topic Re: Where to start with credit? in Credit Cards

Where to start with credit?

Anonymous — Tue, 12 Apr 2011 22:01:11 GMT

I'm 22, about to graduate from college, and have no credit. I recently applied for a Chase Freedom card, just to start my credit history, but I just called and was told it was declined. I have a student loans out, and she said one of my Sallie Mae loans is the reason why I got declined? I haven't started paying them back yet, I won't have to until November. Where do I start when it comes to getting a credit card? I don't want to keep applying everywhere because I know that shows up on the report. Should I call back and tell them I need to start somewhere? I don't get it...

Re: Where to start with credit?

DI — Tue, 12 Apr 2011 22:32:53 GMT

@Anonymous wrote:
I'm 22, about to graduate from college, and have no credit. I recently applied for a Chase Freedom card, just to start my credit history, but I just called and was told it was declined. I have a student loans out, and she said one of my Sallie Mae loans is the reason why I got declined? I haven't started paying them back yet, I won't have to until November. Where do I start when it comes to getting a credit card? I don't want to keep applying everywhere because I know that shows up on the report. Should I call back and tell them I need to start somewhere? I don't get it...

Welcome to the forums! Congrats on upcoming graduation. What's the problem with the SM loan? Is it not in deferment? Your student loans reporting to the CRAs, if they're in good standing, should be sufficient to get you approved for a student card. Applying for a Chase Freedom card was the wrong move. You have to show a history of managing revolving credits and loans first.

Most students with no prior credit history, unfortunately, get approved for a Capital One card. If whatever you have reporting in your credit files are good, you may want to try applying for a student card even though you're about to graduate. Also, try a store card. They're much easier to get approved.

Re: Where to start with credit?

smallfry — Tue, 12 Apr 2011 22:43:26 GMT

Get a card with Citi and see if there is any way you can qualify for membership to Navy Federal. You might get a nice starting limit with AMEX as well.

Re: Where to start with credit?

Anonymous — Tue, 12 Apr 2011 22:55:00 GMT

Thanks for the welcome.

I'm not sure if the loan is considered in deferment, because I DO pay monthly payments on it. It is called their "Smart option" loan, where I pay interest monthly while in school to prevent the interest from building up. Looking at my TU report, which I did a couple weeks ago, everything is OK. 0 late payments, although the "High Balance" says $10,000, while the "Balance" says $10,250. She said something about this being the reason, even though I have no idea why it reads differently.

I just wanted the Freedom card because of the rewards, but I guess I have to start with a bland card because I have bland credit. I'll take a look at the student cards, I don't really care about the interest rates because I plan on paying the balance off each month. I'm just going to use this card like I do my debit card now.

Re: Where to start with credit?

DI — Tue, 12 Apr 2011 23:07:56 GMT

@Anonymous wrote:
Thanks for the welcome.

I'm not sure if the loan is considered in deferment, because I DO pay monthly payments on it. It is called their "Smart option" loan, where I pay interest monthly while in school to prevent the interest from building up. Looking at my TU report, which I did a couple weeks ago, everything is OK. 0 late payments, although the "High Balance" says $10,000, while the "Balance" says $10,250. She said something about this being the reason, even though I have no idea why it reads differently.

I just wanted the Freedom card because of the rewards, but I guess I have to start with a bland card because I have bland credit. I'll take a look at the student cards, I don't really care about the interest rates because I plan on paying the balance off each month. I'm just going to use this card like I do my debit card now.

Yes, the $10,250 balance on a $10,000 loan make it look like you're over the limit. That happend to me when I first started establishing credit. That should have been something an analyst could have disregarded. It won't hurt to call the backdoor number listed on this site to point that out to them. Until you get the $10,250 under $10,000 you're going t ocontinue to run into problems.

Re: Where to start with credit?

Creditaddict — Tue, 12 Apr 2011 23:09:35 GMT

I would also recommend the citi forward card and amex zync. I would skip Capital One unless you get declined by both of these others i mentioned.

Re: Where to start with credit?

DI — Tue, 12 Apr 2011 23:12:33 GMT

The OP needs to get the loan balance under the original loan balance before applying for credit.

Re: Where to start with credit?

smallfry — Tue, 12 Apr 2011 23:36:44 GMT

Chase is a PITA. The loan is not in arrears. My kids all had similar entries on their reports and had no problems getting cards from Citi and AMEX. I would app for the AMEX first.

