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Genie

Credit cards to build credit without open accounts?

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This is for two family members. They have score's in the 600's but don't have open accounts. 

Member #1 Scores are 627 on Transunion and 667 on Equifax. No open accounts.

Member #2 Scores are N/A on Transunion and 638 on Equifax. No open accounts. This person applied for Costco credit card recently and was denied mostly due to no open accounts I believe. He got a hard inquiry on both bureaus. 

 

All of their closed accounts are in good standings but there isn't much history.

 

I, for example, have the Capital One that I got about 7 years ago to build credit. I could maybe add them to my account or try to get them to obtain their own cards. Maybe there are better cards. 

Edited by Genie
typos

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Educated guess says those are fake skores from Kredit Carma, which are useless.  

 

Any negatives reporting?

Edited by cv91915

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As a general rule, the addition as an AU of 7 year history should help them get their own standalone base cards.  From what a Costco service manager told me, their cutoff is usually 650 FICO 08.  Take that with a grain of salt, but it was when I was working on helping roomie rebuild her credit, so we didn't end up getting her one.

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6 hours ago, Genie said:

This is for two family members. They have score's in the 600's but don't have open accounts. 

Member #1 Scores are 627 on Transunion and 667 on Equifax. No open accounts.

Member #2 Scores are N/A on Transunion and 638 on Equifax. No open accounts. This person applied for Costco credit card recently and was denied mostly due to no open accounts I believe. He got a hard inquiry on both bureaus. 

 

All of their closed accounts are in good standings but there isn't much history.

 

I, for example, have the Capital One that I got about 7 years ago to build credit. I could maybe add them to my account or try to get them to obtain their own cards. Maybe there are better cards. 

Have them open secured CCs. With only closed accounts they may not even have a FICO score. FAKO scores have lesser requirements to generates a score.

 

FICO scores require one account that is at least 6 months old. This could be a collection account or credit account. It also requires that at least one account report within the last 6 months. They may, but don't have to be, the same.  

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On 11/12/2018 at 6:02 PM, cv91915 said:

Educated guess says those are fake skores from Kredit Carma, which are useless.  

 

Any negatives reporting?

No negative reporting, they just haven't used their credit

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1 hour ago, Genie said:

No negative reporting, they just haven't used their credit

From your initial post, they don't have any accounts to use. Should be easiest to get a starter card from a bank they have had a checking account at. Otherwise, just have them get secured cards. Easiest way to good credit and a virtual guarantee of approval in the case your describe. You might add them as AUs and not give then the card but that doesn't help them learn to use credit.

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Recently they applied for a bank card but the letter in the mail says there is no credit score available on Equifax, the bureau they used to make the decision. So it seems the card can't be opened due to that.

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