cww007 wrote:Hello all,
I've decided to try and begin to build a credit history by applying for an Amex charge card -- I'm a rising junior in college and want to avoid credit cards at all costs. After researching the application process I decided to apply for the Amex green card this past Monday, when I was immediately rejected by the online process. I made sure to use my scholarships as my income and check my credit report before applying. Per advice on these forums, I called their corporate HQ to review the application and try to get approved to no avail -- they still could not approve me after reviewing my credit report.
I had previously opened an account at Macy's (beginner's mistake), and to make a long story short, missed a payment on the balance back in the fall. I am ten months removed from that miscue but am worried that this small hiccup will haunt me forever and am lost in where to go next. Should I wait the 31 days and apply for the Zync card? Should I bite the bullet and apply for an actual credit card? My plan as of now is to wait the month and try to get the Zync, which I would have applied for initially but wanted the ability to upgrade the card as I graduate and my financial situation changes. Any help/advice/suggestions would be GREATLY appreciated! Thanks!
Additionally, my credit report is clean -- it does not list and missed payments in the past 9 months and I have a decent score (722). I'm still puzzled as to why I was rejected when I've heard of other individuals with similarly short credit histories being accepted by Amex.
I'm also a junior (about to be senior) in college! First things first, even though you have a score of 722, you have to understand that different factors are taken into consideration, when creditors decide to approve people. On-time payments is a very important one. All it takes is 1 missed payment to make you look risky in the eyes of creditors. Unfortunately it will hold your score down a bit, but there are other ways you can increase it. I would recommend to start, by lowering your utilization percentage (1-20% is about right). Assuming you still have your Macy's card, try asking for a credit increase. This will help with your utilization percentage. Wait about a month and apply for the Zync like you suggested to yourself. You're right, it isn't upgradable but a few more credit lines could help your credit when you apply for a gold or platinum in the future. I know you want to avoid credit cards, but personally I recommend the Blue by American Express. I was approved last year with a score of 694 and two previous credit cards under my name. I would go for the blue cash everyday card. Comes with good rewards, especially if you drive a lot.
Hope I could help!