How and where to get my first card? Declined at Discover. Decent score. No history.

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Vermonster
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Postby Vermonster » Sat Apr 18, 2015 10:22 pm

I'm not 100% sure but I think you could apply for the regular BoA rewards card and if you are not approved call and ask to have your application switched to the secured version. BoA seems to do a good job switching people over to a regular card after not too long so I would definitely peruse that option.

Also you need to call Chase backdoor recon line. I was denied a CLI on my freedom due to suddenly having a shoddy looking credit report, only a week after being insta-approved for a CSP. I called the recon line before I received the denial letter and was approved for a 100% increase on my credit line. Take a chance, another no doesn't hurt. Plus you might be able to beg them a bit for a $500 limit.
Chase Freedom $9k~~Chase Sapphire Preferred $6.5k~~Amex Blue Cash Preferred $12.4k~~Citi Double Cash $4.7k


Crashburn
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Postby Crashburn » Tue Apr 21, 2015 8:04 am

We're in the process of building our credit (moved to US from abroad) and started off with the BoA secured and now have the Capital One secured.

What I like about the BoA is that you do get some rewards/cash-back but the money you put in as a deposit is interest free. I started with 2500$ and once we had built up savings again I increased my line to 7500$. This cost me a hard pull (weird, because I'm the one funding the credit line increase) but my score improved by about 10 points. Again, those 7500$ are blocked for me now - so you have to be willing to temporarily say goodbye to the money you put in. So, based on this I would advise that before you open it you think well about how much you want to put in and then go with that to avoid another hard pull later.

We've had the account for 6 months now and hope that after a year we'll be able to move to unsecured.

As for Capital One - just a heads up that it can take a while to show up on your report. For us it took 2.5 months. That credit card only has a 200$ credit line for me and improved my score by another 10 points. I'm keeping usage very low on it though (under 10%) by only paying 1 lunch a month with it.

Oh and I got declined for the Discover card based on short credit history. So if you haven't tried them yet I would recommend holding off until you have a bit more history.

takeshi
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Postby takeshi » Tue Apr 21, 2015 8:15 am

mehow wrote:Would it help me to get the BoA-secured card as a additional(2nd) card to help build my credit? How about a walmart or some store card like some say? Should I just calm down and stick with this Capital One and go slow and steady for a half year/year and then try with Chase or Discover again later on?

General advice is at least 2-3 cards for scoring purposes. If you can manage to get that many it can help you with rebuilding but you want to be be careful with applying since you have a thin file and at least one derog. If your secured cards won't unsecure and/or you have no need for your other starter cards down the road once your credit has improved you can close them out after you're able to replace them with unsecured cards that you need/want.

See what you can do about getting that derog removed. You would have had more leverage before paying but you can still make a goodwill request for removal. In future you should do whatever it takes to avoid derogs but if you do get one aim for a pay-for-delete.

JamesMS wrote:Honestly, I am not surprises that Discover declined your application. Discover cards are usually reserved for those that have a good score and some history behind them.

From what I've seen they seem to be willing to extend credit to those with thin but clean files. A derog means that the file isn't clean.



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