Overcoming a Thin File?

[fairytale]

Hello, I'm quite new to all this (even though I'm 25).

I've never opened up any form of credit card, loan, etc. before so my files are considered thin/nonexistent. This has left me in an incredibily frustrating situation of being denied for nearly every card I've applied for.

I first started small and applied for the suggested cards to establish/rebuild credit. Capital One's secured denied me instantly, BOA was also instantly denied, even my own local bank denied me for their secured card.

I then figured, "What the heck? Let's try applying for some unsecured ones since I have no history anyway..."

BOA Americard: Denied

Amex Green: Denied

Chase Freedom: Pending (30-days, doubt I have a chance)

Discover IT: Approved!

I was not expecting this at all, I was approved with a CL of $1,000 after phoning in to their main number and sent over to their higher departments for review. I'm so happy Discover is willing to take a chance on someone that has no history on an unsecured card! (I initially applied figuring they'd send me an offer for their secured one if I was denied anyway).

UPDATE:

Chase & TD were both approved after a recon.

UPDATE 2:

It's been 6 months, I've finally established enough credit to get auto approvals when I tried applying today!

[grinlikechelsea]

You've got a card now, so do not apply for anymore credit. Baby that card and use it enough to report a small balance (you can pay off some before it reports) and pay it in full. Do that for about a year, and you should be able to have another prime card if you would like.

Also call Chase's recon line! Another person got the Freedom as his first CC, so it is worth a shot, especially if you already have a relationship with Chase!

[Twas_Sovereign]

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@grinlikechelsea wrote:

You've got a card now, so do not apply for anymore credit. Baby that card and use it enough to report a small balance (you can pay off some before it reports) and pay it in full. Do that for about a year, and you should be able to have another prime card if you would like.

Also call Chase's recon line! Another person got the Freedom as his first CC, so it is worth a shot, especially if you already have a relationship with Chase!

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+1 to this. I was able to get the Freedom as my first card because of my relationship with Chase. So if you bank with them there is a pretty good chance they will recon and give it to you.

[fairytale]

Thanks for the advice, I certainly plan on babying my first card I don't bank with Chase, but I'll open an account with them this year to better my chances the next time I try (I'll also recon tomorrow and see what they say).

One other question, will too many inquiries affect Discover's auto CLI in 6 months?

[mirachi]

Recon like there's no tomorrow for the Freedom (if necessary) but resist any twitchy fingers for at least a year~

Good luck!

[mirachi]

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@fairytale wrote:

Thanks for the advice, I certainly plan on babying my first card I don't bank with Chase, but I'll open an account with them this year to better my chances the next time I try (I'll also recon tomorrow and see what they say).

One other question, will too many inquiries affect Discover's auto CLI in 6 months?

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In my experience, no inquiries won't affect the auto CLI (now, if you're asking would I have gotten a higher CLI if I had about 10 less INQs...then I haven't the slightest clue...)

[notfancy]

Looks like you have about 6 inquiries and they're probably spread out all over your credit reports, so that's probably a good thing right now. (except Cap One as they put one inquiry on each of your reports). I'd also look at the letters when they come in to see why they denied you exactly. You can work on those issues (possibly) while you're "gardening" that Discover card. Definitely call Chase and try to recon. It would be great to have two good cards if at all possible. Some people say to use that card for a year before apping for anything else, but if your credit report is clean, and you stay away from any more inquiries you might be able to apply for one more decent card in 6 months of good use on that Discover.

Do you know your scores if you have one? Do you know what is on your credit report? Any chance that you have derogatory items, loans, etc on there? I'd pull those and look at them to make sure there are no hidden issues that you are unaware of.

Congratulations on the one approval. One bit of advice, if you're researching on this forum you'll come across the "shopping cart trick" if you decide to pursue this avenue, I'd suggest getting only one store card that you know you want and will use. Don't just randomly try for any card you can get approved for via this method. Too many new accounts will hurt your chances for success, CLIs, and limits in the future.

[jesseh]

Wow, your local bank denied you for a secured card? Tough lender.

[Smooth954]

Don't look to acquire an secured card if you have bypassed that need and was approved for a unsecured card. Secured cards are essentially a debit card with minimal credit card privileges. They offer no rewards are cash back programs that I'm aware of they serve a certain purpose unsecured is the way to go. I believe you can go for and increase in 3months on discover but maybe you should wait the 6 month mark with new credit. Search the boards some users have gotten additional cards after 6 months of proper use with a thin are new file. Congrats on the approval.

[heyitsyeh]

Yeah, simply making payments on the Discover will strengthen your credit enough to easily get a Freedom, especially after a year. Be patient! I was in the same boat as you, but I waited 3 years for my 2nd card haha.