Student Credit Card Denial- Help?

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kimofry12
 
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Student Credit Card Denial- Help?

Postby kimofry12 » Thu Jul 16, 2015 4:09 pm

Disclaimer: I have no idea how to use this forum so please excuse me if I'm in the wrong area, I just need to ask this question.

Before my 18th birthday this year (June 29th) I'd been researching cards for about two years. Both of my parents came from out of the country to come to college and took many credit card offers they couldn't pay back, so both of their credit scores are now (still!) in the 400s-500s. I understand alot more than they do about it now. But the problem with that is I knew I couldn't get a cosigner for a good card with their credit so bad.

I'm a sophomore in college, and I applied for the Journey capital one card, and the Discover it card, and was declined for both. I don't pay rent and I make about 4,000 a year from my two jobs plus money my parents give me. I need to understand why I was declined, and how I can fix it.

I am mostly perplexed because my friend just applied for the Journey card and was instantly approved, although she makes about 5,000.

Help, anyone, please!


Vermonster
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Re: Student Credit Card Denial- Help?

Postby Vermonster » Thu Jul 16, 2015 7:47 pm

First you want to make sure you applied to the student version. Even if you are 100% sure you did, call a backdoor number and talk to someone on the phone. Just say that you are trying to get your first card and wanted to make sure you applied for the right card. If they say everything was correct, you should ask who you need to talk to to have them reconsider. You might need to start with a secured card, which Discover may offer you.
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Kevin86475391
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Re: Student Credit Card Denial- Help?

Postby Kevin86475391 » Thu Jul 16, 2015 7:53 pm

kimofry12 wrote:I'm a sophomore in college, and I applied for the Journey capital one card, and the Discover it card, and was declined for both. I don't pay rent and I make about 4,000 a year from my two jobs plus money my parents give me. I need to understand why I was declined, and how I can fix it.

I am mostly perplexed because my friend just applied for the Journey card and was instantly approved, although she makes about 5,000.


First, happy belated birthday and welcome to the world of credit!

To be honest I don't know much about the Capital One Journey card, but regarding the Discover It, I think the approval criteria are a bit high for someone just starting out. You probably need to build credit history with other cards first.

A quick bit of research tells me that the Journey card is indeed for students. So it does sound more like a card you could get approved for just starting out. Nevertheless, there could be a number of reasons you friend got approved and you didn't. Does she already have any other cards or would this be her first? Could she have already been an authorized user on her parents' cards? Do you think she might have gotten a cosigner? Regarding the income, perhaps the extra $1,000 did help her odds...or do you think perhaps there's also a chance she might have fudged a little bit and said her income was even higher than $5,000?

Regardless, I probably wouldn't bother reconning (reconsidering - calling the creditor and asking them to reconsider your application basically and discussing your situation in more detail with a live analyst) the Discover It. However, I'd suggest giving it a try with Capital One. Can't really hurt; the most they'll say is no. Plus, they'll likely tell you in more detail why they declined you. So if nothing else you'll have a learning experience.

A couple of other credit options you might try: Does your school have a credit union? You may have better luck getting a card through them. Second option which is pretty much guaranteed to work: get a secured card. If you aren't familiar with them, basically you put down a deposit - say $300 - and that becomes your credit limit. But your subsequent purchases don't come out of that amount, instead you pay them every month like a regular credit card. The deposit is just there to literally 'secure' the card in case you don't pay your bill. After a few months of having a secured card - I'd give it at least 6 months - you should have the credit history to get approved for a regular - though probably still 'beginner' - unsecured credit card. Some secured credit cards even have the option of converting to unsecured after a period of time. Sorry I can't recommend any particular secured cards, but make sure the fees aren't too excessive. Names to AVOID are Premier Credit and Credit One - I believe they have terrible terms and stupid high fees. I think Capital One has a secured card actually that probably isn't too bad.

Best of luck!

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obxfisherman
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Re: Student Credit Card Denial- Help?

Postby obxfisherman » Fri Jul 17, 2015 8:29 am

I was in your situation not too long ago...my credit card journey started similar to yours. I had to start with a crappy fingerhut credit card and a 1st financial bank card or something. Fingerhut is a website that charges high prices for crappy items, and the 1st financial card had an annual fee which was bad, but they got me started with some credit history. I also applied for a capital one secured card in order to establish history. After a few months I was able to apply for cards issued by GECRB which is now synchorny bank. These are cards such as Walmart, Amazon, Sams Club and some others. These cards have crappy interest rates like 25% so if you get one of any of the cards pay them off in full every month. Again after like 6 months or a year I was able to to slowly get better cards and now look at me lol. So it is possible to get cards as a student, as that is how I was a few years ago. This may not be the most conventional or smart method compared to others in the forum ,but in my case this worked for me...so I'd start with crappy cards like fingerhut...or again the 1st financial bank card, or secured cards or all three, and then slowly work your way up from there :)
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Whatamuji
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Re: Student Credit Card Denial- Help?

Postby Whatamuji » Mon Jul 20, 2015 9:27 pm

A card worth looking into might be the BankAmericard Cash Rewards credit card offered by Bank of America. You might qualify for the 99/500 secured card deal. You put down $99 and they give you $500 to spend with which you will get back when your card graduates to a unsecured card in 10-12 months. of course with these deals YMMV (Your Mileage May Vary). Good luck and welcome to the forums! I was in a similar situation as you last year. Something that just occurred to me is that you could open a Kohls Card and maybe make some small purchases on there for stuff and then once you pay it off just let the account stay open and wait for other cards to send you offers in the mail.
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andrew.endicott
 
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Re: Student Credit Card Denial- Help?

Postby andrew.endicott » Sun Aug 30, 2015 8:00 pm

I think a secured card is definitely the way to go for you. It will allow you to build a credit history, and they are usually pretty available for anyone who can scrape together the deposit. Just be sure to shop around and find the best one that doesn't hit you with a ton of fees, which can be common. In addition, check out this website for some more information that might be helpful for you given that you're coming from another country: credit-bridge.com

Good luck and let us know how things turn out!



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