topic Re: I'm stuck in that old Catch 22: Need Credit to Get Credit in Credit Card Applications

I'm stuck in that old Catch 22: Need Credit to Get Credit

Anonymous — Sun, 16 Jun 2019 21:29:12 GMT

I'm applying for a credit card for the first time ever (30yo) and despite having a score of 776 I keep getting denied.

The exact reasons for my denial were:

there are too few or no open primary accounts
there are too few or no primary bankcard accounts
there are too few or no primary revolving accounts

It seems I'm stuck in the catch 22 of trying to establish a history of credit but getting denied because I don't have a history of credit.

Does anyone have any recommendations for how to overcome this obstacle?

I've read elsewhere that getting a secured card is one way. Taking out a small personal loan is another...

I'm wondering if there are any other good strategies that you might be aware of.

Thanks for any help you can offer!

Re: I'm stuck in that old Catch 22: Need Credit to Get Credit

hernaemm90 — Sun, 16 Jun 2019 21:34:08 GMT

Out of curiosity where are you getting your score from?

With a 776 I find it curious that you are not getting approved for credit cards. If you could share some details about what your credit report looks like people here can reply with suggstions you are likley to get approved for

Re: I'm stuck in that old Catch 22: Need Credit to Get Credit

Remedios — Sun, 16 Jun 2019 21:35:46 GMT

Hi and welcome

Your score, do you have AU accounts or installment loans?

Also, who were you applyin with when you got denials (knowing this will avoid redundant suggestions)

Re: I'm stuck in that old Catch 22: Need Credit to Get Credit

Anonymous — Sun, 16 Jun 2019 21:36:56 GMT

Hello and thank you for the response!

The score of 776 was what Capitol One had on my letter of denial.

According to MyFico, my current scores are:

Equifax: 774

Transunion: 758

Experian: 727

Re: I'm stuck in that old Catch 22: Need Credit to Get Credit

Anonymous — Sun, 16 Jun 2019 21:39:28 GMT

Hello and thanks for the response!

Sorry, I'm not sure what an AU account is. Could you please clarify?

These are the cards I applied for and got denied:

Alliant Cashback Visa® Signature Credit Card

Citi® Double Cash Card

Capital One® Quicksilver® Cash Rewards Credit Card

Re: I'm stuck in that old Catch 22: Need Credit to Get Credit

hernaemm90 — Sun, 16 Jun 2019 21:44:59 GMT

AU stands for authorized user. You have a card with your name but someone else is on the hook for paying off the bank

Re: I'm stuck in that old Catch 22: Need Credit to Get Credit

Anonymous — Sun, 16 Jun 2019 21:48:31 GMT

Got it, thank you for the clarification.

Yes, I do have an AU account. My name is on a credit card for the family business. My father is the primary account holder.

Re: I'm stuck in that old Catch 22: Need Credit to Get Credit

Anonymous — Sun, 16 Jun 2019 21:52:38 GMT

Welcome to the forums!

AU = authorized user on someone else's card/account

I would suggest applying for a discover it cash back card. You can check their pre-qualification page, it's usually pretty accurate. I was approved without having any credit history at all. I think you should have no problem getting approved, especially if you have a somewhat reasonable income. They also recently approved my friend who didn't have any credit cards with a $8500 starting credit limit.

Discover is also very good for credit limit increases, which helps you build your credit profile in terms of being able to get more premium cards down the road.

Maybe after around 6 months with the discover, you can attempt to apply for some other cards like Chase, or re-apply for the ones you were declined for if you're very interested in them.

Good luck and let us know if you have any questions! 😊

Re: I'm stuck in that old Catch 22: Need Credit to Get Credit

Remedios — Sun, 16 Jun 2019 21:51:01 GMT

In order to have a FICO score, you have to have an active account for the minimum of 6 months.
Seeing how you have score, what type of accounts do you have?
Are you authorized user on someone else's credit cards?
Do you have any loans?

Re: I'm stuck in that old Catch 22: Need Credit to Get Credit

Anonymous — Sun, 16 Jun 2019 21:52:59 GMT

Student loans that were paid off 3+ years ago.

Authorized User on a Credit Card for the family business.

Thank you!

Re: I'm stuck in that old Catch 22: Need Credit to Get Credit

Remedios — Sun, 16 Jun 2019 22:21:08 GMT

So, you could try with secured card first, wait six months, then apply for non secured card.

You could check prequals for lenders such as Capital One, Amex and Discover if any of their cards fit your spending needs. Those issuers are not averse to young files.

You could also check and see if your banking institution has starter/secured cards.
If you're not a member of any local credit union, I'd check them out. Most will have some kind of starter/secured card.

Secured card may or may not be needed in your case. Check out prequal pages for lenders mentioned above and see if anything shows up

https://www.discovercard.com/application/prequal

https://www.americanexpress.com/us/credit-cards/?eep=25330&linknav=US-Acq-CCSG-Prospect-CardsLanding-CheckForOffers-GlobalNav

https://www.capitalone.com/credit-cards/prequalify/

Re: I'm stuck in that old Catch 22: Need Credit to Get Credit

Anonymous — Sun, 16 Jun 2019 22:24:41 GMT

This is great.

Thank you for the help and recommendations.

Re: I'm stuck in that old Catch 22: Need Credit to Get Credit

Remedios — Sun, 16 Jun 2019 22:27:20 GMT

You're welcome
Hope to see an approval thread from you

Re: I'm stuck in that old Catch 22: Need Credit to Get Credit

pinkandgrey — Sun, 16 Jun 2019 23:53:05 GMT

Secured may be your only option for a card. However, have you looked into the Platinum by Capital One? I got that one as my first card with almost no history. It was unsecured but had a small limit. If you can’t get that one, then secured is probably your best bet.

Good luck!

Re: I'm stuck in that old Catch 22: Need Credit to Get Credit

Anonymous — Mon, 17 Jun 2019 00:25:44 GMT

Thank you for the recommendation!

Re: I'm stuck in that old Catch 22: Need Credit to Get Credit

Anonymous — Tue, 18 Jun 2019 18:03:07 GMT

Interesting, with that verbage I totally expected somone like me at 18. And getting those too new responses. Not someone in their thirties. lol

I alos found it odd that you had a CS, yet no open accounts. Have you never had any revolving accounts, ever?

A paid Loan 3+ years ago is credit, just not the type you're looking for in trying to get CCs.

I'm almost certain you'll have to get at least one secured card to get on the board, at least if none of those prequals pan out. Just remember to keep you inquiries low during this process, each denial increases the next denial. And the more they add up, the lower you score becomes as well as you chances for approval.

I'm a bit surprised Cap1 denied you, they generally will approve anyone. Had you app'd the Platinum perhaps they would have. lol

You also might consider opening a card where you Bank, especially if it's a Credit union.

Re: I'm stuck in that old Catch 22: Need Credit to Get Credit

Anonymous — Wed, 19 Jun 2019 00:40:23 GMT

I always recommend secured cards from Capital One and Discover. After 6 months of on-time payments and keeping the utilization low, try to bump them to unsecured versions and you're off to the races.