topic Re: Starting a Credit History in Rebuilding Your Credit

Starting a Credit History

xXIDaShizIXx — Sat, 01 Feb 2014 00:24:28 GMT

So guys, I have been advised to post in this subforum about my problems. Well I am a recent college grad with 27.4k in student loans and will be starting a doctoral program this fall. I have a capital one secured card with a $500. And I also have an AAMCO Car Care One Card from GE Capital with a $1000 credit limit (which financed a transmission) which I will be paying off in February (I started paying on it in January). Other than that I have no history. I started college at 15 and graduated at 19, so I didn't have any history built up like most recent college grads do (I know its weird). But anyways, please help me figure out how to get myself on track so I don't keep getting unsecured denials!! They aren't even Prime cards I'm applying for.

Re: Starting a Credit History

Anonymous — Sat, 01 Feb 2014 00:29:47 GMT

@xXIDaShizIXx wrote:
So guys, I have been advised to post in this subforum about my problems. Well I am a recent college grad with 27.4k in student loans and will be starting a doctoral program this fall. I have a capital one secured card with a $500. And I also have an AAMCO Car Care One Card from GE Capital with a $1000 credit limit (which financed a transmission) which I will be paying off in February (I started paying on it in January). Other than that I have no history. I started college at 15 and graduated at 19, so I didn't have any history built up like most recent college grads do (I know its weird). But anyways, please help me figure out how to get myself on track so I don't keep getting unsecured denials!! They aren't even Prime cards I'm applying for.

Wow!! Congratulations first off on starting college at 15! That is incredible.

Secondly- you have a thin file. Have you paid any thing at all on your student loans? How much do you have charged currently on your Car Care account? UTL is a huge deal. How much is on your Cap One account? Have you tried for any pre-approvals with any other bank such as Cap 1 ( for un secured), Citi, Discover, Amex, Chase?

Thank you. I really want to be able to help you and I'm glad you posted here.

Do you have any thing else at all on your credit report? Derogatories, auto loans, etc?

Do you have a local Credit Union? Depending on your income perhaps you can look into a credit builder account? Here is a link from DCU- a random CU when I googled Credit Builder Accounts- to give you an idea of what I was refering to: https://www.dcu.org/loans/credit-builder.html

Re: Starting a Credit History

xXIDaShizIXx — Sat, 01 Feb 2014 00:42:20 GMT

@Anonymous wrote:
@xXIDaShizIXx wrote:
So guys, I have been advised to post in this subforum about my problems. Well I am a recent college grad with 27.4k in student loans and will be starting a doctoral program this fall. I have a capital one secured card with a $500. And I also have an AAMCO Car Care One Card from GE Capital with a $1000 credit limit (which financed a transmission) which I will be paying off in February (I started paying on it in January). Other than that I have no history. I started college at 15 and graduated at 19, so I didn't have any history built up like most recent college grads do (I know its weird). But anyways, please help me figure out how to get myself on track so I don't keep getting unsecured denials!! They aren't even Prime cards I'm applying for.
Wow!! Congratulations first off on starting college at 15! That is incredible.

Secondly- you have a thin file. Have you paid any thing at all on your student loans? How much do you have charged currently on your Car Care account? UTL is a huge deal. How much is on your Cap One account? Have you tried for any pre-approvals with any other bank such as Cap 1 ( for un secured), Citi, Discover, Amex, Chase?

Thank you. I really want to be able to help you and I'm glad you posted here.

Do you have any thing else at all on your credit report? Derogatories, auto loans, etc?

Do you have a local Credit Union? Depending on your income perhaps you can look into a credit builder account? Here is a link from DCU- a random CU when I googled Credit Builder Accounts- to give you an idea of what I was refering to: https://www.dcu.org/loans/credit-builder.html

Thank you. I have made one payment on my student loans so far, but they will have to go into deferment once I start my doctoral program. I have $800 on the GE card and it will be paid off mid february. I have $0 on my Capital one account at the moment ( Realize thats a 54% UTL). I have no derogatories or auto loans, or any of that, clean file, just thin. And I tried all of the Pre Approval sites and none of them could find me an offer.

Re: Starting a Credit History

Jeff007245 — Sat, 01 Feb 2014 00:52:38 GMT

Who do you bank with?

Start by building a relationship with them with a Secured Credit Card that will eventually graduate to a rewards card within 6 months to a year. If you take care of it though.

