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Moderator
Shogun
Posts: 12,952
Registered: ‎04-15-2011
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Re: Denied Capital One Secured Mastercard


dhon55 wrote:

Hi all,

 

I recently posted about how I have no credit history, and was denied the Cap1 Secured Card online.  I just got their letter in the mail, and it said the reason for the rejection was insufficient income.

 

I'm a student and I entered my (albeit low) stipend as a TA for the upcoming semester as income.  To my surprise, however, it did say my TU score is 679.  Apparently those student loans in "good standing" have established a credit score for me.

 

Unfortunately, the Cap1 inquiry will not fall off until Sep. 2014 (just checked my annual reports online).  Any advice on a future card I can apply for to establish and build my credit?  I'm not sure if I could qualify for student cards--Capital One denied me for only their secured card!  Should I try to recon with them or try elsewhere?

 

Thanks!

The inquiry only affects your FICO for the first year.  So in Sept. 2013 it won't factor in anymore.   Just a FYI.

 


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
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Valued Member
Cranski
Posts: 94
Registered: ‎07-21-2012
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Re: Denied Capital One Secured Mastercard


dhon55 wrote:

Do you guys think I have a shot at reconning with Capital One and maybe saying I'm a full time student too, or is it pretty much set in stone because of income?

 

Edit:

 

Also someone mentioned CapOne Journey card.  But wouldn't they have my income saved on file from the previous app if I was to suddenly include the other sources on there?


No, Cap1 no longer has the compacity to recon. I found out when trying to adjust my initial limit offer because of student status. I went through all the numbers several times over. Or at least there is a 3% chance, if you get that one guy... No specific guy, just a joke, I think people post fibs. If you were declined you have to wait 45 days before applying for another card. You can open an account and close it after obtaining the card from WF. I believe a few other members actually received qualification for it when opening an account.

 

CS 701, CK 682, Credit.com 719/ TU FICO 666 (DIS 8/12) EU FICO 658 (8/12)
After spree CS 738, CK 684, TU FICO 666 (Dis 8/5)

WF Secured 600Cl (7/11), Discover More 1.5k (8/12), Walmart 150CL(8/12), Cap1 Platinum w/Credit steps($300) (8/12)
Valued Contributor
Crashem
Posts: 3,096
Registered: ‎01-26-2012
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Re: Denied Capital One Secured Mastercard

First, do include scholarships and grants.  Do not include Loans.  If app has two spots for income, separate ta pay and put grants/scholarship in other income.  If just one spot, include it all.  Don't worry.  Your income can be verified via school.  If card issuer doesn't like that, let them tell you later.  Now let me tell you why you are probably getting denied.  My guess is that you have a bunch of deferred loans from undergrad.  If so, this is hurting your Dti ratio.  you will need to recon most apps until you graduate and get real income.  Let me know if my guess is wrong.

               LIMITS IN CARD DESCRIPTIONS
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dhon55
Posts: 88
Registered: ‎08-20-2012
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Re: Denied Capital One Secured Mastercard

The only thing on my credit reports is the US Direct federal loans I have.  Since I'm still in school, they are still "in good standing," but you're right, they do report as installment loan debt.

 

Cap1 was the only app I've done so far, but the only reason they *cited* for denial was "insufficient income."  Do you think even if the loans are in good standing, I still don't have a shot while in school? :smileyfrustrated:


Goal Scores: 720+ (Experian Lender Pull 09/13): 733; Discover TU (01/14): 751; Walmart TU08 (02/14): 754;
WF Platinum (10/12) $1,600; WM Discover (12/12) $5,500; Amazon GE (12/12) $2,500; CapOne Quicksilver (12/12) $750; Discover IT (01/13) $1,000; Chase Amazon (02/13) $2,500; Citi Forward Student (02/13) $2,000; AMEX BCE (09/13) $15,000
Valued Member
Cranski
Posts: 94
Registered: ‎07-21-2012
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Re: Denied Capital One Secured Mastercard


dhon55 wrote:

The only thing on my credit reports is the US Direct federal loans I have.  Since I'm still in school, they are still "in good standing," but you're right, they do report as installment loan debt.

