topic Re: Denied Secured Card in Credit Card Applications

Denied Secured Card

Cmikul — Tue, 12 Mar 2024 19:18:46 GMT

Trying to get my employed son set up with a secured card and he got denied.

How or why would you be denied on a secured funded card?

Re: Denied Secured Card

JoeRockhead — Tue, 12 Mar 2024 19:49:39 GMT

Could be a variety of things... insufficient income, or work history.. other negative information on his credit report. Was a reason given yet?

Re: Denied Secured Card

Cmikul — Tue, 12 Mar 2024 20:11:50 GMT

no reason

makes plenty

just no history which is why we went secured

Re: Denied Secured Card

CreditPoor — Tue, 12 Mar 2024 21:02:47 GMT

Sorry about the denial. Secured credit card applications can be denied for various reasons, such as insufficient income, a history of bankruptcy, or a low credit score. Lenders assess your financial stability and creditworthiness even for secured cards. Review the denial notice from the issuer to understand specific reasons and work on addressing those issues before reapplying

Re: Denied Secured Card

NoHardLimits — Tue, 12 Mar 2024 21:05:38 GMT

Perhaps it's some type of identity verification problem?

Re: Denied Secured Card

CorpCrMgr1 — Wed, 13 Mar 2024 00:36:42 GMT

Sorry for his denial. Have you tried his financial institution? If currently not or none have him open a credit union account and apply for the secured card there. Good luck!

Re: Denied Secured Card

nytokyobred79 — Wed, 13 Mar 2024 06:28:25 GMT

@Cmikul wrote:
Trying to get my employed son set up with a secured card and he got denied.
How or why would you be denied on a secured funded card?

I'm not sure if it'll help but have you considered adding him as an authorized user on 1 of your cards that has a long clean credit history. If lack of history is the issue, this may help...although I'm not an expert on this.

Re: Denied Secured Card

Cmikul — Wed, 13 Mar 2024 17:40:14 GMT

He's been a AU on 2 of my cards for 7yrs. Neither one of them shows up on his report.

it did zero to help him.

Re: Denied Secured Card

pizzadude — Wed, 13 Mar 2024 17:46:30 GMT

@Cmikul wrote:
He's been a AU on 2 of my cards for 7yrs. Neither one of them shows up on his report.
it did zero to help him.

Who are these creditors / CCs that you added him on ?

Re: Denied Secured Card

Cmikul — Wed, 13 Mar 2024 17:54:48 GMT

One is Citibank the other is Amex

Likewise my daughter was an AU on my wife's Amex for 7yrs and it doesn't show up on her report either.

She luckily didn't have any issues getting approved for her own cards when she turned 18.

Not sure why my son is having road blocks. She wasn't employed and got approved for 3 cards solo at 18.

He has been employed full time for 2yrs and still can't get a jump start. Report shows NO history.

Re: Denied Secured Card

Slabenstein — Wed, 13 Mar 2024 22:00:51 GMT

Kind of late to this thread, but I just thought I'd add that secured cards aren't any more of an auto-approval than other kinds of secured debt, such as auto loans or mortgages. They're still going to go through underwriting and the borrower is still going to need to meet that institution's criteria for that product. Your son should get an adverse action letter from the lender in the mail that will list at least one of the reasons his application was denied.

Re: Denied Secured Card

Horseshoez — Thu, 14 Mar 2024 01:47:32 GMT

@Cmikul, while getting approved for a secured credit card is easier than getting approved for an unsecured card, there is no guarantee any given individual will be approved. Four years ago when my Chapter 13 was discharged I thought it would be a lead-pipe cinch my bank (BofA) for over a decade would instantly approve me for a secured card, I mean, I had a reasonably high income being directly deposited into my checking account and low five figures in my savings account, that and I had never had so much as a bounced check or overdraft of any kind. I applied, got denied, applied again, and got shot down for a second time. It wasn't until I closed all of my accounts they started asking what they could do to keep my business. Nothing!

