First credit card

[mab463]

Hi all!

I'm new to this forum, but I couldn't resist joining since I've seen so many helpful members and so many success stories. I was hoping someone on here could point me in the right direction.

I'm 22 years old and a senior in college. I have been piggybacking off my parents cards to build a credit history for a few years now. Their usage is high, but they've never made a late payment. They should be able to decrease this high usage (85%) to a much better (15%) by the end of the year. Regardless, I have no card of my own.

I've looked at my FAKO scores and both credit report.com and credit sesame say 668, while credit karma says thin file.

So I thought okay, I should apply for something soon, especially since I'm moving out of state upon graduation. I have over $10k in my savings account at Capital One, and have had summer jobs with direct deposit going directly to my savings, which is never touched. I live off of my parents, and I have signed a job offer for $55k starting in July.

I told this information to Capital One's bank manager at my branch, and she said let's apply for the Captial One Platinum Card with a henious 24.9% APR and a low credit limit of about $300. This would be more than enough for me as I'm just trying to show I CAN pay responsibily. I was denied pretty instantly, and the bank manager is doing a reconsideration now. I only listed my personal income as $5,000 from summe jobs, because when I listed my family's income the first time and got a letter asking for MY tax returns. 

How likely do you think her appeal is to work/do you know of any times a branch's plea has mattered? If not, do you think it's wise to possibly switch banks before my move? I can't imagine making $55k and signing up for a credit card with a 24.9% APR and a $300 credit limit. At that point, I could finance my own lifestyle just through savings and income....

Thank you SO much in advance for you advice.

[notfancy]

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@mab463 wrote:

Hi all!

I'm new to this forum, but I couldn't resist joining since I've seen so many helpful members and so many success stories. I was hoping someone on here could point me in the right direction.

I'm 22 years old and a senior in college. I have been piggybacking off my parents cards to build a credit history for a few years now. Their usage is high, but they've never made a late payment. They should be able to decrease this high usage (85%) to a much better (15%) by the end of the year. Regardless, I have no card of my own.

I've looked at my FAKO scores and both credit report.com and credit sesame say 668, while credit karma says thin file.

So I thought okay, I should apply for something soon, especially since I'm moving out of state upon graduation. I have over $10k in my savings account at Capital One, and have had summer jobs with direct deposit going directly to my savings, which is never touched. I live off of my parents, and I have signed a job offer for $55k starting in July.

I told this information to Capital One's bank manager at my branch, and she said let's apply for the Captial One Platinum Card with a henious 24.9% APR and a low credit limit of about $300. This would be more than enough for me as I'm just trying to show I CAN pay responsibily. I was denied pretty instnatly, and the bank manager is doing a reconsideration now.

How likely do you think her appeal is to work/do you know of any times a branch's plea has mattered? If not, do you think it's wise to possibly switch banks before my move? I can't imagine making $55k and signing up for a credit card with a 24.9% APR and a $300 credit limit. At that point, I could finance my own lifestyle just through savings and income....

Thank you SO much in advance for you advice.

---

Welcome to the forum! First: I'm surprised that you were denied since they take people with smaller credit files and you have an account relationship with them.

I'd suggest getting taken off as AU on your parents cards if their usage is over 80% it is likely harming you more than helping you. I'd move that kind of savings / checking to a local credit union. They are usually more generous and can work with you for better terms. Even Chase would be better. I've heard that many banks value relationships and will extend credit if you have enough in savings / checking with them.

You can opt for a secured card for now, and try choosing one that will graduate. Bank of America does, but I don't know what other banks graduate secured cards. You can try pre-approval sites such as Citi, Chase, Discover and see if you can qualify for a student CC. If you have proof that you'll have a specific income and start date, and you're declined, you can offer to fax that as well as your current income and savings when you call and ask for reconsideration.

Either way, good luck to you. I hope you find what you are looking for!

[mab463]

Thanks for the reply Nofancy.

"I'd suggest getting taken off as AU on your parents cards if their usage is over 80% it is likely harming you more than helping you. I'd move that kind of savings / checking to a local credit union. They are usually more generous and can work with you for better terms. Even Chase would be better. I've heard that many banks value relationships and will extend credit if you have enough in savings / checking with them."

- I would take myself off as an AU, but some credit history is better than none. They plan to get that all down when they sell my grandma's apartment which has 2 bids on it now, so I feel I'll reap the benefits more in the long term. 

-My father had a relationship with Chase for over 20 years, and they closed his accounts with no notice, and they wouldn't give any reason. Citi luckily swooped him right up, but that was incredibly discouraging. Also, when I went there to open a checking and savings, they said the market would only allow .01% interest for savings and .02% if I had over 25k or something. Needless to say, that's what drove me to CO's .5%.

"You can opt for a secured card for now, and try choosing one that will graduate. Bank of America does, but I don't know what other banks graduate secured cards. You can try pre-approval sites such as Citi, Chase, Discover and see if you can qualify for a student CC. If you have proof that you'll have a specific income and start date, and you're declined, you can offer to fax that as well as your current income and savings when you call and ask for reconsideration."