Re: Where to start with credit?

Anonymous — Wed, 13 Apr 2011 00:12:34 GMT

Not to hijack this thread, but I'm about in the same boat except that I don't even have the benefit of loans, so my credit history has zip/null/nada on it. I'm 22, just out of college, and well-employed (middle x0,000s) and I have no credit history. Yes, dumb, I know. No student loans either.

I've been looking around trying to find the best cards that I could conceivably be approved for and would help build my credit. I'm pretty much a total newcomer to the credit field, so I'm not exactly sure what I should be looking for. My eventual hope is to get Amex Blue, so I've been considering an Amex Zync, but I've been pre-approved at my bank (US Bank) for a Visa Platinum card, so I'm not sure if that is worth considering as well?

I'm hesitant to apply for credit cards because if I'm not mistaken, credit card rejections are recorded on your credit history and I'd rather not get started off on the wrong foot.

Thanks!

Re: Where to start with credit?

smc733 — Tue, 12 Apr 2011 23:57:23 GMT

IMHO, if Zync isn't what you want, don't apply for it. I tried to go that route, but don't open an account and pay an AF for that... If you can hold out for your credit to develop, you may be fine to cold-app for it in 12-18 months.

Re: Where to start with credit?

DI — Wed, 13 Apr 2011 00:03:33 GMT

@Anonymous wrote:
Not to hijack this thread, but I'm about in the same boat except that I don't even have the benefit of loans, so my credit history has zip/null/nada on it. I'm 22, just out of college, and well-employed (middle x0,000s) and I have no credit history. Yes, dumb, I know. No student loans either.

I've been looking around trying to find the best cards that I could conceivably be approved for and would help build my credit. I'm pretty much a total newcomer to the credit field, so I'm not exactly sure what I should be looking for. My eventual hope is to get Amex Blue, so I've been considering an Amex Zync, but I've been pre-approved at my bank (US Bank) for a Visa Platinum card, so I'm not sure if that is worth considering as well?
I'm hesitant to apply for credit cards because if I'm not mistaken, credit card rejections are recorded on your credit history and I'd rather not get started off on the wrong foot.
Thanks!

Not a true statement. Anytime one applies for credit whether approved or declined, an inquiry appears. Inquiries are not placed into approval and declined catergories.

Re: Where to start with credit?

trumpet-205 — Wed, 13 Apr 2011 00:03:55 GMT

@Anonymous wrote:
Not to hijack this thread, but I'm about in the same boat except that I don't even have the benefit of loans, so my credit history has zip/null/nada on it. I'm 22, just out of college, and well-employed (middle x0,000s) and I have no credit history. Yes, dumb, I know. No student loans either.

I've been looking around trying to find the best cards that I could conceivably be approved for and would help build my credit. I'm pretty much a total newcomer to the credit field, so I'm not exactly sure what I should be looking for. My eventual hope is to get Amex Blue, so I've been considering an Amex Zync, but I've been pre-approved at my bank (US Bank) for a Visa Platinum card, so I'm not sure if that is worth considering as well?
I'm hesitant to apply for credit cards because if I'm not mistaken, credit card rejections are recorded on your credit history and I'd rather not get started off on the wrong foot.
Thanks!

First, don't even think about AMEX Zync. You will get instant rejection from AMEX due to lack of history. AMEX will only consider your application when you have a credit card with 6 months or more history.

Since you are clean to start with. Start with your local credit union/banks. Talk to them, they usually are friendly and may approve you with lack of history.

You could also start with Capital One. Don't let other people discourage you from them. They bash Capital One primarily because they don't give CLI. But once you build yourselves a history, you can always look for a better card. App a Capital One Standard Platinum, if not approved they'll counter offer you with their secured card.

You can also give Citi Forward a try, but it'll be a hit or miss.

Re: Where to start with credit?

Creditaddict — Wed, 13 Apr 2011 00:16:41 GMT

@trumpet-205 wrote:

@Anonymous wrote:
Not to hijack this thread, but I'm about in the same boat except that I don't even have the benefit of loans, so my credit history has zip/null/nada on it. I'm 22, just out of college, and well-employed (middle x0,000s) and I have no credit history. Yes, dumb, I know. No student loans either.

