High score, thin file - how to proceed

[Anonymous]

---

@Anonymous wrote:

---

@Anonymous wrote:

The major banks will take people with high credit scores and thin files. 

If someone has six months of credit history, though, I wouldn't count on any of them will approving that person. I would say someone needs at least two years of credit history to get a card at a major bank that has a relatively solid APR. 

---

Relatively solid APR?

You don't need 2 years of credit history to be approved at a major bank. Far from it. 6 months or less will do it. I got my Freedom with very little history.

---

At a relatively solid APR. Chances are your APR will be at the highest available if you don't have much history. 

[Anonymous]

---

@Anonymous wrote:

---

@Anonymous wrote:

---

@Anonymous wrote:

The major banks will take people with high credit scores and thin files. 

If someone has six months of credit history, though, I wouldn't count on any of them will approving that person. I would say someone needs at least two years of credit history to get a card at a major bank that has a relatively solid APR. 

---

Relatively solid APR?

You don't need 2 years of credit history to be approved at a major bank. Far from it. 6 months or less will do it. I got my Freedom with very little history.

---

At a relatively solid APR. Chances are your APR will be at the highest available if you don't have much history. 

---

Who cares if you don't carry a balance. My freedom when approved and still is 23%. If I get a high APR I will NEVER carry a balance on it.

Whenever I need to carry a balance or just feel like carrying a balance i will charge it to my best rewards card and as soon as it posts I immediately put it on a 0% BT offer that I always have available  to me.

[joltdude]

I'd also consider adding an Alliant Secure Share loan to both kids accounts... Do not want to do this through NFCU....  1. Diversity and 2. Alliant doesnt shorten the loan just by paying more on it.....You basically take out the loan. then pay most of it off... If they have savings you can use this for this AND then leave it in the high APR savings account that Alliant has by default =)

The other thing... Id tend to go for a discover but wait the 6 months.... Yes you can probably get a chase in a few months.. but it will be at the worst APR and it wont go downward... Discover entertains apr reductions and actually can grow with SP CLIs... And likes thin but clean files... Chase tends to like a year of experience with another card ......  and they dont entertain any sort of apr reduction and will likely shoehorn them into a low CL that will not grow much without some HP ....  

Also if you want to try to reduce the HPs for the Disco... have both sign up for credit scorecard... It will also give them one free FICO score a month.... BUT it also may (YMMV) mean discover only does ONE  HP vs TWO.. which i think is a winning proposition... 

Id say go for an amex but since youre likely to have the navy one... id just use it for a bit if you get it and let it grow... You dont need two amexes right now... and they are still young with credit... one less login to worry about and track for the time being...

[driftless]

OP. how old are your children?

[Anonymous]

My twins are twenty years old, and are already astonishly tuned in to the importance of managing credit.  Meaning, they use their cards heavily and still manage to close with a 1-3 % utilization at the end of each cycle.   

[Anonymous]

---

@Anonymous wrote:

---

@Anonymous wrote:

---

Relatively solid APR?

You don't need 2 years of credit history to be approved at a major bank. Far from it. 6 months or less will do it. I got my Freedom with very little history.

---

At a relatively solid APR. Chances are your APR will be at the highest available if you don't have much history. 

---

Seconded. All mine are in the high 20s. My significant other's recent approvals are in the teens after having a WF card for two years.

I'll throw my experience in if it helps:

10 years as AU on two cards, then 2 years without, and my FICO score disappeared but I still had *something* on my credit file. Apped for 3 cards all in one go, since I figured if you don't have a score, 3 HPs isn't going to affect it at all. 

I'm a grad student, so I apped for the Discover IT Student. Instant approval for $500, no credit inquiry. My SO, also a grad student, got one for $1500, but she already has a two-year-old card. I think your kids would have a good shot with the Student card, provided they qualify (though they did not ask me for proof of enrollment, despite being around 30; it just automatically applied for that version when I put in "student" as employment), and would also get a decent starting limit, too.

Card #2: through my local bank, issued by Elan/USBank. Says on their website they *do* take bank relationship into account for approval. (I was approved; been with them for 10 years and one of those AU accounts was with Elan). 

Card 3: Amex BCE. Approved after 8 weeks dealing with income verification. Didn't instantly deny me for lack of credit history, but gave me the benefit of the doubt, presumably because of my age/income; i.e. I'm not a college freshman with an allowance.

So its possible, though I understand my experience as a 'thin file' is unique--not new to credit cards, but just haven't had any in a long time. I'd say wait for those to age out a bit to get the better terms, and like others said, don't close them. NFCU seems to be a popular small-bank card to have around here.

[Anonymous]

Thanks everyone for the very helpful advice!  I am not a Helicopter Mama as a rule, but given my less than stellar start regarding credit decades ago, I am huge on encouraging a solid start with my kids.  It is my experience that NFCU offers up more credit than the average individual needs - getting two cards with $25,000 limits is in the realm of possibility within a calender year, so long as you treat your accounts with respect.  Neither kid seems terribly interested in having a dozen cards in their wallet, and we got our mortgage with a very thin file after decades of living a cash only lifestyle.  Still, having age credit certainly makes life easier!