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

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

Postby mehow » Mon Apr 13, 2015 11:22 pm

Hello, first off let me say that I'm new to this forum. I have been reading a little here and there on different cards for some time. I did a few search options to see what other people have been trying to do and to get a idea of what I should do. I'm looking for a little more advice on my situation. Where should I apply next or what should I do?

A little about me; I'm 30 years old and have never had a CC. I am a over the road truck driver. I have always used my PNC Check Chard as I don't like to spend money that I do not have. But now and for the last year or so I am interested in building my credit for a variety of reasons. I would prefer cash back rewards for fast food, gas and everyday stuff, I like Visa and don't really travel.

I got an application from Discover. On April 8th I decided I was going to try to apply for the IT card and was declined. I waited for the offical responce before posting. The reason is: "INSUFFICIENT CREDIT HISTORY." Also on the back side they say my FICO credit score is 719.

A few options would be to go through my bank, PNC. All though, I would prefer to go with a Chase credit card. A good friend also said I could try Capital One because they are fairly easy to get and give credit to "everyone." If I do not get accepted to PNC Bank cc, I was told I can get another type of credit card where I get charged every month and have a set limit from my checking card, but they report it on my credit score. I would rather have no fees, but in the end if its worth it I dont mind spending $40 a year for something good.

I have some other info from a credit report and creditkarma that I will include to give you a better picture of whats going on. My TransUnion score is 780 and Equifax is 769 via CreditKarma. I will also attach a few photos and screen shots of the info.

I got all 3 credit reports this year on 3/2015 but only one I was able to save is the: TransUnion Credit Report, They said I have been on file since 12/03/2006. I have one "Adverse account," That Comed gave me to collections, but I recently called and paid directly to Comed after I found it on my credit report. I am a Authorized User under my moms name with American Express. Date Opened: 7/15/04, Updated 2/27/15. Pay Status: Current, Paid or Paying, Authorized account, Revolving Account, Credit card, limit of $20,000. And finally a account review from Progressive insurance for insurance of my car & bike. That is all that was found on my credit reports.

Thank for you taking the time to read this wall of text and to consider what options you might give me.

Have a good evening,
Mike aka mehow



Here is two links with a photo and screen shots.

http://imgur.com/a/CfpGI

https://www.dropbox.com/sh/a4jh18izs38fqkc/AACjpVSIfN7sZdX3eNRj8Qeka?dl=0


JamesMS
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Postby JamesMS » Tue Apr 14, 2015 1:16 pm

You have some good questions in your post. 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. It doesn't always matter how high your score is if you do not have any credit history.

My advice would be to go to Capital One and apply for one of their entry level cards, like the Classic Platinum. While you might not get a high credit limit at first, it will build over time. Yes, Capital One tends to approve more people than others and have cards with no Annual Fee.

Whichever way you decide to go for your first card, just know that once you get approved and show some on time payment history and responsible spending, these limits can be increased fairly easily. Also, Capital One has it to where you can request a CLI without having to have a hard pull on your credit.

Good luck.
Main Cards:
Amex BCE
Amex Everyday
Bank of America Cash Rewards
Chase Freedom
Capital One Quicksilver
Citi Thank You Preferred

Spark Cash Back (Business), Amex Plum (Business)

mehow
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Postby mehow » Tue Apr 14, 2015 10:52 pm

[font=Verdana][size=80]Here is a quick recap to avoid the wall of text.

I got declined from Discover on April 8th. Reason: "INSUFFICIENT CREDIT HISTORY." on the back side of that letter they say my FICO credit score is 719. My TransUnion score is 780 and Equifax is 769 via CreditKarma.

On 3/15 My TransUnion Credit Report I had one "Adverse account," That Comed gave me to collections less then 6 months ago, but I recently called and paid directly to Comed. I am also a Authorized User under my moms name with American Express. Date Opened: 7/15/04 & Current up to date.

I did a chat with AMEX and was told that I could add the AU account info to my application. But it also did not sound like this would make a difference.

