Opening a line of credit

[Bobsled 0]

My 22 y.o. wife wants to get a credit card now that she’s been working for a whole three weeks. Since she has no credit history what so ever, what’s the best route to take in her situation? Should she/we have her open a line of credit in her name (with me as her sponsor/ co-applicant), should I just ask my C.C. company for another card for her (I have forgotten to add her to my C.C. accounts – pure over sight)?? Or some other option??

Thanks.

[brnidokiegurl 0]

not sure she will qualify for her own until shes worked while, you can always add to yours, she will have her own card but you will still be the responsible one for awhile. THeres that secuired kind but ive never delt with tht before.

[DeadPoolX 9]

I see three options:

1. Become her co-applicant for her own credit card (this will mean you're indirectly responsible for her spending; in other words, if she damages her credit score, she also damages yours as well).

2. Add her to your credit card as an authorized user (this will mean she won't technically have a credit card of her own, she'll just be authorized to use your credit card number with her name on it, and you'll be entirely responsible for her spending).

3. Attempt to apply for a secured credit card (these sometimes work for people with no or very little credit history; however, there is generally a small credit line attached to the card itself, something in the area of $300 to $500 for new users).

The first two options enable your wife to have larger credit lines; however, you'll be responsible, whether directly or indirectly, for whatever she purchases. With the third option, you won't be responsible but she'll have a much smaller credit line.

I know all of these options work because (although I am a USC), I got my first credit card by being an authorized user on my parents' account (option 1). Then when I was older, I got my own credit card, but because I didn't have a credit history, my father had to co-sign for me (option 2). The last one (option 3) I've read about extensively here on VJ, so while I don't have any personal experience with it, I know it does work from time to time.

I hope some of this helps.

[tom&tata 2]

3. Attempt to apply for a secured credit card (these sometimes work for people with no or very little credit history; however, there is generally a small credit line attached to the card itself, something in the area of $300 to $500 for new users).

Just to add that you could get the secured line (max is $ 500) with "deposit" of $ 99.

[Nikita2Charles 32]

This process requires lot of patience, 1st I added my wife to my credit card account, then when I bought the house, I did it under both of our name, so within 2 years her score went from 0 to over 700. Now we get all kind of credit card offers in the mail, opened a store card last week by herself.

[wong_watkins 1]

I did not have a cridit history when I first moved here neither..I tried to apply for credit cards but it always failed..

But after about 2 months I opened a checking account with a big bank(Chase), they offered me a credit card. I always make my payments on time and my credit score just soared. And now I get all kinds of credit card offers in the mail all the time.

She can also get a loan(example. car-loan) with a co-signer..that can help her build up credit too.

[Bobsled 0]

I see three options:

1. Become her co-applicant for her own credit card (this will mean you're indirectly responsible for her spending; in other words, if she damages her credit score, she also damages yours as well).

2. Add her to your credit card as an authorized user (this will mean she won't technically have a credit card of her own, she'll just be authorized to use your credit card number with her name on it, and you'll be entirely responsible for her spending).

3. Attempt to apply for a secured credit card (these sometimes work for people with no or very little credit history; however, there is generally a small credit line attached to the card itself, something in the area of $300 to $500 for new users).

The first two options enable your wife to have larger credit lines; however, you'll be responsible, whether directly or indirectly, for whatever she purchases. With the third option, you won't be responsible but she'll have a much smaller credit line.

I know all of these options work because (although I am a USC), I got my first credit card by being an authorized user on my parents' account (option 1). Then when I was older, I got my own credit card, but because I didn't have a credit history, my father had to co-sign for me (option 2). The last one (option 3) I've read about extensively here on VJ, so while I don't have any personal experience with it, I know it does work from time to time.

I hope some of this helps.

Thanks for the replies. I think #2 is the worst option becuase it doesn't create her credit history. I think we will try #3 (having a $300 to $500 limit is actually a good thing) and if she gets rejected then we'll do #1. Or we can always try B of A. ; )

Rob

Edited February 21, 2007 by Bobsled

[Nancy2015 2]

Her best option is a secured credit card. One doesn't need to have been employed for a loing time or to have a credit history to open a secured card - anyone can get those. It's a great way to build credit. After a few months of responsibly using a secured credit card, she may apply for a gas card or a local store card - they are relatively easy to get, but you need at least some credit history.

