Applied For A Secured WAMU (No History & Income)

[superdesi]

I took my girlfriend today to WAMU and had her apply for a secured CC. She has never applied for credit, has a fairly new SS card (she's only been in the U.S. 6 months) and has never been employed in the States.

The process went pretty smooth but no instant approval. The application is "pending". I gave the representative our HHI but when he asked about her income, I said $0. I did fork over $1000 towards the secured account.

My question is, even though she has no history or income, would it be wise to go on an app spree for her at this time? I just want to build her credit and make it flawless, something I wish my parents had taught me.

Message Edited by superdesi on 08-20-2008 12:18 AM

[Anonymous]

Well, secured is good, probably the best way to start, I would say give the secured card about 6 months first using only about 35% or less of the available credit and making payments on time before you go and apply for anything else. Make sure she gets a job so she can report some kinda income as some credits do look for this information.

[aftermath]

I would cancel that WAMU secured card application while it's still in pending status, take that money, and go open a BofA secured card. Why you ask?

BofA is a PRIME lender, which looks better on her credit report. A BofA secured card will graduate to a legitimate credit card in about a year, and the card will grow with her (higher credit lines, better rates, rewards, etc.) And once it becomes a regular credit card, you have limitless options and choices of what type of card you can potentially switch it to (cash back rewards, gas rebate cards, airline miles, hotel points, travel points, etc.) BofA also allows customer initiated credit line increases. also BofA is more lenient in their "non green card holder policies". I know, my wife is in the same situation as your girlfriend. She just received her SS card as well. We went to BofA and got her a secured card.

WAMU is a SUBPRIME lender, they are not nationally recognized, solely based off the west coast. Not all creditors will acknowledge them as a PRIME lendor upon looking at your credit report. A WAMU secured card will eventually graduate to a WAMU credit card, and WAMU credit cards in my opinion... suck! (low credit lines, high rates, no rewards) credit line increases are very few to non existant, and no customer initiated credit line increase requests accepted. Also not much choices once the secured card becomes a credit card. They hava a VISA and a MASTERCARD. That's it.

Message Edited by aftermath on 08-19-2008 09:22 PM

[superdesi]

Thanks aftermath. I will go tomorrow and ask if I could pull the application. However, do you think they have already did a "hard pull" or inquiry? Or that wouldn't matter since she has no credit to begin with.

Lastly, did you go on an app spree for your GF, or just the BofA secured?

[aftermath]

If you could get them to cancel the application, that is great, if not, don't worry. Just keep the WAMU secured card(for credit building purpose), but make sure to go and have your girlfriend open a BofA secured card as well (for future bofa growth purpose). It doesn't need to have a high limit. $300-$500 will do just fine. A small charge here and there with good payment history for about a year should suffice. There are many users here who have reported their BofA secured card graduating to a credit card in as short as 8 months. Others have also reported that they were able to apply for a BofA credit card after building their credit history for a few months (around 6) with their BofA secured card.

They did attempt to pull a credit report, but none existed to pull (it was their policy). The bank rep told us that was expected, and that once they started reporting the secured card history to the 3 credit bureaus, that should create a report for her. Also while you're there, open up a checking & savings account for her as well. They are lenient in that area as well.

Well, from what I know, you technically won't be too successful going on an app spree when the creditors have no credit report to check or reference. It's like my puppy applying for credit cards and hoping they will just trust his info and give him one (bad example, but you get the idea).

Besides, even if you do get approved, it will be from sub-sub-prime lenders such as orchard bank, first premier, credit one... why clutter her report with no namers? My plan for my wife was to take it nice and slow, build some history with a PRIME lender, apply for other PRIME lenders, create a luxurious and upscale credit report filled with only the likes of: BofA, Chase, Citibank, Amex, and probably a Saks/Barneys/NeimanMarcus store card for the mix.

Just like you, I find my wife to be fortunate to have met someone who has the know-how and knowledge in credit like me. If I were to have known what I knew now back when I first started college, I would probably have $50k credit lines and scores of 800+

[Anonymous]

Can you add her an AU on some of your cards? Many new immigrants get a good credit rating from being added to their spouse's cards.

[superdesi]

aftermath,

Thanks so much for that info. You have answered all of my worries. Slow & easy does it. I called to cancel the Wamu and the rep told me that the application is already in the system as "pending" and there was no way to cancel it. One last question though.....does BofA mind if the applicant has no income when applying for the secured card? I just wonder if she'll be put on the "pending" status there as well.


siangirl: I have already added her as an AU to both of my cards. Thanks.

[aftermath]

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superdesi wrote:
aftermath,

Thanks so much for that info. You have answered all of my worries. Slow & easy does it. I called to cancel the Wamu and the rep told me that the application is already in the system as "pending" and there was no way to cancel it. One last question though.....does BofA mind if the applicant has no income when applying for the secured card? I just wonder if she'll be put on the "pending" status there as well.


siangirl: I have already added her as an AU to both of my cards. Thanks.

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My wife's application was instant approval.  Card arrived in 2 weeks.

Just put your income down as her income, because it's a HOUSEHOLD INCOME they ask for.

[superdesi]

Thank you again aftermath. I sincerely appreciate all your help.