Bad Experience with Chase Card Applications

[BronzeTrader]

This is for a 19-year old college kid with 1.5 years of credit history.

AU and credit history for about two year prior.  Started to apply for personal credit cards in summer 2016.  Chase was the 2nd card applied, the Freedom card.  The app was denied due to lack of credit history and adequate credit as Chase AU.  Got approved from BofA, Discover, AmEx and Citi DC.  Not has extended to Barclay.  Total 11 solid credit card and a total CL of $45,000, and a FICO from 725 to 745.

Applied again and again with Chase multiple times (Amazon mostly).  Used about 9 inquiries on those application.  Some are directed by the Chase lending or fraud department to push through.  All wasted.  And the Chase credit card people have been sub-standard (the good words).  

We'll stay low and let the cards age over time.  Then I plan to churn Chase when we are out of 5/24.  This somehow changed my attitude toward Chase.  They would rather hand out 100,000 URs with a CL of $50,000, than giving a $500 Amazon credit line to a 19-year kid.

[Anonymous]

The laws have changed severely on extending credit to those under 21.  If I was a bank, I'd make it more difficult as well as their exposure to federal penalties is significantly higher.

Don't blame the banks, per se, blame the politicians who really made it a bureaucratic nightmare.  It amazes me that there are some banks who still extend credit to those under 21 considering the new laws and policies on the issue.

Chase is more conservative than many banks because Chase tends to finance credit cards with their own assets instead of rolling it out to investors.  This changes how conservative a bank is because they're not playing with OPM.

[BronzeTrader]

Sure, but legal is just legal.  Until things change.  

It is just absurd that Chase likes to hand out those fat bonuses and refuses to lend just a little to the common folks who want to build a relationship with Chase.

I think Chase may have similar default rate as most of the other CC companies.  It is just its business model.

[Anonymous]

Chase just boosted their cash reserves for defaults by the largest margin since 2012 or 2013.  They're expecting more defaults.  Because they self-fund most credit products, unlike many of the other big banks, they're naturally more hesitant to take a risk.

On the flip side I know 2 "kids" with Sapphire cards who are under 21, but they're both well employed higher 5 figure incomes who bank at Chase (direct deposit).  So a relationship beyond just an AU may help, but who really knows...

Doesn't hurt to open a savings account during a sign-up bonus and leave some balance there to at least get pre-approved offers at login and in branch.  Not sure if an AU gets that account.

[Anonymous]

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@BronzeTrader wrote:

This is for a 19-year old college kid with 1.5 years of credit history.

AU and credit history for about two year prior.  Started to apply for personal credit cards in summer 2016.  Chase was the 2nd card applied, the Freedom card.  The app was denied due to lack of credit history and adequate credit as Chase AU.  Got approved from BofA, Discover, AmEx and Citi DC.  Not has extended to Barclay.  Total 11 solid credit card and a total CL of $45,000, and a FICO from 725 to 745.

Applied again and again with Chase multiple times (Amazon mostly).  Used about 9 inquiries on those application.  Some are directed by the Chase lending or fraud department to push through.  All wasted.  And the Chase credit card people have been sub-standard (the good words).  

We'll stay low and let the cards age over time.  Then I plan to churn Chase when we are out of 5/24.  This somehow changed my attitude toward Chase.  They would rather hand out 100,000 URs with a CL of $50,000, than giving a $500 Amazon credit line to a 19-year kid.

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Wow, wish I had 11 cards open. Right now, I am 19.5 and only have 5 + 1 Discover AU. However, I am over 5/24, so I have to garden for 11 months until I *fingers crossed* get a Chase Freedom. If I end up gardening for 11 months to escape 5/24, and get denied by Chase, I will probably lose it. xD

[BronzeTrader]

Yes, there is existing banking relationship.  But minimal activities.  Enough is enough.  Take a one or two year break....

[ls2016]

I'm assuming you may have had too much going on with you age, income, and thin file for Chase liking initially. I say that because in March of this year, my daughter was 19, applied for Chase and was denied due to having 1 CC and 2 AU cards (young, thin file, scores 700+, internal Chase score of 677). She was approved on recon for $500, which her limit is $1500 now (8 months later, slow growth). So, your experience doesn't surpirse me at all. Just keep trying for Chase when the time is right if that's what you want. Best Wishes!

[SBR249]

Well I guess no CCC is obligated to lend money to anyone. I had a similar experience with SDFCU a few years back as a student. Apped for their rewards card, they asked for income verification, showed them history of stipend payment (I was 3 years into a fully funded 8 year program with monthly stipend payments), letters from the program guaranteeing funding, blah blah blah. Reconned with a letter laying out all the details. No go. They said that the program was time limited, etc. offered either a secured card or required a cosigner. Politely declined and never looked back. For a bit of context, at the time, I had 2 cards about 4 years old each with ~10K CL and was approved immediately afterwards for a C1 with 10K CL and a Discover with a 3.5K CL. My advice is to just let it go. Even if you come back later, it's not really worth it to get upset right now. The only one who'll feel bad is you. 

[Schwartzinator]

My first Chase application was denied for lack of suffiecent credit experience as well. I moved on and decided to turn my attention to other lenders in order to grow my file. A couple months after the new accounts showed up, I tried again but was consistenetly denied. When rumors of the Fairmont split popped up on the forums, I jumped on the card and 7 months later I finally got my CSP. Don't give up! 

[Anonymous]

I'm 19, bank with Chase, was approved for my first card ever with them with $500 SL. That was auto CLI to $1,000. Then cold app'ed for CSP and was approved for $12k.

If you're young, chances are you're not making a lot of money. But if they have POI (in my case direct deposit from employer over 2 years) and about a year's worth of very positive history with them, then of course they will be willing.