Applying for Chase Freedom with no credit history but high income

[softwaredude]

I've been wanting to get a Chase Freedom, but I have no credit history at all (AFAIK -- CreditKarma said it couldn't find anything for me). The plus side is that I am about to start a job making ~$160k/yr gross income. How likely is it that they'll approve me?

More details:

- 24 years old

- I've been a student up until now, and never needed a credit card or any kind of credit before. I only recently realized that I've been missing out on cash back & bonuses, and also building a credit history.

- Since I was a student with not much income, I have virtually no money saved up (only less than $5k).

I called a Chase rep using the number on their website, but she avoided my questions and said I would need to apply to be considered. I'm worried about applying because of the hard pull, especially since they might reject me for having no credit history. I'm considering applying anyway, and then going through a reconsideration (based on this thread: http://ficoforums.myfico.com/t5/Credit-Cards/Chase-Freedom-card-reconsideration/td-p/2501207 which is somewhat similar to my situation), but I really have no experience with this so I don't know what to expect. One of the things I'm wondering, too, is if they will ask for proof of income of some kind? Because as of now, I've signed the job offer, but I haven't started work yet, so I don't have any kind of payroll record.

Any help/recommended courses of action would be much appreciated.

[shifter]

don't waste your time.

 

you will not be approved with no credit history.

 

you need to start building.

 

income is only a small factor.

[CTSoxFan]

Yes you will need to apply to be considered. One option is to start with a local credit union. You will be able to talk with someone face to face and likely get approved. Use the offer letter as your POI. Then after a few months of using that card responsibly (paying on time, not going over limit, etc.) you can go for other cards like the Freedom.

 

If you are hell bent on getting a Freedom, another option is to apply for it, and if you are declined, you can call the underwriter and ask for reconsideration. Just say you didn't have credit because you were a student and didn't need it, but now you are working and want to take advantage of the benefits of the Freedom card, etc. and want to establish a relationship with a great bank like Chase (lay on the charm and BS...) and have a card that can grow with you. They might not give you much to start, but use it responsibly and it will grow. After a few months get a couple of other cards that you find useful (for rewards, benefits, etc) and you are on your way. If you are a Chase banking customer, you may want to apply in the branch...they may be able to go to bat on your behalf.

Edited September 7, 2014 by CTSoxFan

[softwaredude]

Ok, I think I might try for the Freedom and ask for a reconsideration, and then if that fails I'll go to a credit union. Thanks for the advice.

[CTSoxFan]

I would also say if your company has a CU associated with it, that would be a good one to start with.

[mamiso]

You might also want to apply for a credit card that are marketed those still in school or recently graduated.

 

Many large banks offer these with relaxed approvals if the CRs are clean.

 

There's a reason why card companies target college students - Their potential for higher bracket earnings and spending.

 

If approved and given a low CL, you can recon and show your offer letter, or wait until your employment is verified and then ask for a CLI.

 

Best of luck and congrats on your job offer

[BDK]

Yes you will need to apply to be considered. One option is to start with a local credit union. You will be able to talk with someone face to face and likely get approved. Use the offer letter as your POI. Then after a few months of using that card responsibly (paying on time, not going over limit, etc.) you can go for other cards like the Freedom.

 

If you are hell bent on getting a Freedom, another option is to apply for it, and if you are declined, you can call the underwriter and ask for reconsideration. Just say you didn't have credit because you were a student and didn't need it, but now you are working and want to take advantage of the benefits of the Freedom card, etc. and want to establish a relationship with a great bank like Chase (lay on the charm and BS...) and have a card that can grow with you. They might not give you much to start, but use it responsibly and it will grow. After a few months get a couple of other cards that you find useful (for rewards, benefits, etc) and you are on your way. If you are a Chase banking customer, you may want to apply in the branch...they may be able to go to bat on your behalf.

+1

 

If you don't already have a Chase banking account, get one first!

[BDK]

Oh, and completely ignore CK and get your own hard copy credit reports directly from EQ, EX, TU via US Mail.

