Denied for first credit card application, what now?

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mycredit
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Denied for first credit card application, what now?

Postby mycredit » Tue Apr 17, 2012 8:44 pm

I've been looking for my first credit card. I'm now 18 years old, and am a high school student.

I don't have much income at this time, but have a savings account with a reasonable amount of money in it. I just want to make some purchases and pay off the card in full each month just to build my credit. I really wanted a card without an annual fee and with rewards. I found the Capital One Journey Student Rewards Credit Card, which seemed to be the right one. I applied, and wasn't approved.

I'm not sure which step to take next. I'm really upset because I know this isn't going to look good. If I knew they weren't going to approve me, I would have tried something else, such as a secured card. How bad is this going to look?

What step should I take next? The Capital One Secured Card has an annual fee of $29. If I pay this to get started, I won't want to need to pay it each year. I know keeping a card for a long time is good, and I shouldn't cancel cards, so I don't want to get it and plan on cancelling it a year later. They mentioned allowing me to upgrade, but keep the same card. I'm not sure how this would work.

There is also an Orchard Bank Secured Card that doesn't have a fee for the first year, and it is $35 per year after (which I will want to cancel the card, or somehow switch to avoid the fee).

If you think I'd get approved for an unsecured card, please let me know which one is a good choice. Also, I see on Orchard Bank I can put in my information to see what cards are available. If I do this, it says it won't affect my credit score, but will it show on my credit report and have a negative impact?

Ultimately, I want to have excellent credit, and get cash rewards for the purchases I make. I plan on spending responsibly, and paying the bill in full each month like I mentioned earlier.

I'd appreciate any advice you can give.

Thank you.


Crashem
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Postby Crashem » Wed Apr 18, 2012 7:18 am

Student cards are designed for new credit holders but the card act had in intended affect of making them harder to get. To have goood chance to get student card, you need to be in college, have some income and no negatives.

If you don't meet these standards, only choices are builder cards. Don't worry about canceling cards if you are going to actively manage your credit as close cards stay on your credit report but will fall off eventually.

Ideally you can find a builder card that will grow with you. Look around at your local credit unions. Also bofa has secured cc that unsecure. Not sure if any annual fee.
Amex Centurion, Amex Platinum, Amex BCP 8k->24k (5/23/12), Amex TE 15k, Cap One 1.5% 15k->20k (8/7/13), CSP 25k, Chase Palladium 100k, Citibank AA 35k (AU), Firestone 1.8k->2.2k->2.4k (8/20/12), JFCU Jloc 30k, PenFed Plat Rewards 30k, SF Fire 30k, US Bank Cash+ 25k

andy1088
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Postby andy1088 » Wed Apr 18, 2012 9:56 am

mycredit wrote:I'd appreciate any advice you can give.

I don't want to discourage you, but Capital one does NOT upgrade secured cards. I had a secured card with them and cancelled it after a year because they wouldn't do anything to help me (waive fee, upgrade card etc) they also won't help me with my other card to get a credit line increase. Capital one is good to start with don't get me wrong, but they are HORRIBLE to grow with or ask for any type of assistance.
My cards
Chase-Sapphire-$5,000 Freedom-$3,000, Amazon rewards-$700, Slate-$600
Citi- Diamond Preferred-$4,000, Thank you-$2,500
Discover IT-$2,500
Bank of America cash rewards-$2,000
Capital one newcomer rewards-$500

mycredit
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Postby mycredit » Wed Apr 18, 2012 11:12 am

Crashem wrote:Student cards are designed for new credit holders but the card act had in intended affect of making them harder to get. To have goood chance to get student card, you need to be in college, have some income and no negatives.

If you don't meet these standards, only choices are builder cards. Don't worry about canceling cards if you are going to actively manage your credit as close cards stay on your credit report but will fall off eventually.

Ideally you can find a builder card that will grow with you. Look around at your local credit unions. Also bofa has secured cc that unsecure. Not sure if any annual fee.


I'll continue to do research on secured cards then. The Bank of America card does have an annual fee of $39.

andy1088 wrote:I don't want to discourage you, but Capital one does NOT upgrade secured cards. I had a secured card with them and cancelled it after a year because they wouldn't do anything to help me (waive fee, upgrade card etc) they also won't help me with my other card to get a credit line increase. Capital one is good to start with don't get me wrong, but they are HORRIBLE to grow with or ask for any type of assistance.


