Denied card for having lack of credit history

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patrick201112
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Denied card for having lack of credit history

Postby patrick201112 » Thu Mar 08, 2012 5:49 am

I recently turned 18 and thought it would be good to start building my credit history before I go to college. I applied for a Bank of America Accel. Rewards card, and was denied based on lack of credit history. I spoke to a senior credit analyst from BofA and they wouldn't budge - they don't approve people with no credit history.

I then applied for the American Express Zync, thinking that would be easier to qualify for, and was denied again based on lack of history. Keep in mind I make about 5K a year with my part time job. What should I do? Call Amex and ask for reconsideration? Am I screwed because I have two inquiries on my (nonexistent) credit report?


irvine801
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Postby irvine801 » Thu Mar 08, 2012 12:18 pm

No credit history at all? Yeah because no major bank will approve you without any history.. that zync card I was barely approved for and I have about 4 years of credit history. If you have a credit union I would start there, limit may be low and it may not Issue rewards but its gonna be the easiest way to start with either a line of credit overdraft protection or a credit card with a credit union. Just my two cents :)
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PlatinumAMEX94
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Postby PlatinumAMEX94 » Thu Mar 08, 2012 12:20 pm

Now that you applied for 2 cards and have 2 inquiries, you now have to wait 2 more years before applying for any additional non-secured credit. Or you will screw your barely established credit file even more. 1 credit inquiry per year, and you already used both of yours.

Your best bet to start credit is to go with a secured card with a low limit and prove for at least 2-4 years that you can handle that credit responsibly. If you want in with American Express then start with a prepaid, demonstrate your ability to pay and then in 2 years apply for a Zync. There is nothing dishonorable about having a prepaid card and staying within your means. The only person who ever really sees the card is you and the minimum wage cashier you are handing it to. And I am sure your friends your age do not have credit cards either starting college.
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creditcruncher
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Postby creditcruncher » Fri Mar 09, 2012 10:18 am

Using prepaid cards will not build credit history and is not a factor in getting approval for credit. Having checking or savings accounts with a bank or credit union also does not help you at all with getting approved. I would suggest applying for a student card from CapitalOne. Their journey card has no annual fee, and most people start out at a $500 limit.

The great thing about CapitalOne is that they will periodically increase your credit limit without dinging your credit report, and without you asking. After about 1-2 years of good history with that card you can keep it or close it and apply for cards from other banks.

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Postby ooxs » Fri Mar 09, 2012 9:09 pm

creditcruncher wrote:Using prepaid cards will not build credit history

True and completely agree with you

I would suggest applying for a student card from CapitalOne. Their journey card has no annual fee, and most people start out at a $500 limit.

I agree here too

The great thing about CapitalOne is that they will periodically increase your credit limit without dinging your credit report,
.

While i agree with applying for Capital One, i don't believe they are credit increase friendly, i had to close my account after 10 years for this very reason

patrick201112
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Postby patrick201112 » Sat Mar 10, 2012 11:01 am

I have been told that it is possible to have these inquiries removed from my report or re-coded as soft inquiries...has anyone had experience with this?

Alternatively, when I spoke with American Express, they told me that the inquiries would not affect my credit score, because I don't have a credit score yet. Is this true?



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