 

Cap1 was the only app I've done so far, but the only reason they *cited* for denial was "insufficient income."  Do you think even if the loans are in good standing, I still don't have a shot while in school? :smileyfrustrated:


We will try this again... cough cough nudge nudge, knowwhatImean, say no more  >_>

 

Income for a student:

Tuition grants after school fees and books.

Check from grandma

Money from parents and allowance

side job you do for friends

washing cars on the weekend brings in some under the table

 

an average student makes what all together, look at your last W2 8-17k?

 

CS 701, CK 682, Credit.com 719/ TU FICO 666 (DIS 8/12) EU FICO 658 (8/12)
After spree CS 738, CK 684, TU FICO 666 (Dis 8/5)

WF Secured 600Cl (7/11), Discover More 1.5k (8/12), Walmart 150CL(8/12), Cap1 Platinum w/Credit steps($300) (8/12)
Moderator
Revelate
Posts: 9,762
Registered: ‎12-30-2011
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Re: Denied Capital One Secured Mastercard

[ Edited ]

Cap One occasionally has some wonky policies, but I suspect you may have stepped in one of them: namely, I think they look at income as an ability to repay much more than actual credit score / report in their traditional business model, and their secured card absolutely falls into their traditionalist category.

 

If you're a student with any semblance of income, why not apply for the various student versions of cards?  You don't really care what the tradelines are at this point, you just need to establish 2-3 credit cards for future FICO goodness later, and I think from a customer loyalty perspective, establishing student versions of cards with more diverse lenders leads to additional benefits later that Cap One, really doesn't.  That's secondary though to actually getting any credit cards that report, but unless you have large amounts of income, student cards if qualified are a better route typically.

 

 

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 673, EQ 8 707, TU 720, EX 702* (09/02/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


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Contributor
dhon55
Posts: 88
Registered: ‎08-20-2012
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Re: Denied Capital One Secured Mastercard

Thanks again for the info!  I'm still thinking about trying either Discover More Student Card and/or the Wells Fargo College Card.

 

I'm worried about the recent failed hard inquiry from Cap1 on my report from 8/20.  Do you think it's too soon to apply for another card?  I don't want yet another hard pull and keep ruining my shots at success in the future! :smileysad:


Goal Scores: 720+ (Experian Lender Pull 09/13): 733; Discover TU (01/14): 751; Walmart TU08 (02/14): 754;
WF Platinum (10/12) $1,600; WM Discover (12/12) $5,500; Amazon GE (12/12) $2,500; CapOne Quicksilver (12/12) $750; Discover IT (01/13) $1,000; Chase Amazon (02/13) $2,500; Citi Forward Student (02/13) $2,000; AMEX BCE (09/13) $15,000
Valued Member
Cranski
Posts: 94
Registered: ‎07-21-2012
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Re: Denied Capital One Secured Mastercard

[ Edited ]

dhon55 wrote:

Thanks again for the info!  I'm still thinking about trying either Discover More Student Card and/or the Wells Fargo College Card.

 

I'm worried about the recent failed hard inquiry from Cap1 on my report from 8/20.  Do you think it's too soon to apply for another card?  I don't want yet another hard pull and keep ruining my shots at success in the future! :smileysad:


Ah, good question. Yes credit card inquiries are looked at separately unlike mortgages and loans. While I had some deterrence when I app'd 4 times in my first spree, I only got two that said too many inquiries. Albeit I still received those cards, I know it is a factor but not the biggest one in their consideration.

 

For discover it is important to know you will be declined perhaps. It will give you the opportunity to upload documents though during the application. It asks for two. I sent in three. I went ahead and called afterwards anyway. I was told wait... Blah blah 7-10 days (note: I applied for the more because I'm older with some misc. credit). Well I got a call at 7:00pm and had to answer some questions. Verify my employer, I put the number in the right spot, but went as student as job. Threw in the DTI over student loans opinion. Discussed my positive payments with the WF card, 1 year on time. Then I had to on the spot create an my motivation as to wanting the card. Almost like applying to a college scout. I crafted a pretty convincing plan on building my credit, reaping the benefits for purchases, and intention on purchasing a home in two years. I was approved for 1500.00....

