topic Re: 18 and Clean, Thin File in Credit Cards

18 and Clean, Thin File

Anonymous — Sat, 14 Jan 2017 01:08:22 GMT

Hi Everyone,

This is my first time posting on this forum; however, I have been reading up for the past few months. I just turned 18 in October of 2016 and decided, as a legal adult in many instances, I should start building credit now for the future. I have a full time job and make a very decent salary, so I wanted to take my finances in my own hands by opening a brokerage account, Roth IRA, and 401(k) with my company.

So, a few days after my birthday, I went into my local Chase bank in Manhattan and spoke with my banker about getting my first credit card. She suggested I apply for the Freedom Unlimited, which we both said at the same time, as I had already done my research . So, I applied in branch and a few days later recieved a meager $500 credit limit. Still, better than nothing!

Fast forward two months later, I am planning a vacation and the plane ticket I would like to purchase is $509 with tax . So, I figured, why not go in and see if an increase could be arranged. I had paid my card off religiously with heavy usage, letting both months report at $35 or 7%. I also spent over $2500 in those two months, 5x my limit. My banker said it was a good idea and that I should give it a shot. She handed the phone to me to speak with the CSR and I was instantly denied. We then called the recon line and again, denied. Looking back on it, I realize it was silly to ask w/o at least 6 months, let alone a year with Chase. So my banker (who also happens to be a Private Banker, but I am not a Private Client) whispered to me that I should run up the street to Captial One and apply for one of their cards ASAP.

So, I did just that and low and behold I got their Journey card with an even more meager $300 limit. Oy vey! Anyways, I am enrolled in their credit steps program, so we will see in 4 months what kind of increase will come my way. If it is petite, I will reach out to the EO and explain my situation and maybe they will understand. I would like to see at least $1000, just for the purchasing power of a plane ticket or long hotel stay for a buisness trip.

Now I have the itch for more (not the best with my thin file, I know)! I have 2 INQ on TU (Cap1 and Schwab), 3 INQ on EXP (Cap1, Chase, Chase), and 3 INQ on EQF (Cap1, Chase, Chase). Anyways, I have done some reading that Amex likes clean, thin files. But of course, not too thin. I saw 3 people on this fourm approved for PRG with only 6 months and 2 of those then approved for BCE. I plan to apply for a PRG first and BCE same day to take advantage of the soft pull for second app, once my Cap1 hits 6 months and Chase 8 months. My mom also said it was okay to add myself as an AU on her new Cap1 (June 2016) with $3000 limit (7% reporting). Being an AU on that card, given an eventual higher credit line on my personal Cap1 (after steps hits), and having my Chase card, do you think it will then be a good time to apply with Amex? This plan is also dependant on the new card member offer at the time because I know Amex only now gives out 1 per lifetime, so if it really isn't that great, I will keep waiting until I see one that tickles my fancy. Therefore, the plan might be delayed for a few months.

Fast forward two years from now. My ultimate goal: the Chase Sapphire Reserve. Once my first Chase hits two years, I think I want to go for this baby. Assuming I will be in the garden until then and have no new CC accounts, my total will be 4/24 (well techincally 3/24 if you don't count my AU status I will have on my mom's card, but I see sometimes Chase can still count them). By then, I hope to have an account greater than or equal to $10k with heavy, perfect use of my other cards (doubt that will ever happen with my Freedom Unlimited ). But this is just in the clouds now.

So, any advice about my Amex idea or any other helpful tips?

Thanks!!

Re: 18 and Clean, Thin File

peghede — Sat, 14 Jan 2017 01:17:25 GMT

Stop this nonsense with banks and the bs they give...go with NFCU and win already.

Re: 18 and Clean, Thin File

Anonymous — Sat, 14 Jan 2017 01:19:03 GMT

First off welcome, I am also young too, 19. There are a few of us on the forum here. I have felt a lot of love from Chase so sorry to hear about your decline with the Credit Limit Increase but on to what you can to do improve. With that being said if you do any kind of shopping on Amazon apply for the Store Card right now seriously! 5% Cash back unlimited! The store card is different than the Visa Sig card being offered by Chase the store card is offered by Synchrony bank and they are fairly accepting of young profiles and here is the kicker they will continue to give limit increases based off a Soft Pull so you can request on every 3 months and often get a very decent limit right off the bat. Many posters have been able to get multiple thousand. Another option is to join a credit union I personally recommend Navy Federal they have a great app and are EXTREMELY generous with their starting lines, they were my very first credit card and I got a starting limit of $15k!!! Anyone can join them now through a "backdoor" you do have to pay a small membership fee to join a nonprofit organization but it is well worth it! Details on this can be found here NLUS / NFCU LINK

Re: 18 and Clean, Thin File

Anonymous — Sat, 14 Jan 2017 01:19:44 GMT

@peghede wrote:
Stop this nonsense with banks and the bs they give...go with NFCU and win already.

