topic Re: Overcoming a Thin File? in Credit Cards

Overcoming a Thin File?

Anonymous — Sat, 13 Sep 2014 14:18:05 GMT

Hello, I'm quite new to all this (even though I'm 25).

I've never opened up any form of credit card, loan, etc. before so my files are considered thin/nonexistent. This has left me in an incredibily frustrating situation of being denied for nearly every card I've applied for.

I first started small and applied for the suggested cards to establish/rebuild credit. Capital One's secured denied me instantly, BOA was also instantly denied, even my own local bank denied me for their secured card.

I then figured, "What the heck? Let's try applying for some unsecured ones since I have no history anyway..."

BOA Americard: Denied

Amex Green: Denied

Chase Freedom: Pending (30-days, doubt I have a chance)

Discover IT: Approved!

I was not expecting this at all, I was approved with a CL of $1,000 after phoning in to their main number and sent over to their higher departments for review. I'm so happy Discover is willing to take a chance on someone that has no history on an unsecured card! (I initially applied figuring they'd send me an offer for their secured one if I was denied anyway).

UPDATE:

Chase & TD were both approved after a recon.

UPDATE 2:

It's been 6 months, I've finally established enough credit to get auto approvals when I tried applying today!

Re: Overcoming a Thin File?

grinlikechelsea — Tue, 11 Mar 2014 04:06:48 GMT

You've got a card now, so do not apply for anymore credit. Baby that card and use it enough to report a small balance (you can pay off some before it reports) and pay it in full. Do that for about a year, and you should be able to have another prime card if you would like.

Also call Chase's recon line! Another person got the Freedom as his first CC, so it is worth a shot, especially if you already have a relationship with Chase!

Re: Overcoming a Thin File?

Anonymous — Tue, 11 Mar 2014 04:27:00 GMT

@grinlikechelsea wrote:
You've got a card now, so do not apply for anymore credit. Baby that card and use it enough to report a small balance (you can pay off some before it reports) and pay it in full. Do that for about a year, and you should be able to have another prime card if you would like.

Also call Chase's recon line! Another person got the Freedom as his first CC, so it is worth a shot, especially if you already have a relationship with Chase!

+1 to this. I was able to get the Freedom as my first card because of my relationship with Chase. So if you bank with them there is a pretty good chance they will recon and give it to you.

Re: Overcoming a Thin File?

Anonymous — Tue, 11 Mar 2014 04:30:51 GMT

Thanks for the advice, I certainly plan on babying my first card I don't bank with Chase, but I'll open an account with them this year to better my chances the next time I try (I'll also recon tomorrow and see what they say).

One other question, will too many inquiries affect Discover's auto CLI in 6 months?

Re: Overcoming a Thin File?

mirachi — Tue, 11 Mar 2014 04:32:30 GMT

Recon like there's no tomorrow for the Freedom (if necessary) but resist any twitchy fingers for at least a year~

Good luck!

Re: Overcoming a Thin File?

mirachi — Tue, 11 Mar 2014 04:35:56 GMT

@Anonymous wrote:
Thanks for the advice, I certainly plan on babying my first card I don't bank with Chase, but I'll open an account with them this year to better my chances the next time I try (I'll also recon tomorrow and see what they say).

One other question, will too many inquiries affect Discover's auto CLI in 6 months?

In my experience, no inquiries won't affect the auto CLI (now, if you're asking would I have gotten a higher CLI if I had about 10 less INQs...then I haven't the slightest clue...)

Re: Overcoming a Thin File?

Anonymous — Tue, 11 Mar 2014 09:36:47 GMT

Looks like you have about 6 inquiries and they're probably spread out all over your credit reports, so that's probably a good thing right now. (except Cap One as they put one inquiry on each of your reports). I'd also look at the letters when they come in to see why they denied you exactly. You can work on those issues (possibly) while you're "gardening" that Discover card. Definitely call Chase and try to recon. It would be great to have two good cards if at all possible. Some people say to use that card for a year before apping for anything else, but if your credit report is clean, and you stay away from any more inquiries you might be able to apply for one more decent card in 6 months of good use on that Discover.

Do you know your scores if you have one? Do you know what is on your credit report? Any chance that you have derogatory items, loans, etc on there? I'd pull those and look at them to make sure there are no hidden issues that you are unaware of.

Congratulations on the one approval. One bit of advice, if you're researching on this forum you'll come across the "shopping cart trick" if you decide to pursue this avenue, I'd suggest getting only one store card that you know you want and will use. Don't just randomly try for any card you can get approved for via this method. Too many new accounts will hurt your chances for success, CLIs, and limits in the future.

