Hi Money Minder,
I’m in a bit of a pickle. I’m 33 and finally decided to dip my toe into the credit card world. But guess what? I keep getting denied left and right because of my non-existent credit history. I’ve been out of work due to health issues, but I’ve been kicking butt in college for the past 14 months. Luckily, I’m crashing with my parents for the time being.
I tried applying for all sorts of cards – secured, unsecured, you name it. But no dice. I can cover a secured card with the money in my account, but I think my lack of income, assets, and credit history are working against me. Can I count my parents’ finances as my own? And what about student cards? I may not fit the typical college student mold, but I’ve been a student for over a year now. Can I still qualify?
Any recommendations on cards I should go for? Or should I just wait until I’m back on my feet financially? I just want to build my credit with everyday purchases like gas and groceries. Rewards would be a nice bonus too!
Thanks for your help,
Struggling Student
Farewell:
Take care!
Response from THE MONEY MINDER:
Hello There,
Congratulations on your successful journey through college despite facing physical and mental challenges along the way. It’s truly commendable that you’ve managed to excel in your studies while dealing with these obstacles. It’s understandable that building credit is important for your future financial well-being, and I’m sorry to hear about the difficulties you’ve faced in obtaining a credit card.
Given your situation of not having a regular income and no credit history, it may indeed be challenging to qualify for traditional credit cards. However, there are alternative options that you can explore to start building your credit. One practical approach is to consider applying for a secured credit card, which requires a security deposit that acts as your credit limit. Since you mentioned having enough money saved up to cover a minimal secured card, this could be a viable starting point for you to establish credit.
In terms of including your parents’ finances as assets, it may be beneficial to inquire with the credit card issuers directly to see if they would consider this information in your application. Additionally, you could consider applying for a student credit card, as some issuers may be flexible with age requirements if you can provide proof of your current student status. Providing a transcript or any documentation that demonstrates your enrollment as a student for the past 14 months could potentially strengthen your application for a student credit card.
When selecting a credit card for basic purchases like gas, insurance, and groceries, focus on finding one with no annual fee and a reasonable interest rate. Rewards may not be a priority for you at the moment, but having a card that reports your credit activity to the major credit bureaus can help you build a positive credit history over time.
Ultimately, patience and persistence will be key in your credit-building journey. While it may take some time to establish credit, taking small steps like using a secured or student credit card responsibly can set you on the path to a stronger financial future. All the best from THE MONEY MINDER as you navigate this process and work towards building your credit.
