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Student denied for Student Card - No reports found


KimShea
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So my oldest daughter just turned 18 and we wanted to try to help her begin building credit. She works two small jobs and is a senior in HS. She will likely work more this summer and next year at college.

 

I helped her go to Cap 1 and apply for their student card, as she currently has a checking and savings account through them. She was denied. She got an email that states she was denied because no credit bureaus have information on her. She doesn't exist!

 

I'm wondering the best course of action here. I could add her to my Cap 1 account as an AU, but I seem to be reading that's no good. I'm not sure what else to do. She will be obtaining student loans - do we need to just hold off until those report for her later this year?

 

Our idea was I'd hold the card for her, as she's scared to death of credit card debt (my ranting over the years about how they're evil has apparently sunk in). But we figured we'd run one small charge through monthly and set up auto pay for it on her checking account. Is this a good approach? Suggestions for something different are welcome. I don't want her all screwed up like I've been.

 

FWIW she also tried to pull her own TU through the Cap 1 CreditWise section on her Cap 1 app, and it wouldn't pull - assuming because there isn't one.

 

Thanks!

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You need to add her as an AU to whatever Visa or MC products you have that are the oldest and that you don't keep balances on.

 

When the credit card mail starts pouring in for her, you will know she has a score generating.

 

Another option is to get her a secured card with BofA or something with a $500 deposit.

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Did the application get made online or in a B&M bank location? If online, then it may be worth going in and talking to an officer at the branch where you do the banking.

 

Other options, as noted, are to go the secured route. Also look at store cards since retail is generally easier to procure with anorexic and non-existent files...

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So my oldest daughter just turned 18 and we wanted to try to help her begin building credit. She works two small jobs and is a senior in HS. She will likely work more this summer and next year at college.

 

I helped her go to Cap 1 and apply for their student card, as she currently has a checking and savings account through them. She was denied. She got an email that states she was denied because no credit bureaus have information on her. She doesn't exist!

 

I'm wondering the best course of action here. I could add her to my Cap 1 account as an AU, but I seem to be reading that's no good. I'm not sure what else to do. She will be obtaining student loans - do we need to just hold off until those report for her later this year?

 

Our idea was I'd hold the card for her, as she's scared to death of credit card debt (my ranting over the years about how they're evil has apparently sunk in). But we figured we'd run one small charge through monthly and set up auto pay for it on her checking account. Is this a good approach? Suggestions for something different are welcome. I don't want her all screwed up like I've been.

 

FWIW she also tried to pull her own TU through the Cap 1 CreditWise section on her Cap 1 app, and it wouldn't pull - assuming because there isn't one.

 

Thanks!

As to the bolded, it seems an excellent place to start particularly if you don't keep a balance on it. That may accomplish its purpose quite well, since it seems she does indeed have no file. Then you don't need to wait for deposits unsecuring.

 

You need to add her as an AU to whatever Visa or MC products you have that are the oldest and that you don't keep balances on.

 

When the credit card mail starts pouring in for her, you will know she has a score generating.

 

Another option is to get her a secured card with BofA or something with a $500 deposit.

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Did the application get made online or in a B&M bank location? If online, then it may be worth going in and talking to an officer at the branch where you do the banking.

 

Other options, as noted, are to go the secured route. Also look at store cards since retail is generally easier to procure with anorexic and non-existent files...

We did the application online. I wondered if it would be worth it to call them and discuss, but I went ahead and added her as an AU on my own Cap 1 card, and will wait a bit and have her re-apply in a couple months. If she gets her own card later would it make any sense to remove her as an AU, or just let it ride?

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Did the application get made online or in a B&M bank location? If online, then it may be worth going in and talking to an officer at the branch where you do the banking.

 

Other options, as noted, are to go the secured route. Also look at store cards since retail is generally easier to procure with anorexic and non-existent files...

