topic Re: Student Credit Card denied in Credit Cards

Student Credit Card denied

ineedcreditbad — Mon, 20 Aug 2012 22:11:37 GMT

Hi Guys,

Need some help here.

I recently applied for a secured student credit card with Capital One for my daughter who will be starting college next week and she was denied.

We got the letter today from Capital One and the reason for denial was the following

Credit Bureau is missing and unavailable from Equifax, Experian and Transunion.

This will be her first credit card and she has no credit.

Should I just add her to my card as an additional user?

Thanks

Re: Student Credit Card denied

LS2982 — Mon, 20 Aug 2012 22:13:42 GMT

@ineedcreditbad wrote:
Hi Guys,

Need some help here.

I recently applied for a secured student credit card with Capital One for my daughter who will be starting college next week and she was denied.

We got the letter today from Capital One and the reason for denial was the following

Credit Bureau is missing and unavailable from Equifax, Experian and Transunion.

This will be her first credit card and she has no credit.

Should I just add her to my card as an additional user?

Thanks

Ed

Possible she has no FICO score, the bolded would be a good start for her for 6 months.

Re: Student Credit Card denied

jsucool76 — Mon, 20 Aug 2012 22:17:09 GMT

Definitely worth a try to add as an AU.

Capital one also denied me for their secured card, but then around 8 months later (still with no credit cards yet) they sent me an offer for their platinum card and approved me. They work in mysterious ways.

An AU will definitely help her out a little bit, but remember she gets all the history (any late payments, or other negatives on the account too) so make sure you add her to the card with the least negatives, if you have any at all. If you don't then disregard this whole statement.

Re: Student Credit Card denied

stevenngu92 — Mon, 20 Aug 2012 22:24:39 GMT

If she has a checking account you could try getting her a credit card from the bank she uses. One with no af that is.

Re: Student Credit Card denied

ACsteel — Tue, 21 Aug 2012 00:59:33 GMT

Here is an option:

Have her open a checking account with a bank that has secured credit cards. When you do this, there is no pull on credit report required what so ever, you just give them the amount you want to use from checking and they hold it in a cd for you until you decide to cancel your care, and you're off to begin creating a credit history.

Additionally a department store card is another great way for her to build credit when she has none.

Re: Student Credit Card denied

iMacDrew — Tue, 21 Aug 2012 01:01:37 GMT

adding her as an AU is a start. Do you bank with any credit unions?

Re: Student Credit Card denied

ACsteel — Tue, 21 Aug 2012 01:05:26 GMT

Don't most AU's fall under the liability of the card holder themselves? I don't believe the AU is granted any credit worthiness as an AU, only the cardholder, it's an extension of their credit for someone to use.

Re: Student Credit Card denied

jsucool76 — Tue, 21 Aug 2012 02:07:51 GMT

@angelclaudio wrote:
Here is an option:

Have her open a checking account with a bank that has secured credit cards. When you do this, there is no pull on credit report required what so ever, you just give them the amount you want to use from checking and they hold it in a cd for you until you decide to cancel your care, and you're off to begin creating a credit history.

Additionally a department store card is another great way for her to build credit when she has none.

Most banks do pull credit for secured cards. I was denied for a secured card myself, only one I know of that does not pull is SDFCU which is a CU.

Also AUs recieve all the history of the card, good and bad, so long as the card reports the AU account (some do not, most of the big names do though).

Re: Student Credit Card denied

Cdnewmanpac — Tue, 21 Aug 2012 02:46:16 GMT

@angelclaudio wrote:
Don't most AU's fall under the liability of the card holder themselves? I don't believe the AU is granted any credit worthiness as an AU, only the cardholder, it's an extension of their credit for someone to use.

This is incorrect. Many (not all) credit issuers report authorized users to credit reporting agencies. When an issuer reports to the authorized user's credit report, it often brings with it the entire card history. For example, I am an AU on one of my wife's cards. She has had the card since 1996, has a 16k limit and rarely uses it. We keep our finances separate, so this provides a way for me to make a purchase on her behalf if she is not available to do so. When this card began reporting on my credit report, I gained 16 years of spotless history and a drop in utilization due to the high credit limit. OTOH, she is an AU on my amex hilton surpass. While it does appear on her credit report, it only displays a history from the month she was made an AU (this is only an issue with Amex).

