topic Re: APPROVED! in Credit Cards

Newbie Credit Help!

Anonymous — Sun, 08 Jul 2012 04:12:27 GMT

HI all,

I'm a college student looking to build some credit for a future car loan or apparment. I currently have a checking and savings account with TD bank, both good standing. I have $3500 in student loans that are deffered until October 2015. I work two part time jobs and make $11,000 annually

I have learned a little about credit online and tried for a Target card a year ago or so. Denied

Then in April I tried for another store card at a clothing retailer. Denied

Tried for a card at my employers in May. Denied.

I figured I should stop applying b/c lord knows what that does and I remember reading if you apply too much it makes you look desperate and you'll keep getting denied.

Then I went into my bank and asked to get some info on their credit cards. TD doesnt really seem to be known for their cards you know. I got some info and figured I'd apply. I did this 6/29. They told me I'd be notified by mail, which to me just means denied.

I was reading about good first time credit cards esp. for students and decided to try the CitiForward Card. I just applied and it says under 'Approval Status': Application Accepted. then a message about how they need further processing time. I'm figuring I'm denied. I decided to look on myFICO for info and found myself looking at my credit reports from T/U and Ex.

T/U says I have a satisfactory account with my studnet loan company. and one inquiry.

Exper- 0 negative 1 good standing

I'm waiting to see what the message is from CIti and TD but I'm assuming they're both denials. I dont know what to do!

Any help would be great.

Re: Newbie Credit Help!

Anonymous — Sun, 08 Jul 2012 04:21:45 GMT

Do you mind sharing your scores? I think no matter what for now you should stop applying and you should read this forum for a couple weeks and then re attack!

Re: Newbie Credit Help!

Anonymous — Sun, 08 Jul 2012 04:21:55 GMT

I am also a student and went through the same thing you did. My parents told me its really easy to get a jewlery store card, so I did just that. I was given a $400 limit and just made a $120 purchase. I payed it off over the course of 6 months so it showed I was able to pay responsibly. Once I got 6 months established I got a Cap1 platinum card (for limited/ no credit) and had it for a year before applying for other cards.

After all of that, I now carry a Chase Freedom, Discover More, Citi Platinum Select, and a Cap1 Cash card. Its hard to get started because of the mental beatdown from getting continuously denied, but hopefully this helps!

Re: Newbie Credit Help!

Anonymous — Sun, 08 Jul 2012 04:28:02 GMT

I would, but I dont know what they are. Are they on the credit reports? I just did the myFICO score estimator, and it put me between 660-710. I dont know if that's at all accurate thought

Re: Newbie Credit Help!

Anonymous — Sun, 08 Jul 2012 04:34:49 GMT

O' my bad, no not on your credit report but you can buy your myFico score on here for a couple bucks. With that kind of score I dont know why you would be denied a card if that's the case but you won't really know unless you have your score.

Re: Newbie Credit Help!

Anonymous — Sun, 08 Jul 2012 04:50:55 GMT

I just tried the free scorewatch on here and when it got to the personal q's, they were two that i answered "none of the above" it told me to call them, something about not being able to confirm my identity. UGH.

Re: Newbie Credit Help!

Anonymous — Sun, 08 Jul 2012 04:51:04 GMT

Welcome to myFICO® Emily!

I'm thinking since you are so new to credit that you don't even have a FICO® score yet. You have to use a credit card for 6 months in order to generate a FICO® score.

I, myself, did not have a FICO® score back in January of this year. Late last year, my husband and I funded 3 secured credit cards so that we could ultimately get our FICO® scores. If you are turned down, yet again, by your bank and Citibank -- it could be because you don't even a FICO® score in order to get unsecured credit cards.

You can use the search on this website and read about getting your first FICO® score.

I wish you well on your credit journey!

Re: Newbie Credit Help!

jsucool76 — Sun, 08 Jul 2012 04:53:56 GMT

I went through the same situation, I went credit desperate as soon as I turned 18 and applied for every student card there was and got denied. I even got denied for the cap1 secured card (that was a little upsetting since it was a secured card), I waited a couple months and eventually received a mail offer from Cap1 and got my first card. Your best bet is to spend some $$ on your scores and if you have any relation with a credit union I would go to them and see if they can help you out at all.

Re: Newbie Credit Help!

Anonymous — Sun, 08 Jul 2012 04:55:34 GMT

Wow I hate it when that happens, that did happen to me once and it seems like sometimes they ask you the stranges question and it's hard enough for me to remember some stuff little lone stuff from like 5-6 years ago?

Re: Newbie Credit Help!

Anonymous — Sun, 08 Jul 2012 05:07:55 GMT

Just go for Student cards. Many credit unions have them. Major card issuers with student cards: Citibank, Discover, Capital One, Wells Fargo. Make sure you apply under the student link. Include scholarships/grants in income as well. Pretty much every other decent unsecured card will be out of reach.

Re: Newbie Credit Help!

DaveSignal — Sun, 08 Jul 2012 05:15:41 GMT

My wife gets that when she tries to pull her credit reports or get a FICO from here. This site still has not been able to generate a FICO, even after me adding her as AU on a few cards. For her, it is because she doesn't have enough credit since she had only been in the country for about 1 year at the time she tried to pull reports. She doesn't really need any of her own credit cards or loans though, so we will just continue to let that be and use my credit.