[BobWang]

Try signing up for Credit.com

[dvd]

I think being a recent college graduate with an high income will help and could offset having no credit. It would be a plus to open a Chase account and then apply. The branch bankers could push for a recomendation.

[hegemony]

apply in a branch with a banker after opening a chase checking account

[CTSoxFan]

apply in a branch with a banker after opening a chase checking account

 

+1

 

I have been using Chase as my main bank for about 2 years now (since they bought my mortgage) and I have to say I have had nothing but positive experiences with them. Plus even though I IIB them (11 yrs ago), they have given me almost $100K in CLs since then. Obviously you have to do what is best for you, but I have been happy on the banking side with them.

[TheScholar]

I'll hop in with those here saying to open an account with them and apply in-branch if anything -- and if not that, try starting with a CU. If you just apply with no credit history and then talk with an UW on the phone, all he/she has is your word about your income. From info in the credit pulls database and what I've read from others here, I would bet that if you get approved, Chase will start you very low -- like maybe with a $500 or $1,000 limit. On a rewards card, that's not really a very usable limit. If it were me, I'd rather start with a lower-end limit from a CU that is likely to get increased easily with 6 months of good history. Then, in 6 months, after showing a good payment history, I'd hit up the CU for a CLI. When that reports, I'd apply for the Chase card. If they see they are competing with something, they are more likely to give you a better CL that you can actually use to earn some rewards. Take my advice with a grain of salt, but that's my two cents. If I was averse to the CU thing, I'd follow what others said and go into a branch and sit with someone face-to-face.

[softwaredude]

Update:

 

I applied for the Freedom card, and it was denied. The letter they sent me stated that the reasons for the denial were "No general purpose credit card" and "One or more accounts with delinquent history". I was pretty shocked to hear this, since I thought I had no credit history, so I pulled my credit history right away using annualcreditreport.com (I know, I should have done this beforehand...). It turns out that my TransUnion report had a delinquent account on it from about 6 years ago, and the account wasn't mine.... I just found out about it now because I never checked my credit before. Anyways, I filed a dispute and it's since been removed from my report, so as of now my credit report is just a blank slate with no history other than a couple hard pulls.

 

Today I tried calling Chase's backdoor number for reconsiderations, and it didn't go well... I think the rep had me pinned as someone trying to take advantage of them, and it definitely didn't help that I was super nervous and my voice was shaking. I told her I've had the delinquent account removed, and I explained that I was a student and I just never needed credit before. She told me she could put in a reconsideration request, but that it would be another hard pull and she thinks it will be denied because of lack of history. I told her not to do that and ended the call.

 

At this point, I think I might just take the credit union approach, which I hate to do since it means I'll get no rewards for six months or however long it takes till I can get the Freedom, but I don't know if this is gonna work out. I could try the in-branch approach, but I didn't want to do that yet because I'm gonna be moving to another state for my new job.

 

Any other recommendations? I was really surprised by how poorly the reconsideration call went -- should I try calling back to get another rep? Or will they just say the same thing? I wish I was more of a smooth talker -- this kind of thing makes me so nervous.

[ubercat]

Chase pulls TU? What state are you in?

[softwaredude]

Chase pulls TU? What state are you in?

Pennsylvania right now. I'm gonna be moving to California soon.

[cashnocredit]

Don't mess around. You have high income now and secured credit cards were created for people exactly in your situation. Put as much money as you can into them to start off with high CLs. Choose secured cards that unsecure in a year or so. Then deal with the bogus CA. It's old enough not to screw up secured card apps but it will kill most unsecure apps without a history.

 

This is what I did and it worked out great.

[Krish]

Ask your family to add you on some of their seasoned cards. Once they add you, you will get good history and then you can apply cards on your own.

 

I wouldnt worry about secured cards.

[archimaybe]

Don't mess around. You have high income now and secured credit cards were created for people exactly in your situation. Put as much money as you can into them to start off with high CLs. Choose secured cards that unsecure in a year or so. Then deal with the bogus CA. It's old enough not to screw up secured card apps but it will kill most unsecure apps without a history.

