| Help! I can't get a credit card? |
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jamie.rogers63
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| Help! I can't get a credit card? |
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I am a 19 year old student with a job and I want to start building credit history. I applied for a student credit card that claimed it was for students with little to no credit history and got rejected for not having credit history. After doing some research I applied for an Orchard Bank Secured Card and sent in the $200 deposit and I just found out that I was also rejected for that! How did I get rejected for a secured account? I checked my credit report and there is nothing negative on it. How can I get credit when every company expects a credit history? Also I know it would be easier to get accepted with a cosigner but so far I have been unable to find a card that allows you to apply with one, does anyone know of any that do?
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Thu Aug 04, 2011 2:29 am |
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oldguy
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quote:
I applied for a student credit card that claimed it was for students with little to no credit history and got rejected for not having credit history.
Wow, hard to imagine - when my daughters were in college there were pepole handing out credit cards in the chow line in the dorms, they almost forced the kids to accept credit cards. And then poor ol' dad ended up with the bills - I should have sent them to your college, LOL. That ws over a decade ago, lending rules have apparently changed, with the real estate bubble, the recession, yada.
Have you tried joining a credit union? Start a savings account and a checking account - then apply for their Visa card, that should work. Unless you really do have something on your record that bounces the background check? Some failed college course? Busted for drugs? A DUI? Felony? Car repo? Poor DMV record? Any one of those would probably make you a bad risk for loans.
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Thu Aug 04, 2011 3:16 am |
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eastmn
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A checking account with the debit card is normally first-up. This will allow the same bank to see a steady income and references. You could then borrow against your savings (or future earnings) from the same bank. That would get the ball rolling for you. First choice should always be a credit union, not a bank.
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Thu Aug 04, 2011 4:22 am |
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coaster
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Is there a relative who trusts you enough to name you "Authorized User" on their account? As an authorized user on another's account you're able to build your own credit history in your own name while they're obligated to be responsible for the account being paid as agreed. This is a method that's actually endorsed by Fair Isaac, not officially, but through their spokesperson on their message boards. You don't need to do this very long; a year should suffice. Be careful, though, you can easily wreck someone else's good credit score.
I like the credit union idea, too. You can secure the card with your deposit account.
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Thu Aug 04, 2011 6:02 am |
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artwest
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You don't need a credit card. They only help you get into debt.
The best way to become wealthy is to be debt free.
In my opinion, you should simply open a checking account and get a Debit Card. You can use it the same as a credit card but you have to keep an eye on how much you spend or you will over draw your checking account.
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Fri Aug 05, 2011 3:47 pm |
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RonBrun
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Art is correct in that, it is best to live debt free. I one hundred percent agree. That said, I do believe that having good credit is important. So get a credit card, just don't abuse it. Leverage it, don't let it leverage you.
To get a card in your situation is a matter of establishing bank history, like others have mentioned. After having checking and savings, while not having anything negative on your report, will be sufficient to get card offers.
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Fri Aug 05, 2011 6:09 pm |
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eastmn
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Keep in mind that most people pay their entire card balance off every month, zero interest. Otherwise, think of credit card companies as loan sharks (abusive).
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Fri Aug 05, 2011 10:08 pm |
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getoutofdebtguy
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Whatever the outlook is on living debt free, we need to get to the bottom of this.
There is something which led to the rejection. Orchard would have sent you a letter explaining why they did reject you. What did it say.
Building good credit is important because it impacts your life in a number of ways and like the system or not, it is what it is.
So why did they say they rejected you?
And I'm hoping you have more than $200 to use for a deposit for a secured card, if not, save up till you have at least $500 in cash you can stash in a savings account and $300 you can use for the secured card before you do anything.
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Sun Aug 21, 2011 8:26 pm |
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jaro
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you can try a secured credit card. I don't exactly have one to recommend, some have alot of fees to deal with. But many of them report transactions back to the 3 credit bureaus and over time will help you build credit.
Your bank might even offer one. Then you can work you way up to an unsecured card.
I have heard that you can also run your debit card through as a credit card and it will report back to the credit bureaus. I'm not totally sure about this, can anyone else confirm?
Learn more about your credit:
http://greatcreditscore.org/general/good-credit-score/
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Wed Aug 24, 2011 7:05 pm |
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coaster
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quote:
Originally posted by jaro
I have heard that you can also run your debit card through as a credit card and it will report back to the credit bureaus. I'm not totally sure about this, can anyone else confirm?
If the merchant doesn't take debit cards, a debit card will run through as a credit transaction. However, I don't think you have a choice if the merchant does take debit cards. At least not with the card readers that recognize the card type and automatically post a debit transaction.
~Tim~
Eye Candy : Why Whimsy
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Wed Aug 24, 2011 8:42 pm |
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littleroc02us
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quote:
Originally posted by jaro
I have heard that you can also run your debit card through as a credit card and it will report back to the credit bureaus. I'm not totally sure about this, can anyone else confirm?
My wife and I use our check card for a ton of purchases along with cash and no it doesn't ever get reported to the credit bureaus because you aren't borrowing money. The difference between using your check card as a debit transaction or using it as a credit transaction is the first you enter a pin number and the second you don't and the retailer gets charged a transaction fee. It's not actual credit though.
Romans 13:8 “Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law.”
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Wed Aug 24, 2011 8:50 pm |
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coaster
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quote:
Originally posted by littleroc02us
It's not actual credit though.
If your account has online access, look at the postings to the account at the end of the day. It the transaction posts and debits your account same day, it's not credit, as said. However, if the account doesn't get debited same day, then it's credit. With my debit card, it's the latter, so I guess it's a case of: it depends. 
BTW, merchants here tell me they get nicked the same merchant fee regardless of whether it's debit or credit.
~Tim~
Eye Candy : Why Whimsy
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Wed Aug 24, 2011 9:11 pm |
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