needed a few hundred dollars quickly. Fortunately I had enough money on hand, but it got me thinking that perhaps it would be a good idea to have some credit available in the event another emergency ever occured in the future and I didn't have enough money on hand when it was needed.

Anyway, just wondering if I'd be wasting my time or not.

Thanks!

Although you might obtain a relatively low credit line, I imagine that your prospects are excellent for being approved for a credit card. Keep up your conservative attitude about using credit, too. It will serve you well.

Generally, credit card companies/banks seek out college students, hoping to get lifelong customers. If you are not already receiving solicitations you will. They also visit on campus depending upon size of school. Choose and manage your card wisely.

I have a shared credit card that I got when I was 19 with my mother. I now run a buisness on ebay and make from $12-$17k a month.

I was denied for a credit card. I -never- missed a car payment. Never missed a credit card payment. Outright denied.

The credit system is garbage. People who make a fraction of what I make can get 10 credit cards, yet a responsible buisness owner making a lot of money and who has good previous credit can not.

Credit is mainly oriented around your age and race.

Are you the original anon ? The first anon reported he or she was making minimum wage, but you are indicating annual income of at least $12,000. At that income level, it would seem Ebay or its subsidiary, Paypal would offer you credit. I am confused over the info provided so far. Nevertheless, I disagree that credit decisions are based primarily on age or race.

Don - that was 12-17 per MONTH, not annually. Anyway, to the original anon, many banks and credit unions will also issue a "secured" card with a credit limit based on your savings account. However, don't go for the ones that are advertising on late-night TV. Contact the bank you bank with, explain the situation, and work from there. Most banks are willing to assist their customers if at all possible.

Happy:
Thanks for the correction, I meant to annualize the monthly amount. My question remains though why someone making anywhere from $144 thousand to $204 thousand annually can't get a credit card.

I agree with both yourself and Happy. My question too is the 2nd anon didn't state specifics as to why they were declined. I can empathize with the fact that being denied is not a pleasant occurance, but I strongly encourage Anon #2 to get their facts straight before blasting the credit system.

As for Anon #1, the above posts are good suggestions. I would recommend keeping a cash reserve as well as an emergency credit card. As for the card limits, yes, John is correct...they tend to be small in the beginning. But not to worry, as long as you have paid as agreed and have had no substantial change in the wrong direction financially, most creditors review your account every 12 months in hopes to extend you a little more of a credit line. Hope this helps.

"Happy:
Thanks for the correction, I meant to annualize the monthly amount. My question remains though why someone making anywhere from $144 thousand to $204 thousand annually can't get a credit card. "


If you have any ideas, I'm all ears. I just turned 21. I shared a credit card with my mother since I was 19.5. I have a car and pay on it. I don't bounce checks or miss payments. Due to the fact I couldn't get a credit card, I had to get my parents to co-sign for the car (which I've never missed a payment on, where's the credit?) and the credit card (which I pay off monthly, where's the credit there?"

The person on the phone said it was due to a 'lack of credit,' yet I've been building it for just over a year.

I think banking policies are atrocious. People can get dozens of credit cards making little to no money with usually lousy credit.

I really believe that banking loans and credit card approvals revolve around age as a primary factor.

As for getting credit with PayPal and eBay, that's not really a good idea. PayPal commonly locks accounts when users enter their SSN and have low credit score. They then 'hold' the money to 'protect against charge-backs.' They've been sued quite often.

So, getting a credit card with PayPal is not the best idea in the world, imo.

"but I strongly encourage Anon #2 to get their facts straight before blasting the credit system."

I don't see where I posted bogus facts.. I backed my opinion with evidence, so it's not an harsh statement. Ignorant, maybe, but not completely false..

An example..
My friend's dad makes $25k a year and he has a platinum credit card with a $8000 limit, I think. Theoretically speaking, when you factor in the cost of living, if the he maxed out that one card, it would likely take over a decade for him to pay the debt off? Am I wrong?

Don't even get me started on how people can get MULTIPLE credit cards, up to a dozen or more?

Please explain how that's a great idea from a bankers standing?

Maybe I should have said "posting all the facts" first that way we can answer some of your questions about credit denial.

First, I will agree with you that many times creditors (not just banks) often extend revolving credit that can over extend the borrower. But that is not necessarily the creditors fault. Many times it is the borrower who requests increases and these are sometimes granted by the creditor if the borrower has paid as agreed and has not had any bumps.

As you stated before, the creditor told you that you were declined due to "lack of credit". I understand your frustration as I have myself been down that road. From experience, the only way to build good solid credit is through time, experience (meaning amounts borrowed) and repayment. There are other ways to provide credit worthiness besides what is set out on your credit bureau as well. For example, if you live on your own (or pay rent to parents), you can document your repay history with your landlord. Additionally, if you are responsible for untilities and/or a cell phone, again you can document (through billing statements and cancelled checks) on how well you have paid those obligations.

I didn't mean to offend you (my sincerest apologies) about getting the facts straight and we are all happy to offer our opinions to help better educate you about the financial industry.

"I didn't mean to offend you (my sincerest apologies) about getting the facts straight and we are all happy to offer our opinions to help better educate you about the financial industry. "

I wasn't offended. I just really don't understand credit very well.

I think the system is flawed. People can get more credit card purchasing power than they make in an ENTIRE year? What gives? I know it's the cardholder's fault for abusing it, but why were they given that ability in the first place?

"...but why were they given that ability in the first place? "

Because there is money to be made, and credit card companies are in the business of making money.