Will I get credit card offers when I make my first car payment?
Credit Card
Slim asked:
I’m 24 and just bought a new car. I don’t really have credit and was being turned down by credit card companies for lack of credit. So my question is once I begin establishing credit, will I get any credit card offers?
I’m 24 and just bought a new car. I don’t really have credit and was being turned down by credit card companies for lack of credit. So my question is once I begin establishing credit, will I get any credit card offers?
I don’t want or need 3 or 4 credit cards, just 1 main card.
Edwin
December 31st, 2008 at 8:07 am
When you receive credit card offers in the mail, it doesn’t necessarily mean that you will qualify or get approval on them (even if it says “Pre-Approval guaranteed”). It means that your name is part of a pre-screening process. Even with those offers, those card companies still require a full application, and you can still get denied a line of credit.
If you have a NEW car, and the car loan was taken out through a bank that reports on your credit report, then eventually your score will rise once you make regular payments, and eventually pay it off.
If you got approved for an auto loan on a NEW car from a dealership, then you should be able to get approved for a credit card. A credit card is the highest risk line of credit extended, thus why the APR and fees are so high. A car being the 2nd highest….so based on that, you should have been able to get a card. Now that you just got a car with a large line of extended credit, this may affect your ability to get a decent card with a good limit….but you should still be able to get one.
If nothing else, if you need a card right now to help in establishing your credit, go for a secured Visa/Master Card. They report to all credit bureaus…it’s much different from a Visa DEBIT card, which does NOT report.
December 31st, 2008 at 9:38 am
Possibly, however what is your real issue? You have now officially began a credit history with the purchase of your car. I remember starting out like that. Time a financial change come about, now there goes your credit history that you were working hard to establish.
I suggest to take it slow. Good things come to those who wait. If you just need a card, I suggest one of those load as you go. You have the opportunity to be your own bank. Controlling what happens on your card.
Don’t get stuck with a credit card statement right now. Keep those car payments up and on time. That will build your credit score! Make sure as you are making them on time, that they are reporting it!
I know it is hard to believe with all the creditor’s out there that they don’t “ALL” report. But it is true. This is only a benefit if you have been making crummy payments. But this is not of sane judgement. The objective is on time, regular payments.
Your actual report will show if you have been 30, 60,90 days or more late and how many times. All of that and other variables affect your fico score.
Creditors are looking for folks with higher fico scores. The higher it is, the more this says you are trustworthy and responsible! This also means you pay “Less” for having credit with them. Example, the higher your fico score, the lower your interest rate will be.
So keep up the payments, keep up the fico score, and the offers “WILL” come.:-)
Good Luck