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re: Son got denied for a credit card
Posted on 9/5/14 at 10:34 am to tiger91
Posted on 9/5/14 at 10:34 am to tiger91
My wife is 25 and only just now got one after we consigned for a car.
Seems like I've had one since I was 19 or 20 but I'm a few years older than her. I think it's more difficult now to obtain a credit card for youngsters.
Seems like I've had one since I was 19 or 20 but I'm a few years older than her. I think it's more difficult now to obtain a credit card for youngsters.
This post was edited on 9/5/14 at 10:35 am
Posted on 9/5/14 at 10:40 am to tiger91
Well then you just need to figure out why your accounts are showing up on his report
get a free report online and go from there
get a free report online and go from there
Posted on 9/5/14 at 11:34 am to yellowfin
I have similar credit scores and was denied recently for a same as cash becuase I had to many hard hits (car dealer screw up), sounds like with you loans and new vehicles this could also be a cause
Posted on 9/5/14 at 12:24 pm to member12
quote:
I think it's more difficult now to obtain a credit card for youngsters.
I'm in my mid 30s, and I remember my freshman year of college, banks were on campus giving credit cards away like candy. They hired cute girls to get the apps, you would get a free shirt or something, and I think they paid the cute girls for each app they got.
I've heard that new regulations have cut down a lot on that more recently, and it's much harder to get a student card.
To the OP, tell your son to call the credit issurer directly and see if he can get an exact reason for denial. Tell him to push the issue a bit.
Also, if this is truly about building good credit for him, tell him to apply for a walmart card. Store cards tend to be easier to get, especially for people without much credit history. He can go buy some stuff there a couple of times a month and pay it off each month.
If he has one good trade line from being an authorized user, and he has one good installment line for himself, and he adds a store card, his credit history will start to grow. At that point the only issue would be debt to income.
Posted on 9/5/14 at 12:51 pm to LSUFanHouston
quote:i think this is currently the underlying issue. If the child is an authorized user on parents account, that debt counts against the son.
At that point the only issue would be debt to income
So if the parents have $5k balance on the credit card, yet the child is only making minimal income, the credit card company will think he cannot cover his existing debt, and will therefore not open him a new line of credit.
Posted on 9/6/14 at 5:08 pm to GoHoGsGo06
Two easy things for him to do:
1) Call the reconsideration line for the credit card company that denied his application. Often a simple phone call is all it takes to reverse their decision.
2) Get a secured credit card, upgrade to a better card in about a year. He would undoubtedly be approved for a secured card as the bank carries hardly any risk for those.
1) Call the reconsideration line for the credit card company that denied his application. Often a simple phone call is all it takes to reverse their decision.
2) Get a secured credit card, upgrade to a better card in about a year. He would undoubtedly be approved for a secured card as the bank carries hardly any risk for those.
Posted on 9/6/14 at 5:20 pm to GoHoGsGo06
An authorized user is not legally responsible for the debt. If a credit card company is making this mistake(implicitly and rather shockingly), he should rectify that issue so they know he is not the holder of that debt.
This post was edited on 9/6/14 at 5:22 pm
Posted on 9/6/14 at 6:19 pm to Teddy Ruxpin
I know that being an authorized user brings up your FICO score but I've read that lenders are starting to frown upon that when it's someone's only positive trade lines. Could be that his thin credit file (excluding being an AU on their credit cards) is holding him back. He should try a credit card like Dicover It or Capital One to start. Not bad cards and aren't as hard to get as an American Express or Chase.
Posted on 9/7/14 at 12:32 am to GoHoGsGo06
quote:
i think this is currently the underlying issue. If the child is an authorized user on parents account, that debt counts against the son.
I don't think so, authorized user is not responsible for the debt. 'Piggybacking' on parents credit. May ask your son to remove himself as authorized user on credit cards and re-score him
Posted on 9/7/14 at 12:32 pm to Rantavious
What I meant is that the AU is not responsible for paying the debt, just that the debt counts against him when a credit report is pulled. Two separate things here.
Posted on 9/7/14 at 5:51 pm to LSUFanHouston
quote:
Obviously the authorized user thing is a loophole and you all have used it...
It's not a loophole.
For some reason, people don't understand that there are about 30 different scoring systems (roughly 10 per credit copository).
They do not score an 18 year old the same as they score a 26 year old, the same as they score a 40 year old with a bankruptcy, the same as they score a 60 year old.
There are about 10 different buckets that we can be thrown into... each one with a different set of requisites for scoring.
- - - - - - - - -
Your son needs to follow procedure for a denial (often a written request) to get the exact reason for the declined credit application. I am guessing that his thin credit file is the reason for being turned down with this credit card carrier. But it's just guessing. A simple written request will get him and you everything that you need to know.
Posted on 9/8/14 at 10:00 am to meansonny
quote:
For some reason, people don't understand that there are about 30 different scoring systems (roughly 10 per credit copository).
They do not score an 18 year old the same as they score a 26 year old, the same as they score a 40 year old with a bankruptcy, the same as they score a 60 year old.
There are about 10 different buckets that we can be thrown into... each one with a different set of requisites for scoring.
I would be curious to learn more about this. I know each company has multiple scores available for sale - different versions of FICO, insurance scores, scores by other providers, etc. But I didn't think age of the individual had anything to do with it.
Posted on 9/8/14 at 6:09 pm to LSUFanHouston
quote:
I would be curious to learn more about this. I know each company has multiple scores available for sale - different versions of FICO, insurance scores, scores by other providers, etc. But I didn't think age of the individual had anything to do with it.
According to FICO, they don't factor age of the person. Average Age of Accounts is a big factor and can contribute to older people having higher scores. From MyFico:
FICO scores consider a wide range of information on your credit report. However, they do not consider:
Your race, color, religion, national origin, sex and marital status.
US law prohibits credit scoring from considering these facts, as well as any receipt of public assistance, or the exercise of any consumer right under the Consumer Credit Protection Act.
Your age.
Other types of scores may consider your age, but FICO scores don't.
Posted on 9/9/14 at 6:48 pm to LSUFanHouston
quote:
But I didn't think age of the individual had anything to do with it.
Age isn't the factor. Credit is the factor. But it would make sense that an 18 year old would have a different profile from a 28 year old from a 38 year old.
Someone with a discharged bankruptcy would have a different profile from someone who hasn't.
Etc..
Someone with a fully satisfied installment loan runs under a different scoring system from someone who has 15 fully satisfied installment loans.
It's the reason that a 19 year old can have a 790 score... and a 39 year old 18 months out of a discharged Ch7 bankruptcy can have a 750 credit score... and a 28 year old who has never been late in his life can have a 590 score because he is maxed out or overdrawn on multiple accounts.
(all of these scores on a credit bureau sold to mortage companies for qualification).
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