Difficulty getting a card

Anonymous · ‎09-17-2018

Hello,

I am currently a college student and relatively new to building credit. I turned 18 in July.

As I was uninformed I applied for 3 cards pretty much as soon as I turned 18, resulting in three HPs and denied on all due to lack of history.

I'm an AU on an Amex w/ a 16k limit. Utilization is currently reporting at 52% but will update today (to <1%)

A month after I turned 18 I applied for an auto loan w/ a cosigner for $12,200 and was approved, that will appear on my credit report next month. I live alone but the house is paid for and I do not have a mortgage/rent, utilities are in my name though.

Current scores (according to CK):

- TU/Equifax 681

AAoA: 8 months

Hard Inquiries:

- EF 10

- TU 4

No missed payments

Now despite this I am having a pretty difficult time opening up a credit card. I tried appling for Discover Student It and was denied, also applied for AMEX Blue Cash and was denied. 4 HPs were from my auto loan, 2 from comcast, others from CC.

I decided to apply for the Capital One secured and it is under review, looks like it will be approved.

What do I do? Just hang tight with the AU/Car loan and secured card if I get it? I would eventually like to upgrade to an unsecured that offers rewards. It's incredibly frustrating and feels like I'm swimming against the tide.

Thanks!

Anonymous · ‎09-17-2018

I'm sure there will be more helpful advice from others. But it seems to me that you are moving way too fast out of the gate, just turning 18 and seeking so much in a short time. Plus an Auto Loan, I'd hate to see the APR on that. IMO you should have been an AU for longer, since 16 or 17 to help build some history. Then a few months after 18 apply for your own card from that issuer. Even still, at 18 most people have to oppen a secured/student card to get started. You also have to let those HPs fall off. They're not quite as harmfull with approvals, but they are with denials. It's just the way it is at 18, and almost no credit file. Your first year is usally the toughest and slowest though, so next year you shoul be doing better.

Brian_Earl_Spilner · ‎09-17-2018

Unfortunately, you need credit to build credit. I would sit tight for a few months with the cap1 and check the discover pre qual site. Their secured Discover is exactly like the regular one, only secured, obviously. You can even product change it to the 5% IT as soon as you receive the card. It can also graduate to a normal Discover in as little as 7 months. I'd also check the cap1 prequals and pick up the platinum when I could and close the secured as it will never grow beyond the 1 increase they give you at 5 months. You can then product change the platinum starting at about 3 months to a rewards card like quicksilver. Try to avoid changing it to the quicksilver one as it is hard to change later.

Anonymous · ‎09-17-2018

APR on the auto loan is 6.8% which, while not good by any means, could be significantly worse. I am fortunate a cosigner who's credit score is 847. In regards to that loan I am already approved to refi through a bank my co-signer has a good relationship with at 3.8%. I'll most likely do that and then pay it off within 1-2 years. Only reason I financed through the dealer was due to a delay in the pre-approval process that would have taken too long.

I get what you're saying about moving too fast, but at the same time the way I look at it is I would like to be ahead of the game and put myself in a better position down the line. The inquiries were a mistake on my part though.

Anonymous · ‎09-17-2018

Thanks for the insight! Do you suggest I sit tight on the cap1 and check discover prequal for an unsecured student IT or just wait a few months, get a secured IT as well as having the secured cap1 and then eventually upgrade the secured IT to unsecured and try to get the platinum as well and then shut down the cap1 secured? What's your opinion on the venture? I travel a lot and my end game with this is to accrue as many points/miles for travel as possible and eventually qualify for some of the big sign on bonuses.

Thanks!

Brian_Earl_Spilner · ‎09-17-2018

I wouldn't even bother with the student cards as they don't tend to grow, normally. The venture is a good card for basic travel. The venture one isn't worth it as you get better cashback equivalent from quicksilver and savor. If you want to do some serious traveling, I'd research amex on here.

SouthJamaica · ‎09-17-2018

@Anonymous wrote:
Hello,

I am currently a college student and relatively new to building credit. I turned 18 in July.
As I was uninformed I applied for 3 cards pretty much as soon as I turned 18, resulting in three HPs and denied on all due to lack of history.

I'm an AU on an Amex w/ a 16k limit. Utilization is currently reporting at 52% but will update today (to <1%)
A month after I turned 18 I applied for an auto loan w/ a cosigner for $12,200 and was approved, that will appear on my credit report next month. I live alone but the house is paid for and I do not have a mortgage/rent, utilities are in my name though.

Current scores (according to CK):
- TU/Equifax 681

AAoA: 8 months

Hard Inquiries:
- EF 10
- TU 4

No missed payments

Now despite this I am having a pretty difficult time opening up a credit card. I tried appling for Discover Student It and was denied, also applied for AMEX Blue Cash and was denied. 4 HPs were from my auto loan, 2 from comcast, others from CC.

I decided to apply for the Capital One secured and it is under review, looks like it will be approved.

What do I do? Just hang tight with the AU/Car loan and secured card if I get it? I would eventually like to upgrade to an unsecured that offers rewards. It's incredibly frustrating and feels like I'm swimming against the tide.

Thanks!

Yes just hang tight, stop making new applications, and do a good job with the Capital One card if you get it. If you don't get it, get a secured card with a credit union, and do a good job with that.