I'm stuck in that old Catch 22: Need Credit to Get Credit

[Anonymous]

I'm applying for a credit card for the first time ever (30yo) and despite having a score of 776 I keep getting denied. 

The exact reasons for my denial were:

• there are too few or no open primary accounts
• there are too few or no primary bankcard accounts
• there are too few or no primary revolving accounts

It seems I'm stuck in the catch 22 of trying to establish a history of credit but getting denied because I don't have a history of credit.

Does anyone have any recommendations for how to overcome this obstacle?

I've read elsewhere that getting a secured card is one way. Taking out a small personal loan is another...

I'm wondering if there are any other good strategies that you might be aware of.

Thanks for any help you can offer!

[hernaemm90]

Out of curiosity where are you getting your score from?

With a 776 I find it curious that you are not getting approved for credit cards. If you could share some details about what your credit report looks like people here can reply with suggstions you are likley to get approved for

[Remedios]

Hi and welcome

Your score, do you have AU accounts or installment loans?

Also, who were you applyin with when you got denials (knowing this will avoid redundant suggestions)

[Anonymous]

Hello and thank you for the response!

The score of 776 was what Capitol One had on my letter of denial.

According to MyFico, my current scores are:

Equifax: 774

Transunion: 758

Experian: 727

[Anonymous]

Hello and thanks for the response!

Sorry, I'm not sure what an AU account is. Could you please clarify?

These are the cards I applied for and got denied: 

Alliant Cashback Visa® Signature Credit Card

Citi® Double Cash Card

Capital One® Quicksilver® Cash Rewards Credit Card

[hernaemm90]

AU stands for authorized user. You have a card with your name but someone else is on the hook for paying off the bank

[Anonymous]

Got it, thank you for the clarification.

Yes, I do have an AU account. My name is on a credit card for the family business. My father is the primary account holder.

[Anonymous]

Welcome to the forums!

AU = authorized user on someone else's card/account

I would suggest applying for a discover it cash back card. You can check their pre-qualification page, it's usually pretty accurate. I was approved without having any credit history at all. I think you should have no problem getting approved, especially if you have a somewhat reasonable income. They also recently approved my friend who didn't have any credit cards with a $8500 starting credit limit.

Discover is also very good for credit limit increases, which helps you build your credit profile in terms of being able to get more premium cards down the road.

Maybe after around 6 months with the discover, you can attempt to apply for some other cards like Chase, or re-apply for the ones you were declined for if you're very interested in them.

Good luck and let us know if you have any questions! 😊

[Remedios]

In order to have a FICO score, you have to have an active account for the minimum of 6 months.
Seeing how you have score, what type of accounts do you have?
Are you authorized user on someone else's credit cards?
Do you have any loans?

[Anonymous]

Student loans that were paid off 3+ years ago.

Authorized User on a Credit Card for the family business.

Thank you!