Zero credit history. Banker recommended Chase Freedom, Applied, denied, & denied on recon. What now?

[Anonymous]

I feel confused and possibly taken advantage of. Just graduated and never had a CC in my life, no loans either. Went to Chase to make a deposit and a personal banker pulled me aside and asked me if I was interested in CCs. I told him that I wanted to build credit and was looking for a basic, entry-level card, but didn't know if I could get one since I had no credit history. He inquired about my financials and history with Chase and recommended the Chase Freedom. He said he had seen a lot of other people with similar profiles get approved, so I applied. I did not receive any further communication from Chase. Although Chase says it may take up 30 days to reach a decision (and it was the Holiday season), it still struck me as irregular and I inquired in person when I made another trip to the bank the following month. They were able to tell me that I was denied and had the denial letter resent. Upon arrival, the reason for denial was listed as "Not enough accounts opened long enough to establish a credit history". After doing a little research, I called the reconsideration number. The gentleman I spoke with was polite but said there's nothing they can do until I establish a credit history.

Where do I go next? Is there any point in seeking further reconsideration or does my situation render me entirely ineligible? Also, can anyone explain why I got such different answers from the banker I spoke with and Chase's credit division?

[jsickz32]

Dont bankers get paid for applications? Also how long you been banking with chase?

[HiLine]

Chase normally doesn't approve credit for people without at least one year of credit history. Some lenders that I know that are more lenient toward builders are Discover and Capital One. You could easily get a secured card as well if you don't mind locking your cash in a bank account for a year.

[jcstarkey8826]

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@Anonymous wrote:

I feel confused and possibly taken advantage of. Just graduated and never had a CC in my life, no loans either. Went to Chase to make a deposit and a personal banker pulled me aside and asked me if I was interested in CCs. I told him that I wanted to build credit and was looking for a basic, entry-level card, but didn't know if I could get one since I had no credit history. He inquired about my financials and history with Chase and recommended the Chase Freedom. He said he had seen a lot of other people with similar profiles get approved, so I applied. I did not receive any further communication from Chase. Although Chase says it may take up 30 days to reach a decision (and it was the Holiday season), it still struck me as irregular and I inquired in person when I made another trip to the bank the following month. They were able to tell me that I was denied and had the denial letter resent. Upon arrival, the reason for denial was listed as "Not enough accounts opened long enough to establish a credit history". After doing a little research, I called the reconsideration number. The gentleman I spoke with was polite but said there's nothing they can do until I establish a credit history.

Where do I go next? Is there any point in seeking further reconsideration or does my situation render me entirely ineligible? Also, can anyone explain why I got such different answers from the banker I spoke with and Chase's credit division?

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They usually get paid on approved apps, so he/she was probably just trying to shoot for something. Rarely do they know as much as the average myfico user haha.

That being said, I was denied my freedom, denied first recon, and was approved on the second. So who knows, I only had 9 months of credit card history at that point.

[Anonymous]

I had a similar situation.  I had banked with Chase for 14 months with my pay going into my account and showing a good amount of savings per month.

I ended up going for a secured card with both US bank and PacTrust bank.  Both approved (but waiting for the cards).  My savings will not be with Chase for much longer.

[Anonymous]

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@jsickz32 wrote:
Dont bankers get paid for applications?

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If so, that would certainly clarify things. In retrospect it was foolish of me to apply without doing independent research.

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@jsickz32 wrote:
Also how long you been banking with chase?

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Since 2008.

[Anonymous]

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@HiLine wrote:

Some lenders that I know that are more lenient toward builders are Discover and Capital One. You could easily get a secured card as well if you don't mind locking your cash in a bank account for a year.

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Having been chastened by Chase, I'm a little hesitant to apply for another card. Do these lenders typically issue cards to peopel with no credit history?

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@HiLine wrote:

You could easily get a secured card as well if you don't mind locking your cash in a bank account for a year.

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Do they actually help? Good credit is an asset worth paying for, but at the same time I'd like to keep expense to a minimum.

[Anonymous]

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@jcstarkey8826 wrote:

They usually get paid on approved apps, so he/she was probably just trying to shoot for something. Rarely do they know as much as the average myfico user haha.

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In many fields, giving a client advice one knows (or reasonably should have known) to be detrimental for personal gain is a violation of professional ethics. I'm guessing banking isn't one of them?

[Anonymous]

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@Anonymous wrote:

My savings will not be with Chase for much longer.

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I've entertained similar thoughts. I'm thinking about transferring most of my assets to another bank while keeping a minimal account open in order to build history with Chase (assuming they consider such things).

[jcstarkey8826]

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@Anonymous wrote:

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@jcstarkey8826 wrote:

They usually get paid on approved apps, so he/she was probably just trying to shoot for something. Rarely do they know as much as the average myfico user haha.

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In many fields, giving a client advice one knows (or reasonably should have known) to be detrimental for personal gain is a violation of professional ethics. I'm guessing banking isn't one of them?

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Banking should be, but maybe not for that individual. Although it is the atmosphere some banks breed. SALES SALES SALES!!!! So the employees feel pressured. Not saying this is what happened. That person may well have been told simply "the freedom is our easiest card to get"

They might have just told you to apply for that card knowing limited information, thinking they were doing what was best for you. We'll never know, but I wouldn't be too upset about it. You have found these forums and can start to learn all they have to offer!