I've been looking around trying to find the best cards that I could conceivably be approved for and would help build my credit. I'm pretty much a total newcomer to the credit field, so I'm not exactly sure what I should be looking for. My eventual hope is to get Amex Blue, so I've been considering an Amex Zync, but I've been pre-approved at my bank (US Bank) for a Visa Platinum card, so I'm not sure if that is worth considering as well?
I'm hesitant to apply for credit cards because if I'm not mistaken, credit card rejections are recorded on your credit history and I'd rather not get started off on the wrong foot.
Thanks!

First, don't even think about AMEX Zync. You will get instant rejection from AMEX due to lack of history. AMEX will only consider your application when you have a credit card with 6 months or more history.

Since you are clean to start with. Start with your local credit union/banks. Talk to them, they usually are friendly and may approve you with lack of history.

You could also start with Capital One. Don't let other people discourage you from them. They bash Capital One primarily because they don't give CLI. But once you build yourselves a history, you can always look for a better card. App a Capital One Standard Platinum, if not approved they'll counter offer you with their secured card.

You can also give Citi Forward a try, but it'll be a hit or miss.

This is true my friend got a best buy mastercard with $100 limit when he had no score and no credit.... at 6 months he applied for zync and was instantly approved.

Re: Where to start with credit?

Anonymous — Wed, 13 Apr 2011 00:17:10 GMT

So much helpful info, thanks guys...

As far as the AMEX Zync card goes, I don't want to have to pay an annual fee for the card, even though it is only $25. I've been looking at some Citi cards, and it seems as though the "Citi® Dividend Platinum Select® Visa® Card for College Students" is a good card. Technically I am still in college, so I can apply for it. I know I won't get much of a CL, but I don't need one as I don't plan to make any major purchases with it. Just everday stuff like gas, food, bills, etc... I think I'll apply for that tomorrow, unless there are any serious objections to it?

Also, as far as the student loans go, all my loans have a balance over the high balance because of interest being added to the principle balance (except for my federal loans, thank you gov't). Do I really have to pay off the interest before I should be applying for any more cards? It adds up to $750 in interest over 3 loans...

Re: Where to start with credit?

DI — Wed, 13 Apr 2011 00:24:17 GMT

@Anonymous wrote:
So much helpful info, thanks guys...

As far as the AMEX Zync card goes, I don't want to have to pay an annual fee for the card, even though it is only $25. I've been looking at some Citi cards, and it seems as though the "Citi® Dividend Platinum Select® Visa® Card for College Students" is a good card. Technically I am still in college, so I can apply for it. I know I won't get much of a CL, but I don't need one as I don't plan to make any major purchases with it. Just everday stuff like gas, food, bills, etc... I think I'll apply for that tomorrow, unless there are any serious objections to it?

Also, as far as the student loans go, all my loans have a balance over the high balance because of interest being added to the principle balance (except for my federal loans, thank you gov't). Do I really have to pay off the interest before I should be applying for any more cards? It adds up to $750 in interest over 3 loans...

That was only a suggestion that I think will be helpful. But maybe you'll get lucky and get approved for a card regardless.

Re: Where to start with credit?

smallfry — Wed, 13 Apr 2011 02:14:19 GMT

FWIW my daughter got a 2K approval for AMEX Clear with no credit cards other than 2 AU (mine) showing on her reports.

Re: Where to start with credit?

smc733 — Wed, 13 Apr 2011 02:33:50 GMT

This amex talk depresses me :/

Re: Where to start with credit?

Anonymous — Wed, 13 Apr 2011 04:23:05 GMT

Thanks for the correction, DI!

smc733, what do you mean about Amex?

Re: Where to start with credit?

smc733 — Wed, 13 Apr 2011 05:04:40 GMT

@Anonymous wrote:
Thanks for the correction, DI!

smc733, what do you mean about Amex?

I have a great profile, several nice accounts of my own, no baddies, high FICOs, and a few VERY good, and well-aged AU accounts, including two Amex accounts, and they STILL won't bite on me...

Re: Where to start with credit?

Anonymous — Wed, 13 Apr 2011 18:35:34 GMT

Just wanted to give a little update and say that I applied for the card I mentioned earlier (Citi Dividend Platinum Select Visa Card for College Students) and got approved instantly for a $4k limit. My APR after the initial 0% for 7 months is 19.99%, but that doesn't matter to me as I'll never carry much of a balance, if any at all. Glad I can finally start my credit history.