topic Re: New To Credit in Credit Card Applications

New To Credit

tmax2020 — Fri, 11 Dec 2020 03:40:34 GMT

Hello members,

I'm new to the community, I have couple of questions in regards to people with limited or short credit history. I'm hunting for a new credit card, I have completed my self lender account, on time payment for my auto loan and 1 year with capital one quicksilver.

I requested for CLI with Capital One but they offered me just 150, and I utilize my card very and Pif every month, I was so disappointed they offered me just 150 when I pif 500+ every month.

I applied for penfed card, I was outrightly denied. My Fico 8 is EQ 743, EXP 754, TU 764

thanks for reading.

Re: New To Credit

AllZero — Fri, 11 Dec 2020 03:48:15 GMT

That is unfortunate on the PenFed denial. Did you get the letter? What where the listed reason(s) for denial?

Have you considered other credit union(s)?

Re: New To Credit

tmax2020 — Fri, 11 Dec 2020 04:00:53 GMT

I joined penfed 4 months ago, my paycheck goes to their checking account. Yes I'm looking for another CU, I don't want to bank with capital one anymore.

The reasons I got denied

Thank you for your recent application for credit. We have carefully considered your request, but
were unable to approve it due to the following reason(s):

• Length of time accounts have been established

• Too many accounts with balances 1 credit card

• Proportion of loan balances to loan amounts is too high 17k auto loan, paid 19% opend 8 months ago

• Length of time revolving accounts have been established 1 yr ago

We also obtained your credit score from this consumer reporting agency and used it in making our credit
decision. Your credit score is a number that reflects the information in your consumer report. Your
credit score can change, depending on how the information in your consumer report changes.

Your Credit Score: 762
Date: 12/7/2020

• Length of time accounts have been established

• Too many accounts with balances

• Proportion of loan balances to loan amounts is too high

• Length of time revolving accounts have been established

Re: New To Credit

Anonymous — Fri, 11 Dec 2020 04:04:14 GMT

@tmax2020 welcome to the myFico community! Sorry to hear about the underwelming CLI offer at Cap One but congrats on all the progress you have made and your scores are reflecting the hard work! I started my build in the summer of 2019 and quickly realized that while my scores were pretty solid, many lenders wanted to see more history. I think that Cap One buckets starter cards so in some cases like mine, no matter how well I treat them, there just isn't any real chance for a decent CL with my first card. IMHO you may want to go to the Discover prequal page and see if they have an offer for you. Discover likes a thin file and the cash back match for the first year is great! They have been great for my build.

Penfed treated me the same way that you experienced, but I have had a good (great!) experience with Navy. If you can meet the membership requirement at Navy Federal Credit Union, that would be a great relationship to build.

Please keep us updated on what decisions you make and I look forward to following your journey!

Re: New To Credit

Slabenstein — Fri, 11 Dec 2020 04:04:29 GMT

In addition to other credit unions, the Discover prequal page might be worth a check, since they're pretty comfortable with younger, thinner files.

Re: New To Credit

tmax2020 — Fri, 11 Dec 2020 04:21:20 GMT

Thank you for your response, when I started last year I went to discover for a secured card, disco denied me. I do get an offer on discover prequalify but I'm afraid to apply because I don't want I am not sure I'll get any approval. I don't want to waste Hard inquiry on my profile but I really do need a new card. I read all the good reviews about Navy but I'm not eligible for membership.

Re: New To Credit

Slabenstein — Fri, 11 Dec 2020 04:26:00 GMT

@tmax2020 wrote:
Thank you for your response, when I started last year I went to discover for a secured card, disco denied me. I do get an offer on discover prequalify but I'm afraid to apply because I don't want I am not sure I'll get any approval. I don't want to waste Hard inquiry on my profile but I really do need a new card.

That's exactly what the preapproval page is for: checking your approval odds before you burn an HP. The Disco prequal is pretty accurate, so it's usually a confident app if the page comes back with a prequal. What card or cards is their page showing you now? From the info you've given, it looks like your profile has seen improvement from a year ago, just in terms of gaining credit history.