Good luck!

[RaspberrySwirl 20]

Sort of related:

Never had a credit card before but what does the APR actually mean?

I mean, if I intend to just buy gas every other week and pay off the bill on time, that percentage rate doesn't affect me at all, does it? All I pay is the gas bill?

I'm new at the credit card thing

[tom&tata 2]

Sort of related:

Never had a credit card before but what does the APR actually mean?

I mean, if I intend to just buy gas every other week and pay off the bill on time, that percentage rate doesn't affect me at all, does it? All I pay is the gas bill?

I'm new at the credit card thing

APR is annual percentage rate - interest rate. If you have credit card, and you pay in full every month, you will not have to worry about the APR on your credit card because you would not be affected. Lots of people carry balance in their credit card, so you pay interest on those balance. In this case, lower APR is desirable.

[mawilson 2,133]

3. Attempt to apply for a secured credit card (these sometimes work for people with no or very little credit history; however, there is generally a small credit line attached to the card itself, something in the area of $300 to $500 for new users).

Just to add that you could get the secured line (max is $ 500) with "deposit" of $ 99.

I can confirm that a secured card is the way to go. I'm not sure what max you're referring to,

it's usually only limited by the amount of money you use as collateral.

[Mark UK 3]

3. Attempt to apply for a secured credit card (these sometimes work for people with no or very little credit history; however, there is generally a small credit line attached to the card itself, something in the area of $300 to $500 for new users).

Just to add that you could get the secured line (max is $ 500) with "deposit" of $ 99.

I can confirm that a secured card is the way to go. I'm not sure what max you're referring to,

it's usually only limited by the amount of money you use as collateral.

My wife's credit score is EXTREMELY high and she put me on her credit cards when we got married. Since then, we bought a car together, got a mortgage, I got a job and I transferred my American Express card from the UK. My score is now relatively high.

Be careful that some banks, even with a very high credit score, will not give you credit because you have not had a credit history for very long.

If you have an American Express, they are willing to transfer your credit history over to the US and give you an US-based card. Though you won't transfer ALL your previous credit history, it will count for something.

[Anna C. 4]

They also transfer your credit history if the American bank cooperates with your home-based bank. Happened with me (Deutsche Bank - Bank of America). I applied after I spent 6 months in the US working (no credit card, nothing that increases credit at all), and they transfered my credit line from my old Mastercard directly to my B of A Visa card, even increased the line by $1500. Got 6 months 0% APR and now it's somewhere at 12%, not that I intend to use it

[brtlmj 0]

I see three options:

2. Add her to your credit card as an authorized user (this will mean she won't technically have a credit card of her own, she'll just be authorized to use your credit card number with her name on it, and you'll be entirely responsible for her spending).

Thanks for the replies. I think #2 is the worst option becuase it doesn't create her credit history.

To the best of my knowledge, it does. My wife added me as an authorized user and the CC account is now listed as an "account in good standing" in my credit report.

[RaspberrySwirl 20]

Sort of related:

Never had a credit card before but what does the APR actually mean?

I mean, if I intend to just buy gas every other week and pay off the bill on time, that percentage rate doesn't affect me at all, does it? All I pay is the gas bill?

I'm new at the credit card thing

APR is annual percentage rate - interest rate. If you have credit card, and you pay in full every month, you will not have to worry about the APR on your credit card because you would not be affected. Lots of people carry balance in their credit card, so you pay interest on those balance. In this case, lower APR is desirable.

Thanks!

What about finance charges? This agreement reads like my friggin accounting course in college o.o

For each day in the Billing Cycle, we take your beginning balance and add any new transactions and other debits and subtract any payments or other credits. This equals that day's Daily Balance. We multiply the Daily Balance by the applicable Daily Periodic Rate to get your finance charge for that day. We add these finance charges to your Daily Balance to get the beginning balance for the next day.

We add together all Finance charges calculated or incurred each day during a Billing Cycle to determine the Total Finance Charge for that Billing Cycle. We add together each daily balance for the Billing Cycle and divide by the number of days in that Billing Cycle to determine your Average Daily Balance.

Where appropriate, we perform this calculation separately for each type of transaction that appears on the Statement such as Purchases, Cash Transactions, Balance Transfers or Promotional Balances.