Re: Overcoming a Thin File?

jesseh — Tue, 11 Mar 2014 09:51:53 GMT

Wow, your local bank denied you for a secured card? Tough lender.

Re: Overcoming a Thin File?

Smooth954 — Tue, 11 Mar 2014 11:08:34 GMT

Don't look to acquire an secured card if you have bypassed that need and was approved for a unsecured card. Secured cards are essentially a debit card with minimal credit card privileges. They offer no rewards are cash back programs that I'm aware of they serve a certain purpose unsecured is the way to go. I believe you can go for and increase in 3months on discover but maybe you should wait the 6 month mark with new credit. Search the boards some users have gotten additional cards after 6 months of proper use with a thin are new file. Congrats on the approval.

Re: Overcoming a Thin File?

heyitsyeh — Tue, 11 Mar 2014 17:48:16 GMT

Yeah, simply making payments on the Discover will strengthen your credit enough to easily get a Freedom, especially after a year. Be patient! I was in the same boat as you, but I waited 3 years for my 2nd card haha.

Re: Overcoming a Thin File?

Anonymous — Tue, 11 Mar 2014 19:01:02 GMT

Took 2 recon calls to Chase but they aproved me!

I won't bother with a secured cc, and going to stop banking with TD since they wouldn't even give me a secured card. Thanks so much for the input everyone, I'll just work with the Discover & Chase ones for a year+ and see what my score is then.

I have no credit score at the moment - since I don't have enough information on my CR to make one, I also don't have any collections/deliqs/etc.

Re: Overcoming a Thin File?

grinlikechelsea — Tue, 11 Mar 2014 20:16:00 GMT

@Anonymous wrote:
Took 2 recon calls to Chase but they aproved me!

I won't bother with a secured cc, and going to stop banking with TD since they wouldn't even give me a secured card. Thanks so much for the input everyone, I'll just work with the Discover & Chase ones for a year+ and see what my score is then.

I have no credit score at the moment - since I don't have enough information on my CR to make one, I also don't have any collections/deliqs/etc.

Congrats on picking up two very good cards!

Re: Overcoming a Thin File?

Anonymous — Tue, 11 Mar 2014 20:20:14 GMT

Those two cards are awesome to start out! Just baby those cards and you will be well on your way to beginning the fun game of credit. Congrats!!

Re: Overcoming a Thin File?

red259 — Tue, 11 Mar 2014 21:40:00 GMT

@Anonymous wrote:
Took 2 recon calls to Chase but they aproved me!

I won't bother with a secured cc, and going to stop banking with TD since they wouldn't even give me a secured card. Thanks so much for the input everyone, I'll just work with the Discover & Chase ones for a year+ and see what my score is then.

I have no credit score at the moment - since I don't have enough information on my CR to make one, I also don't have any collections/deliqs/etc.

I wouldn't stop banking with TD Bank over this if your happy with them otherwise. I prefer to keep my accounts with a bank different than my credit card lenders. I just don't like one bank having that much control over my finances. Working on these two cards for a year+ seems like a perfect idea and I highly recommend the garden thread to help provide you with support if you need it.

Re: Overcoming a Thin File?

Anonymous — Tue, 11 Mar 2014 21:51:22 GMT

@Anonymous wrote:
Took 2 recon calls to Chase but they aproved me!

I won't bother with a secured cc, and going to stop banking with TD since they wouldn't even give me a secured card. Thanks so much for the input everyone, I'll just work with the Discover & Chase ones for a year+ and see what my score is then.

I have no credit score at the moment - since I don't have enough information on my CR to make one, I also don't have any collections/deliqs/etc.

I'd say you did great! TD seems to be difficult to get credit from, but you managed to snag two excellent prime lenders. I'd say you're well on your way. Treat those cards well and in 6 months you will generate a score.. and with in a year you could probably look for additional credit if you want it. Just make sure to keep your UTL managable!

Re: Overcoming a Thin File?

Anonymous — Wed, 12 Mar 2014 00:10:32 GMT

I just received a whole bunch of letters today.

