Where to start with credit?

[Anonymous]

I'm 22, about to graduate from college, and have no credit.  I recently applied for a Chase Freedom card, just to start my credit history, but I just called and was told it was declined.  I have a student loans out, and she said one of my Sallie Mae loans is the reason why I got declined?  I haven't started paying them back yet, I won't have to until November.  Where do I start when it comes to getting a credit card?  I don't want to keep applying everywhere because I know that shows up on the report.  Should I call back and tell them I need to start somewhere?  I don't get it...

[DI]

---

@Anonymous wrote:

I'm 22, about to graduate from college, and have no credit.  I recently applied for a Chase Freedom card, just to start my credit history, but I just called and was told it was declined.  I have a student loans out, and she said one of my Sallie Mae loans is the reason why I got declined?  I haven't started paying them back yet, I won't have to until November.  Where do I start when it comes to getting a credit card?  I don't want to keep applying everywhere because I know that shows up on the report.  Should I call back and tell them I need to start somewhere?  I don't get it...

---

Welcome to the forums!  Congrats on upcoming graduation. What's the problem with the SM loan?  Is it not in deferment?   Your student loans reporting to the CRAs, if they're in good standing, should be sufficient to get you approved for a student card.  Applying for a  Chase Freedom  card was the wrong move.  You have to show a history of managing revolving credits and loans first.

Most students with no prior credit history, unfortunately, get approved for a Capital One card.  If whatever you have reporting in your credit files are good, you may want to try applying for a student card  even though you're about to graduate.  Also, try a store card.  They're much easier to get approved. 

[smallfry]

Get a card with Citi and see if there is any way you can qualify for membership to Navy Federal. You might get a nice starting limit with AMEX as well.

[Anonymous]

Thanks for the welcome.

I'm not sure if the loan is considered in deferment, because I DO pay monthly payments on it.  It is called their "Smart option" loan, where I pay interest monthly while in school to prevent the interest from building up.  Looking at my TU report, which I did a couple weeks ago, everything is OK.  0 late payments, although the "High Balance" says $10,000, while the "Balance" says $10,250.  She said something about this being the reason, even though I have no idea why it reads differently.

I just wanted the Freedom card because of the rewards, but I guess I have to start with a bland card because I have bland credit.  I'll take a look at the student cards, I don't really care about the interest rates because I plan on paying the balance off each month.  I'm just going to use this card like I do my debit card now.

[DI]

---

@Anonymous wrote:

Thanks for the welcome.

I'm not sure if the loan is considered in deferment, because I DO pay monthly payments on it.  It is called their "Smart option" loan, where I pay interest monthly while in school to prevent the interest from building up.  Looking at my TU report, which I did a couple weeks ago, everything is OK.  0 late payments, although the "High Balance" says $10,000, while the "Balance" says $10,250.  She said something about this being the reason, even though I have no idea why it reads differently.

I just wanted the Freedom card because of the rewards, but I guess I have to start with a bland card because I have bland credit.  I'll take a look at the student cards, I don't really care about the interest rates because I plan on paying the balance off each month.  I'm just going to use this card like I do my debit card now.

---

Yes, the $10,250 balance on a $10,000 loan make it look like you're over the limit.  That happend to me when I first started establishing credit.  That should have been something an analyst could have disregarded.   It won't hurt to call the backdoor number listed on this site to point that out to them.  Until you get the $10,250 under $10,000 you're going t ocontinue to run into problems. 

[Creditaddict]

I would also recommend the citi forward card and amex zync.  I would skip Capital One unless you get declined by both of these others i mentioned.

[DI]

The OP needs to get the loan balance under the original loan balance before applying for credit. 

[smallfry]

Chase is a PITA. The loan is not in arrears. My kids all had similar entries on their reports and had no problems getting cards from Citi and AMEX. I would app for the AMEX first.

[Anonymous]

Not to hijack this thread, but I'm about in the same boat except that I don't even have the benefit of loans, so my credit history has zip/null/nada on it.  I'm 22, just out of college, and well-employed (middle x0,000s) and I have no credit history.  Yes, dumb, I know.  No student loans either.

I've been looking around trying to find the best cards that I could conceivably be approved for and would help build my credit.  I'm pretty much a total newcomer to the credit field, so I'm not exactly sure what I should be looking for.  My eventual hope is to get Amex Blue, so I've been considering an Amex Zync, but I've been pre-approved at my bank (US Bank) for a Visa Platinum card, so I'm not sure if that is worth considering as well?

I'm hesitant to apply for credit cards because if I'm not mistaken, credit card rejections are recorded on your credit history and I'd rather not get started off on the wrong foot.

Thanks!

[smc733]

IMHO, if Zync isn't what you want, don't apply for it.  I tried to go that route, but don't open an account and pay an AF for that...  If you can hold out for your credit to develop, you may be fine to cold-app for it in 12-18 months.