Poverty

This is definitely true in our field where the business owner is doing the labor. The corporate tax for us is 35% at year end so we, like most small businesses in the same situation try to get our accounts to zero (buying shit, year end bonuses, retirement account contributions etc.) so a lot of times a small company will need to tap the line of credit to make January payroll, EVEN IF EVERYTHING GOES RIGHT.

We haven't had to since I've been on board yet because my boss makes sure to stagger our billing cycle so we get almost no money in December and then a shitpile in early January, but even then he had to take a reduced check early in the year to avoid tapping it.

 

Don't forget that you have to disarm the terrorist first.

 

Didn't you know? Credit cards can be used as cheap throwing weapons in a pinch. So both scenarios are definitely in the same ballpark.

 

Now look, maybe your credit card differs from mine, but, you know, using a credit card, and fighting a terrorist ain't the same fuckin' ballpark, it ain't the same league, it ain't even the same fuckin' sport.

 

I'm proof that one should establish credit.

I am without debt, and in possession of a job that pays me relatively well for my age (more than $50K, less than $100K). I have savings somewhere in the $8-10K. Not a lot of money, perhaps, but....enough, one would think.

That said....within the past 24 hours, I had to run through hoops to get approved for an apartment where I make more than fifty months my monthly rent, and have been denied for a credit card by two separate banks (BoA and CapitalOne). Why? Because I have no credit history.

All through college, I paid for things by debit card and cash because it seemed more responsible. I didn't need my own credit card, so I didn't get one. The credit card I did have my name on it, but was actually linked to my father's credit card account. I used it only for emergencies and expenses that he explicitly told me to use it for (i.e. "I'm paying for your textbooks/a plane ticket home, use the credit card").

However, since it wasn't my account, it doesn't really affect me. It honestly just never occurred to either me or my parents that I should have a credit card outside of their account if I didn't want/need one. Nor did it occur to us to take out an unnecessary loan for that purpose.

So I'm basically a blank slate. At this point, I can either try to get a secured credit card (which are barely 'credit,' since you have to put down your credit limit in advance) or take out a loan merely for the purpose of successfully paying it back. Or both. Obviously, I'm not particularly happy with this arrangement.

Get a credit history, kids.

Also, if anyone has any advice, that would be nice.

 

That's a bit odd dude, even people with pretty ugly (but not awful) credit can get a credit card as long as they're not trying to get one through Amex, hell I was in the same position as you, but got one through BOA with a 6k limit while working a job that paid peanuts, even got a decent rate. I'm surprised you'd be turned down by them, even if you were now classified as a bad risk I'd figure they'd just give you a low limit and rape you on rates. Are you sure you didn't fill out something wrong on the application or sign up for the super premier card?

 

I don't know dude. I assumed the same thing: there would be SOME credit card that they could give me, even if it weren't an enviable one. But nope, they cited lack of credit history rather any problem with my credit history. BoA said no, but we'll let you get a secured card. I filed that one via one of their branch offices, so if there was a screw up, it wasn't on my part. CapitalOne's online application process just said "no."

 

BoA gave me a credit card with a credit limit that at present exceeds my net worth (fuck I'm broke). They just don't like you.

 

Being a black man is difficult today...

Did you try a less "reputable" company such as hsbc or citi? Where do you bank at? Boa? If not, I would apply where my money is. Banks that have your money already are more likely to approve you.

And, yeah, boa hates you. They gave me $10 k when I had $20k outstanding.

 

Probably shouldn't have called his mother a whore. That was perhaps untactful.

And sadly I bank at BoA mostly. I'm going to be stopping by the local credit union where I have an open account tomorrow.

Trust me, I was just as surprised as you guys to hear this. Perhaps there's something I don't know about, but as I said, lack of credit history was their cited reason.

 

Yes, each time you apply for credit it dings your credit score a little bit. This is why they tell you when you are going to apply for a mortgage to not have applied for anything for like the previous six months.

 

There's basically two types of credit checks: soft checks and hard checks. Soft checks are what companies do when they do cursory screening for deciding who to send stuff like pre-qualified credit card offers too. Soft checks don't impact your credit score. Hard credit checks are the type that potential credit extenders do once you apply for some sort of financing - these are the type of checks that companies need your permission to do because they can impact your credit score. However a lot of hard checks in a short time frame don't necessarily hurt your credit score because the rating agencies understand that when people to this they're usually shopping around for the best financing bargain.

 

When I started establishing my credit history I got a secured Visa card through my banking institution. It had a $500 limit and required me to open a savings account and keep $500 in it. After about 9 months I think they changed it to a standard credit card with I think a $800 limit. I think a secured credit card is a fine way to start a credit profile.

 

Did you apply online or in person? I’m guessing online.

If you want your CC make an appointment at your nearest branch and go in personally, be charming, explain your situation. If you have no black marks against your name you will get the card.

Face to face, it’s the only way to do business. If they don't give you the card, still be friendly but tell them you will never be doing business again

 

Every single hard check hurts your score. It isn't a lot, but it does.

 

My neighbors love Dave Ramsey. They'll constantly offer nuggets of financial advice and both have Dave Ramsey bumper stickers.

Needless to say, this shit is annoying as hell. Especially when you consider they were on the verge of bankruptcy a year ago. You don't know my financial situation, please stop offering me advice.



I hate how Ramsey preaches credit as something evil.

Can we all be adults here? Credit is not evil. Credit is leverage. Do your homework before you start using credit, because as it's been mentioned above, avoiding credit might be a problem when most of us inevitably need it.

"Inevitably"- as in I know there are ways around this but speaking as the general public, the majority will need credit.

 

If you want to start somewhere, I'd recommend First Premier Bank for a CC if you want to do it online. They gave me an approval fairly soon. They won't totally screw you on APR but you don't get a super high credit line either ($250 to start out). When I was first repairing my credit I got one through them. After a year of going through them and having my truck then I've also opened one through HSBC and then Capital One starting sending me a bunch of mail to open one with them. I opened one with them and then two months later they're already sending me a bunch of stuff saying I can open a $4k personal loan with them.