If You Get Denied the Discovery Card Can You Apply Again

A educatee credit bill of fare can help y'all build credit in college. Getting ane can be tricky, nevertheless.

You may apply for your first student credit carte only to exist turned downwards.

The reality is:

You accept other options and alternatives.

Agreement the possible reasons for a credit rejection can assist you effigy out what to exercise adjacent to start building proficient credit history.

Reasons Why You lot Might Exist Denied a Student Credit Card

Credit menu issuers have dissimilar reasons why they might deny a student a credit menu.

If you've been rejected for a bill of fare, the beginning thing you should do is call the credit menu company and ask why. The carte issuer volition have the best answer for why y'all weren't able to become approved.

With that in mind, there are some general reasons why a educatee can exist denied credit.

one. Menu Act rules

The 2009 CARD Human activity enforced some new guidelines for credit card approvals.

Specifically, the Deed states that you lot can't get a credit bill of fare in your proper noun if you're under 21 unless yous tin show proof of income.

So, one reason yous might be denied a student credit card is being under 21 and not having enough income of your own that you could utilize to pay off whatever purchases you charge.

2. Limited or no credit history

Bated from your income and historic period, credit carte du jour companies likewise bank check your credit score when you apply for a student card.

While the minimum credit score required is unlike for every card issuer, having no credit at all can work confronting you lot.

Credit card companies want to see that you have some history of using credit responsibly. No credit history can mean no credit score and that tin pb to your student credit card awarding existence rejected.

3. Poor credit history

Poor or bad credit tin also keep you from getting canonical for a student credit bill of fare.

Say you accept a pocket-size motorcar loan in your proper name, for example, and you paid late once or twice. Those late payments tin do serious damage to your credit score.

Credit card companies might look at your score and tardily payment history and consider you too much of a risk for a student credit card.

4. Identity theft

Identity theft can cause damage to your credit without yous even realizing it.

Yous might have a parent who's financially irresponsible, for instance. They open up a credit card or a utility bill in your name without telling you lot.

Then they fall backside on the payments. The late payment history shows upwardly on your credit report, not theirs, since the account is in your name.

Meanwhile, you pay the toll. Your credit score takes a hit and you can't legitimately get credit in your name.

5. Too many inquiries for credit

Hither'southward a crash course in credit scores. There are v things that make upwardly your FICO credit score, which is the most widely used scoring organization.

Payment history and credit utilization are the virtually important. Credit utilization means how much of your bachelor credit you're using.

If you lot're trying to get your credit started with a educatee menu, those two may not affair much. Only credit inquiries could stand up in the way of getting a card.

Inquiries simply mean how often you use for new credit. If you lot've applied for v or 6 credit cards in a short catamenia of time, that can bulldoze downwardly your credit score.

Credit card companies might assume yous're desperate to borrow coin, or at the very least, yous don't know much about how credit scores work. And that could cause them to deny your credit card application.

What to Exercise When Your Student Credit Card Application Is Denied

The first thing yous should practise is call the credit card company. This tin can give y'all some insight into why you were denied.

Adjacent, enquire for a free copy of your credit report.

Legally, y'all're entitled to a gratis copy of your report from the credit bureau that furnished the information used in your credit blessing decision.

Your credit card company should mail y'all a alphabetic character stating why y'all were denied and which bureau's information was used.

Yous can then go online to that credit bureau'southward website to request your credit report for free.

Once you've gotten your credit report, review it carefully. Wait for errors on your credit report, including:

Misspellings of your proper name.
The incorrect Social Security number or nativity engagement.
Addresses that you've never lived at.
Accounts that don't vest to you.
Accounts that do belong to y'all but take an incorrect payment history or remainder.
Inquiries for credit you didn't proper noun.

If yous run across whatsoever errors or inaccuracies, yous can dispute them.

To practise that, yous'd write a letter to the credit agency that reported the information detailing the error. You tin can also initiate disputes online, which is faster and easier.

The credit bureau is required to investigate your dispute. If it determines there is an fault, they have to remove or correct it.

Should You Apply for a Student Credit Card Again?

There are pros and cons to doing this.

On the pro side, your next credit card application could be canonical. On the con side, y'all could still be denied and you're adding another research to your credit report.

The meliorate option:

Review your credit score and then call the credit card company to ask them to reconsider.

If you lot can show proof of income the second time effectually or you've cleaned up credit errors, the credit menu visitor may make up one's mind to approve y'all for a student card.

What if you make up one's mind not to reapply?

The adept news is, you're not completely close out of building credit as a student.

How to Build Credit In Higher

1. Open up a secured credit carte du jour

Secured credit cards are different from student or traditional credit cards.

With this kind of card, you typically accept to give the card issuer a greenbacks deposit. This eolith doubles every bit your credit limit.

Pros of secured credit cards:

May be easier to get approved if you express or poor credit history.
Some secured cards earn rewards on purchases.
Tin can help you build credit history.

Cons of secured credit cards:

Yous might have a low credit limit to beginning.
Some charge annual fees.
Your APR may be higher compared to a educatee or traditional bill of fare.

If yous're because a secured credit carte du jour, check the minimum deposit requirements start. So look at the Apr and fees.

Rewards are a bonus but if you're interested in earning points or greenbacks dorsum, run into if that's a possibility.

2. Become an authorized user

Becoming an authorized user can help you get access to credit without opening a credit card in your name.

This ways someone adds you to their credit card. You can brand purchases, earn rewards and build credit, only y'all're not legally responsible for the bill of fare balance.

Pros of becoming an authorized user:

It's an easy way to build credit.
You don't have to actually utilize the card to build credit history.
You won't get an enquiry on your credit.

Cons of becoming an authorized user:

You're not building credit in your own name.
The primary cardholder doesn't accept to let you use the card.
If you don't pay back what you charge, that could sour your relationship with the primary cardholder.

It may be a expert choice if yous've been denied a pupil credit card. The key is finding the right person to add you as an authorized user.

Usually, this ways a parent or another family member. Just exist certain the person who'south adding you has skillful credit themselves, since their credit habits will exist reflected in your credit score.

3. Ask someone to cosign for you

You could also ask someone to cosign for a credit bill of fare or loan with yous.

Cosigning is different from being an authorized user since you lot're legally responsible for the account balance.

Pros of getting a cosigner:

It may be easier to become approved for a credit card or loan.
You lot can build credit in your proper name.
You may get a ameliorate involvement rate if your cosigner has good credit.

Cons of getting a cosigner:

Defaulting on the debt could hurt your credit and your cosigner'south.
Typically, the merely style to remove a cosigner is to close the account.
Your cosigner may desire to encounter account statements or go on tabs on y'all to make sure you're repaying the balance.

If you're asking someone to cosign for a joint credit bill of fare or loan, make sure you lay downwards some ground rules commencement.

It may even be a good idea to write up an understanding that spells out who's responsible for making payments.

Make Sure Y'all're Using Credit Cards Responsibly

Whether y'all become a secured credit menu, student bill of fare or you're an authorized user be sure to practice good credit habits.

Pay your bill on time each month

Schedule automatic payments or set electronic mail and text alerts and then you stay on top of due dates.

Keep your balances low or pay in full, if possible

Paying in full tin can aid your credit utilization and save you money on interest charges.

Don't close accounts unnecessarily

Go on older credit carte accounts open up and avoid endmost accounts if you however owe a balance.

Endeavor to utilize different types of credit when possible but don't apply for new credit unless you really need it.

Together, those habits can help you build a solid credit foundation through college and beyond.

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Source: https://www.mybanktracker.com/credit-cards/faq/rejected-student-credit-card-301704