Just starting out.. and I'm confused to death.

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Mitch
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Just starting out.. and I'm confused to death.

Postby Mitch » Wed Oct 29, 2014 1:05 pm

Okay, to to sum this up quickly, I just turned 18. I've had a checking account with Bank of America, for over a year now, along with a Target RedCard (debit) and a Nordstrom debit card attached to my checking account. (I sorta thought, that they'd help with my credit rating when I was starting out, or have something report from them).


Anyhow, since, I'm 18. I simply tried applying for a few cards. I filled out two different pages at (Discover & Capital One) and was told I was pre-approved for Venture Rewards, and another card. Applied, Declined for Both of them. Tried apply for the "Discover it, for Students card" that I was supposedly pre-approved for. Applied, Declined, once again.

I tried applying for a Target RedCard (Credit), declined. And then a Citi Thankyou card (which I was told was for people trying to build credit, and got declined).

I'm just confused, how I can go from "pre-approved" to declined, in seconds :( I just wanna start building credit, and I'm feeling like this isn't going to work for me.

Any advice guys? are there any actually worth, applying for, with (I'm guessing) a limited credit history.
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Discover It $500 10/14. Capital One QS Visa $300 02/15, formerly Journey Visa Plat. 11/14.


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PlatinumAMEX94
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Postby PlatinumAMEX94 » Wed Oct 29, 2014 6:35 pm

Pre-approved only means you met some demographic criteria. Now you will have to wait 2 years as you have too many credit inquiries. Your best chance is to get someone to co-sign a bank loan with you to make payments during those 2 years. When the loan is paid off, the inquiries are gone and you have stable credit. Good luck.
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popamode72
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Postby popamode72 » Wed Oct 29, 2014 6:40 pm

Get a secured card if you can't get any of the student cards. I recommend SDFCU's secured card because there's no income check or credit pull required at all. Bank of America also offers a secured card that apparently can graduate early in some cases that you might also wanna take a look at.

Here's the link if you're interested.

https://www.sdfcu.org/emv-creditcards

It's the EMV Savings Secured Visa Platinum card.

And prequalifcations with Discover don't really mean much. You can type in anything and still get an "offer" from them.
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Postby CCRider » Wed Oct 29, 2014 9:58 pm

Cap One also offers a secured card if you don't want to join a credit union. I think they can graduate you to a regular non-secured version over time. They seem to be the only major card issuer that offers a secured card

http://creditcardforum.com/content/secured-credit-cards-rebuild-credit-22/

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PlyrStar93
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Postby PlyrStar93 » Wed Oct 29, 2014 10:21 pm

Did they tell any reason why they deny you? As stated above Discover's so-called prequalifier doesn't do anything basically.

I doubt if you are preapproved for the Venture, but actually just something like "we couldn't find a preapproved offer, but we recommend blah blah blah". In addition, you must be at least 21 years old to use the prequalifier there.

CCRider wrote:Cap One also offers a secured card if you don't want to join a credit union. I think they can graduate you to a regular non-secured version over time. They seem to be the only major card issuer that offers a secured card

http://creditcardforum.com/content/secured-credit-cards-rebuild-credit-22/

BofA also has a secured card.
https://www.bankofamerica.com/credit-cards/products/secured-credit-card.go
In some cases Discover will give secured cards as well.

But yeah, as a last resort, go with secured card and/or credit union if you are desperate to start building credit right now. I am not sure if age is an issue as of underwriting, but I got my Citi Forward (student card) from a local branch when I was 20 without any credit history.

Capital One may let the secured card graduate, but there are others attempting to convert it to a different product and failed. In that case, with established history, just seek for other cards and ditch the secured card if necessary.
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popamode72
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Postby popamode72 » Wed Oct 29, 2014 10:30 pm

Likewise, my very first credit card was with Citi and I had absolutely no credit history. It was also the student version of the Forward card. Was able to get a decent CLI on it after about a year of having the card. Think it's the TYP for Students now which you already applied for and got denied.
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lobbythis
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Postby lobbythis » Wed Oct 29, 2014 10:57 pm

I'd go for CapOne, especially if you are having problems with some of the big prime lenders. Call the Exec/Recon office and have your app reevaluated for a lower card like Journey or Platinum. (I think this can be done so OP does not have to app again. Maybe someone can clarify).

That Venture (not VentureONE) card has a minimum $5K limit. No way they'd give that to an 18yr old. That's why you were declined.

After I settled my debts, CapOne was the first to approve me for a real card and have been consistent with credit limit increases, etc. where many others have given me a hard time or flat out denied me. People with established credit won't rave about CapOne, but when you're first starting out or recovering/rebuilding, I have not come across any other company more willing to give me an actual chance.

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Postby Brad Bishop » Thu Oct 30, 2014 6:54 am

With regards to someone co-signing:
1) Don't ever co-sign for someone. Essentially it means you're backing the debt but have no right to the assets purchased with that debt. I have two daughters and have told them the same both with regards to me (I won't co-sign for them) and with regards to them not to do it. It's just a bad deal.
2) If someone does co-sign for you then don't screw them over. They're sticking their neck out for you and, essentially, backing you with their good name which you could ruin by being an idiot/jerk.

Re: "Pre-approved"
I think this is like when you see car dealerships advertise, "All applications accepted!" Sure all applications are accepted. A homeless guy could walk in off the street and apply and they'll accept it. It doesn't mean they're going to approve the loan, though. I think the banks play a similar game with "pre-approved" (and then with a bunch of little clauses written in tiny script somewhere on that form. Back when I was in my 20s "Pre Approved" usually meant, or at least seemed to mean, you were good to go. I think, based on what you've experienced and what others have written, it's the car-dealership meaning, now.

Going forward I recommend not losing sleep over any of this. You're just starting out and you have no debt, which is good, and someone, somewhere is going to give you a credit card eventually. They need your business and there is no getting around that. Look into a secured card or, perhaps better, call your bank and say, "Look, I'm trying to establish credit and would like a Visa with a low limit. How can we make this happen?" Hopefully they'll tell you, "Sure, we can give you $n credit line since you're just starting out..," or, "We'd like to see a little more in your savings account on a regular basis...," or, "We can do this but it'll need to be secured.." With secured I'd follow up with a question asking how long I need it to be secured until I can move to an unsecured card.

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Postby takeshi » Thu Oct 30, 2014 7:51 am

Mitch wrote:I sorta thought, that they'd help with my credit rating when I was starting out, or have something report from them

Nope. Checking and debit are not credit.

Mitch wrote:I'm just confused, how I can go from "pre-approved" to declined, in seconds

You didn't go anywhere. Preapprovals and approvals are two entirely different things. Don't rely on the former to determine the latter. Preapprovals and offers are just marketing.

Mitch wrote:Any advice guys?

The usual advice for those having problems getting approved for unsecured cards is to go secured and/or find a credit union (or other creditor) with more lax approval criteria. Definitely don't just keep applying. You're racking up hard pulls and with your thin file those HP's are really hurting you. As your credit profile builds the HP's will generally become less of an issue.

Mitch
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Postby Mitch » Fri Oct 31, 2014 2:52 pm

PlatinumAMEX94 wrote:Pre-approved only means you met some demographic criteria. Now you will have to wait 2 years as you have too many credit inquiries.


So, I called American Express yesterday, asking about my application, and here's the best part. Apparently, I was denied, because they couldn't find my credit report. Do you think, if it can't be found, it can't be dinged?
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Discover It $500 10/14. Capital One QS Visa $300 02/15, formerly Journey Visa Plat. 11/14.



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