Re: New To Credit

AllZero — Fri, 11 Dec 2020 04:31:05 GMT

@tmax2020 wrote:
I joined penfed 4 months ago, my paycheck goes to their checking account. Yes I'm looking for another CU, I don't want to bank with capital one anymore.
The reasons I got denied
Thank you for your recent application for credit. We have carefully considered your request, but
were unable to approve it due to the following reason(s):
• Length of time accounts have been established
• Too many accounts with balances 1 credit card
• Proportion of loan balances to loan amounts is too high 17k auto loan, paid 19% opend 8 months ago
• Length of time revolving accounts have been established 1 yr ago

We also obtained your credit score from this consumer reporting agency and used it in making our credit
decision. Your credit score is a number that reflects the information in your consumer report. Your
credit score can change, depending on how the information in your consumer report changes.
Your Credit Score: 762
Date: 12/7/2020

• Length of time accounts have been established
• Too many accounts with balances
• Proportion of loan balances to loan amounts is too high
• Length of time revolving accounts have been established

Thank you for the additional data points. You have great scores. It is the thinness that may be your negative.

PenFed is a good CU. Your profile may be just a tad too young and/or thin for their liking. Continue on your membership. Perhaps, revisit them again when you have aged / thickened your profile.

As mentioned up thread, try the pre-qualification on other sites to see if you have any offers.

Have you considered a secured card with Bank of America? They are known to graduate to unsecured in ~5 months. CLI Credit Limit Increase request are SP Soft Pull inquiry. Perhaps, try for the unsecured card, if denied, see if they will counter offer with a $99/$500 partially secured card? Their pre-qual site is more of a recommendation to apply. It is not an actual pre-qualification tool.

Re: New To Credit

tmax2020 — Fri, 11 Dec 2020 04:33:22 GMT

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@Slabenstein wrote:
@tmax2020 wrote:
Thank you for your response, when I started last year I went to discover for a secured card, disco denied me. I do get an offer on discover prequalify but I'm afraid to apply because I don't want I am not sure I'll get any approval. I don't want to waste Hard inquiry on my profile but I really do need a new card.
That's exactly what the preapproval page is for: checking your approval odds before you burn an HP. The Disco prequal is pretty accurate, so it's usually a confident app if the page comes back with a prequal. What card or cards is their page showing you now? From the info you've given, it looks like your profile has seen improvement from a year ago, just in terms of gaining credit history.

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Re: New To Credit

tmax2020 — Fri, 11 Dec 2020 04:35:16 GMT

@AllZero wrote:
@tmax2020 wrote:
I joined penfed 4 months ago, my paycheck goes to their checking account. Yes I'm looking for another CU, I don't want to bank with capital one anymore.
The reasons I got denied
Thank you for your recent application for credit. We have carefully considered your request, but
were unable to approve it due to the following reason(s):
• Length of time accounts have been established
• Too many accounts with balances 1 credit card
• Proportion of loan balances to loan amounts is too high 17k auto loan, paid 19% opend 8 months ago
• Length of time revolving accounts have been established 1 yr ago

We also obtained your credit score from this consumer reporting agency and used it in making our credit
decision. Your credit score is a number that reflects the information in your consumer report. Your
credit score can change, depending on how the information in your consumer report changes.
Your Credit Score: 762
Date: 12/7/2020

• Length of time accounts have been established
• Too many accounts with balances
• Proportion of loan balances to loan amounts is too high
• Length of time revolving accounts have been established
Thank you for the additional data points. You have great scores. It is the thinness that may be your negative.

PenFed is a good CU. Your profile may be just a tad too young and/or thin for their liking. Continue on your membership. Perhaps, revisit them again when you have aged / thickened your profile.

As mentioned up thread, try the pre-qualification on other sites to see if you have any offers.

Have you considered a secured card with Bank of America? They are known to graduate to unsecured in ~5 months. CLI Credit Limit Increase request are SP Soft Pull inquiry. Perhaps, try for the unsecured card, if denied, see if they will counter offer with a $99/$500 partially secured card? Their pre-qual site is more of a recommendation to apply. It is not an actual pre-qualification tool.

I believe Bank of America will be a good fit, I do have a checking account with them for 4 years, I'll give it a try.

Re: New To Credit

Slabenstein — Fri, 11 Dec 2020 04:44:27 GMT

@tmax2020 wrote:
Discover it® Cash Back
@Slabenstein wrote:
@tmax2020 wrote:
Thank you for your response, when I started last year I went to discover for a secured card, disco denied me. I do get an offer on discover prequalify but I'm afraid to apply because I don't want I am not sure I'll get any approval. I don't want to waste Hard inquiry on my profile but I really do need a new card.
That's exactly what the preapproval page is for: checking your approval odds before you burn an HP. The Disco prequal is pretty accurate, so it's usually a confident app if the page comes back with a prequal. What card or cards is their page showing you now? From the info you've given, it looks like your profile has seen improvement from a year ago, just in terms of gaining credit history.