You can also apply for the following Student Cards:

Bank ( Your Bank) - Student Card that can graduate

Discover - IT Student (This is the best student card)

Capital One - Journey

Also great for College:

Sallie Mae - MasterCard by Barclays

Re: Starting a Credit History

xXIDaShizIXx — Sat, 01 Feb 2014 00:54:41 GMT

@Jeff007245 wrote:
Who do you bank with?

Start by building a relationship with them with a Secured Credit Card that will eventually graduate to a rewards card within 6 months to a year. If you take care of it though.

You can also apply for the following Student Cards:

Bank ( Your Bank) - Student Card that can graduate
Discover - IT Student (This is the best student card)
Capital One - Journey

Also great for College:

Sallie Mae - MasterCard by Barclays

I have been with BBVA compass for 3 years. They offered me a secured card for $500, but they do not graduate, so its just as useless as Cap1. I applied for all three of the others and got denied unfortunately.

Re: Starting a Credit History

Anonymous — Sat, 01 Feb 2014 01:00:17 GMT

@xXIDaShizIXx wrote:
@Jeff007245 wrote:
Who do you bank with?

Start by building a relationship with them with a Secured Credit Card that will eventually graduate to a rewards card within 6 months to a year. If you take care of it though.

You can also apply for the following Student Cards:

Bank ( Your Bank) - Student Card that can graduate
Discover - IT Student (This is the best student card)
Capital One - Journey

Also great for College:

Sallie Mae - MasterCard by Barclays
I have been with BBVA compass for 3 years. They offered me a secured card for $500, but they do not graduate, so its just as useless as Cap1. I applied for all three of the others and got denied unfortunately.

Cap one I know from experience is very sensitive to utilization. I assume many other banks are as well. Untill you have that one account at 1-9% reporting, I'd definitely hold off on applications.

Do you know how many inquiries you have on each credit bureau or what your scores might be?

Re: Starting a Credit History

xXIDaShizIXx — Sat, 01 Feb 2014 01:02:25 GMT

I haven't applied to Cap1 since getting the GE card. Also all of my scores are from 690-710.

Re: Starting a Credit History

Jeff007245 — Sat, 01 Feb 2014 01:03:37 GMT

How about starting a new account with mainstream banks that can graduate.

Bank of America

Citi Bank

Chase

US Bank

Wells Fargo

etc...

The reason you may be getting declined for the student cards is because of your balance and utilization on your GE card. Pay that off and let it report when you apply. Even for the secured cards its imperative that you apply with your reports are best looking as they can be.

Re: Starting a Credit History

xXIDaShizIXx — Sat, 01 Feb 2014 01:07:17 GMT

@Jeff007245 wrote:
How about starting a new account with mainstream banks that can graduate.

Bank of America
Citi Bank
Chase
US Bank
Wells Fargo

etc...

The reason you may be getting declined for the student cards is because of your balance and utilization on your GE card. Pay that off and let it report when you apply. Even for the secured cards its imperative that you apply with your reports are best looking as they can be.

This was before I got the GE card. I got it at the beginning of this month. Should I get the bank of america secured card? I just really don't want to throw any more money at secured cards, because I really don't have it as it is at the moment.

Re: Starting a Credit History

Anonymous — Sat, 01 Feb 2014 01:08:07 GMT

@Jeff007245 wrote:
How about starting a new account with mainstream banks that can graduate.

Bank of America
Citi Bank
Chase
US Bank
Wells Fargo

etc...

The reason you may be getting declined for the student cards is because of your balance and utilization on your GE card. Pay that off and let it report when you apply. Even for the secured cards its imperative that you apply with your reports are best looking as they can be.

+1 this is a huge thing to lenders. Add that to a lot of (maybe?) inquiries and you might look risky with a thinner file.

Re: Starting a Credit History

Anonymous — Sat, 01 Feb 2014 01:09:55 GMT

@xXIDaShizIXx wrote:
@Jeff007245 wrote:
How about starting a new account with mainstream banks that can graduate.

Bank of America
Citi Bank
Chase
US Bank
Wells Fargo

etc...

The reason you may be getting declined for the student cards is because of your balance and utilization on your GE card. Pay that off and let it report when you apply. Even for the secured cards its imperative that you apply with your reports are best looking as they can be.
This was before I got the GE card. I got it at the beginning of this month. Should I get the bank of america secured card? I just really don't want to throw any more money at secured cards, because I really don't have it as it is at the moment.

BOA will at least graduate if you can get approved. Is your income lower? If you can't necessarily afford it that may be another reason for the denials. It may also be a reason to perhaps not look for credit at this time.. at least not til your situation levels out and improves.

I hate to ask such a sensitive thing, but that is something that they are looking at.

