When I was 16, I received a credit card offer in the mail from Capitol One. Responding to that offer was probably the stupidest thing I could have ever done.. The first few months of me having the card, I kept it paid on time, and only put what I needed on it… So this helped to make my Non Existent credit look amazing. I was able to get new Cellphones through Sprint, and later even switched (Mid contract) over to Verizon. What I didn’t realize at the time was the repercussion of not paying those bills back.
Needless to say, before I was 17, My credit was ruined. Nearly 9 Years later, I am almost completely out of debt, Leaving only one bill, the now $700 Sprint phone bill from my first ever cellphone, Which is planned to be paid off in about 4 Months. Other than that I have a few doctor bills, that don’t necessarily count against your credit as bad as something like an unpaid utility bill would.
In fact, I would say my Credit is getting quite well, Considering my Local Bank offered me a Credit Card with a $300 limit to get me started about a month ago.. I responded to this offer, In attempt to try and rebuild credit, but the reason I ended up being declined was due to my job, Or lack there of.
Although I make an income, None of it is tax Deductible, Nor is it a steady amount that I can count on per month. The bank will not accept random deposits from Google and PayPal as Income.
Considering I figured now is a pretty good time to get started on Building my credit up, So one day when I DO want to do get a car, I can.. I decided to venture down the path of a Secured Credit Card. Now Ive been looking at several different banks and offers, I wanted to get one with a Low Yearly fee, That would offer the option to Graduate the card to Unsecured at a later date. Not many stuck out.
The Fist card Offer I came across was by Capitol one, Now I expected to be declined here, considering my past with them.. I am still unsure on the fact that I was declined, Was due to my Lack of Steady Income, or my history.. In either case, I expected it so I didn’t sweat it.
The Next few banks that I tried, were on my top list, considering their offering. US Bank, Bank of America, and even down to some small credit union offer. All of which Denied me!
After being denied of 4 offers, and Probably ruining my already bad credit score by sending inquiry’s to it, I decided to give up. This makes absolutely NO sense to me, Secured Cards are at NO POSSIBLE loss to the bank, I am putting up CASH for them to hold, to act as my credit limit. If I don’t pay it off on time, they already have the money in their hand, AND can come after me with non Payment fees, as well as Super stupid high interest rates. They have absolutely nothing to loose, and everything to gain. It makes absolutely No sense why I need Good credit, To get a Bad credit – Credit card.
My last bank that I plan to try before giving up all hope is Wells Fargo, They seemed to offer a pretty nice deal, However their card does NOT graduate to a Unsecured at a later date. Shouldn’t be too big of an issue though.
If I end up getting declined there as well, Then I give up. How is one suppose to get ahead?
I follow Dave Ramsey, and one of his main teachings is that Credit is Dumb, and no one ever needs credit. This would be great If I were one of his many callers who make $100,000/year, But I don’t. In the real world, Sometimes you HAVE to take out a loan, Even if its for that $3,000 beater car to get started. Life isn’t handed to you on a silver platter, and without credit, you cant buy anything without paying cash for it. If you don’t have cash to begin with, You’re fucked.