I have been with PNC Bank for at least 5 years with a checking account & visa debit card. I was told over help chat that this will not help me get approved for a credit card with them.

My first option at this point would be CHASE FREEDOM, I'm thinking about trying to apply. Is there any reason I should or should not try them?

Second, How about Capital One, the Classic Platinum calls for "Average credit" but has a $39 annual fee that I was trying to avoid. The Quicksilver Rewards has no annual fee but is "For people with Excellent Credit."

What about some others like barclaycardus or citi? Will I be forced to get a "secured" or "student" card and build up from there? I really would be fine with $500 credit or secure to use for fast food and everyday needs when im on the road.

What would you recommend? Thank you.[/size][/font]

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Vattené
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Postby Vattené » Thu Apr 16, 2015 4:36 pm

Unfortunately when it comes to credit scores the thinner your profile, the less meaningful the number. With little history and derogatory marks, your odds are very difficult to guess. It is great you caught that derog and paid it, but it will still be on your report for years.

Bottom line: the Chase Freedom is a good card with prime-level rewards so if that is what you want I would go for it. Realize there is still a decent chance you will get declined, but I believe the underwriting criteria are less stringent than Discover's. I can't speak to how accurate or predictable it is, but Credit Karma gives approval odds for various cards based on their model and users' application outcomes. They put the score of the "average approved" at 709 for the Discover it (635-794 typical range) as opposed to 670 for the Chase Freedom (614-744 typical range). The Chase Slate, if you're not familiar, is geared more towards rebuilders that don't have great credit for transferring outstanding balances, and the Slate's approval statistics per Credit Karma are very comparable (683 and 626-762).

So I think it is worth going for the Freedom, but I also wouldn't be surprised if you didn't get accepted. If you try and don't get approved, be aware there are reconsideration lines you can call and plead your case (explain you are trying to get serious about credit, want to build a relationship with Chase, would be thrilled if they gave you even $500 to prove your creditworthiness to them, yada yada yada).

If that fails and a Freedom is simply out of reach at this time, you should try for a lower tier of credit card as any more applications would likely hurt you with inquiries and get you nowhere. Capital One does have a lower tier version of the Quicksilver (I believe called QuicksilverOne) that has an annual fee but still earns rewards. The secured route is a proven way to go, but I like to recommend store accounts (like a Walmart card, or just about any major retailer). You couldn't use it everywhere, but you wouldn't have to tie up money for it or pay any annual fee. Would you be open to that?
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

JamesMS
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Postby JamesMS » Thu Apr 16, 2015 5:23 pm

Vettene is right on the money with that statement. When you have a thin file, your score is not everything. Start small and go up from there. Think of it like starting a new job, and you want to eventually run the place. First you need to start at the bottom, figure everything out and slowly move your way up. It is the same with credit. My first card was a capital one, I got it at 16 (my mother was the cosigner). Today, I still have that account. It takes a while to do everything, just be patient.
Main Cards:
Amex BCE
Amex Everyday
Bank of America Cash Rewards
Chase Freedom
Capital One Quicksilver
Citi Thank You Preferred

Spark Cash Back (Business), Amex Plum (Business)

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CarefulBuilder14
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Postby CarefulBuilder14 » Thu Apr 16, 2015 6:16 pm

A Chase Freedom is possible. I got one with no credit history except a year-old inquiry.

I wouldn't bother with a low-tier Capital One account. You could get a better rewards/fees combination with a secured credit union card.

