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As of February 2010, the credit card laws have changed to ban anyone under the age of 21 to get a credit card in their name unless they have a co-signer or proof of being able to pay the bill.
I am 19, have a job, maintain a high GPA, and have a good amount of money in a savings account. I want ONE credit card simply to begin building credit so that when I turn 21, I can move out. My mom cannot co-sign due to TERRIBLE credit, and I have no one else to co-sign for me. How can I show that I am well within my means of paying a monthly bill?
Answers:
1) Go to your bank and talk to the the branch manager. You may find it easier to negotiate a card with a smaller credit limit from someone who knows you rather than a faceless corporation. A secured card may be an option. And, consider moving your accounts to a credit union. They are usually even easier to deal with.
2) You fill out an application and provide proof of your income. Basically you have to qualify for a credit card just like anyone else. It really depends on how much you make at that job. I suggest you check with your bank. You might have to start with a secured credit card -- you pay a deposit which is held as collateral against the line of credit. Use the card and pay in full every month. In a year you should be able to convert to a regular card.
3) You would show them the paystubs from your job and the statements from your bank. However, they are still not required to give you (or anyone else) a credit card. Even before the law was passed, most or all credit card companies stopped giving credit cards to anyone who had not already built credit.
4) I understand your Mom has terrible credit, however, does she have a credit card herself? You could get another family member to add you to their account which takes your credit history back to the issue date of the card. Alternatively could get someone else to co-sign (they'll most likely be issued a card as well).
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