Credit card question.

Credit card application question?

• OK so i recently turned 18 and wanted to get a credit card for gas and things like that. The bank says you need credit to get a credit card but if no one gives you a credit card then how are you supposed to start developing a credit history? I went to my bank (suntrust) and they said I'd have a better chance of getting approved if someone cosigned my application so my grandmother cosigned the application. She has extremely good credit. They never called and said whether my application was approved or denied but 2 weeks later I got a piece of paper from card holder services that said we could not generate a credit score for you and then went on about good ways to maintain credit and the benefits of a good credit score. It didn't say approved or denied or that I had a bad score. It just said there was no credit history for me and that's all. What does that mean?

• Answer:

  It means your credit history has yet to be established and there is nothing for them to base an approval on. Your best bet is to obtain a secured credit card from a credit union. They are much easier to work with. A secured credit card means you will deposit a specific amount and keep the funds on hand to cover your credit card. You can open one for as little as $300 and then you can start to establish a credit score. REMEMBER, never use more then 30% of your available credit limit, the more you use the more it drops your score. Here is a break down on how credit works. Payment History accounts for 35% - Paying your bills on time helps your score while late payments hurt your score. Outstanding Debt accounts for 30% - The more you owe others relative to the credit you've been extended, the lower your credit score. Credit History accounts for 15% - The more information a credit bureau has on your payment patterns, the more certain they can be about your future payment patterns. You get a higher credit score if you've got a longer credit history. New Credit accounts for 10% - The number of recent applications for credit will be weighed against you. The more new credit you apply for, the greater your credit risk until you establish a good payment pattern. Miscellaneous Factors account for 10% - These are minor factors that calculate your credit score such as the different types of loans you have outstanding