 

This is what I did and it worked out great.

+1. With your income, you should be able to afford to temporarily lock down $6k to $10k on a secured card. You can then use that card as a pry bar to start off with higher limits with the banks after a few months.

 

If you were to take this strategy, I bet you'd end up with higher limits and better cards long-term than if you had actually been approved today for the Freedom.

Edited September 23, 2014 by archimaybe

[loops77]

Ask your family to add you on some of their seasoned cards. Once they add you, you will get good history and then you can apply cards on your own.

 

I wouldnt worry about secured cards.

 

This! Have family members add you onto their old cards. AMEX likes AU accounts, for some reason...even if you have no history of your own.

[nysbadmk8]

You can try Capital one and discover. They seem the most likely to give those with little to no history a shot.

 

You should open 3 secured cards ASAP to get a history moving.

 

Dont worry about Inquiries, they arent whats hurting you.

[dvd]

Update:

 

I applied for the Freedom card, and it was denied. The letter they sent me stated that the reasons for the denial were "No general purpose credit card" and "One or more accounts with delinquent history". I was pretty shocked to hear this, since I thought I had no credit history, so I pulled my credit history right away using annualcreditreport.com (I know, I should have done this beforehand...). It turns out that my TransUnion report had a delinquent account on it from about 6 years ago, and the account wasn't mine.... I just found out about it now because I never checked my credit before. Anyways, I filed a dispute and it's since been removed from my report, so as of now my credit report is just a blank slate with no history other than a couple hard pulls.

 

Today I tried calling Chase's backdoor number for reconsiderations, and it didn't go well... I think the rep had me pinned as someone trying to take advantage of them, and it definitely didn't help that I was super nervous and my voice was shaking. I told her I've had the delinquent account removed, and I explained that I was a student and I just never needed credit before. She told me she could put in a reconsideration request, but that it would be another hard pull and she thinks it will be denied because of lack of history. I told her not to do that and ended the call.

 

At this point, I think I might just take the credit union approach, which I hate to do since it means I'll get no rewards for six months or however long it takes till I can get the Freedom, but I don't know if this is gonna work out. I could try the in-branch approach, but I didn't want to do that yet because I'm gonna be moving to another state for my new job.

 

Any other recommendations? I was really surprised by how poorly the reconsideration call went -- should I try calling back to get another rep? Or will they just say the same thing? I wish I was more of a smooth talker -- this kind of thing makes me so nervous.

 

I would call recon again and explain your situation. I think you will have a good chance.

[Krish]

Call Chase again at Analyst number: Chase: 888-245-0625.

 

Ask them to look over your app and if need ask them to pull over a new TU report. Hopefully they will start you with a starting CL.

[softwaredude]

Alright, I think I'll try calling the Chase recon number again since there's not much to lose, and if it doesn't work I'll go with one of the other options.

 

 

Call Chase again at Analyst number: Chase: 888-245-0625.

 

Ask them to look over your app and if need ask them to pull over a new TU report. Hopefully they will start you with a starting CL.

 

That was the number I called earlier today. I thought it was weird though that the rep who answered said that she could put in a request for a reconsideration for me -- I thought that the recon people can approve you over the phone? Is there something I'm missing here? Or do I need to tell the rep to put in a request for a reconsideration, and then call back the next day or something? Or do they transfer you on the phone to a person with more power to approve the request? I'm not exactly sure how the recon system works.

 

I'd also appreciate any advice on what to say during the phone call. Should I just tell them right off the bat that I'm about to start a $160k/year job? It seemed like she had already decided once she pulled up my info that there's no way I can get this card.

Edited September 23, 2014 by softwaredude

[pbarnes]

Are you moving to SF?

 

If so you can join SF Fire CU and get a secured card. They don't pull for it and the card is a decent 1% CB no FTF card.

 

Also happens to be the best banking institution in the US.