Pre-qualify on CreditKarma while under 21?

[Thomas_Thumb]

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@Subexistence wrote:

So TT, do you have any explanation for why those under 21 can slip under the age ban for pre-qualification?

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Did you read through all the CK conditions when you signed up?

See the below "unless the individual consents to receiving such offers". CK wants revenue and agreeing to receive offers is a likely condition of joining.

http://files.consumerfinance.gov/f/201309_cfpb_card-act-report.pdf

Below is an interesting chart on APR trends - the 2009 - 2010 card act has narrowed the gap between sub prime and super prime.

[Subexistence]

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@Thomas_Thumb wrote:

It is a standard practice in credit card decisioning. Discover card uses L2C which is able to generate a score based on utility and rent payment history.

Here is what Discover looked at when they granted DD a credit card with no "standard" credit history and no Fico score. As I recall her L2C score was 665 at the time.

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How do you see your L2C?

[Thomas_Thumb]

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@Subexistence wrote:

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@Thomas_Thumb wrote:

It is a standard practice in credit card decisioning. Discover card uses L2C which is able to generate a score based on utility and rent payment history.

Here is what Discover looked at when they granted DD a credit card with no "standard" credit history and no Fico score. As I recall her L2C score was 665 at the time.

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How do you see your L2C?

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Unfortunately, you can't. I tried a few times but was unable to gain access to the score anywhere. I scoured TU's web site and even called Discover to try and get an L2C score but could not. Discover will only pull it for those without Fico scores.

The above was what DD received in the mail from Discover card after she was approved for a student card with $1750 CL. At the time she had no CRA credit files and obviously no Fico scores. L2C can generate a credit score based on utility payment and rental payment history. That was/is the fall back that Discover uses on credit card approval decisioning for those new to credit.

P.S. She was not an AU on any of our cards and qualified on her own based on an annual $11k part time income. She was approved for a WF credit card as well at the time $1200 CL but, I have no clue what credit score (if any) WF used in its decisioning process. She did have a savings account, debit card and checking account with WF prior to applying for the CC.

[Subexistence]

Technically it is legal to pre-qualify under 21. http://ficoforums.myfico.com/t5/General-Credit-Topics/Pre-Qualifications-Approvals-for-Under-21-Year...

[Thomas_Thumb]

Yep - key point is consenting to receiving pre-qual solicitations or initiating them yourself.

One component of the card act was directed toward curtailing those under 21 from receiving unauthorized pre-qual solicitations from credit card issuers.