topic Re: Thin Credit History in Credit Card Applications

Thin Credit History

Anonymous — Fri, 28 Aug 2015 00:33:10 GMT

Hello all,

After destroying my credit in the 1990's, I've been a cash person for the last 15 years. I pulled my free 3 credit reports last month, and to my surprise, they were clean. No good accounts, bad accounts or collections. So I started applying for cards with no FICO and no credit history:

Walmart - declined

JCPenney - declined

USBank - declined

Barclays - declined

Chase - declined

Citibank - declined

PNC - declined

Capital One - approved for $300

Capital One - approved for a second card for $300

Discover It - approved for $750

After seeing how good the cashback was on Discover, I paid off and closed both $300 cards before the first statement posted. Both Capital One cards show on my credit reports as closed by consumer and paid in full, so these will help my age of accounts for the next 10 years.

In January when my 6th statement from Discover posts, I should finally have a FICO score. I'm going to do the $2 trick (actually $3 because its Discover) with the January statement, so my FICO score should be around 720?

So my question is what card can I get accepted for in January with only 6 months of credit history? I also have 7 hard inquiries on all 3 of my reports.

I really want the Chase Freedom, but I know they want to see 2 years of credit history. The Capital One Venture looks pretty good, but I don't know if I would get approved after closing my 2 cards with them.

Any ideas?

Re: Thin Credit History

Anonymous — Fri, 28 Aug 2015 00:33:10 GMT

No. No. No. No. No.......

You should have kept those Capital One accounts. They we're establishing a AAOA for you, and not only that... but it's not exactly uncommon for those cards to become $1,500 to $2,300 lines, over time.

Really the biggest thing, is establishing AAOA, and having more than one account. It just looks good on your report, to show you have multiple cards, and a good AAOA. Even if one line is $500, and the other is $15,000.

What I would advise is (since you probably have a ton of INQ's, is to wait atleast a year before applying for anything else. At the very least wait until you have a real FICO at 6 months, and you'll have more options. Right now... to Banks, your dead on paper, no offense, but you have no FICO or anything to back you up.

Get a FICO Score, and let those Inquires Age and you'll be all set.

Re: Thin Credit History

Anonymous — Fri, 28 Aug 2015 00:38:37 GMT

So I started applying for cards with no FICO and no credit history:

Walmart - declined
JCPenney - declined
USBank - declined
Barclays - declined
Chase - declined
Citibank - declined
PNC - declined

On a side note, PNC & US Bank both offer secured credit cards. When you we're denied, you could have asked for a Secured Credit Card application, using the same hard pull. Bank of America & Wells Fargo, and I think PNC does this.

Sucks, having to put down a deposit, but it's a start. (If it's been less than 30 days, it might be worth calling to consider)

Re: Thin Credit History

Anonymous — Fri, 28 Aug 2015 00:44:16 GMT

I'm happy with just having Discover for now, hoping to get a cli at day 91 and maybe an auto.

In January when I have a FICO I want one more card, but something with a limit of around $2,000 would be great!

Re: Thin Credit History

Anonymous — Fri, 28 Aug 2015 00:46:18 GMT

Curious, do you know how many Hard Pulls/Inquiries you have? (TransUnion, Experian, Equifax)

Re: Thin Credit History

Anonymous — Fri, 28 Aug 2015 00:53:44 GMT

I had a wrong address on my credit reports, so I did online disputes with all 3 and could see the hard inquiries. 7 hard pulls on all 3.

Re: Thin Credit History

Anonymous — Fri, 28 Aug 2015 00:55:52 GMT

Do you remember how many Inquires you had, on each report?

Re: Thin Credit History

Anonymous — Fri, 28 Aug 2015 00:56:48 GMT

7 on each

Re: Thin Credit History

ddemari — Fri, 28 Aug 2015 00:58:43 GMT

OP- keep those cards and stop applying for other cards. u need to show positive payment history and the ability to maintain accounts.

all the cards u have can grow and be upgraded or what not down the road. DiscoverIt is awesome! Just keep them open, pay your bills and give it time.

Time is the hardest thing to give but it will pay off.

Re: Thin Credit History

Anonymous — Fri, 28 Aug 2015 01:00:49 GMT

You should have kept those Capital One cards open. You need at least 3 credit cards to build your file. You should have kept them open for at least a year.

Re: Thin Credit History

Anonymous — Fri, 28 Aug 2015 01:04:56 GMT

I agree...but I can't do anything about that now. Now I'm just focused on getting one more good card in January.

Re: Thin Credit History

Anonymous — Fri, 28 Aug 2015 01:11:24 GMT

@Anonymous wrote:
I agree...but I can't do anything about that now. Now I'm just focused on getting one more good card in January.

If you would have kept tham all open you would of had a good chance at the Freedom in January, but I'm not sure now. Definitely don't apply for anything else until then and then in Jan. check Chase's pre-qualifier.