Lmao a condensed version of what I said

Re: 18 and Clean, Thin File

DeeBee78 — Sat, 14 Jan 2017 01:32:12 GMT

I think there is one thing people forget when starting out their credit journey: It takes TIME!

As you build your payment history and show responsible usage, the floodgates will open. Stop trying to do too much too soon or your score will suffer with useless INQ's and no one will extend you credit, or you'll get stuck with toy limits.

Garden for 6-12 months, and get thae SP Capital One CLI's. Heavy PIF usage through a Capital One card (running it up to the limit and paying it off several times a month) will get you a substantial CLI, sometimes automatically. Executive Office recon works very well if you don't get a decent CLI and have the usage to support it. Less than two years ago, my Quicksilver was a $300 QuicksilverOne. After a couple of mediocre CLI's, I sent an email off to the EO, and boom - 3K, then 5.25K, then 6.5K.

And on a side note, how many business trips are you taking at 18?

Re: 18 and Clean, Thin File

Anonymous — Sat, 14 Jan 2017 02:00:48 GMT

You might get a decent limit with BCE. I've noticed that they like thin files. You'd probably get a decent limit with them. I think I had about 10 months of credit history and they gave me my highest limit. Capital One is also really good for people just starting out. Although your limit will be very low Credit Steps will grow quickly.

You're only 18 and just got your first CC in Oct. It hasn't even been 6 months yet. It was foolish to think you'd get approved for high limits or that Chase would CLI. Credit isn't a race. Slow down and don't try to apply for everything you want at once. Let your credit grow. You're on a great path already. Good luck in the future with your goals

Re: 18 and Clean, Thin File

fltireguy — Sat, 14 Jan 2017 02:41:54 GMT

Why wait 6 months with cap one for credit steps? Ask for a CLI after the 3rd statement cuts, you might have some luck there - and I will not affect your steps CLI

Re: 18 and Clean, Thin File

Anonymous — Sat, 14 Jan 2017 02:50:04 GMT

Yes! Thank you for all the feedback! The reason for my being so adamant about my CL is for purchasing power because I do spend a fair amount (but I do save quite a bit too!), especially since I have no living costs being at home and having a relatively high salary. And with larger purchases that I have had to make with my debit card, I don't get rewards. I have looked into a few banking options that offer rewards or APR on checking, but for all the different hoops and requirements I need to jump through to get that, it doesn't make sense for me at the moment.

That is why PRG looks like a good option for me in a few months, as it is a charge card and (hopefully) Amex will be more inclined to approve larger purchases I will make, especially with travel. I will see about that! I'm going to give it a few months and will report back then with updates to see what Cap1 will offer me in terms of credit limit increase.

Thanks again so much everyone!

Re: 18 and Clean, Thin File

Anonymous — Sat, 14 Jan 2017 03:02:14 GMT

"Executive Office recon works very well if you don't get a decent CLI and have the usage to support it. Less than two years ago, my Quicksilver was a $300 QuicksilverOne. After a couple of mediocre CLI's, I sent an email off to the EO, and boom - 3K, then 5.25K, then 6.5K."

Oh good! I'm glad to hear that! I have already racked up over $1000 with multiple payments to the card (pretty much every single day) and that's only in one month. I mean I don't want some huge credit line that I know I won't get or want just to have it. All I reasonably would like in the next few months is just one line that is $1000 or near there for large purchases. So, I'll give it some time and we'll see.

On a side note, I do at least once a month for work, since our other offices are across the country, but it certainly ain't so glamorous!

Re: 18 and Clean, Thin File

BronzeTrader — Sat, 14 Jan 2017 05:40:18 GMT

@Anonymous wrote:
Yes! Thank you for all the feedback! The reason for my being so adamant about my CL is for purchasing power because I do spend a fair amount (but I do save quite a bit too!), especially since I have no living costs being at home and having a relatively high salary. And with larger purchases that I have had to make with my debit card, I don't get rewards. I have looked into a few banking options that offer rewards or APR on checking, but for all the different hoops and requirements I need to jump through to get that, it doesn't make sense for me at the moment.

That is why PRG looks like a good option for me in a few months, as it is a charge card and (hopefully) Amex will be more inclined to approve larger purchases I will make, especially with travel. I will see about that! I'm going to give it a few months and will report back then with updates to see what Cap1 will offer me in terms of credit limit increase.

Thanks again so much everyone!

Someone said really well, you need time to build your credit. Depends on your life style, not everyone needs a Chase CSR or AmEx Platinum. A lot of folks choose AmEx BCE or ED instead.