Cap1: Insufficient history - All 3

Amex: Insufficient history - EX

BOA: Unable to verify identity - TU (reconning, sending in docs to verify and see what happens)

TD - Unable to verify identity - EX (I found this extremely odd since I banked with them for 8 years). Called in, did a recon, and was approved! Figured I'd take the card because they said it would be able to graduate in the future. I also found out that my accounts with them are so old that I have special perks that no other accounts offer at other banks so I guess I'm staying

Discover: Approved - TU

Chase: Approved - EX

Not sure if that's of any help to anyone, but thought I'd post it. Was also wondering... what exactly is the "Shopping Cart Trick" mentioned in an earlier post?

Re: Overcoming a Thin File?

Anonymous — Wed, 12 Mar 2014 00:29:13 GMT

@Anonymous wrote:
I just received a whole bunch of letters today.

Cap1: Insufficient history - All 3
Amex: Insufficient history - EX
BOA: Unable to verify identity - TU (reconning, sending in docs to verify and see what happens)

TD - Unable to verify identity - EX (I found this extremely odd since I banked with them for 8 years). Called in, did a recon, and was approved! Figured I'd take the card because they said it would be able to graduate in the future. I also found out that my accounts with them are so old that I have special perks that no other accounts offer at other banks so I guess I'm staying

Discover: Approved - TU
Chase: Approved - EX

Not sure if that's of any help to anyone, but thought I'd post it. Was also wondering... what exactly is the "Shopping Cart Trick" mentioned in an earlier post?

Lol I'm all for helping forum people, I swear, but since you now have 3 very nice bank cards, I'd prefer not to explain it to you! Age those cards and inquiries a bit. You don't need any more, especially store cards with small crummy limits, and high interest rates! It's basically just a way to get certain store cards through one bank with out a hard pull on your credit report, however, it would still be a new tradeline, and you now have 3 new bank tradelines with very good banks, so you're in fantastic shape. For any one to have 3 cards to work with is a great thing. Your credit will probably be VERY nice in a year if you treat those cards well!

Re: Overcoming a Thin File?

red259 — Wed, 12 Mar 2014 00:39:33 GMT

@Anonymous wrote:
@Anonymous wrote:
I just received a whole bunch of letters today.

Cap1: Insufficient history - All 3
Amex: Insufficient history - EX
BOA: Unable to verify identity - TU (reconning, sending in docs to verify and see what happens)

TD - Unable to verify identity - EX (I found this extremely odd since I banked with them for 8 years). Called in, did a recon, and was approved! Figured I'd take the card because they said it would be able to graduate in the future. I also found out that my accounts with them are so old that I have special perks that no other accounts offer at other banks so I guess I'm staying

Discover: Approved - TU
Chase: Approved - EX

Not sure if that's of any help to anyone, but thought I'd post it. Was also wondering... what exactly is the "Shopping Cart Trick" mentioned in an earlier post?

Lol I'm all for helping forum people, I swear, but since you now have 3 very nice bank cards, I'd prefer not to explain it to you! Age those cards and inquiries a bit. You don't need any more, especially store cards with small crummy limits, and high interest rates! It's basically just a way to get certain store cards through one bank with out a hard pull on your credit report, however, it would still be a new tradeline, and you now have 3 new bank tradelines with very good banks, so you're in fantastic shape. For any one to have 3 cards to work with is a great thing. Your credit will probably be VERY nice in a year if you treat those cards well!

+1 Your beyond the need for shopping cards at this point. Just age your accounts as further apps will only serve to jeopardize your current accounts and make it that much harder to pick up cards/ CLIs in the future.

Re: Overcoming a Thin File?

Anonymous — Wed, 12 Mar 2014 00:42:14 GMT

lol thanks, I don't think I need random store cards either. I went from barely being able to get any secured card, to getting 1 unsecured card, to getting 3 cards Time to start gardening!

Another question (sorry, still new to all this):

Should I be worried that when lenders are pulling up my EX reports, they're unable to verify me? I have a feeling it's because my address at 18 was with my parents and I've since moved (several times). But since I never had credit accounts, my address on my reports are still different.

Will my address automatically update when Discover, Chase, etc starts reporting to the CBs? Or should I call/mail in docs with my new address to change it? How long does it typically take to for lenders to start reporting new accounts?

Re: Overcoming a Thin File?

Anonymous — Wed, 12 Mar 2014 00:48:25 GMT

@heyitsyeh wrote:
Yeah, simply making payments on the Discover will strengthen your credit enough to easily get a Freedom, especially after a year. Be patient! I was in the same boat as you, but I waited 3 years for my 2nd card haha.

I did it less than 3 months after my discover and got AMEX BCE and Freedom. Definitely doesn't have to be six months.