As far as starting out and trying to build credit, though, your options are either a student card or card or sub-prime unsecured card which will come with an annual fee and probably various other unnecessary fees, or a secured card. I would recommend the secured card for 6 months and then, with on-time payments, you will be able to get approved for better cards.

And as an added thought, also not helping is your income. A creditor is going to think how can they possibly get paid when you are making only $11,000/year, but they probably aren't considering that you don't have other debt you are currently paying and don't have all of normal expenses as most non-college students.

Are you on a meal plan? Are you living in a dormitory? If so, maybe you could add the costs of food and housing, which is already paid for, to your annual income?

Re: Newbie Credit Help!

Anonymous — Sun, 08 Jul 2012 05:25:12 GMT

Just did the Experian credit score. It says I have no score. boooo.

Re: Newbie Credit Help!

Anonymous — Sun, 08 Jul 2012 05:32:26 GMT

I live at home so i have no meal plan or dorm fees. Maybe its me but I thought for being a senior in high school/freshman college, making 11,000 on my own is good. I guess not in a creditors eyes though

Re: Newbie Credit Help!

jsucool76 — Sun, 08 Jul 2012 05:48:16 GMT

@Anonymous wrote:
I live at home so i have no meal plan or dorm fees. Maybe its me but I thought for being a senior in high school/freshman college, making 11,000 on my own is good. I guess not in a creditors eyes though

Do you get any scholarships or grants (any FA you are NOT required to pay back), You are technically allowed to include that in your income.

Re: Newbie Credit Help!

Anonymous — Sun, 08 Jul 2012 05:53:06 GMT

@Anonymous wrote:
I live at home so i have no meal plan or dorm fees. Maybe its me but I thought for being a senior in high school/freshman college, making 11,000 on my own is good. I guess not in a creditors eyes though

Emily,

Look at my last post. Apply for student cards and you will be fine. Get 2-3 cards (ie app all on same day), and if you are going to do Cap One, app for that last.

Re: Newbie Credit Help!

DaveSignal — Sun, 08 Jul 2012 05:54:09 GMT

@Anonymous wrote:
Maybe its me but I thought for being a senior in high school/freshman college, making 11,000 on my own is good.

Yes, but lenders are not usually handing out prime cards with high lmits to high school students or college freshman. They, in general, want to think that after all of your monthly expenses (house, food, utilities, car, insurance) which usually amount to somewhere around $1000-$2000/month depending on cost-of-living for your area, that you can still make your minimum monthly payment and won't default on your debt.

Re: Newbie Credit Help!

Anonymous — Sun, 08 Jul 2012 08:33:14 GMT

Maybe just maybe to help out your credit or at least get your foot in the door one of your parents could add you as an authorized user to one of their cards to help you build a litte bit of credit?

Re: Newbie Credit Help!

Revelate — Sun, 08 Jul 2012 18:05:07 GMT

@Anonymous wrote:
I live at home so i have no meal plan or dorm fees. Maybe its me but I thought for being a senior in high school/freshman college, making 11,000 on my own is good. I guess not in a creditors eyes though

Oh hold on, you are 18 right?

Sub-21 there's some issues with obtaining a credit card now I think, though I haven't read the actual legislation that went into effect with the CARD act, you quite likely are running into issues with your age regardless. If you're under 18 though (freshman college, might be) you're just plain stuck.

The whole please wait thing isn't a big deal, it is NOT an auto-denial. Wait till those responses come back before you do ANYTHING else. If you get approved for both of those, you're done, just use them responsibly and you'll be fine.

If you don't get approved, well as a prior poster said, for unsecured credit, if it's not a Student version, don't even bother; however, in your case I'd encourage you to save up $400 or so and go open up two secured cards: BOFA (min $300) and Cap 1 (min $99). You shouldn't care, AT ALL, about limits right now, but you want to establish your credit history ASAP.

The Cap 1 card is partially secured, so you'll have 2 x $300 CL's, which is just fine. You're out the $300 for a year (when the BOFA card graduates); however, that BOFA card can now get their 1-2-3 rewards package which makes it, well, frankly the best card on the planet right now for anyone either just starting out or in a limited credit history situation. You'll have to pay around $70 in annual fees but that is *no big deal* in the long term. Your credit is hugely important in today's society, and the return on investment is literally hundreds or even thousands to one over a lifetime for establishing it well.

Anyway, it's right to establish your credit now, but it's also right to have a plan when applying. Most store / unsecured cards are just going to deny you outright currently.

Re: Newbie Credit Help!

Anonymous — Sun, 08 Jul 2012 18:22:22 GMT

I'm 19. Im going to wait and see if I get approved for the td or citi card. If not I'm probably just going to do the secured one. I'd rather pay $300 or $99 for the secured and get it over with.
I've also heard there's a discover card thats good as a first time no credit app. True?

Re: Newbie Credit Help!

Revelate — Sun, 08 Jul 2012 18:29:25 GMT

@Anonymous wrote:
I'm 19. Im going to wait and see if I get approved for the td or citi card. If not I'm probably just going to do the secured one. I'd rather pay $300 or $99 for the secured and get it over with.
I've also heard there's a discover card thats good as a first time no credit app. True?

Student version of Discover More yes, otherwise no.