- Green Member
- Posts: 11
- Joined: Sat Sep 28, 2013 3:24 am
- Location: United States
Looking for some advice on how to proceed, since the problem I have is one I haven't seen mentioned all that often.
I'm a student graduating in the coming summer, currently 23 and I've had a BoA student Visa since November 2009 with a $1,000 limit, cosigned. I basically never use it though, since the one time I did shortly after getting it, I got a notice the day later informing me that someone tried to charge phone cards to it. It's the only card I have to my name, but I'm also an authorized user on a Chase United Club card with a $30k limit. I rarely use it myself but it's paid in full every month by the other users (my parents).
I applied a little over a week ago for a Chase Sapphire Preferred (yes, quite a jump) and got a denial letter (unsurprisingly). The stated reason was 'Not enough accounts open long enough to establish a credit history.' After looking for reconsideration advice online, I called them up. The CSR was nice and after confirming my information, reopened the application and put me on hold. I had already checked my credit score with EX and it's currently 750.
When he came back, he informed me I could not be approved due instead to the cost of my rent relative to my income, which was too high. Nothing to do with credit history, score, or even total income, but instead allegedly my income-to-debt obligation was too high under federal law. Because of this, I couldn't get any of the lower-level cards either, like the Freedom.
This is problematic since in the short term, there's very little I can do. My rent is hardly going to decrease, and at the same time the likelihood of being able to get a job paying well enough to boost my income significantly without having graduated is also not particularly high. Chase doesn't accept cosigners and no longer allows joint accounts. It's not as much a matter of building a credit history as it is raising income (or lowering rent).
Which means that there are a few options for consideration that I would like to ask for advice on:
1. Apply using household income. I am still claimed as a dependent on my family's taxes as I am a full-time student with limited personal income. Obviously, my parents' income to debt obligations ratio is much better than mine, and under Regulation Z, they still transfer portions of their salary to my account (to pay for rent, mainly), which would make it acceptable as an account I have 'reasonable expectation of access' to.
2. Try the reconsideration line again. This doesn't seem particularly likely to work given that it seems to be Chase's internal policy in response to the government's lending criteria. According to the CSR, it applies even to low-limit cards like Freedom.
3. Apply to other banks for other cards, which may not have the same requirements. Chase though has the cards that would most fit my intended use, which is why they were my first choice. Possibly look at cosigned cards, although these are usually lower-end. If this is an option though, are there any suggestions?
4. Do nothing, and wait until post-graduation to move to a lower-rent area and get a better-paying job (relative to my current listed income).
Asking to see if anyone has any feedback or advice on the matter. I'm mostly in it to start building points, especially for travel (hence the decision to apply for CSP) since I travel relatively often. I have no history with most of the major American banks (nor does my family) simply because they basically don't operate in my home state.