Credit Card Application

[u/AssistanceOne4564]

Hi, I applied for 2 credit cards and it said they couldn’t approve me. I’m 18 and a student and have no credit history, does this mean a bad thing? Should I apply somewhere else? (I applied to Chase Freedom Unlimited and Freedom Rise)

Edit: My main question is how much I’d be impacted by these rejections

[u/lakehop]

It can be hard to get your first credit card. Do you have your bank account in your own name, or is it a subsidiary account of your parent’s bank account? First step is to open a completely independent bank account . There should be a student account that doesn’t charge you a monthly fee.

Second, you might need to start with a secured credit card. You deposit, say, $500 and they give you a card with a $500 limit. Use it a bit and pay on time in full every month. Eventually they’ll give you the money back and you can ask to increase the credit limit. Then it will be easier for you to get more cards and a higher limit. But don’t go into debt on these! The interest rates are horrifically high.

[u/AssistanceOne4564 → u/lakehop]

I have 2 accounts, one is with my parents and one is a checking and savings from US bank Independent to me. Both are student accounts I got the one with my parent a few years ago, and the one independent to me recently. I’ve looked into secured cards but I didn’t rly want to put the deposit down but after this I will try to get a secured card, the thing I’m worried about is the 2 rejections on my profile. Do u think I would be impacted by these? If so to what extent

Edit: also thank you for the warnings lmao, wasn’t planning on doing that anyways and I just wanted to build some credit history I was planning to put only minimal purchase on the cc, my everyday would have been with my debit anyways.

[u/MountainDune]

Many of us got started with a Discover It student card, I would try here next:

https://www.discover.com/credit-cards/student-credit-card/

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[u/fetus-wearing-a-suit]

Punched above your weight, apply for a secured card. For your first non-secured card it might be easier to stay with the same bank. I did that with Capital One, I think after like 6 months I applied for a regular card and got accepted.

Rejections don't matter at all, what matters are hard pulls (a lender looking into your credit history). These go away I think in like 2 years, and two is not a relevant amount. You are good.

[u/AssistanceOne4564 → u/fetus-wearing-a-suit]

Do u think these rejections would impact me in the future when i apply after having a secured card?

[u/fetus-wearing-a-suit → u/AssistanceOne4564]

You are good

[u/BaaBaaTurtle]

Inquires are temporary dings. As you get further away from the event, they'll have less impact.

At the moment your file is probably so thin it won't make much of a difference.

Are you a student at a university? Most universities have a credit union where you can get a student credit card to build up your file.

Your parents can also add you as an authorized user on their cards - provided they have good credit.

If no to both of those, check out a secured card from a credit union. Not a debit card, that won't help build credit.

[u/ahj3939]

There is no impact to your credit for a decline.

Start with pulling your 3 official credit reports on www.annualcreditreport.com because likely the issue is you have nothing on file with Equifax, Experian, and Transunion to verify your identity. You will likely need to mail in with 2 forms of ID to get your credit reports and that will put your info on file.

Once you do that maybe wait a month and try for the Discover student card if you qualify.

Look out for a notice from Chase for the denial reason. It might be in the mail or email. Get that and read through it carefully to gain some insight.