What credit card company would you recommend for someone in my situation? If you know of any without an annual fee, that would be great. Currently, the only one I found without a fee for the first year is the Orchard Bank Secured Card.

Also, how long will a cancelled card be on the credit report, and how much will it hurt the credit score?

Thank you both for your replies!

mycredit
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Postby mycredit » Fri Apr 20, 2012 10:49 am

Does anyone have any more suggestions?

Do you think I would get turned down for a secured card since I don't have much income, or is it almost guaranteed that I'll be accepted?

I'm still looking for secured cards without annual fees. Orchard Bank is the only one I have found that doesn't have a fee for the first year. I'm hoping it doesn't look bad if I cancel it right before the year is up. I know it's best to keep the oldest card, but I want to try to avoid the annual fee.

bmw1990Z
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Postby bmw1990Z » Fri Apr 20, 2012 11:38 am

i applied for the journey card, was denied and then got the citi forward card (now discontinued).
Cards in my wallet:
-Citi Forward Card for College Students-July 2011
-American Express Platinum Delta Skymiles--July 2013

mycredit
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Postby mycredit » Fri Apr 20, 2012 12:55 pm

bmw1990Z wrote:i applied for the journey card, was denied and then got the citi forward card (now discontinued).


I don't really want to take a chance applying for another card unless I know I'm going to get approved. So, I think I'm going to take the secured card route at this point. I'm just trying to figure out which one would be best. I'm also worried I might get declined for the secured card because I don't have much income at this time.

How do you like the Citi Forward card? That might be something I can look into in the future. I think cash back is easier to understand than points, but I can look at the rewards and then see what the cash value is per point.

Thanks for your reply!

bmw1990Z
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Postby bmw1990Z » Fri Apr 20, 2012 4:07 pm

dude when you are starting out, there is a high possibilty you are going to get denied...a secured card is always an option. I know I sound like Citi's #1 fan on here because I post about them alot, BUT they are very leniant--way more so than Capitol 1. Even if you get denied, call the number and explain your situation and they will almost certainly approve you. The card is also top rated on this forums list for student cards.

My opinion on cash back cards is that the they aren't worth it. Citi gives numerous points for signing up plus you get offers throughout the year to increase your point values..to put it this way, I've had the card six months and had enough points to get two round trip airfare..cash back would've been no where near that. But thats because you get 5x points on things like eating out which is what I use the card for and going to movies and things like that....
Cards in my wallet:

-Citi Forward Card for College Students-July 2011

-American Express Platinum Delta Skymiles--July 2013

bmw1990Z
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Postby bmw1990Z » Fri Apr 20, 2012 4:08 pm

**i had the card 6 months and accumulated enough points for 2 airfare...at the year point i should have enough for 2 more tix...
Cards in my wallet:

-Citi Forward Card for College Students-July 2011

-American Express Platinum Delta Skymiles--July 2013

Regnohspf
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Postby Regnohspf » Fri Apr 20, 2012 4:43 pm

just wait it out bud, no rush. until you have a source of income i would wait

i was denied for my first college students card from wachovia at 18 and i bank with them, i wasnt able to get approved for one till i was 21 when i actually had a steady source of income. i believe i was making $10k a year just working part time. wachovia/wells fargo are ridiculous and very hard to get credit cards from but with some form of income its possible. (not saying to go apply there haha, i dont recommend them at all)

a buddy of mine who actually has no legit income other than working for his parents got approved for a Discover Student Card instantly a month ago. Ymmv but its never bad to take a shot.

Dont worry too much about taking hard hits to your credit history, you gotta look far ahead. i had 3 hard inquiries before my first and they had no affect. in the long run id much rather have those inquiries and also have the card that'll raise my credit score and history

goodluck bud!
Wells Fargo Student Credit Card Visa - $1300 (February 2011)
American Express Zync Charge Card (February 2012)
Chase Freedom Visa- $2000 5% rotating (April 2012)
Citi Forward Visa- $3000 - 5x at restaurants, amazon.com (April 2012)
Chase Sapphire Preferred Mastercard World Elite - $5000 (July 2012)

Credit cards left to attain
-Amex BCE/BCP



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