- I considered doing that, but I hated the idea of locking up my own money. It's true that would have been the more strategic option, but I thought that having that much in savings might have shown them i'm more than capable of managing money, and I have enough of it.

I didn't think about the proof of sending in the offer letter, because the manager said they only count what you already make. I will be reapplying once I have my income, but I sure will not be applying for a $300 limit and 24.9% apr.

Thanks for all your help. I'll be looking into your suggestion!

[notfancy]

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@mab463 wrote:

Thanks for the reply Nofancy.

"I'd suggest getting taken off as AU on your parents cards if their usage is over 80% it is likely harming you more than helping you. I'd move that kind of savings / checking to a local credit union. They are usually more generous and can work with you for better terms. Even Chase would be better. I've heard that many banks value relationships and will extend credit if you have enough in savings / checking with them."

- I would take myself off as an AU, but some credit history is better than none. They plan to get that all down when they sell my grandma's apartment which has 2 bids on it now, so I feel I'll reap the benefits more in the long term. 

-My father had a relationship with Chase for over 20 years, and they closed his accounts with no notice, and they wouldn't give any reason. Citi luckily swooped him right up, but that was incredibly discouraging. Also, when I went there to open a checking and savings, they said the market would only allow .01% interest for savings and .02% if I had over 25k or something. Needless to say, that's what drove me to CO's .5%.

"You can opt for a secured card for now, and try choosing one that will graduate. Bank of America does, but I don't know what other banks graduate secured cards. You can try pre-approval sites such as Citi, Chase, Discover and see if you can qualify for a student CC. If you have proof that you'll have a specific income and start date, and you're declined, you can offer to fax that as well as your current income and savings when you call and ask for reconsideration."

- I considered doing that, but I hated the idea of locking up my own money. It's true that would have been the more strategic option, but I thought that having that much in savings might have shown them i'm more than capable of managing money, and I have enough of it.

I didn't think about the proof of sending in the offer letter, because the manager said they only count what you already make. I will be reapplying once I have my income, but I sure will not be applying for a $300 limit and 24.9% apr.

Thanks for all your help. I'll be looking into your suggestion!

---

I know that a lot of people hate the idea of the secured card, but you can look into ones that graduate. After a year, your money will get returned to you, and you'll have an account with a 1 year history that is then unsecured and can hopefully grow with you.

There are also "credit builder loans" (you can google that) through credit unions to build up your own history. Either way, no one is likely to give you an unsecured credit card with high limits and low interest based upon your savings and being an AU on other accounts. It sucks in a way, because YOU know how well you manage money, but they don't and won't unless you prove it to them with credit. It is a pain, and very  circular, since basically if you want to get credit, you need to have credit first... lol it can be a bit dizzying. Best wishes to you, and I hope you find a way for this to all turn out in your favor.

[chwebb1]

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@mab463 wrote:

Hi all!

I'm new to this forum, but I couldn't resist joining since I've seen so many helpful members and so many success stories. I was hoping someone on here could point me in the right direction.

I'm 22 years old and a senior in college. I have been piggybacking off my parents cards to build a credit history for a few years now. Their usage is high, but they've never made a late payment. They should be able to decrease this high usage (85%) to a much better (15%) by the end of the year. Regardless, I have no card of my own.

I've looked at my FAKO scores and both credit report.com and credit sesame say 668, while credit karma says thin file.

So I thought okay, I should apply for something soon, especially since I'm moving out of state upon graduation. I have over $10k in my savings account at Capital One, and have had summer jobs with direct deposit going directly to my savings, which is never touched. I live off of my parents, and I have signed a job offer for $55k starting in July.

I told this information to Capital One's bank manager at my branch, and she said let's apply for the Captial One Platinum Card with a henious 24.9% APR and a low credit limit of about $300. This would be more than enough for me as I'm just trying to show I CAN pay responsibily. I was denied pretty instantly, and the bank manager is doing a reconsideration now. I only listed my personal income as $5,000 from summe jobs, because when I listed my family's income the first time and got a letter asking for MY tax returns. 

How likely do you think her appeal is to work/do you know of any times a branch's plea has mattered? If not, do you think it's wise to possibly switch banks before my move? I can't imagine making $55k and signing up for a credit card with a 24.9% APR and a $300 credit limit. At that point, I could finance my own lifestyle just through savings and income....

Thank you SO much in advance for you advice.

---

Have you looked into getting a student card from Discover, Citi, or State Farm Bank? I'm sure there are other banks out there that offer them, but I'd look into those options so you don't have to do a secured card. I've read about Discover and State Farm giving people their first CCs.

[mab463]

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Have you looked into getting a student card from Discover, Citi, or State Farm Bank? I'm sure there are other banks out there that offer them, but I'd look into those options so you don't have to do a secured card. I've read about Discover and State Farm giving people their first CCs.

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Hi Chwebb1 thanks for taking the time to respond.

