05-12-2013 10:27 PM
I turned 18 in April, and I am looking to build my credit score. I have been thinking about this, and planning for months, and it's time. I have absolutely no credit history (Until my recent credit checks when applying. If I recall correctly this is referred to as a hard pull?) I went ahead and applied for a couple cards. No luck.
So after looking around FICOForums and some other credit related forums, I figured it was time I join, and get some advice from people who know more about credit. I understand that it's a complicated process, and that credit can be dangerous if abused, but I feel I am ready, and I do have support from parents. So, here's what's happened so far.
I applied for the Capital One Student Journey card a couple weeks ago. Denied instantly, recived a letter in the mail, stating there was a lack of credit history from each agency. Ouch..I saw it coming though, worth a shot I suppose.
I applied again tonight for the Citi Forward card, and again, denied on the spot. I will expect the letter soon.
So basically...Where can I get credit? Yes, my parents are supportive of building a good credit background, and they themselves have excellent credit. I have thought of having them co-sign, or have them add me as an AU on one of their cards, but, if at all possible, I'd rather not. But with 2 inquiries on my report, do I have other options?
Secured cards are something I have thought of. Are these easy to get approved for? I don't mind having a small limit, no rewards, annual fees(Though the less fees, the better), etc. That's expected, I'm not reputable yet, and I can get those more premium types of accounts later on.
Basically what is my best bet here? Any reccomendations of cards? Loans? Secured credit?
Thanks to anyone who offers advice. Even the smallest bit will help me out!
05-12-2013 10:33 PM
I am going to college in August.
As far as income, I do some eBay sales of things I buy and sell, as well as money from my parents. I will be working again this summer. The job I will be working is seasonal, otheriwse I would have had it sooner. On the App, i put about 8K for gross income. Could this be why they are declining me?
05-12-2013 10:34 PM
Welcome to the forum
Secured cards is your ticket into credit use it for 6 months then apply for unsecured cards
Also ask your parents to make you and AU on accounts this will also help
Try BofA others will be along shortly to recommend other cards
05-12-2013 10:36 PM
The only question with secured cards that I have is, what if I don't get approved? With my 2 declines already, is it a big deal, especially with a third, or do creditors see that as a typical report of a younger person?
05-12-2013 10:36 PM
Well you can probably try to establish credit when you actually have income. It is technically not legal for creditors to lend to applicants with no viable means to repay debt. AKA no income.
8k is really low. Will you be getting any scholarships or student loans in the Fall or work study?
05-12-2013 10:39 PM
Rackham, Yes, 8K is low, but I really don't have any expenses. I will not be recieving any student loans, however, I do have money saved for college. I'm hesitant to release the exact ammount, however, it is enough to get me through college and have some left over. Like I said, I will be working in the summer, I expect it to be full time, minimum wage ($7.25/HR).
05-12-2013 11:14 PM
Instead of Cap One or any other secured cards, I suggest you apply for the card from your university's credit union if possible.
05-12-2013 11:33 PM
Yes 8K is low but it doesn't mean it's a instant declining factor. Barclays approved me for a 3K card back when I only had about 10K income as a student.
05-12-2013 11:43 PM - edited 05-12-2013 11:44 PM
OP, If I may ask, who do you bank with? The reason I ask is because for example, I bank with both BOFA and Chase (BOFA is primary, Chase is secondary.) I had banked with BOFA for nearly 2 years until I went to my personal banker and talked with her in applying for a credit card through them, unsecured. I talked to her, and she got approved even though it was a small limit. I used the card for six months, always PIF before the statement cut date, and I left a small balance on my sixth statement. I applied for the Student versions of both the Forward and the more and after calling in and verifying that it was me, I was given instant approval. I did the same thing about a week/ week 1/2 ago, and was approved instantly for the Freedom with a nice limit for my income. I suggest personally going to whoever you bank with, whether it be a credit union or a big bank, to go and talk to your banker about getting an unsercured card first, whether it be student or not, and see if you get approved. If not, go the secured route and in 6 months if you follow what I said, you should be able to acquire some good cards and your credit will be good. Good luck in whatever path you decide to take.
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