topic Re: College Student w/ Excellent Credit- Chase Denial in Credit Card Applications

College Student w/ Excellent Credit- Chase Denial

Anonymous — Tue, 10 Apr 2018 20:04:53 GMT

Hi everyone

I recently turned 18, and am about to start college in August. The most exciting part for me was being able to get my own credit cards, since I've been managing my parents cards/rewards for the past 4-5 years.

Between my self employed tutoring income and offered scholarships, my annual income is 18k. I also have 4 AU cards (CSR, Citi TYP, Citi DC, BofA Premier Rewards), with an AAOA of 9yrs and credit depth of 24 years (TU report,) for an 803 VantageScore. I applied in branch for a Chase freedom. Recon told me that the denial was due to an insufficient credit history.

My question thus is, would it be easier to start out with a charge card like the Amex PRG, and then start on Chase products? Or should I go all-in recon (I'm under 5/24 ofc) and build out my Chase products, with Freedom, CFU, then finally CSP.

Re: College Student w/ Excellent Credit- Chase Denial

fltireguy — Tue, 10 Apr 2018 20:12:08 GMT

@Anonymous wrote:
Hi everyone

I recently turned 18, and am about to start college in August. The most exciting part for me was being able to get my own credit cards, since I've been managing my parents cards/rewards for the past 4-5 years.

Between my self employed tutoring income and offered scholarships, my annual income is 18k. I also have 4 AU cards (CSR, Citi TYP, Citi DC, BofA Premier Rewards), with an AAOA of 9yrs and credit depth of 24 years (TU report,) for an 803 VantageScore. I applied in branch for a Chase freedom. Recon told me that the denial was due to an insufficient credit history.

My question thus is, would it be easier to start out with a charge card like the Amex PRG, and then start on Chase products? Or should I go all-in recon (I'm under 5/24 ofc) and build out my Chase products, with Freedom, CFU, then finally CSP.

OK.. You petty much summed it up all in your first sentence “I recently turned 18”

First, YOU don’t have an excellent credit history. Based on what you have said, YOU have NO credit history at all

Even though you are an AU on someone else’s cards, you have no personal history. You also have a very low income, even though you may be a student. But, even more importantly, Chase generally likes to see at least a year of history.. Also, what are your FICO scores? Vantage scores are useless, and mean nothing at all in the credit world.

Even though you have been managing your parents cards, and rewards, etc.. that means nothing at all in the big picture...

Re: College Student w/ Excellent Credit- Chase Denial

Anonymous — Tue, 10 Apr 2018 21:02:21 GMT

@Anonymous wrote:
Hi everyone

I recently turned 18, and am about to start college in August. The most exciting part for me was being able to get my own credit cards, since I've been managing my parents cards/rewards for the past 4-5 years.

Between my self employed tutoring income and offered scholarships, my annual income is 18k. I also have 4 AU cards (CSR, Citi TYP, Citi DC, BofA Premier Rewards), with an AAOA of 9yrs and credit depth of 24 years (TU report,) for an 803 VantageScore. I applied in branch for a Chase freedom. Recon told me that the denial was due to an insufficient credit history.

My question thus is, would it be easier to start out with a charge card like the Amex PRG, and then start on Chase products? Or should I go all-in recon (I'm under 5/24 ofc) and build out my Chase products, with Freedom, CFU, then finally CSP.

I'm about to turn 20, and was in your shoes not too long ago. Thought I was good, logged into CreditKarma.com and saw how high my 'scores' were. Thought I was golden! Applied for the Chase Freedom as my first card...wow, was I ignorant at first! Though my income was only around $8k at the time, so I was disadvantaged more than you with that regard, and I only had one single AU card. I app'ed Discover, denied, and app'ed Capital One Journey and was approved!

I then applied 5 months later, again for the Chase Freedom, stupidly thinking 5 months would change everything. It didn't. I was way too early , and way too impatient. At this point, I learned of the FicoForums, so you're ahead of me now in two aspects.

Over the course of the last two years, I have acquired 5 cards, none of which were Chase. Soon, the two year anniversary of my Capital One will hit, at which point I will (fingers crossed) finally get my Chase Freedom due to being out of 5/24.

Long lesson, don't rush credit. Be a little smarter than me and maybe make your 3rd or 4th card, even 5th card, a Chase card, but don't try for them at the start. Like others will tell you, Chase wants 1 year of YOUR experience, where you have bills YOU are in charge of. Around these forums, you will hear lots of talk about having 'high scores' but 'thin files'. My sister and I duel this out. Our credit scores are nearly identical, but she has only one card that has aged, and I have 5 cards that have half the age, but I am far more likely to be approved due to my thick file and proof of handling credit.

Get started while you can, but maybe start with Amex or Discover. Regardless, you have the right idea with starting now Get that 12 month clock ticking today for your Chase!