I walked my money across the street (literally) to a TDBank branch, and in one swell foop, opened up a checking account, two savings accounts, and a secured credit card, all in less than a half hour. I guess I wrote all of this to suggest you might want to shop around for a secured card for your son, some credit unions offer them and they are usually the easiest to get approved, but there are other options, say Discover for instance.

Keep us posted on your progress.

Re: Denied Secured Card

Cmikul — Thu, 14 Mar 2024 01:54:04 GMT

Discover is who declined him.
he does have investment acct at a CU so we'll probably try there.

Re: Denied Secured Card

Horseshoez — Thu, 14 Mar 2024 02:01:08 GMT

@Cmikul wrote:
Discover is who declined him.
he does have investment acct at a CU so we'll probably try there.

Ouch! They denied me as well.

Is NFCU an option? If so, their secured nRewards gets rave reviews around here.

Re: Denied Secured Card

AyaMai — Mon, 18 Mar 2024 14:14:13 GMT

@Horseshoez wrote:
@Cmikul, while getting approved for a secured credit card is easier than getting approved for an unsecured card, there is no guarantee any given individual will be approved. Four years ago when my Chapter 13 was discharged I thought it would be a lead-pipe cinch my bank (BofA) for over a decade would instantly approve me for a secured card, I mean, I had a reasonably high income being directly deposited into my checking account and low five figures in my savings account, that and I had never had so much as a bounced check or overdraft of any kind. I applied, got denied, applied again, and got shot down for a second time. It wasn't until I closed all of my accounts they started asking what they could do to keep my business. Nothing!

I walked my money across the street (literally) to a TDBank branch, and in one swell foop, opened up a checking account, two savings accounts, and a secured credit card, all in less than a half hour. I guess I wrote all of this to suggest you might want to shop around for a secured card for your son, some credit unions offer them and they are usually the easiest to get approved, but there are other options, say Discover for instance.

Keep us posted on your progress.

I have two checking accounts personal/joint with BoA for more than 23 years, they denied me secured and unsecured. I applied for secured U.S Bank Cash+ knowing that I would be denied for unsecured due to many open accounts and inquiries, was approved, opened a checking account with them after a year, 3 months they returned my unsecured card deposit. Moved my direct deposits to other banks since they credit them on Wednesday not Friday as with BoA. I recommend to open checking account with Discover, then apply for secured after few months, then after 6 months or more he will be moved to unsecured. https://www.discover.com/online-banking/checking-account/ I have 2 cards through them and their customer service competes with Amex.

Re: Denied Secured Card

Horseshoez — Mon, 18 Mar 2024 14:55:22 GMT

@AyaMai, I see you've joined the ranks of happy ex-BofA customers; welcome to the club.

Re: Denied Secured Card

butterpecan — Sun, 24 Mar 2024 00:02:31 GMT

@Horseshoez wrote:
@AyaMai, I see you've joined the ranks of happy ex-BofA customers; welcome to the club.

Re: Denied Secured Card

Linnaea — Sun, 24 Mar 2024 00:17:10 GMT

Honestly, if you have him on as an AU and he's worked for 2 years and he works etc. I am thinking something is wrong.

I would call for a reconsideration so as not to waste the hard pull. Also I would check that you the social matches. If all that doesn't shed light or manifest a secured card.... I would try to get him in with Navy Fed. But IMHO I know there is so much fraud these days that something may of cross crossed.

Please keep us updated. 🙏

Re: Denied Secured Card

butterpecan — Mon, 25 Mar 2024 17:44:08 GMT

@Cmikul wrote:
Trying to get my employed son set up with a secured card and he got denied.
How or why would you be denied on a secured funded card?

Try Affinity Federal Credit Union. Their secured is no hard pull, you can add funds later if a higher limit is needed. It doesn't graduate but will product change to a unsecured and you keep the tradeline age and history.