Re: Starting a Credit History

xXIDaShizIXx — Sat, 01 Feb 2014 01:12:39 GMT

@Anonymous wrote:
@xXIDaShizIXx wrote:
@Jeff007245 wrote:
How about starting a new account with mainstream banks that can graduate.

Bank of America
Citi Bank
Chase
US Bank
Wells Fargo

etc...

The reason you may be getting declined for the student cards is because of your balance and utilization on your GE card. Pay that off and let it report when you apply. Even for the secured cards its imperative that you apply with your reports are best looking as they can be.
This was before I got the GE card. I got it at the beginning of this month. Should I get the bank of america secured card? I just really don't want to throw any more money at secured cards, because I really don't have it as it is at the moment.
BOA will at least graduate if you can get approved. Is your income lower? If you can't necessarily afford it that may be another reason for the denials. It may also be a reason to perhaps not look for credit at this time.. at least not til your situation levels out and improves.

I hate to ask such a sensitive thing, but that is something that they are looking at.

I make about 30,000 a year presently. Like I said, I will be going to a doctoral program soon, in August, and will have to leave my job (moving out of state). And my pay will be cut rather drastically. Not that they know that.

Re: Starting a Credit History

Anonymous — Sat, 01 Feb 2014 01:19:40 GMT

@xXIDaShizIXx wrote:
@Anonymous wrote:
@xXIDaShizIXx wrote:
@Jeff007245 wrote:
How about starting a new account with mainstream banks that can graduate.

Bank of America
Citi Bank
Chase
US Bank
Wells Fargo

etc...

The reason you may be getting declined for the student cards is because of your balance and utilization on your GE card. Pay that off and let it report when you apply. Even for the secured cards its imperative that you apply with your reports are best looking as they can be.
This was before I got the GE card. I got it at the beginning of this month. Should I get the bank of america secured card? I just really don't want to throw any more money at secured cards, because I really don't have it as it is at the moment.
BOA will at least graduate if you can get approved. Is your income lower? If you can't necessarily afford it that may be another reason for the denials. It may also be a reason to perhaps not look for credit at this time.. at least not til your situation levels out and improves.

I hate to ask such a sensitive thing, but that is something that they are looking at.
I make about 30,000 a year presently. Like I said, I will be going to a doctoral program soon, in August, and will have to leave my job (moving out of state). And my pay will be cut rather drastically. Not that they know that.

Gotcha. After you graduate, I assume you'll be in a career where you'll make more than you are currently. As a heads up, it's going to get you scolded if you say you're applying for credit with your income knowing it's going to be cut down... that being neither here or there... I think at this point, perhaps a secured loan such as the credit builder loan I linked, or another secured CC might be your best bet. However, I'd ignore both of those at this point. You can still wait and apply for an unsecured CC once you have your UTL reporting to your credit bureaus on that Car Care account under 10% (perhaps even 20%) . Assuming your inquiries aren't high, you should get approved for something since your scores are other wise decent.

Re: Starting a Credit History

xXIDaShizIXx — Sat, 01 Feb 2014 01:25:42 GMT

@Anonymous wrote:
@xXIDaShizIXx wrote:
@Anonymous wrote:
@xXIDaShizIXx wrote:
@Jeff007245 wrote:
How about starting a new account with mainstream banks that can graduate.

Bank of America
Citi Bank
Chase
US Bank
Wells Fargo

etc...

The reason you may be getting declined for the student cards is because of your balance and utilization on your GE card. Pay that off and let it report when you apply. Even for the secured cards its imperative that you apply with your reports are best looking as they can be.
This was before I got the GE card. I got it at the beginning of this month. Should I get the bank of america secured card? I just really don't want to throw any more money at secured cards, because I really don't have it as it is at the moment.
BOA will at least graduate if you can get approved. Is your income lower? If you can't necessarily afford it that may be another reason for the denials. It may also be a reason to perhaps not look for credit at this time.. at least not til your situation levels out and improves.

I hate to ask such a sensitive thing, but that is something that they are looking at.
I make about 30,000 a year presently. Like I said, I will be going to a doctoral program soon, in August, and will have to leave my job (moving out of state). And my pay will be cut rather drastically. Not that they know that.
Gotcha. After you graduate, I assume you'll be in a career where you'll make more than you are currently. As a heads up, it's going to get you scolded if you say you're applying for credit with your income knowing it's going to be cut down... that being neither here or there... I think at this point, perhaps a secured loan such as the credit builder loan I linked, or another secured CC might be your best bet. However, I'd ignore both of those at this point. You can still wait and apply for an unsecured CC once you have your UTL reporting to your credit bureaus on that Car Care account under 10% (perhaps even 20%) . Assuming your inquiries aren't high, you should get approved for something since your scores are other wise decent.