Edit: Another option is a BofA secured card. The fees are a little bit higher, but BofA has a better track record than Capital One (anecdotally, I don't have statistics) about letting secured cards graduate to unsecured rewards card.
Love: IHG, Platinum, Sallie Mae, AA Plat, CSP
Like: Discover, ED, BCE, Hyatt, Arrival, Freedom
Might drop: BrooksBros, Prestige (Costco PC?)
Might add: Proper business card, CSR, Ritz, Delta Gold
Letting new accounts cool off since May
Really not sure what I'll add next or when

RubenMtzJr
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Postby RubenMtzJr » Thu Apr 16, 2015 11:25 pm

Try applying for a secured credit card. Another way is going to your bank and ask about their credit cards.
Elan Financial/ IBC Bank- $800 (6/14)
Bank of America- $2,100 (8/14)
American Express Blue Cash Everyday- $5,000 (1/15)
Discover IT- $500 (3/15)
Amazon Store Card- $2,000 (3/15)
Rooms To Go- $2,000 (3/15)
Lowe's- $1500 (3/15)

mehow
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Postby mehow » Fri Apr 17, 2015 7:15 pm

[font=Verdana][size=80] Hey guys, thanks for all the great input. I took some time to consider some of the options. But now I have good and bad news and a question.

Bad news first; I got declined for the Chase Freedom card. No credit history is my problem.

I decided to sign up for a Capital One Secured card(no annual fee), it asked for 49$, but I put down 200$ to have a higher limit. I plan on paying the balance in full anyway.

I was also looking at the Bank of America Secured, but the only turn off was the annual fee. On the other hand some were saying it has a chance of turning into a non-secured card after a year.

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?

Once again thank you all for your time and input. I plan on staying around to learn some more, and keep you all updated. There is a lot more to all this then meets the eye(or brain I guess).

-mehow[/size][/font]

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Vattené
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Postby Vattené » Sat Apr 18, 2015 2:26 pm

Have you tried calling the reconsideration line for Chase? I've no experience doing it, but I know it can be done. It may not be too late to speak to an analyst and try to turn that no into a yes. No guarantees, but you've already taken an inquiry for a Freedom so there is nothing to lose (the worst they can do is tell you "no").

It's not what you wanted, but congrats on the Capital One card. If you always pay in full, you'll never spend a cent in interest and will get your security deposit back down the road anyway.

As far as the next step, I'd definitely recommend getting something. More tradelines just show more companies willing to extend you credit, more accounts aging and reporting positive payment histories (which will help you immensely in the future), and your ability to manage more financially. It really doesn't matter what you get for scoring and credit-building purposes: as far as your credit profile is concerned, a tradeline is a tradeline. It just comes down to what you would prefer. There is nothing wrong with a secured BofA card, and you can use it wherever you want if that is important to you for convenience, tracking spending, etc.

Some members here have an aversion to store accounts; I just like to recommend them because they are as easy to get as secured cards, but don't come with fees and security deposits. $39/year isn't a lot of money, but my thinking is simply why spend it when there's no need? You wouldn't be able to spend it everywhere, but you're already used to that. It's not like you'd be earning rewards on a secured card anyway. So there are pros and cons to each, and again it just ultimately depends on what features are most important to you. If you do decide to apply for a store account, I would recommend a company you shop at somewhat frequently (hence my Walmart example, if you do shop there regularly). You don't even have to use the card every month, but some regularity would look better than an inactive account.

Speaking from personal experience, I applied for a lot of store account while I was in college and it helped me greatly in building credit. You can see there are a lot in my signature, but by no means is that an optimal route (I mainly got them for one-time upfront perks like a discount on a purchase rather than proactively trying to optimize my credit score). Anyway, store accounts have done great things for me (I was able to finance a car on the best terms shortly after college, and I may soon be purchasing a house on the best terms) and I've never paid a cent in interest or fees from credit cards.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

JamesMS
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Postby JamesMS » Sat Apr 18, 2015 2:44 pm

Vattene is correct, you should get something. Having a variety of trade lines is a great way to help build your credit and it will make things easier for you down the road, as long as you are responsible with them.

Store cards are not always a bad thing, it is a start, and that is what matters. Which ever route you decide to go, good luck.
Main Cards:
Amex BCE
Amex Everyday
Bank of America Cash Rewards
Chase Freedom
Capital One Quicksilver
Citi Thank You Preferred

Spark Cash Back (Business), Amex Plum (Business)



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