topic Re: First Credit Card in Credit Cards

First Credit Card

Dawn — Mon, 31 Dec 2007 23:28:14 GMT

Now that my 19 year old son (non-student) has become fearful that his previously non-existent credit file will be initiated with a black mark against him (after room-mate bailed on him ... necessitating breaking their apartment lease) we sat down and started trying to get a reasonable credit card for him before it is next to impossible.

Wells Fargo declined him because of his banking history with them (overdrafts that were covered within 24 hours and a low average balance.) This evaluation didn't even include his more recent overdrafts that were outstanding for a week before they were covered.

Bank of America "could not process" with a pre-approval from the web-site and suggested a secured card.

Citi (Plat Select MC) gave him the 30 day notice.

And CapOne (the only one who has been sending pre-approval offers) actually gave him a firm approval on-line (card to arrive in approximately 7 days.) This was my last possible choice, but I didn't want to keep trying for another and have a bunch of inquiries piling up on his report.

I would have him go for a Credit Union card, but our current Credit Union won't issue to him without a co-signer since he doesn't have any existing credit history.

With an empty credit file, what are the chances that a "live" application with Bank of America would fair better than checking for pre-approvals on-line?

What is the routine with Citi when they come back with the 30 day notice? Does he have a chance (not being a potentially profitable college student)?

Re: First Credit Card

Anonymous — Mon, 31 Dec 2007 23:31:54 GMT

try orchard bank or first premier they are starter card keep a year then dump them..

Re: First Credit Card

SmartCookie — Mon, 31 Dec 2007 23:41:21 GMT

hiya denbar,

I think BoA and Citi declined him because he does not have 2 rev TLs... unless he does? Too bad they still send pre-quals for people that do not currently meet the quals. I think he should try for the BoA secured if he can get the cash together for that but if not, not a biggie.

If you can get him as an AU for one of your cc's for a month and that Cap1 starts reporting soon.... he might be able to recon Citi if that was the reason for decline. If not... he might be able to get a Hooter card. After that you can get rid of the AU card and reporting. He doesn't even need the physical card.

I know Cap1 may have been your last choice for him but it is such a foot in the door... it really is. Let him know you are proud of that for sure! People do get denied for it afterall... and they are no way uber sub prime.

Re: First Credit Card

nathan — Mon, 31 Dec 2007 23:43:10 GMT

You may try orchard, but absolutely not first premier. First premier is one of the worst of the worst out there. I wouldn't recommend it even to my worst enemy.

Re: First Credit Card

Dawn — Mon, 31 Dec 2007 23:45:17 GMT

maxima1 wrote:
try orchard bank or first premier they are starter card keep a year then dump them..

We will keep those in mind if the Citi is a decline and if it looks like BOA was really a decline. Cap1 wasn't my first choice ... but it has no annual fee and the current APR is 9.9%. I just warned him that they would not tolerate any sloppiness on his part.

Re: First Credit Card

Dawn — Mon, 31 Dec 2007 23:51:49 GMT

SmartCookie wrote:

I know Cap1 may have been your last choice for him but it is such a foot in the door... it really is. Let him know you are proud of that for sure! People do get denied for it afterall... and they are no way uber sub prime.

I know ... I should be thrilled that he at least got a Cap1 without a hitch. If he keeps his nose clean with this one, it should set him up for the next one, and maybe he can stay away from secured and AF cards.

Shoot! Maybe Citi will come through with an approval, but he hasn't received a phone call requesting verification of any information, so I'm not holding my breath.

Re: First Credit Card

SmartCookie — Tue, 01 Jan 2008 00:00:04 GMT

He got a no AF Cap1??? That's really good!!!! He'll never have to get rid of it... very nice!

Re: First Credit Card

Dawn — Tue, 01 Jan 2008 00:09:16 GMT

SmartCookie wrote:
He got a no AF Cap1??? That's really good!!!! He'll never have to get rid of it... very nice!

That's correct ... no AF ... I guess those pre-approval offers in the mail are worth something. Good thing that when I did the "opt-out" for the rest of the family a few years ago ... he didn't have a file to opt out of yet. Of course ... as soon as he's set with a few decent cards, I will speak to him about the opt-out thing for himself.

Re: First Credit Card

Anonymous — Tue, 01 Jan 2008 00:27:01 GMT

Cap1 (despite all the bad press) has been okay for me. They run the gamut of product (starter to excellent) so getting in with them is not a bad move IMO. Try for a gas or Target card (reviewed every 3 months and can convert to a Visa). Exxon will probably issue him a very low limit card ($100) but they are managed by Citi and 6 months with them can get you other offers.

Re: First Credit Card

ccaddict — Tue, 01 Jan 2008 09:43:28 GMT

@denbar2003 wrote:
Bank of America "could not process" with a pre-approval from the web-site and suggested a secured card.

That may be a really good option actually.. considering he can graduate later.

Re: First Credit Card

Anonymous — Tue, 01 Jan 2008 20:18:30 GMT

Capital one or Orchard bank I guess---my first one was Capital One--and didnt have any fees Good Luck!!

Re: First Credit Card

Anonymous — Tue, 01 Jan 2008 21:06:02 GMT

I would say just let him stick with the one card for a few months, especially since he's had recent overdraft problems. You definitely don't want him to have too many CC's all a once, since he's just starting out first. I think he should take care of the one card and forget about trying to play the FICO game and learn how to manage that one first, and then gaduate to 2 or 3 (maybe). I say teach him how to crawl before you teach him to walk.

Re: First Credit Card

Dawn — Fri, 11 Jan 2008 22:40:41 GMT

denbar2003 wrote:

Citi (Plat Select MC) gave him the 30 day notice.

And CapOne (the only one who has been sending pre-approval offers) actually gave him a firm approval on-line (card to arrive in approximately 7 days.) This was my last possible choice, but I didn't want to keep trying for another and have a bunch of inquiries piling up on his report.

OK ... Citi came through for him with a $500 CL and clearly defined disclosures regarding rates that are detailed on the "Card Carrier." 9.24% isn't bad.

Tricky creatures ... these CCCs are. I started looking for the "other fees" that aren't outlined on that Card Carrier and found them in the Card Agreement ... but not in the "easy to read" table format that they are usually displayed in when receiving pre-screened offers.

I really hate how they have some of the information in the "Card Agreement" yet refer you back to the "Card Carrier" for the finer details particular to this specific card. Someone without the patience to sift through multiple pages of documents (knowing what they were looking for) could be in for some unexpected surprises if they aren't careful.

Now ... CapOne ... makes me nervous. The letter printed on the "Card Carrier" reveals the CL of $300. But ... there is no other summary regarding additional disclosures (APR, other fees, absence or presence of an annual fee.) Nor is this information in the "Customer Agreement." This agreement refers back to information "previously disclosed to you as a part of the TILA Account Disclosures or as we will disclose to you if required by applicable law."

Wow! How do we KNOW that they set this card up according to the terms of the particular pre-screened offer he applied for? Fortunately, I trashed the pile of pre-screened CapOne offers (except for this particular one) when he applied, but I still feel uneasy about not getting those disclosures in the envelope with the card. Is this the normal way CCCs do things when they send a card based upon a pre-screened offer? The initial disclosures are not repeated when the actual card arrives? Coaching him to ask enough questions to make sure he gets the "No annual fee" and the 0% introductory purchase APR through June 2008 will be a challenge.