Credit Advice

[River]

My daughter is 32, has worked part time for the State of California as a caregiver - to me - for the last 10 years. She has NO credit. Not bad credit, just none. She wants to build credit but doesn't make enough for our bank to give her a credit card, not even one of those you put money in first. And other places, like Amazon, also say she doesn't make enough. Anyone have an idea how she can build some credit?

[theonlywanderer]

I have never heard of one single bank that wouldn't give a secure credit card, that makes no sense at all.   I would check every single bank in the area on getting a secured credit card.    This is how my nephew started with his bank as well.    Ask if establishing a checking account first would help get the card.    I don't expect full disclosure on her life here, but there almost has to be something major going on for a bank not to give a secured credit card.

[River]

It was Wells Fargo, my bank and hers for years now. She brings in about 1200 gross monthly, they said she didn't make enough, even for a secured card.

[galensgranny]

Captial One has a secured credit card.  It says the initial credit limit is $200, so likely your daughter would be approved.  See https://www.capitalone.com/credit-cards/secured-mastercard/

[theonlywanderer]

@River

I would tell Wells Fargo to go F themselves and move my account elsewhere, which of course they wouldn't give one ounce of S about either.

It shouldn't matter what income is, or credit rank, nothing should matter for a secures card because the credit amount is paid for in advance.

You can't even overdraft a secured card because it simply won't go through.

F Wells Fargo!

[galensgranny]

theonlywanderer, you are describing what sounds more like prepaid credit cards.  With some of the secured credit cards, the person pays a deposit that is less than the total amount of credit.  So for that type, a person's income would matter, at least that they have an income of some amount.

[River]

She just applied for the Capitol One card, and was denied.

[theonlywanderer]

Same basic concept.  Instead of the base $200, she can deposit the amount she want as the credit limit, IE.. give them $1,000 and tell them to make that her credit limit so it won't allow anything over $1,000.    It should not be a problem with most banks.

As soon as she can, keep depositing more in to it to keep raising the limit.  Higher credit limits help more with credit scores.

Also, this is why I suggested moving from Wells Fargo to somebody else.  The odds go up when she has a checking account with the bank she is requesting the secured card from.

[banishedsanni]

When u say *credit card" i think of visa, master card, american express - is it that what she needs? Why does she need? Or is a credit card for u the same what we would call girocard in germany? Does "build credit" mean save money on a bank account or something different?

(I am just curious, nothing negative about your question. just trying to understand circumstances in different countries)

[galensgranny]

@banishedsanni   In the US, a credit card is like you listed, from Visa, Master Card, or American Express.  They are like loans, where you pay back some each month. 

A prepaid credit card is not actually a credit card since you are not being loaned money, but need a credit card like number to make online purchases, or be run through an in person machine at a store if you don't want to carry cash.  With a prepaid "credit card", you pay a certain amount of money to get it, and can only make purchases up to that amount.

"Build credit" is meaning developing a history that you are trust worthy to make payments on an actual credit card, where you were loaned the money, so that after a while, when you want to have more credit (loan) money available to use, a bank would be more willing to do that.  They check the report from your small amount credit card to see if you did make payments as required.  More complete would be to say a person wants to, "build a good credit history". 

But, also, in the US, a person's credit history can have an effect on whether or not a landlord will rent an apartment (flat) to someone.  They check a person's "credit score" which reveals if a person made the payments as required or not, and if it is very bad, with unpaid debts, then they won't rent to that person.

I think what is called a "girocard" in Germany is what is called a "debit card" in the US.  A debit card can be used like a credit card for purchases or withdrawing cash at a machine, but the money is coming out of a person's bank account.

[banishedsanni]

Thanks for your reply.

It works a bit different here (being trustful for geting credit or renting an apartment) but it sometimes very troublesome here too. All the luck to your family with this!

[galensgranny]

You're welcome, Banishedsanni.  It isn't my family, though, but likely River saw your good wishes and knew they were for her.

[River]

I did, and thank you!