Wait, my card didn't come on the day I was told and I received a denial letter. Is it the automatic one or an official. I thought I was approved...  Called in and was sent over to a Senior Analyst, well it ended up the first representative messed up a little and set student qualifications. A cosigner form was sent with the denial but I paid little mind. She said it was the csr fault, but she pondered and said lets do it again I don't think you need a co-signer. Well I went through the same few questions and again the what's your plan for the card. I wasn't as creative or excited. (sorry long story almost done). Well she fumbled around and asked again, what would be your plans for the card. I thought she didn't hear me so I said it again.... She asked a third time (now it hits me), so I go into a spiel about my credit plan and wanting a nice house and a great credit portfolio... By her vocal expression I gave her what she wanted. Then another peculiar (do you have something special or specific planned)... >_>   

Needless to say I stuck to the benefits of cash back, and security of using a discover card. I'm not sure about the specific. But you will probably have to recon. So if you not fast on your toes, plan ahead a little bit. They might be doing some sort of special recording for review, or her own personal reasons.

 

Do the Discover more first in my opinion. Student of course. If you can't fluff income be prepared for a denial, co-signer request, and recon. The WF secure is one of the easiest ones to get I assure you. I wouldn't go past 4 inquiries, but get them done now so they all fall off at the same time. Unless you need something important in the next 6 months to a year.

 

CS 701, CK 682, Credit.com 719/ TU FICO 666 (DIS 8/12) EU FICO 658 (8/12)
After spree CS 738, CK 684, TU FICO 666 (Dis 8/5)

WF Secured 600Cl (7/11), Discover More 1.5k (8/12), Walmart 150CL(8/12), Cap1 Platinum w/Credit steps($300) (8/12)
Valued Contributor
Crashem
Posts: 3,096
Registered: ‎01-26-2012
0

Re: Denied Capital One Secured Mastercard

So I was right.  Even though loans in good standing and I guess deferred, certain computer models will not be smart enough to pick it up.  It will assume you are paying the monthly payment.  When you take that and add to low income, it looks like you have high Dti ratio.  As such, you should be doing reconsideratfirs for all your denied apps and see if that was issue.  Okay here is my advice: you should eventually be applying for most/all student cards: Citibank, discover, maybe cap one.  But possibly with exception of cap oneeleven student cards want some history.  Basically you need to get some card to start your credit history.  Who do you bank with?  Is there a credit union for your school?  There is going to be a credit union that has some program designed for students to start their credit.  Campus credit union if exists will have program.  If cant find credit union, walk iwho wells Fargo branch.  Open at least checking accoUnt.  Explain your need for credit card for student with no credit history.  Well Fargo has student card that is basically guaranteed for students who are customers.  Remember what I said earlier about income.  Other method is to ask you parents to add you as au on a couple of their cards.  Finally, I know of several secured cards that are basically guaranteed approval.  How much can you come up with for security deposit for about 6months? If it is more than 1k, might think about this route vs going for unsecured student cards.  Let me know.

               LIMITS IN CARD DESCRIPTIONS
Contributor
dhon55
Posts: 88
Registered: ‎08-20-2012
0

Re: Denied Capital One Secured Mastercard

Sorry to keep posting :smileywink:  but thanks for the responses.

 

Cranski:

Thanks for the info.  I'm a bit way of trying Discover straightaway now.  Maybe try WF first and wait until it reports for a month or so and then try my luck?

 

CrashEm:

Incidentally, I don't live near any Wells Fargo branches, but since I came across their card online, I started considering applying online to start things off.  Unfortunately, I don't have any credit unions affiliated with my school that I know of.  If I went the secured route, I'd be willing to put up $200-500, again basing this off of what I've seen plus what is feasible for me.  That being said, perhaps unsecured would be more feasible?  I just hate the risk with no credit card to my name in my history.

 

Thanks again for the help so far


Goal Scores: 720+ (Experian Lender Pull 09/13): 733; Discover TU (01/14): 751; Walmart TU08 (02/14): 754;
WF Platinum (10/12) $1,600; WM Discover (12/12) $5,500; Amazon GE (12/12) $2,500; CapOne Quicksilver (12/12) $750; Discover IT (01/13) $1,000; Chase Amazon (02/13) $2,500; Citi Forward Student (02/13) $2,000; AMEX BCE (09/13) $15,000

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