Do you think it would be safest to just get another secured card and just have those for the next few years and slowly raise those limits?

Re: Starting a Credit History

Jeff007245 — Sat, 01 Feb 2014 01:29:15 GMT

BTW when I say start a relationship, I mean also opening a checking account and possibly a low level free savings account with them. They would take you more seriously and possibly approve you for a credit card whether secured or student.

Re: Starting a Credit History

Anonymous — Sat, 01 Feb 2014 01:29:02 GMT

@xXIDaShizIXx wrote:
@Anonymous wrote:
@xXIDaShizIXx wrote:
@Anonymous wrote:
@xXIDaShizIXx wrote:
@Jeff007245 wrote:
How about starting a new account with mainstream banks that can graduate.

Bank of America
Citi Bank
Chase
US Bank
Wells Fargo

etc...

The reason you may be getting declined for the student cards is because of your balance and utilization on your GE card. Pay that off and let it report when you apply. Even for the secured cards its imperative that you apply with your reports are best looking as they can be.
This was before I got the GE card. I got it at the beginning of this month. Should I get the bank of america secured card? I just really don't want to throw any more money at secured cards, because I really don't have it as it is at the moment.
BOA will at least graduate if you can get approved. Is your income lower? If you can't necessarily afford it that may be another reason for the denials. It may also be a reason to perhaps not look for credit at this time.. at least not til your situation levels out and improves.

I hate to ask such a sensitive thing, but that is something that they are looking at.
I make about 30,000 a year presently. Like I said, I will be going to a doctoral program soon, in August, and will have to leave my job (moving out of state). And my pay will be cut rather drastically. Not that they know that.
Gotcha. After you graduate, I assume you'll be in a career where you'll make more than you are currently. As a heads up, it's going to get you scolded if you say you're applying for credit with your income knowing it's going to be cut down... that being neither here or there... I think at this point, perhaps a secured loan such as the credit builder loan I linked, or another secured CC might be your best bet. However, I'd ignore both of those at this point. You can still wait and apply for an unsecured CC once you have your UTL reporting to your credit bureaus on that Car Care account under 10% (perhaps even 20%) . Assuming your inquiries aren't high, you should get approved for something since your scores are other wise decent.
Do you think it would be safest to just get another secured card and just have those for the next few years and slowly raise those limits?

No. What I think is that if you pay off the car credit, you MIGHT be able to get another card- unsecured as soon as it reports. (again, depending on if your inquiries are low)

Other wise perhaps you might need one more secured card for maybe 6 months, a year at most... again, depending on how many inquiries you have. Other wise, if you have no derogs, you have nothing really preventing you from getting decent and unsecured cards sooner than " a few" years.

Re: Starting a Credit History

Anonymous — Sat, 01 Feb 2014 01:29:51 GMT

@Jeff007245 wrote:
BTW when I say start a relationship, I mean also opening a checking account and possibly a low level free savings account with them. They would take you more seriously and possibly approve you for a credit card whether secured or student.

+1 a LOCAL credit union would be good for this. They're likely to take more of a chance on you and be more generous.

Re: Starting a Credit History

xXIDaShizIXx — Sat, 01 Feb 2014 01:37:15 GMT

@Jeff007245 wrote:
BTW when I say start a relationship, I mean also opening a checking account and possibly a low level free savings account with them. They would take you more seriously and possibly approve you for a credit card whether secured or student.

I have both, for 3 years, like I said.

Re: Starting a Credit History

xXIDaShizIXx — Sat, 01 Feb 2014 01:39:36 GMT

@Anonymous wrote:
@xXIDaShizIXx wrote:
@Anonymous wrote:
@xXIDaShizIXx wrote:
@Anonymous wrote:
@xXIDaShizIXx wrote:
@Jeff007245 wrote:
How about starting a new account with mainstream banks that can graduate.

Bank of America
Citi Bank
Chase
US Bank
Wells Fargo

etc...

The reason you may be getting declined for the student cards is because of your balance and utilization on your GE card. Pay that off and let it report when you apply. Even for the secured cards its imperative that you apply with your reports are best looking as they can be.
This was before I got the GE card. I got it at the beginning of this month. Should I get the bank of america secured card? I just really don't want to throw any more money at secured cards, because I really don't have it as it is at the moment.
BOA will at least graduate if you can get approved. Is your income lower? If you can't necessarily afford it that may be another reason for the denials. It may also be a reason to perhaps not look for credit at this time.. at least not til your situation levels out and improves.