Capital One actually has a student card, but you can't apply for it in the branch, and the bank manager assured me htis one would be just as likely to get (not sure how true that is). You're definitely right about Discover, and they've sent me some promotional stuff. I guess I just didn't want to get rejected by a card that isn't even accepted at a lot of places, but looks like I made the wrong call.

I will probably look into this in the future, as now I'm too scared to have more inquiries until I have a salary.

[chwebb1]

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@mab463 wrote:

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Have you looked into getting a student card from Discover, Citi, or State Farm Bank? I'm sure there are other banks out there that offer them, but I'd look into those options so you don't have to do a secured card. I've read about Discover and State Farm giving people their first CCs.

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Hi Chwebb1 thanks for taking the time to respond.

Capital One actually has a student card, but you can't apply for it in the branch, and the bank manager assured me htis one would be just as likely to get (not sure how true that is). You're definitely right about Discover, and they've sent me some promotional stuff. I guess I just didn't want to get rejected by a card that isn't even accepted at a lot of places, but looks like I made the wrong call.

I will probably look into this in the future, as now I'm too scared to have more inquiries until I have a salary.

---

I've actually read that Discover is accepted at around 90% of merchants who take V/MC. I don't have too many problems using my Discover card where I want to (except online, but that's another story). If you could get two student cards (maybe the State Farm since it's a Visa?) you'd be set for almost everywhere. I remember now that Cap1 has a student card. I've read enough bad things about them that make me want to avoid their credit card business, so I rarely think about them (Chase is in that boat with them too. I had their card and disliked them a lot). But I'm very happy with my CapitalOne 360 accounts (go figure). I've never had a State Farm credit card, but I do have a checking and money market account with them, and I'm happy with those.

[BRlaw]

I was kind of like you. I had really no history and I was a student and had a baddie CO from 6 years ago. I got a **bleep** First primier secured card. As soon as it was listed on my CR (within 3 days of deposit) I immiediatly applied for macy's card and was approved then I applied for Discover IT (COLLEGE!!!) and was approved instantly...

Before the priemier card I couldn't get anything with cap one (which I will never ever request credit from Ever because of that...) and I had applied for some exxon gas cards over the years and denied.

I swear that just having the secured first primier card changed everything. I paid the annual fee on it so I will keep it till next January but just never use it since I have discover IT.

So... I would just get a secured card on your report and then apply for the Discover IT college card

[bigblue7722]

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@mab463 wrote:

Thanks for the reply Nofancy.

"I'd suggest getting taken off as AU on your parents cards if their usage is over 80% it is likely harming you more than helping you. I'd move that kind of savings / checking to a local credit union. They are usually more generous and can work with you for better terms. Even Chase would be better. I've heard that many banks value relationships and will extend credit if you have enough in savings / checking with them."

- I would take myself off as an AU, but some credit history is better than none. They plan to get that all down when they sell my grandma's apartment which has 2 bids on it now, so I feel I'll reap the benefits more in the long term. 

-My father had a relationship with Chase for over 20 years, and they closed his accounts with no notice, and they wouldn't give any reason. Citi luckily swooped him right up, but that was incredibly discouraging. Also, when I went there to open a checking and savings, they said the market would only allow .01% interest for savings and .02% if I had over 25k or something. Needless to say, that's what drove me to CO's .5%.

"You can opt for a secured card for now, and try choosing one that will graduate. Bank of America does, but I don't know what other banks graduate secured cards. You can try pre-approval sites such as Citi, Chase, Discover and see if you can qualify for a student CC. If you have proof that you'll have a specific income and start date, and you're declined, you can offer to fax that as well as your current income and savings when you call and ask for reconsideration."

- I considered doing that, but I hated the idea of locking up my own money. It's true that would have been the more strategic option, but I thought that having that much in savings might have shown them i'm more than capable of managing money, and I have enough of it.

I didn't think about the proof of sending in the offer letter, because the manager said they only count what you already make. I will be reapplying once I have my income, but I sure will not be applying for a $300 limit and 24.9% apr.

Thanks for all your help. I'll be looking into your suggestion!

---

The market would only allow lmao!!! Please go to a local credit union I am sure the rates will be far better than any big bank can offer. Mine does 1.5% back on my checking up to 15k. There is also one account that does 2% back on your purchases of up to 300 bucks. 

[mab463]

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@BRlaw wrote:

I was kind of like you. I had really no history and I was a student and had a baddie CO from 6 years ago. I got a **bleep** First primier secured card. As soon as it was listed on my CR (within 3 days of deposit) I immiediatly applied for macy's card and was approved then I applied for Discover IT (COLLEGE!!!) and was approved instantly...

Before the priemier card I couldn't get anything with cap one (which I will never ever request credit from Ever because of that...) and I had applied for some exxon gas cards over the years and denied.

I swear that just having the secured first primier card changed everything. I paid the annual fee on it so I will keep it till next January but just never use it since I have discover IT.

So... I would just get a secured card on your report and then apply for the Discover IT college card

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This is so good to know. I wish I had known this before I applied for an unsecured. The bank manager should have been as knowledgable as you. Thank you!