Thread: Approval for a Discover as a student?

Hi all!

I'm brand new to the forum and joined because I'm interested in the credit 'game' and want to get a good start on my scores! I'm 18 and in the middle of college. I've learned a lot already just reading through here and I'm very interested.

Although I have no history whatsoever, I went ahead and tried to apply for the Discover More for students, as I found out you only need "little to no credit" to qualify. The only thing I'm afraid of is that I've tried to get a Kohl's department store card...twice. And was denied...twice. And I'm afraid that will be the reason I'll be denied.

On the site they said you *could* be approved in 60 seconds or less. But that didn't happen and they said they would contact me within 30 days to tell me if i'm approved or not. It's only been like 2 days since I did that.... XD But I'm nervous, is that a bad sign to be waiting like that? I have no idea if I'll be approved or not, but I'm hopeful that I am. I'm just planning on using it to strictly just build a credit history. My finances are very stable and I plan to religiously pay off the balance every month.

If I am denied, what other card should I try for? I've heard the Citi Forward for students is also an excellent first choice. Would that be a good idea to go for? and if so, how soon should I try?

I'd appreciate any and all advice on my inquires! I'm excited to be here and ready to get my credit off the ground! Any other tips on credit and cards would be awesome.

Thank you all!

Yea its probably a pretty sure thing, and just be careful about applying for too many credit cards. Give some time in between inquiries, they account for about 10% percent of your credit score, so having too many will leave a nice little dent in your score... trust me i know lol

Well, unfortunately I was not approved.... They sent a letter out, which took like over a week to get here, to tell me I have no credit record available. So no cc...

BUT, I went and applied for a secured card from Wachovia (which technically went through Wells Fargo) and I have much higher hopes for that one (as I have my 2 checking/savings accounts with them) Is that too many applications at once...? I just got like real anxious and decided I couldn't wait, so i tried for it. I'll be calling tomorrow to see if I am good to go.

I'm not.

I have a few loans in good standing since I was 18 and a Citi Forward (Great card). I'm 21 now and my credit score is 680 across the board. I went ahead and tried for a Discover Student card and was flat out rejected. Says I don't have enough accounts and history. I feel Discover's student card is a bit of a misrepresentation of what it really is, a card for people with good credit, which most students don't have (Since they don't have many accounts and not much age in them). This isn't fair since they're burdening students with unnecessary inquiries if they know they won't make it.

@Mogul: Yes it was the student one.

The Citi Forward was my second choice, and should probably have started with that one...

*ALSO: Wachovia didn't let me have a SECURED card...??? supposedly I didn't have enough income in case I defaulted. So I either had to show more income somehow, or get a co-signer (or co-applicant, is there a difference?) However, wouldn't that make any action (good or bad) done to the account show up on my co-signer's credit report? Almost like the card wasn't in my name at all...?

I'm pretty sure the reason was because I don't have enough income/no history. So everything works against me. How long do inquiries stay on your report? How many is too many? And also, me and my mom are having this argument on credit. I need some clarification on some things...

1) I've come to understand that just by having a checking account doesn't affect your score directly, however when applying for a CC they check balances to see that you have the financial standing to afford one. (i suppose...?) Is my assumption solid?

2) When applying for any card that is high interest (such as 18.99% in one case, and 23.99% in another) just based on that percentage will other CC companies see that as a shortcoming and see that you are naive in accepting that high rate, and rack it up for you also? To put it another way, will applying for and having a high interest card affect the interest of another/future cards?

I highly appreciate any help! I'm interested in getting a good start on the credit scene and need all the advice i can get!

-thank you!

Originally Posted by jolimojo

@Mogul: Yes it was the student one.

The Citi Forward was my second choice, and should probably have started with that one...

*ALSO: Wachovia didn't let me have a SECURED card...??? supposedly I didn't have enough income in case I defaulted. So I either had to show more income somehow, or get a co-signer (or co-applicant, is there a difference?) However, wouldn't that make any action (good or bad) done to the account show up on my co-signer's credit report? Almost like the card wasn't in my name at all...?

I'm pretty sure the reason was because I don't have enough income/no history. So everything works against me. How long do inquiries stay on your report? How many is too many? And also, me and my mom are having this argument on credit. I need some clarification on some things...

1) I've come to understand that just by having a checking account doesn't affect your score directly, however when applying for a CC they check balances to see that you have the financial standing to afford one. (i suppose...?) Is my assumption solid?

2) When applying for any card that is high interest (such as 18.99% in one case, and 23.99% in another) just based on that percentage will other CC companies see that as a shortcoming and see that you are naive in accepting that high rate, and rack it up for you also? To put it another way, will applying for and having a high interest card affect the interest of another/future cards?

I highly appreciate any help! I'm interested in getting a good start on the credit scene and need all the advice i can get!

-thank you!

For the cosigner, yes. They will be responsible for everything that happens to the account.

1) Having a checking account doesn't affect your score, but will influence decisions on credit, yes. But they can't check your balance; however, I don't know it this doesn't apply for the same bank you have a checking account with. (For instance, I have student checking at BoA, not sure if they will dive into my records to help make the determination). Other banks won't have access to that.

2) Not necessarily, in fact, if you have an account for a while and are in good standing, they will offer you a better rate so that you can use their card over the other. After a few years, some companies can lower your rate or switch you over to a better card if you are in good standing.

Your interest rate is not listed on your credit report. Other lenders have absolutely no way of knowing what interest rate you have on another card.

Originally Posted by DarkLabel

2) Not necessarily, in fact, if you have an account for a while and are in good standing, they will offer you a better rate so that you can use their card over the other. After a few years, some companies can lower your rate or switch you over to a better card if you are in good standing.

Additionally, creditors are now mandated by federal law to review your account every 6 months for possible interest rate reductions. This statute also applies if your APR was hiked 6 months ago. Having any single high APR will not affect how another company assesses your APR. If you read the fine print of most CC terms, it often states that your rate will be chosen among several rates BASED ON YOUR CREDIT WORTHINESS AT THE TIME OF APPLICATION.