CapOne Student Denied

[Anonymous]

A friend applied to Discover Student in January and was approved.

But in March applied for CapOne Student and was instantly denied. Denial letter just came and says the reason for the decision is:

"Based on your credit report from EQ, EX, and TU credit bureau information is missing or unavailable".

Uhm...generally when someone applies for a "Student" card they obviously have no credit or are generally just starting out with credit which is the case for my friend.

"Key factors that adversely affected your credit score: Score unavailable, insufficient or Unkown credit history".

It's like they've never had anyone new to credit app with them.

[medicgrrl]

I think most students start at their own bank or as authorized users on a parents account.  Both of my kids first credit came from their credit union where they have their checking and savings.

[Anonymous]

Medicgrrl - I would say most parents are hesitant to add their teenagers because of how irresponsible teens typically are these days.

A very small percentage of the US populations teens has a checking or savings account at any credit union.

Regardless where you start if they're giving you an application for credit and you are between 18-20 they should expect you to have no credit history, if you do that's a plus, but they should be equipped to handle a student card application with no prior credit history that's the whole point of a student card.

Also, say you're a teen who has had a checking account with Chase from age 14 until you're 18 and you then apply for a credit card, that teen checking account isn't even a factor in their decision to grant/deny you a credit card.

[Anonymous]

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@Anonymous wrote:
Medicgrrl - I would say most parents are hesitant to add their teenagers because of how irresponsible teens typically are these days.

A very small percentage of the US populations teens has a checking or savings account at any credit union.

Regardless where you start if they're giving you an application for credit and you are between 18-20 they should expect you to have no credit history, if you do that's a plus, but they should be equipped to handle a student card application with no prior credit history that's the whole point of a student card.

Also, say you're a teen who has had a checking account with Chase from age 14 until you're 18 and you then apply for a credit card, that teen checking account isn't even a factor in their decision to grant/deny you a credit card.

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While it may be true that some banks don't consider prior banking history, it is not necassrily true for all banks. A notable example is Wells Fargo. I had been banking with Wells Fargo since I was 13 and they gave me my first card when I was 18 without a cosigner. It had a reasonable 1,200 SL, considering my reported income was around 15K.

[Anonymous]

In response to posts above. I'm currently 18. I started with a BoA checkings and savings and all the cards in my sig are under me. Also started as an AU under mothers credit, slowly building up there. As for OP I'd say call the recon line if possible, if not then work on CLIs for the current card they have

[elim]

I keep hearing about Cap1 tightening up in the lending department this year. Might be it.

[andyaycw]

Curious to see so many people getting declined for student credit cards. About a decade ago when I was first starting out and had no credit, Citibank gave me two student credit cards with starting CL's of $1200 and $1000. 

If these are student credit cards, I wonder if they have some sort of algorithm that takes into account repayment rates based on the specific university one is attending? That's the best theory I've ever come up with though I've never really seen it talked about on here, so perhaps it's not the case. 

Still very curious though to figure out how, given two people with no credit, credit card companies decide to take a chance on one person and not the other. 

[fltireguy]

Matt4200- why would a parent be hesitant to add their teenager as AU on a card? Most of those that do, including myself, add them as AU, and SD or destroy the card. There is no reason for them to have the card in their possession EVER, making their irresponsibility a moot point 😁

[fltireguy]

Your friend should email the EO and see if anything can be done

[Anonymous]

Fltireguy - Doing what you just said immediately to a hormonal teenager says, I don't trust you at all you're irresponsible and I'm going to get a CC with your name on it and just cut it up just for the fun of it. (That last part is their teen brain adding it in).

Some teens understand rationality, but for the most part they don't. I would estimate 90% of parents DO NOT add their teens as an AU. Out of all the 20 people I asked about this 1 person had their parent add them as an AU and they said it was only because for 5 years straight their parent trained them and made sure they understood the importance of credit prior to their 18th bday.

Andy - The app didn't even ask which university/college they were attending for CapOne.