Re: College Student w/ Excellent Credit- Chase Denial

Gmood1 — Tue, 10 Apr 2018 21:03:43 GMT

You'll have a much better chance with Discover. They give these cards out like candy to college students.
Your stated income is more than adequate for a $1500 starting limit.

Amex will most likely swoop you up as well. No need for a charge card. Get the one that best suits your spending habits.
USAA and NFCU are both student friendly as well.

Re: College Student w/ Excellent Credit- Chase Denial

Anonymous — Tue, 10 Apr 2018 21:07:23 GMT

I just checked, FICO with Experian is 765. I will likely see if I can get approved for an Amex charge card, since my understanding is that those are easier to get approved for- I never plan on carrying a balance, so charge vs. revolving isn't an issue. The MR and $100 airline credit are appealing too . If not, I will apply for a Citi student TYP or a CapOne/Discv and try again in 6-12months.

Love how active this forum is!

Re: College Student w/ Excellent Credit- Chase Denial

Gmood1 — Tue, 10 Apr 2018 21:11:53 GMT

The charge card won't do anything for utilization "young skywalker". 😉
Slow down and do research before you apply. Dang you're starting to remind me of these hard headed kids around here. lol

Re: College Student w/ Excellent Credit- Chase Denial

Anonymous — Tue, 10 Apr 2018 21:19:56 GMT

My understanding is that amounts charged on a charge card aren't reported as part of utilization. On-time payments, age of account, etc are. My plan is to keep this card open , and occasionally use it for the $100 reimbursed travel incidentals and sign-up bonus, and allow it to build about a year or 2 of credit history and on-time payments before applying for revolving cards.

This gives me some use cases/benefits now, and the possibility for more rewarding cards a year or 2 down the line.

Re: College Student w/ Excellent Credit- Chase Denial

Gmood1 — Tue, 10 Apr 2018 21:34:11 GMT

Alrighty then you've got it figured out. Take no advice from the guy with more than a half million in open tradelines. 😂

For someone just starting out. Why wouldn't you want your payment history/ limit to report?
You're doing just the opposite of what you need to do to show these CC companies you're reliable.
Show them you know how to manage your credit. IMO I'd Leave the charge cards to the old heads with years of payment history.

Re: College Student w/ Excellent Credit- Chase Denial

Anonymous — Tue, 10 Apr 2018 21:48:10 GMT

Will your scholarships be reported to the IRS as taxable income, or are they simply a credit/discount on your tuition bill? I could be wrong but my understanding is that scholarships can't be used as income for credit purposes unless its like a teaching assistantship or fellowship (generally not applicable to undergraduates) where you actually receive a paycheck from the school.

@Anonymous wrote:
Hi everyone

I recently turned 18, and am about to start college in August. The most exciting part for me was being able to get my own credit cards, since I've been managing my parents cards/rewards for the past 4-5 years.

Between my self employed tutoring income and offered scholarships, my annual income is 18k. I also have 4 AU cards (CSR, Citi TYP, Citi DC, BofA Premier Rewards), with an AAOA of 9yrs and credit depth of 24 years (TU report,) for an 803 VantageScore. I applied in branch for a Chase freedom. Recon told me that the denial was due to an insufficient credit history.

My question thus is, would it be easier to start out with a charge card like the Amex PRG, and then start on Chase products? Or should I go all-in recon (I'm under 5/24 ofc) and build out my Chase products, with Freedom, CFU, then finally CSP.

Re: College Student w/ Excellent Credit- Chase Denial

pipeguy — Wed, 11 Apr 2018 00:29:22 GMT

@Gmood1 wrote:
Alrighty then you've got it figured out. Take no advice from the guy with more than a half million in open tradelines. 😂

For someone just starting out. Why wouldn't you want your payment history/ limit to report?
You're doing just the opposite of what you need to do to show these CC companies you're reliable.
Show them you know how to manage your credit. IMO I'd Leave the charge cards to the old heads with years of payment history.

+1 Gmood1

I like your "old fart" advice firm but wise

Re: College Student w/ Excellent Credit- Chase Denial

Anonymous — Wed, 11 Apr 2018 00:42:30 GMT

I would have thought that the parents could have helped with this endeavor, since you're an AU on their cards. Surely they have some experience with credit?

Re: College Student w/ Excellent Credit- Chase Denial

fltireguy — Wed, 11 Apr 2018 01:43:44 GMT

@Anonymous wrote:
I would have thought that the parents could have helped with this endeavor, since you're an AU on their cards. Surely they have some experience with credit?

Re: College Student w/ Excellent Credit- Chase Denial

Meanmchine — Wed, 11 Apr 2018 02:02:47 GMT

How does somebody with literally no credit in his name, have a 765 score??? I didnt think this was even possible. It dimishes the hard work people with similar scores have made

Re: College Student w/ Excellent Credit- Chase Denial

Anonymous — Wed, 11 Apr 2018 02:25:34 GMT

Sorry If I sounded arrogant at first, as that wasn't my intention. But my logic here was:

Credit utilization is less important in calculating score compared to on time payments and general account standing. My limited credit history makes it hard to open revolving accounts. In that case, wouldn't it be advantageous to open a charge card, use it for 7-9 months, and then open a revolving product with AMEX (eg AED), and then wait for another 7-9 months, at which point I should have a deeper credit history built up, before applying for other products?