Several years ago, the CRAs tried to stop reporting authorized users and got pressured by the government and women's advocacy organizations to reverse their stance. The reason is that for many non-working spouses (usually women), the only way for them to establish credit is as an authorized user.

To the OP, I think making your daughter an AU is a great way to help her establish credit. That being said, there is no reason to physically give her the card. Also, make sure her address listed in her application is the same as yours.

Re: Student Credit Card denied

ACsteel — Tue, 21 Aug 2012 02:52:23 GMT

So with AMEX she won't get the AAoA, but she will start getting credit history for using the card from there on out suppose if it was an AMEX is this correct? That is amazing how on another credit card you all of sudden get 16 years of history, seems a bit like cheating lol.

Re: Student Credit Card denied

jsucool76 — Tue, 21 Aug 2012 02:55:10 GMT

@angelclaudio wrote:
So with AMEX she won't get the AAoA, but she will start getting credit history for using the card from there on out suppose if it was an AMEX is this correct? That is amazing how on another credit card you all of sudden get 16 years of history, seems a bit like cheating lol.

Yeah she will begin building history but not get the whole history. . Amex also has one of the best AU systems out there. AUs can get their own online access to track their purchases and the primary cardholder can also impose spending limits on the AUs cards to keep them from causing too much trouble.

Re: Student Credit Card denied

webhopper — Tue, 21 Aug 2012 03:43:14 GMT

With an amex you can also give her a spending limit. Its very cool. She will only be able to spend the amount that you preset.

Re: Student Credit Card denied

ineedcreditbad — Tue, 21 Aug 2012 13:16:35 GMT

Guys thanks for the great advise.

I think I will put her down as my AU on my Capital One card as we already did two inquires with Capital One and dont want to do anymore hard pulls for her report.

Thanks

Re: Student Credit Card denied

Anonymous — Tue, 21 Aug 2012 14:33:06 GMT

AU is the way to go.

Real quick. What cards do you have available to add her on as AU? Please list Card, open date, limit, typical balance on card, and any negatives (late pay etc.). If you list them out, I can tell you the bet subset and next steps for helping her get credit.

Also, will she be earning any income as student (part time job, scholarships and grants, set monthly money from parents etc.)?

Re: Student Credit Card denied

Anonymous — Tue, 21 Aug 2012 15:00:58 GMT

First post here, so hello!

It makes perfect sense that amex doesn't give an AU the entire credit history as the primary since this could be extremely abused. Say you add yourself as an AU to a 30 year old amex account and get the entire credit history. What happens if you open a new card and backdate it to the member since date? I'm assuming (and could be wrong) it would go off the 30 year old date and that's why amex is different because of this.

Re: Student Credit Card denied

jsucool76 — Tue, 21 Aug 2012 15:05:13 GMT

Amex used to backdate AU accounts to the original accounts date but doesnt anymore.

Re: Student Credit Card denied

ineedcreditbad — Tue, 21 Aug 2012 15:11:08 GMT

These are following cards I have

Amex Blue

$7500

Balance - 4500 (This will be paid in full next month)

Open Date - 2008

No lates or negatives

Cap One Venture

$5000

Balance - 2500

Open Date 2011

No lates

No lates or negatives

Cap One

$4050

Balance -2000

Open Date - 2011

No lates

No lates or negatives

She will be working partime and no scholarship or grant.

I was thinking of adding her to my Amex and then puttting a limit on her card as you cant do that with Cap One?

Any thoughts.

Re: Student Credit Card denied

Anonymous — Tue, 21 Aug 2012 16:10:45 GMT

Correct me if im wrong:

I don't know about placing a limit on her card as it could reflect the cap on her report.

Amex looks nice as she will get her member since date.

Re: Student Credit Card denied

Anonymous — Tue, 21 Aug 2012 17:01:50 GMT

Now once he removes her as an AU - say in 4 years when she's got her own cards and is out in the real world by herself - will they totally remove that info on her CRA though? Is the reporting benefit really only worth it as long as she's an AU or will it last on her report for years (thus boosting her well beyond college)?

Re: Student Credit Card denied

Anonymous — Tue, 21 Aug 2012 17:49:03 GMT

I have an 18 yr old daughter starting college next week. In Jan 2012, I added her as an authorized user on my Walmart Card 2.4K limit

She applied for 2 unsecured student cards in July 2012.. Cap One Journey and was approved for 300 cl and a student Discover with a 500 cl

She has no other credit history, had to send enrollment letter for Discover approval. Nothing for Cap One.