Hi guys,

So, thanks to the fact that I have a spouse, I open up cards for myself and her. BUT ... I also have grandparents. Problem is ... they have no credit. Never had a credit card in their lives.

I tried opening up a US Airways (Barcleys) card for one of them but got denied.

What do I do? How to I get their score up and start utilizing them for this game?

thanks

I'm going to assume that you're doing this with their knowledge and permission...

Do they have a relationship with a local bank? You can often get a low-limit credit card that way. Secured credit card is another option (you give the CC company cash up front and draw on that). credit restrictions are higher on rewards card/annual fee cards. Maybe try starting with a free, no frills, no/low rewards card. Citibank, Capital One are decent options for cards like that. Also, maybe instead of applying online call and speak with a representative. Explaining the situation over the phone to an actual person will probably help you get somewhere.

Also, they pay utility bills right? Some utility companies will report good history to the credit bureaus, but you often have to request it.

yes it's with their permission but it seems like a pain in the ... to go to the bank, etc. I started my credit with just opening up a student credit card when I was 17. Didn't need to go anywhere

http://creditboards.com/forums/

Wrong forum, go to creditboards

[Moderator edit]

We're on this board because we believe in maximizing our benefits, and help each other out with it. If the CC companies and travel providers don't want us to game the system, they can change their rules.

Regarding the OP, I can say that I called Capital One and they signed my wife up for the No Hassle Rewards card, which they called a "starter card." At the time we got it, we thought my wife had no credit because she had just gotten her USA residency a couple weeks earlier. (We didn't know that she already had a good credit file, which somehow piggybacked off my credit going back to 12 years before we even met!)

[Moderator edit]

Why don't you limit yourself to you OWN credit cards?

I guess this is a little 'wrong', but as long as they know, and the bills are paid on time, there really isn't an issue. I got my Grandparents on to Membership Rewards a long time ago, and they could care less about points. They were using a useless credit card for all of their purchases, and I threw the thought by them of using a point-accruing CC. There's nothing wrong with it - old people really genuinely like nothing more than pleasing their Grandchildren (ideally). They would be thrilled at the opportunity to help them fly in CX F getting drunk of Krug while wearing ridiculous Shanghai Tang pajamas that no one would otherwise wear.

You just need to of course maintain financial prudence and avoid referral links from bloggers, as their credit score is (maybe) as important as your incessant search for availability on NH F.

a few of the methods mentioned should be helpful as I would imagine this is primarily for their benefit..

I was just a young'n when I noticed the grandparents liked to pay largely by credit, and since I knew of my folks getting free travel through mileage ccs, I persuaded them to also get the same "card's that'll get you free trips for what you already spend"...Needless to say they seem to specifically enjoy putting things on credit and having a free trip here n there...also been kind enough to throw some my way once in a while..

If that's the intention, why not help em out? As mentioned, even with no credit getting secured cards shouldn't be an issue... often you can even secure them with a gic or other interest earning investment instead of just putting up cash

One thing you can do is add them as authorized users on your AMEX. I've come to realize that AMEX really values relationships and after 6-12 months, your grandparents might be able to get their own card. This happened with us as I wasn't able to get the SPG card, but after my wife and I had the Delta card, we were accepted and for everything else since.

As long as you have their permission, I see nothing wrong with this. My parents allow me to churn cards in their names as they enjoy knowing their grandaughters enjoy traveling the world for free. Even my exwife alows me to churn in her name. In turn, I make sure she and the girls get free air and/or hotels. Last year they went to Paris and I was able to get a free week at the Hilton ADT on points. That would have been out of reach for cash. This year I got them three award tickets to SXM for Christmas week.

Everyone's credit score has actually gone up as a result of churning.

Win-win all around

[Moderator edit] The only way it could harm the OP's grandparents would be if it would cause a hit to their credit score and this would for some reason affect their ability to receive credit for other purposes. That doesn't seem to be the case here. Almost all grandparents want to help out their children and grandchildren, and here's a way to do so at no cost to them. It doesn't hurt the issuing bank either, at least not any more than all the credit apps many do all the time with no intention of using the card beyond whatever spend minimum may apply.

I could add that I opened a credit card account for my elderly mother a year ago, with the intent that she could use the miles to visit family in another part of the country, a trip she was making periodically for cash. Now she has suffered health reversals and almost certainly will never fly. I do plan to use the miles myself, and don't see anything wrong with it.

[Moderator edit] I am already utilizing my mother's credit to get cards and I manage it all. She has no problem with it. In regards to grand kids ... I don't have kids yet so not an issue.

[Moderator edit]

Not judging here...but don't forget these are real credit cards. If the people who sign up don't manage them, they can end up with nasty little financial surprises (annual fees, etc). And, some folks aren't responsible with cards, and may up regretting the temptation - esp. when there's a minimum spend that they feel compelled to make.

Also, if you are the one managing them for others, do you have a contingency plan should you fall ill?

Again--this is meant as constructive input. Just as one has to be careful about asking people if they'd like an alcoholic drink, one has to be careful about pushing credit too hard.

Good to know your grandparents are still around. Take good care of them if you can. And try not to mess with their non-existing credit.

Is this spouse for real?