Re: College Student w/ Excellent Credit- Chase Denial

Meanmchine — Wed, 11 Apr 2018 02:42:27 GMT

@Anonymous wrote:
Sorry If I sounded arrogant at first, as that wasn't my intention. But my logic here was:

Credit utilization is less important in calculating score compared to on time payments and general account standing. My limited credit history makes it hard to open revolving accounts. In that case, wouldn't it be advantageous to open a charge card, use it for 7-9 months, and then open a revolving product with AMEX (eg AED), and then wait for another 7-9 months, at which point I should have a deeper credit history built up, before applying for other products?

NO

Re: College Student w/ Excellent Credit- Chase Denial

Anonymous — Wed, 11 Apr 2018 02:51:37 GMT

Have you tried getting pre-approved on the Discover site? Discover is great for those just starting out and for those starting over.

Re: College Student w/ Excellent Credit- Chase Denial

fltireguy — Wed, 11 Apr 2018 02:55:27 GMT

Your logic is somewhat flawed... Take a good hard look at the advice here..

Best bet - Discover in your case.. Maybe a CapOne card as well. Then give it 6 -12 months, and you should be good to go

Re: College Student w/ Excellent Credit- Chase Denial

Anonymous — Wed, 11 Apr 2018 05:07:09 GMT

Yes, Amex charge cards are easier to get. But that does not mean you should get one, especially as your first card. Think of it this way:

Before you have ANYTHING report to your credit report (eg, even zero AUs), you don't have a credit score. Its not even any number, it's just nonexistent. If you only open a charge card, you have payment history, etc, reporting on, but your Utilization remains an N/A with them, and that does messed up things to the scoring algorithm.

Of course, you have AUs reporting utilization, but when computer systems and analysts look at your profile, they see through the parent AU fluff. Plus, utilization is a huge chunk of the pie (30%!), so don't be so willing to forgo that, especially when you will lack in every other sector of the pie (credit length of YOUR accounts, diversity of credit, number of your own accounts, etc.). You should take everything you can get, including positive utilization!

So get a Discover, an Amex, or a Capital One. Honestly, if I were you, the following is exactly what I would do:

1) Check prequalifiers for Discover and Amex. Capital One requires you be 21 for prequalifying.

2) Apply anywhere you're prequalified for, starting with Discover.

If you are not preapproved for anything....

1) Apply for Discover Student IT

2) If denied, call recon. Worst case, settle/ ask for the Secured IT. I got it as my second card, and in 7 months, it was a $2500 unsecured. Now its $4600 1 year later.

3) Apply for a Capital One Journey. They approved me with only one AU, and they didn't approve a friend with no AUs. I only had $5500 reported income, and they approved me for $2000 at age 18. They were crazy, but they trusted the right person Very likely approval.

4) Let these two cards age 1 year. Your AAOA will be 1 year, and you'll have 24 total on-time payments, perfect utilization on two cards for 24 months, and length of credit history will be 1 year (optimal for Chase!), and overall, your file will be twice as thick as one card, and Chase and other banks will love to see that.

For you, stop focusing on the score. That was what I was fixated on 2 years ago when I was your age, and its a trap. Focus on the thickness of your own file with YOUR own accounts. The AUs have shown that you can handle spending money when your parents are watching; all that means is that you can be approved for a credit card if a parent co-signs with you and still can watch over your shoulder. To prove you can handle EVERYTHING with no one watching, you need to start your profile now, and it won't happen with Chase. Listen to what I and others advise you, as we have all been there. Sounds like you're a great, responsible young adult, and sounds like you're frustrated no big bank trusts you with money. I felt that way at least. Prove it by starting off with banks that are willing to take a chance on you, and it'll pay off in a year and later on

Re: College Student w/ Excellent Credit- Chase Denial

Anonymous — Wed, 11 Apr 2018 05:44:52 GMT

I agree with everyone about applying first with Discover. They were my first and only credit card for awhile when I was a college student, and they approved me with nothing in my file AFAIK but deferred student loans.

Re: College Student w/ Excellent Credit- Chase Denial

Schwartzinator — Wed, 11 Apr 2018 18:52:31 GMT

As someone also in college, it may be benefical to app for a product offered by whatever institution manages your checking account. I wanted a new MacBook Pro freshman year and foolishly apped for the Barclay's Apple Rewards with no history and was unsuprisingly denied. I had a chat with my banker and they set me up with a USBank College Visa with a lowly $300 limit but with almost no questions asked. After a little more than a year, I apped for the Discover IT and was instantly approved for $1,500 which has since grown to $15,000. Chase however, is a relatively new addition to my profile and took A LOT of work to obtain with my "thin" file.