topic Re: CapOne Student Denied in Credit Card Applications

CapOne Student Denied

Anonymous — Wed, 05 Apr 2017 04:40:27 GMT

A friend applied to Discover Student in January and was approved.

But in March applied for CapOne Student and was instantly denied. Denial letter just came and says the reason for the decision is:

"Based on your credit report from EQ, EX, and TU credit bureau information is missing or unavailable".

Uhm...generally when someone applies for a "Student" card they obviously have no credit or are generally just starting out with credit which is the case for my friend.

"Key factors that adversely affected your credit score: Score unavailable, insufficient or Unkown credit history".

It's like they've never had anyone new to credit app with them.

Re: CapOne Student Denied

medicgrrl — Wed, 05 Apr 2017 05:05:48 GMT

I think most students start at their own bank or as authorized users on a parents account. Both of my kids first credit came from their credit union where they have their checking and savings.

Re: CapOne Student Denied

Anonymous — Wed, 05 Apr 2017 05:21:34 GMT

Medicgrrl - I would say most parents are hesitant to add their teenagers because of how irresponsible teens typically are these days.

A very small percentage of the US populations teens has a checking or savings account at any credit union.

Regardless where you start if they're giving you an application for credit and you are between 18-20 they should expect you to have no credit history, if you do that's a plus, but they should be equipped to handle a student card application with no prior credit history that's the whole point of a student card.

Also, say you're a teen who has had a checking account with Chase from age 14 until you're 18 and you then apply for a credit card, that teen checking account isn't even a factor in their decision to grant/deny you a credit card.

Re: CapOne Student Denied

Anonymous — Wed, 05 Apr 2017 06:45:15 GMT

@Anonymous wrote:
Medicgrrl - I would say most parents are hesitant to add their teenagers because of how irresponsible teens typically are these days.

A very small percentage of the US populations teens has a checking or savings account at any credit union.

Regardless where you start if they're giving you an application for credit and you are between 18-20 they should expect you to have no credit history, if you do that's a plus, but they should be equipped to handle a student card application with no prior credit history that's the whole point of a student card.

Also, say you're a teen who has had a checking account with Chase from age 14 until you're 18 and you then apply for a credit card, that teen checking account isn't even a factor in their decision to grant/deny you a credit card.

While it may be true that some banks don't consider prior banking history, it is not necassrily true for all banks. A notable example is Wells Fargo. I had been banking with Wells Fargo since I was 13 and they gave me my first card when I was 18 without a cosigner. It had a reasonable 1,200 SL, considering my reported income was around 15K.

Re: CapOne Student Denied

Anonymous — Wed, 05 Apr 2017 08:02:02 GMT

In response to posts above. I'm currently 18. I started with a BoA checkings and savings and all the cards in my sig are under me. Also started as an AU under mothers credit, slowly building up there. As for OP I'd say call the recon line if possible, if not then work on CLIs for the current card they have

Re: CapOne Student Denied

elim — Wed, 05 Apr 2017 08:47:36 GMT

I keep hearing about Cap1 tightening up in the lending department this year. Might be it.

Re: CapOne Student Denied

andyaycw — Wed, 05 Apr 2017 11:25:13 GMT

Curious to see so many people getting declined for student credit cards. About a decade ago when I was first starting out and had no credit, Citibank gave me two student credit cards with starting CL's of $1200 and $1000.

If these are student credit cards, I wonder if they have some sort of algorithm that takes into account repayment rates based on the specific university one is attending? That's the best theory I've ever come up with though I've never really seen it talked about on here, so perhaps it's not the case.

Still very curious though to figure out how, given two people with no credit, credit card companies decide to take a chance on one person and not the other.

Re: CapOne Student Denied

fltireguy — Wed, 05 Apr 2017 13:18:43 GMT

Matt4200- why would a parent be hesitant to add their teenager as AU on a card? Most of those that do, including myself, add them as AU, and SD or destroy the card. There is no reason for them to have the card in their possession EVER, making their irresponsibility a moot point 😁

Re: CapOne Student Denied

fltireguy — Wed, 05 Apr 2017 13:19:44 GMT

Your friend should email the EO and see if anything can be done

Re: CapOne Student Denied

Anonymous — Wed, 05 Apr 2017 15:12:54 GMT

Fltireguy - Doing what you just said immediately to a hormonal teenager says, I don't trust you at all you're irresponsible and I'm going to get a CC with your name on it and just cut it up just for the fun of it. (That last part is their teen brain adding it in).

Some teens understand rationality, but for the most part they don't. I would estimate 90% of parents DO NOT add their teens as an AU. Out of all the 20 people I asked about this 1 person had their parent add them as an AU and they said it was only because for 5 years straight their parent trained them and made sure they understood the importance of credit prior to their 18th bday.

Andy - The app didn't even ask which university/college they were attending for CapOne.

Re: CapOne Student Denied

Anonymous — Wed, 05 Apr 2017 15:57:11 GMT

@Anonymous wrote:
Fltireguy - Doing what you just said immediately to a hormonal teenager says, I don't trust you at all you're irresponsible and I'm going to get a CC with your name on it and just cut it up just for the fun of it. (That last part is their teen brain adding it in).

Some teens understand rationality, but for the most part they don't. I would estimate 90% of parents DO NOT add their teens as an AU. Out of all the 20 people I asked about this 1 person had their parent add them as an AU and they said it was only because for 5 years straight their parent trained them and made sure they understood the importance of credit prior to their 18th bday.

Andy - The app didn't even ask which university/college they were attending for CapOne.

I added my teens and just cut up the cards, no reason for them to know about it. For my daughter, once she was in her early 20s I kept her AU card that she could use for emergencies and had to pay me back before it could be used again. It's all about the conversation, no need to make it dramatic.

Re: CapOne Student Denied

Anonymous — Wed, 05 Apr 2017 16:18:53 GMT

2kide2cats - If you tell someone who is 16-18 I got you a Credit Card but you can't use it because you're irresponsible and I don't trust you. How can that not cause drama with a majority of teens?

Re: CapOne Student Denied

Anonymous — Wed, 05 Apr 2017 16:25:46 GMT

Do you bank with Bank of America? If so, you can go inside a branch and tell them your lack of credit situation. They may be able to open the College Cash Rewards or be countered with a partially secured card where you put 99 down for a 500 limit.

If you do not have one, you can open a Bank of America college checking try to open the card in branch after three checking cycles.

Another option if you have $200 is to open a Discover secured card.

Re: CapOne Student Denied

fltireguy — Wed, 05 Apr 2017 16:33:23 GMT

I never told them about the AU cards. There is NO drama in my house either to start with, and there would not have been if they had known.

BUT, when my youngest turned 18, he had a 740 TU right off the bat.... due to the CC's that had been reporting for 3 years

Also, 2kids stated that her teens never knew about the AU cards...

Re: CapOne Student Denied

Kforce — Wed, 05 Apr 2017 17:54:01 GMT

I have raised 2 daughters. Each were added to a couple of old credit union credit cards when

they turned 16. I never told them, asked them, or gave them the cards. (No need or purpose).

This is just a way to help start credit history reporting. It makes less "Drama" later when they

need some history on file.