I've got a great credit score, but can't get approved for a CC

For just about anything you want to get off your chest about credit cards.
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gilmore4
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I've got a great credit score, but can't get approved for a CC

Postby gilmore4 » Tue Apr 08, 2014 3:30 pm

Hey guys, first time posting here. I've been in a bit of a predicament for a while here.
I've attempted to apply for a handful of credit cards in the past year, but each time I've been declined due to insufficient credit.

Basically, while my credit score is very good (700+), I've never had a loan or mortgage or a previous credit account that I opened in my name, thus the insufficient credit.

I was a bit foolish in the sense that I presumed that when my parents opened up a credit card account with my name that I would be a-okay in building credit -- but I later found out that it was actually opened in their names. Rats.

And I never signed up for one of those college credit card accounts presuming it would "hurt my credit score" or were somewhat of a scam.

So what are my options? From doing research and talking to people it's been suggested that I open up a secured credit card account and deposit anywhere from $500-$1000 in there and pay off regularly for a few months to a year then re-apply for a "better" credit card.

But is that the best option? For reference, I do pay rent each month, albeit via check. And I've contacted my bank already and they said the same thing: not qualified for their CC (even though they keep sending me the damn offers).

Of course, I don't NEED a CC...just would be nice to rack up points/bonuses.


Living&Learning
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Postby Living&Learning » Wed Apr 09, 2014 1:31 am

Hi,
I would suggest getting a secured card with BOA. Once you are approved for the card you can do a product change to the cash rewards version. It is also one of the few, if only, secured cards that graduate to an unsecured card after 12 months of excellent payment history. In this case you will be able to earn some form of rewards and build your credit history as well. Good Luck! :)

OldMan
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Postby OldMan » Wed Apr 09, 2014 6:20 am

I was in the same boat. I would suggest that you go with the Cap One secured, as you can possibly be approved with as small as a $49 deposit. No rewards, but there are a few benefits. I plan on canceling mine before the AF hits, but since it's only $29, I might keep it for awhile.

I do think you might be under a mis-understanding though. You do need a credit card, or some type of history. Without any history, it gets very difficult to get a car loan, mortgage, or any other type of credit. Trust me, I tried getting a car loan without any history, and it was not fun.
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MemberSince99
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Postby MemberSince99 » Wed Apr 09, 2014 6:40 am

Agree. Crap One is the best way to start. After 7 months then you can start to get better cards and dump Crap One, and when you do you will never look back.


Also consider the Shopping cart trick if for some reason Crap One doesn't work out. It's not that hard to start if you know the angles, but most don't.


Avoid First Premiere and Credit One and vulture lenders like this they just are not worth it.

takeshi
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Postby takeshi » Wed Apr 09, 2014 9:34 am

gilmore4 wrote:But is that the best option?

If you have to build with nothing in your name it's generally the only option.

gilmore4 wrote:Of course, I don't NEED a CC...just would be nice to rack up points/bonuses.

Also helps to build credit if you need financing for a car, home, etc.

Shawn
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Postby Shawn » Wed Apr 09, 2014 12:39 pm

Even if you have a credit score many banks like to see a payment history. My recommendations, since you have a credit score already:

This all assumes you have no negatives on your credit report. And my general preference for non-secured cards.

1. Apply for a Capital One Platinum card
Just the regular non-secured version
Capital One is known to be newbie friendly, your Credit Line may never increase greatly, but at least if you're approved for the non-secured version you can build a credit history without putting hundreds of you're own money down.


2. Apply for the DISCOVER IT
If you're denied they MIGHT offer you the secured version, that IMO is one of the best secured cards right now. Don't go in with great expectations when applying for this, with no credit card history it's likely you'll be denied, but IMO it's still worth it to try and apply for it.


3. If none of the above works works apply for the Bank of America secured card - As long as you pay your bills the Bank of America secured card will usually graduate to an unsecured and Bank of America will send your money back.


4. If Bank of America denies you for a secured card then try Capital One again this time for a secured card. The Capital One secured cards will most likely never graduate, so if you ever want your money back you'll have to close the card. That's why I have it all the way down on the list.


Since you already have a credit score it shouldn't be too difficult to get SOMETHING. And after 6 months or so, as long as you pay your bill, you should be able to apply for more/better cards.

Indymac
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Postby Indymac » Wed Apr 09, 2014 5:37 pm

It would help give us a better perspective from which to give advice if you listed the cards you've already tried to get.

gilmore4
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Postby gilmore4 » Wed Apr 09, 2014 6:11 pm

Indymac wrote:It would help give us a better perspective from which to give advice if you listed the cards you've already tried to get.


Thanks for the info so far everyone!

I do believe I have applied for three (maybe four) cards in the past year, which include: Chase Sapphire (Preferred maybe), Capital One (maybe the Venture card), one through my bank, and a BankAmericard Cash Rewards credit card.

All denied for insufficient credit history. So I suppose a secure card either via BoA or my bank may be the best option. If that's how I have to start out in order to "graduate" to a better card with higher limit/better perks, then I really don't need the rewards for basic cards.

Another issue: bills (other than rent) are paid via my roommate, so perhaps having me pay for one of those bills may be good...or I could look into WilliamPaid for paying rent(?)

mdl28
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Postby mdl28 » Wed Apr 09, 2014 7:46 pm

Cap One, will more likely be a low CL. But just pay on it monthly and keep a 0 balance. This will get you in the door. Then others will come...
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ajacks108
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Postby ajacks108 » Thu Apr 10, 2014 10:10 am

My gf was in the same boat as you. However her credit score was even lower. She still got the chase freedom card and a few months later discover it card. Have you tried these yet? Check out credit karma for cards that could potentially accept you. The cards you did apply for seem to be premium cards so maybe start off with a lower chase card like the freedom. GF got a 500 cl but still helped her build her credit score.
[size=80]Amex Premier Gold
Chase Freedom - CL $8,000
Chase United Mileage Explorer card - CL $6,900
Banana Republic - CL $4000
Chase Slate - CL $3,000
Target - CL $2000
Ann Taylor Loft - CL $1000[/size]



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