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What are the best cards to BUILD new credit with? Youngens..


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Ok so my sister is 22. She had me recently look at her credit reports and to my shock shes has good credit-but barely any of it so to speak..

her ficos were all 3 around 650-670

she is an authorized user on 1 sams club card

she has a paid auto loan in her name

she has 7 student loans all aged well and paid on time

she has NO credit cards

she has NO loans

she had 2 medical collections but they fell off when i disputed

NO late payments

she does however have a judgement from bally totaly fitness from 4 years ago

what should she start with to build it up?

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First Premier, Cortrust and yes HSBC are all junk in my opinion (I had all three). New credit, try BOA secured, maybe Target. Keep in mind we are in tough credit enviroment right now. It may not be the best time to apply for any credit at the moment. :)

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If can save about $50. a week= i would get her yo join a crdit union- then when she has 500- get a secured card from th CU= no fees- creates a good habit in saving... then in 10 more weeks she can get another 500 increase- now she will have a 1000 credit card in less thsn 4 months- much better than get a junk card from hsbc or crap1 where you get a 300 credit lim- starter fee- yearly fees et. and then you have to beg for a credit line in crease

avoid applying for a bunch at once=its very tempting0 the inquirys will hurt in short term not only scor but in undgerwritim= excuse my typing i ad 5 teeth extracted yesterday=im lil loopy

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First Premier, Cortrust and yes HSBC are all junk in my opinion (I had all three). New credit, try BOA secured, maybe Target. Keep in mind we are in tough credit enviroment right now. It may not be the best time to apply for any credit at the moment. :)

haha i have that darn cortrust and hsbc. i wish i didnt. i have a few junk cards that i paid all there fees. blah. cant wait for them to age longer then closeeee! byebyebye

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If can save about $50. a week= i would get her yo join a crdit union- then when she has 500- get a secured card from th CU= no fees- creates a good habit in saving... then in 10 more weeks she can get another 500 increase- now she will have a 1000 credit card in less thsn 4 months- much better than get a junk card from hsbc or crap1 where you get a 300 credit lim- starter fee- yearly fees et. and then you have to beg for a credit line in crease

avoid applying for a bunch at once=its very tempting0 the inquirys will hurt in short term not only scor but in undgerwritim= excuse my typing i ad 5 teeth extracted yesterday=im lil loopy

hahaha oh man its ok!

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i ran the cap one preapproval and it offered her one of them 500-5000 credit limit. so we applied for it for her. said 7-10 days while reviewing her application or something..

so at least its not a blant out NO like they did to me in the past. but i redid it for me too and got one haha.

now for my brother whos 18 - hes pretty smart and has heard me talk about all the credit stuff that i learned on here with my mom and sister and stuff and he asked me how to build his cause he doesnt have one thing. and i was thinking wow- the way u could build that, and teach him good habits, he would have phenomenal credit in his mid twenties.. i wish i could go back to 18 and someone taught me!!!

im guessing i should start with some authorized users with him too huh?

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Ok, for your sister, I would recommend a BoA, Cap1, Cabela's and a CC with a credit union. With her scores, there is no need for a secured card at all. The 4 cards I mentioned will give her pretty good APRs as well as a possibility of no yearly charge.

For your brother, I would recommend a BoA secured card and possibly 1 student card if he's still in school. If he isn't in school, then replace the student card with a Cap1 card. As long as he is limited to 1 or 2 cards, that should keep him in a good position to learn to manage his finances and once he is over 21 then try for other cards since his credit should be lookin really good by then. :D

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  • 2 weeks later...
does she really need a secured card with a 650-670 scores?

Yes it's ALWAYS a good idea.

Secured cards mean YOU control your CR not them. You want a 5K line of credit? Then save 5K up and it's done. PLUS - then it does unsecure, you get your money! Extra bonus - usually comes with a CLI on a newly UNsecured account.

It's a win-win no matter what.

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