Re: Thin Credit History

OmarGB9 — Fri, 28 Aug 2015 06:18:12 GMT

Sorry to jump on the bandwagon, but...I also believe you made a big mistake in closing both of those cap1 cards. Cap1 tends to be one of the more generous lenders that allows their cards to grow with you as long as you show responsible (heavy) use and large payments. Too late now of course, but anyway. I digress. Just show that Discover card lots of love and pay in full every month and you should get a CLI eventually (no guarantee as to when/if though). Then maybe in 6 months go for 1 or 2 more cards, because as justme3 said, you need 3 TLs to build a good file.

Re: Thin Credit History

Anonymous — Sat, 29 Aug 2015 00:28:03 GMT

I know...I shouldn't have closed the 2 cap one accounts, but it's done.

So back to my original question. In January my FICO score should be around 720, 6 months of payment history, and 7 hard pulls on all 3 credit reports.

Would I be able to get the Capital Venture card after closing the 2 accounts with them? If not, what credit card could I get approved for with only 6 months of payment history, but a pretty good FICO score and no negatives on my reports other than the 7 hard pulls?

Re: Thin Credit History

Anonymous — Sat, 29 Aug 2015 00:45:17 GMT

Even though closing the 2 cap one accounts was a mistake, it did have 2 positives.

On the day Capital One reported these closed accounts to the credit agencies, my Credit Karma FAKO jumped 40 points because I now have 3 good standing accounts. Even though the cap one accounts are closed, they report as an account in good standing.

Also, these closed accounts will help average my average age of accounts when I open credit cards in the future because they will be my oldest cards, and stay on my credit reports for 10 years.

Just looking for the positives in my mistake!

Re: Thin Credit History

Anonymous — Sat, 29 Aug 2015 00:49:40 GMT

It sounds like you recently closed the cap one card?

Because there may be a chance you can reopen the cards without having to sacrifice what credit length you've built up; and avoid another inquiry or two or three cos apparently cap one pulls all 3 bureaus

Keep in mind that credit is like jobs on a resume. Other folks are more likely to hire or "extend" credit to you if your file shows that you have longevity, show responsibility (by growing the limit and the usage..like bullet points for skills or accomplishments with that job)..

They will be less likely to hire or extend credit to you if they see you consistently jumping ships

Some lenders may take the chance and ask for explaination if they see something that still perks their interest despite your file eg assets/income/past credit history prior to the jump around

Best of luck and I would in ur shoes, call to see if u can get the two cap one cards reopened and also to see if u can get a CLI

Or keep them open and give a few months before calling in for the CLI

Re: Thin Credit History

Anonymous — Sat, 29 Aug 2015 01:10:20 GMT

@Anonymous wrote:
I know...I shouldn't have closed the 2 cap one accounts, but it's done.

So back to my original question. In January my FICO score should be around 720, 6 months of payment history, and 7 hard pulls on all 3 credit reports.

Would I be able to get the Capital Venture card after closing the 2 accounts with them? If not, what credit card could I get approved for with only 6 months of payment history, but a pretty good FICO score and no negatives on my reports other than the 7 hard pulls?

Cap1 is a very forgiving lender, but I'm not sure if you'd be able to get back in with them just 6 months after closing 2 of their cards. All you can do is wait it out and check pre-qualifiers when you're ready. Like I said earlier, in Jan. try Chase's pre-qualifier (and try Cap1's too). Both of their pre-qualifiers are pretty solid. For now just use your Discover responsibly and try for a CLI whenever Discover allows it.

Re: Thin Credit History

Anonymous — Sat, 29 Aug 2015 01:14:56 GMT

JustMe3,

Thank you for the advice, and I think that is the best option.

Happy to have found this forum!

Re: Thin Credit History

12njoy — Sat, 29 Aug 2015 03:43:59 GMT

@Anonymous wrote:
JustMe3,

Thank you for the advice, and I think that is the best option.

Happy to have found this forum!

Based on your desire to get another card in January, I would say go for a Barclays. They usually like to see at least 6 months of history. Definitely don't apply for anything else between now and then if you go for Barclays. They may ask about your current inquries which you can explain, but if you were to keep applying, they most likely would decline you. If you don't want to do Barclays, maybe go back to Capital One.

Re: Thin Credit History

jeffm4688 — Sat, 29 Aug 2015 04:20:10 GMT

Oof on those cap ones, but I don't see any reason you can't get approved for great cards within the time frame of a year.

No reason you can't get an approval for a freedom, amex, etc. This is how a good friend of mine started to build credit.

Sept 2014 : Capital one QS1 - $300 -> March 2015 $2300

April 2015 : $750 VictoriaSecret

April 2015 : $400 TJ max -> $600 in june

May 2015 : $2000 Paypal Extras MC

Aug 2015 : $2000 discover IT, $2200 chase freedom, $2000 BBY Mastercard, $1000 Amex BCE, $500 Cap1 platinum

The only thing I made sure was that freedom was the 5th approval in august, before all the others.