08-20-2012 08:19 PM
I just recently turned 21, so I was excited to finally be able to start building credit. With no credit history, I opted for a secured card. I decided to go with the Capital One secured credit card. After I applied, I was promptly informed that I had been rejected, and they would soon be mailing me a letter explaining why.
I figured it would not have been possible for me to be rejected--after all, it is a secured card, and I have to start somewhere. I did some searching on the forums here where some people shared similar experiences with denials for this card, but with past lates or other negative entries in their credit history.
However, with nothing on my credit report (just trying to get started now!) I'm concerned that I won't be able to get a secured card, and that they already did a hard pull. Any ideas why I might have been rejected or if they could recon?
08-20-2012 08:22 PM - edited 08-20-2012 08:27 PM
I was also rejected for their secured card, and they later approved me for a $3000 credit limit and the only difference was I had more inquiries. Definitely possible to get rejected for secured cards, as with interest and other additional fees, your risk can outweigh your deposit.
I know SDFCU happens to offer a secured credit card with no credit check, so if that is a possibility for you definitely try it out. Also, just because you have no history doesn't mean you have to go the secured route. Are you a college student? There is plenty of student cards available for those with no history.
Do you have any bank accounts, if so, with who?
Edit: Also, always call for a recon, definitely worth a try. Cap1 isn't exactly the best lender out there but it's always worth a try.
08-20-2012 08:45 PM - edited 08-20-2012 08:49 PM
Thanks for the info. I am a college student, and am at a local bank that doesn't offer any cards. I signed up there recently after jumping ship with BofA after they started planning their new monthly fees for checking accounts.
Edit: Just checked, I don't qualify for SDFCU. Thanks for the info though.
Not sure if the State Dept Credit Union requires you/family to be an employee--if so, I wouldn't qualify . But if you know of any specific cards for students without a credit history, that would help. I just hope that the pull from Cap One doesn't hurt anything now.
08-20-2012 09:08 PM
Quick for SDFCU if you're interested...
"If you are not eligible to join through any of the listed groups or affiliations, anyone can join SDFCU through the American Consumer Council (ACC), a nonprofit advocacy group. When opening your SDFCU account you will need to choose ACC on your application, this will automatically enroll you as a member of ACC. There are no hidden fees to join ACC through your membership at SDFCU. To begin your application, please follow the steps below:"
I think you have to make a $10 donation (or something close to it), a lot of the CUs are doing this, Penfed does the same thing, just for a different organization.
I got the wells fargo student card with no credit history, I opened up a checking account with them ($100 minimum deposit) at a branch and the banker told me I was pre-approved as soon as he put in my info. Their student card has no requirement other than an income greater than $3,000 (if you bank with them it seems). I was told they were one of the banks that seems to value a customer relationship.
Some have had luck getting the discover more student or citi student as their first card, however, I had no luck with that. The cap1 journey is supposed to be one of the easiest to get, however, if you call for a recon on your secured card, ask them if they can run an app for that against your same hard pull, rather than getting another 3 from them.
08-20-2012 10:56 PM
Thanks again for the information.
I'm now considering applying for an account at SDFCU. Does anyone know if they would reject my app to join the CU with no credit history? It looks like a great CU, but I'm not sure if i should go to the trouble of trying to create an account there. I would like to eventually apply for their secured card, but I know I have to apply to become a member first.
08-21-2012 12:29 AM
I got approved last week for a Capital One Platinum card with a $500 CL, 24.9% APR (AF waived for first year, 19$ after that). No credit history, however my TU is 713?? I know it's weird. But I had applied for 2 Discover + 1 TD Bank Credit cards, got denied for those three. I applied for Citibank Forward for Students, just sent a copy of my SS for identity verification last night. So we'll see about that, if I get approved.
Anyway, now that you got my backstory, I recommend that you go to the branch and apply for either the Journey's card or the Cash Rewards card ($39 AF, but no APR for the first year unlike "Platinum"). Preferably the latter. Higher AF, but you won't have to worry about interest for a year, that's the one I wouldve taken if I had known a bit better.
08-21-2012 01:22 AM - edited 08-21-2012 01:24 AM
Very important to start on right footing. Dont app anymore until we get more info. First off you are full time student? At what kind of school? 2nd, do ou have ny income? 3rd how much can you afford to put into secured card? Do you have anyone who could add you asauthorized user on their credit card? If so who and what kindof cards.
08-21-2012 01:58 AM
Hi, thank you for the responses.
I'm in southeast MA and am a full time student at a local university. I'm fortunate enough to be able to commute from home to school so that eliminates most living costs.
As far as income goes, with the coming semester I'll be starting as a TA at school and will receive a stipend. It isn't much, just a part-time gig for experience. I *hope* to get into a full-time career in teaching after I graduate at the end of this coming school year.
But anyway, I planned to be able to put down around $300 for a secured card, based on the required amounts I've seen for some cards, and this is something I'd be comfortable doing. As far as being an authorized user, I considered this when I was under 21, but was afraid if my parents missed a payment or something (just being overly cautious, perhaps) that it would negatively affect me.
Now that I'm at the golden age of 21, do you think I'll have more options where I do not have to be an AU?
Thanks again for the replies.
08-21-2012 08:14 AM
Tell 'em you make 25,000/yr or so...even if you don't. Their limit still will be crap anyway, but at least they'll approve you. Wing it a little bit, JUST a little bit.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.