I put my 18-year (now) old as an AU of my Chase IHG two years ago (when he was 16). When he applied for CC at our bank (BofA), he received an instant $3,000 CL two months after his18 birthdy. Then we applied and received 4 more CCs and now he has a total 5 CCs with $9,000 CL. But no love from Chase and he is on my Chase Unlimited CC. This is one of the reasons Chase did not give him a card since he is on two of my Chase CCs.

Just give it some time. And do not rush things.

Re: 18 and Clean, Thin File

wilmer007 — Sat, 14 Jan 2017 08:05:58 GMT

i was approved for the BCP with a $1,400 limit with a FICO of around 650-675. i also earn $60k+ so it made their decision easier when i said i earned that plus i had 3 toy limits that were opened up about 5-6 months before getting the BCP. fast forward 2.5 months later and my BCP is at $4,200 CL.

so just be patient a few months and when you got the FICO range, the salary and the 6 month recent history you should have no problems getting into AMEX.

Re: 18 and Clean, Thin File

Anonymous — Sat, 14 Jan 2017 14:51:55 GMT

It was mentioned to open up a credit card with a credit union, such as Navy.

Below are two links with a "healthy" amount of impressive information.

As stated previously, they don't give out Toy Limits.

Official Credit Unions Guide
http://ficoforums.myfico.com/t5/Credit-Card-Applications/Official-Credit-Unions-Guide/td-p/4768788

Pentagon Federal Credit Union Data Share
http://ficoforums.myfico.com/t5/Credit-Card-Applications/Pentagon-Federal-Credit-Union-Data-Share/m-p/4591561

* * * More importantly, when one makes claims of income, just remember that upon demand one must provide POI.

If it comes to that, at that time, excuses, or weak explanations are not acceptable

* Proof of Income.

. i also earn $60k+ so it made their decision easier

Re: 18 and Clean, Thin File

Anonymous — Sat, 14 Jan 2017 23:12:52 GMT

@Anonymous wrote:

It was mentioned to open up a credit card with a credit union, such as Navy.

Below are two links with a "healthy" amount of impressive information.

As stated previously, they don't give out Toy Limits.

Official Credit Unions Guide
http://ficoforums.myfico.com/t5/Credit-Card-Applications/Official-Credit-Unions-Guide/td-p/4768788

Pentagon Federal Credit Union Data Share
http://ficoforums.myfico.com/t5/Credit-Card-Applications/Pentagon-Federal-Credit-Union-Data-Share/m-p/4591561

* * * More importantly, when one makes claims of income, just remember that upon demand one must provide POI.

If it comes to that, at that time, excuses, or weak explanations are not acceptable

* Proof of Income.

. i also earn $60k+ so it made their decision easier
.

Not sure if you were implying something here, it almost felt like you were chastising a member but okay. Also upon demand you absolutely do NOT have to provide POI if you do not want to! You will just likely not be granted any new credit and may face adverse action by an existing creditor, there is nothing that requires you to comply with the whims of the banks/credit unions unless you alone choose to. For example I have only been asked for POI one time from Amex and they wanted a 4506-T, which is equivalent to a full prostate exam... ya no thanks I made the decision that the card was not worth sacrificing my personal security and privacy for, a decision I am well within my rights to make. Suggesting otherwise is frankly ridiculous.

Side note: I never lie or overstate my income just not going to prove myself to a bank that wants to make money off of me.

Re: 18 and Clean, Thin File

Anonymous — Sun, 15 Jan 2017 01:21:38 GMT

@Anonymous wrote:

It was mentioned to open up a credit card with a credit union, such as Navy.

Below are two links with a "healthy" amount of impressive information.

As stated previously, they don't give out Toy Limits.

Official Credit Unions Guide
http://ficoforums.myfico.com/t5/Credit-Card-Applications/Official-Credit-Unions-Guide/td-p/4768788

Pentagon Federal Credit Union Data Share
http://ficoforums.myfico.com/t5/Credit-Card-Applications/Pentagon-Federal-Credit-Union-Data-Share/m-p/4591561

* * * More importantly, when one makes claims of income, just remember that upon demand one must provide POI.

If it comes to that, at that time, excuses, or weak explanations are not acceptable

* Proof of Income.

. i also earn $60k+ so it made their decision easier
.

You are not required to provide POI.

Re: 18 and Clean, Thin File

SunriseEarth — Sun, 15 Jan 2017 02:23:31 GMT

@Anonymous wrote:
@Anonymous wrote:

It was mentioned to open up a credit card with a credit union, such as Navy.

Below are two links with a "healthy" amount of impressive information.

As stated previously, they don't give out Toy Limits.

Official Credit Unions Guide
http://ficoforums.myfico.com/t5/Credit-Card-Applications/Official-Credit-Unions-Guide/td-p/4768788

Pentagon Federal Credit Union Data Share
http://ficoforums.myfico.com/t5/Credit-Card-Applications/Pentagon-Federal-Credit-Union-Data-Share/m-p/4591561

* * * More importantly, when one makes claims of income, just remember that upon demand one must provide POI.