I hate to ask such a sensitive thing, but that is something that they are looking at.
I make about 30,000 a year presently. Like I said, I will be going to a doctoral program soon, in August, and will have to leave my job (moving out of state). And my pay will be cut rather drastically. Not that they know that.
Gotcha. After you graduate, I assume you'll be in a career where you'll make more than you are currently. As a heads up, it's going to get you scolded if you say you're applying for credit with your income knowing it's going to be cut down... that being neither here or there... I think at this point, perhaps a secured loan such as the credit builder loan I linked, or another secured CC might be your best bet. However, I'd ignore both of those at this point. You can still wait and apply for an unsecured CC once you have your UTL reporting to your credit bureaus on that Car Care account under 10% (perhaps even 20%) . Assuming your inquiries aren't high, you should get approved for something since your scores are other wise decent.
Do you think it would be safest to just get another secured card and just have those for the next few years and slowly raise those limits?
No. What I think is that if you pay off the car credit, you MIGHT be able to get another card- unsecured as soon as it reports. (again, depending on if your inquiries are low)

Other wise perhaps you might need one more secured card for maybe 6 months, a year at most... again, depending on how many inquiries you have. Other wise, if you have no derogs, you have nothing really preventing you from getting decent and unsecured cards sooner than " a few" years.

If I did another secured card, what here are the three im considering: The discover it secured, bank of america, and of course the one with my bank (BBVA Compass). I was holding out going to a credit union until we got moved, settled, and I got commissioned through the HPSP. Then I was going to join one of the military related credit unions.

Re: Starting a Credit History

Anonymous — Sat, 01 Feb 2014 01:41:48 GMT

@xXIDaShizIXx wrote:
@Anonymous wrote:
@xXIDaShizIXx wrote:
@Anonymous wrote:
@xXIDaShizIXx wrote:
@Anonymous wrote:
@xXIDaShizIXx wrote:
@Jeff007245 wrote:
How about starting a new account with mainstream banks that can graduate.

Bank of America
Citi Bank
Chase
US Bank
Wells Fargo

etc...

The reason you may be getting declined for the student cards is because of your balance and utilization on your GE card. Pay that off and let it report when you apply. Even for the secured cards its imperative that you apply with your reports are best looking as they can be.
This was before I got the GE card. I got it at the beginning of this month. Should I get the bank of america secured card? I just really don't want to throw any more money at secured cards, because I really don't have it as it is at the moment.
BOA will at least graduate if you can get approved. Is your income lower? If you can't necessarily afford it that may be another reason for the denials. It may also be a reason to perhaps not look for credit at this time.. at least not til your situation levels out and improves.

I hate to ask such a sensitive thing, but that is something that they are looking at.
I make about 30,000 a year presently. Like I said, I will be going to a doctoral program soon, in August, and will have to leave my job (moving out of state). And my pay will be cut rather drastically. Not that they know that.
Gotcha. After you graduate, I assume you'll be in a career where you'll make more than you are currently. As a heads up, it's going to get you scolded if you say you're applying for credit with your income knowing it's going to be cut down... that being neither here or there... I think at this point, perhaps a secured loan such as the credit builder loan I linked, or another secured CC might be your best bet. However, I'd ignore both of those at this point. You can still wait and apply for an unsecured CC once you have your UTL reporting to your credit bureaus on that Car Care account under 10% (perhaps even 20%) . Assuming your inquiries aren't high, you should get approved for something since your scores are other wise decent.
Do you think it would be safest to just get another secured card and just have those for the next few years and slowly raise those limits?
No. What I think is that if you pay off the car credit, you MIGHT be able to get another card- unsecured as soon as it reports. (again, depending on if your inquiries are low)

Other wise perhaps you might need one more secured card for maybe 6 months, a year at most... again, depending on how many inquiries you have. Other wise, if you have no derogs, you have nothing really preventing you from getting decent and unsecured cards sooner than " a few" years.
If I did another secured card, what here are the three im considering: The discover it secured, bank of america, and of course the one with my bank (BBVA Compass). I was holding out going to a credit union until we got moved, settled, and I got commissioned through the HPSP. Then I was going to join one of the military related credit unions.

BOA unsecures eventually, but I don't know about any others. I never looked in to it. If you're in the military, NFCU seems incredibly generous and amazing from what I've read. (also, thank you for your service, or thank you for your future service!!)