Discover it® Cash Back
Discover it® Gas & Restaurants
Discover it® Miles

I say go for it. Depending on income, SL may be better than where Cap1 has you leashed, and a Disco card should have a lot more growth potential. The It Chrome (Gas & Restraunts) doesn't have a good reward structure compared to competitors, so I'd look at Miles and Cash Back and decide which you think you'd get more out of. Despite their names, they're both just cash back cards: Miles gives 1.5% on all purchases while the It Cash Back gives 5% on rotating quarterly categories and 1% on everything else.

Re: New To Credit

AllZero — Fri, 11 Dec 2020 04:46:45 GMT

@tmax2020 wrote:
I believe Bank of America will be a good fit, I do have a checking account with them for 4 years, I'll give it a try.

That's great that you have an established banking relationship with BoA. Depending on your situation, I think a trip to your local branch might yield a good result? You can also apply on line. Personally, I would go in branch in case they needed addtional information from me.

Re: New To Credit

tmax2020 — Fri, 11 Dec 2020 04:58:12 GMT

@Slabenstein wrote:
@tmax2020 wrote:
Discover it® Cash Back
@Slabenstein wrote:
@tmax2020 wrote:
Thank you for your response, when I started last year I went to discover for a secured card, disco denied me. I do get an offer on discover prequalify but I'm afraid to apply because I don't want I am not sure I'll get any approval. I don't want to waste Hard inquiry on my profile but I really do need a new card.
That's exactly what the preapproval page is for: checking your approval odds before you burn an HP. The Disco prequal is pretty accurate, so it's usually a confident app if the page comes back with a prequal. What card or cards is their page showing you now? From the info you've given, it looks like your profile has seen improvement from a year ago, just in terms of gaining credit history.

Discover it® Cash Back
Discover it® Gas & Restaurants
Discover it® Miles
I say go for it. Depending on income, SL may be better than where Cap1 has you leashed, and a Disco card should have a lot more growth potential. The It Chrome (Gas & Restraunts) doesn't have a good reward structure compared to competitors, so I'd look at Miles and Cash Back and decide which you think you'd get more out of. Despite their names, they're both just cash back cards: Miles gives 1.5% on all purchases while the It Cash Back gives 5% on rotating quarterly categories and 1% on everything else.

WOW! I got approved for $3000 with Dicover card. Thank you so much for saving me from Cap 1

Re: New To Credit

AllZero — Fri, 11 Dec 2020 05:00:23 GMT

@tmax2020 wrote:
WOW! I got approved for $3000 with Dicover card. Thank you so much for saving me from Cap 1

Congratulations on your approval!

Re: New To Credit

tmax2020 — Fri, 11 Dec 2020 05:04:31 GMT

@AllZero wrote:
@tmax2020 wrote:
WOW! I got approved for $3000 with Dicover card. Thank you so much for saving me from Cap 1
Congratulations on your approval!

Thank you so much, you all have been a life saver. This is really cool forum

Re: New To Credit

Slabenstein — Fri, 11 Dec 2020 05:05:30 GMT

Congrats on the approval. I've had Discover for quite a while, and I've really liked them as an issuer. Cap1 is what Cap1 is. Their low-limit starter cards are very useful as a stepping stone when building or rebuilding up to prime issuers, and it seems like they served that purpose for you by establishing a year of revolving credit. Those cards just aren't going to grow with you. Disco on the other hand some ppl have carried and PC'd the same card for 20+ years, so even if you pick up other cards in the future they'll still probably have a place in your lineup if you want them to.

Re: New To Credit

gingerflower — Fri, 11 Dec 2020 05:23:26 GMT

Congratulations on your Discover Cc. $3000 SL is awesome...👍

Re: New To Credit

FinStar — Fri, 11 Dec 2020 05:50:44 GMT

@tmax2020, welcome to the forums and congrats on your Discover approval. Sounds like taking that leap paid off 👍

Locking this thread as you have been approved. Please feel free to start a new thread in the Approvals forum if you would like to do so.