If it comes to that, at that time, excuses, or weak explanations are not acceptable

* Proof of Income.

. i also earn $60k+ so it made their decision easier
.
You are not required to provide POI.

You might want to review OP's caveat of "upon demand". I remember I had to submit paychecks once for a Cap One CLI from $650 to $1000 a few years ago during my rebuild. I complied, but if I didn't, I wouldn't have got my $350 CLI.

Re: 18 and Clean, Thin File

Anonymous — Sun, 15 Jan 2017 19:09:02 GMT

I understand your desire for a charge card where you are not strapped with toy limits and can actually purchase some big-ticket items every now and again.

However, getting a PRG at age 18 when the bonus is now strictly once per lifetime just seems misguided...you'll be giving up a lot of MR points by applying blindly with your far too immature file.

Once your AU account is added. Amex should have no problem giving you >$1k on their cash back cards. This is where I recommend you start. Leave the charge cards with big bonuses for when you have great credit and can milk them for the bonuses that are very valuable

Re: 18 and Clean, Thin File

Anonymous — Thu, 23 Feb 2017 18:43:35 GMT

So...I got an email from Capital One letting me know that my credit steps would be a CLI to $500. Dang! I saw that someone had mentioned hitting the LUV button after three months. Now does anyone know if this is 3 months after the card opening date or after the third statement hits? I hope that I might get a greater increase from this, but if not, do you guys think I should reach out to the EO to explain my story? I've spent over $3k on this card within the two months I've had it, so hopefully they will see my heavy usage as a plus.

I do still want the PRG, but I agree with what everyone here is saying! I will wait until I see at least 50k rewards points bonus (or maybe 75k if I can wait that long) before applying and then app for BCE same day if hopefully approved.

I'm not even going to bother with Chase for at least another two years until I've built up my profile.

Re: 18 and Clean, Thin File

Creditplz — Thu, 23 Feb 2017 20:57:42 GMT

You don't need 6 months or a year with chase?.. I got a 10k CLI right on activation for my Hyatt card. If your reports meet the criteria you'll get it.

Just keep spending (and paying in full) and you'll see the result my friend oh and if I could give you a tip it would be, time your inquiries!!! I have a ton.. one thing I wished I learned earlier.

Re: 18 and Clean, Thin File

Anonymous — Thu, 23 Feb 2017 21:10:02 GMT

Haven't logged in on here in a while but your story reminds me a bit of myself so I figured I'd give you some more data points.

I applied for my first card at 18 1/2, Discover It with a 500 SL. Put in for Chase Freedom a few months later, had to recon for approval and for a 500 SL. At 6 months of credit history I applied for AMEX BCE and got a 3500 SL which made me pretty **bleep** excited. Auto CLI on my discover around the same time and got up to 650.

I've asked for CLIs on the Discover every 4 months and received them, all but one were soft pulls. Went something like 500-650-800-1050-2050-3000-4000 and now sitting at 4700.

Asked for CLIs on the BCE at 90 days and 180? days, both approved soft pull. First from 3500 to 10k and finally to 15k. No desire to increase that anymore since it's a pretty ridiculously high limit but it proves the point that AMEX does like thin young files because I hit 15k CL at about age 19 1/2 reporting 15k annual income lol.

Held that setup for a good 2 years. Fast forward to last month with about 2 1/2 years credit history. Applied for 3 more all approved -
Cap One QS (WEMC) @ 10k
Barclays Red (WEMC) Advantage Aviator @ 7.5k
Chase CSR (Visa Inf) @ 10k.

But the freedom's still at 500 haha. Don't expect a CLI on that one without a hard pull. I might transfer some limit from the CSR eventually, we'll see.

Good luck with your journey, I don't regret that two years of gardening, everything's looking pretty good for me with credit so far. Never paid a dime in interest and I've earned at least a cash value of $3000 in rewards. I always say if you can run it through a card and PIF, why not. Free money!

You just gotta set yourself up with a few cards and then sit on them gradually increasing your CLs as you can for a couple years. Nothing wrong with the occasional hard pull CLI imo.

Re: 18 and Clean, Thin File

NRB525 — Thu, 23 Feb 2017 21:10:13 GMT

OP, congrats on the good start.

If you want to make a $509 purchase with a $500 limit, one method to try is to push payments from a checking account at another bank, with the intention to push your balance on the CC to negative, overpaid by $20 or $50. You then have the room to charge to the Freedom and still remain under $500.

Other methods include splitting the payment on check out. Some websites allow you to pay with multiple cards; $450 on the Freedom, $59 on something else.