Help a poor college student out!

[Anonymous]

I'm new to myFICO (and credit in general) and have been browsing for a bit, but haven't been able to solve my dilemma with the info I've found so far. Advice would be great! Here's my issue: My Experian credit report is very clean, with only 2 accounts in good standing, and no negatives - 1 installment account from my bank for $2500, opened 06/2007, used to buy a car, and 1 student loan for $4500, opened 09/2007. I've been paying down the car loan, but it still has a high balance ($2114). The student loan is deferred with no interest until Jan 2011. I have no credit cards or any other accounts. I applied for an Amex Blue for Students card, and was declined for the following reasons: "Your consumer credit bureau score from Experian is too low (See below). Length of time accounts have been established. Lack of recent revolving account information. Too many accounts with balances. Lack of recent bank/national revolving information." From the info I've gotten from this board, my credit could be improved by diversifying my accounts to include some revolving credit. I'm increasing my monthly payments on the car loan to pay it off quicker, but there's nothing I can realistically do about the student loan until after I graduate. What would be the best approach to take in diversifying my credit? Any specific avenues I should take that would be more forgiving to newly-establishing students than Amex has been? Thanks in advance for your help! PS - sorry I don't have the actual Experian score. It's coming tomorrow after a trip to the bank! Message Edited by deadlydancer on 02-28-2008 12:31 PM

Message Edited by deadlydancer on 02-28-2008 12:47 PM

[Anonymous]

Hi dd, welcome to the forum! There's a wealth of information to help you on your credit journey.

But firstly, I had a hard time wading through your post, since there was no paragraph breaks. If you are in Firefox, look down at the bottom of the text screen you are typing in and check the box in the lower left hand corner. That will provide you with line breaks, making for an easier read.

Now, to address your concerns. Right off the bat I can tell you, that Amex is NOT the ccc you want to contact in trying to establish a credit history. I'd suggest anyone but them or Discover. Look to the black menu bar, on the right to "Get a Credit Card". Play with it for a while. There are lots of websites like that.

I'd suggest Cap1, or maybe Cit when looking for a starter card. Also consider getting a secured card. Almost all ccc's have them.

I also suggest to read, read, read all you can right here in the forum. Learn what other people did in a similar situation as yours. Educate yourself on the subject of personal credit.

I'm sure others will chime in shortly giving you their thoughts. Good luck to you!

[Anonymous]

Hey!
Welcome to the forums!
Yes you definitely need to establish more "revolving credit" ie credit and store cards. Luckily you are a student, and there are tons of offerings. What bank holds your student loan? You may want to go in and see what student cards they offer - also check out your local bank you use. Also on your campus, there may be kiosks with credit card apps, try to sign up for those...Adding 2 cards from a major bank like Chase, Citi, BoA will serve you well.

[Anonymous]

Thanks! Sorry about the lack of line breaks... I missed that checkbox. Let's see if it works this time.

Seems I hit the jackpot with this forum. Finally credit scores and personal finance issues are starting to make sense!

[Anonymous]

I don't know personally, but I've read that you can apply for a Bank of America and if declined you might be offered a secured card and this will help you.

You can also check out www.whogavemecredit.com  and find someone there that you think might help you.

Check with local credit union and bank you have car loan through.

[Anonymous]

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@Anonymous wrote:
Thanks! Sorry about the lack of line breaks... I missed that checkbox. Let's see if it works this time.

Seems I hit the jackpot with this forum. Finally credit scores and personal finance issues are starting to make sense!

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SOK. I did exactly the same thing as you did...for a WEEK when I first came here. no prob.

[Anonymous]

As others suggested, visit the various websites to see the plethora of CC's available. You may also get lucky and receive a good pre-approved card in the mail. I started with no credit history and a pre-approved $700 CL Capitol One. I then applied smartly for new credit - a few CLI's later and I was in the game. I have recently made it to the 700 club. To truly grasp what cards will be a walk in the park for you to get, we will need to know where your scores are sitting. Buy all 3 from myFico and use it as a starting point. It will be a good investment =) Best of luck, and welcome.

[Anonymous]

My first CC was a CitiCard Platinum Student. That was back when I had pretty much identical credit history to you. THey gave me a credit limit of 2500 and are quick to increase it with consistent payments and such. That would help diversify

[braznyc]

Visit your school bookstore or student center,there will be application there JUST for students, from several banks. There is usually a app person (a few of them actually) roaming around campus (at my school at least) at the start of each semester, they are actually the best ones to apply with, because 9 times out of 10 you'll be approved lol. Perhaps they have a quota to meet, dunno but I know they're kind of like credit genies lol. That could be a good or bad thing. Amex seems to be pulling back on approvals, but I can attest to them liking students, because I was once a gold card member back when I was an undergrad with NO credit. And my youngest brother who just entered college is only 18, and he applied on campus and got the green charge card - go figure. He had no credit, this I know for a fact. A lot of banks are weary nowadays, with good reason.

All the advice given to you is good. I will say from experience as a student (now in grad school) Citibank, Discover, BOA, Chase etc all have cards for students, in fact Citi loves students there is an MTVU one that I just got a pre-approval for, which is odd considering I have another card with Citi but Citi loves students, try them, but be sure you fill-out the app specifically for students. If they gave me one with just paid tax liens on all 3 of my CR, I'm sure you'll get in with Citi.

[Anonymous]

Ok, this is the OP. For some reason, after I signed up for ScoreWatch, I couldn't sign in with my other user name, and was prompted to create a new one. Weird...

Anyway, according to myFICO, my Experian score is 672. I went ahead an app'd for Citi's mtvU card, and am waiting to hear back. If I'm declined for this one, I'll probably call both AMEX and Citi to ask for reconsideration. I'd really like an in with AMEX, but I can't keep up the hard inquiries...