We did the application online. I wondered if it would be worth it to call them and discuss, but I went ahead and added her as an AU on my own Cap 1 card, and will wait a bit and have her re-apply in a couple months. If she gets her own card later would it make any sense to remove her as an AU, or just let it ride?

 

Unless she shows a tendency to abuse it, no sense in removing her as an AU. Keep it as an emergency. And, depending on how large the line is, it can also be a way to funnel funds to a child beyond the typical limits recognized by the government. Instead of a purchase going on her card, she just puts it on the AU card and the parent pays it off. Same net effect as parent giving funds to child but without the banking papertrail if the IRS took a cursory sniff...

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Did the application get made online or in a B&M bank location? If online, then it may be worth going in and talking to an officer at the branch where you do the banking.

 

Other options, as noted, are to go the secured route. Also look at store cards since retail is generally easier to procure with anorexic and non-existent files...

We did the application online. I wondered if it would be worth it to call them and discuss, but I went ahead and added her as an AU on my own Cap 1 card, and will wait a bit and have her re-apply in a couple months. If she gets her own card later would it make any sense to remove her as an AU, or just let it ride?

 

Kim -

 

A couple of quick points. First, once this CrapOne AU begins to report, it will take a minimum of six months to even generate a FICO Score, so don't have your daughter apply for anything until she has FICO scores generating for all three CRA's!

 

Second, in regards to AU accounts, you don't even have to give your daughter the card and I would not recommend you remove her as an AU unless there are issues, let the account continue to age and report to her reports. Don't forget that whatever balances report for you on this card will also appear on her reports. And on a final note, you should add your daughter to a couple of more cards to maximize her FICO, a store card and another major CC would be sufficient. Try to utilize cards with the most age and minimal balances. Good Luck!

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Did the application get made online or in a B&M bank location? If online, then it may be worth going in and talking to an officer at the branch where you do the banking.

 

Other options, as noted, are to go the secured route. Also look at store cards since retail is generally easier to procure with anorexic and non-existent files...

We did the application online. I wondered if it would be worth it to call them and discuss, but I went ahead and added her as an AU on my own Cap 1 card, and will wait a bit and have her re-apply in a couple months. If she gets her own card later would it make any sense to remove her as an AU, or just let it ride?

 

Kim -

 

A couple of quick points. First, once this CrapOne AU begins to report, it will take a minimum of six months to even generate a FICO Score, so don't have your daughter apply for anything until she has FICO scores generating for all three CRA's!

 

Second, in regards to AU accounts, you don't even have to give your daughter the card and I would not recommend you remove her as an AU unless there are issues, let the account continue to age and report to her reports. Don't forget that whatever balances report for you on this card will also appear on her reports. And on a final note, you should add your daughter to a couple of more cards to maximize her FICO, a store card and another major CC would be sufficient. Try to utilize cards with the most age and minimal balances. Good Luck!

 

Rogue, you're confusing AU accounts with brand new accounts. AU accounts will report ALL credit history once it reports. Brand new accounts take 6 months to generate a score.

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Have her apply for her FAFSA as soon as she can. The Stafford student loans will hit her file just before they are distributed through the university and that will generate her scoring.

She did this the day the FAFSA opened. This kid is really Type A. LOL! But we're too early for the loans to actually hit yet, and I was wondering how this would affect (effect??) her credit. I'll have her try to get the Credit Wise results in a month or so through Cap 1 and see if she's got anything on her report yet. When she tried to use it the other day it said it didn't recognize her. After the denial letter showing no credit reports I assume this is the reason.

Edited by KimShea
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Did the application get made online or in a B&M bank location? If online, then it may be worth going in and talking to an officer at the branch where you do the banking.

 

Other options, as noted, are to go the secured route. Also look at store cards since retail is generally easier to procure with anorexic and non-existent files...

We did the application online. I wondered if it would be worth it to call them and discuss, but I went ahead and added her as an AU on my own Cap 1 card, and will wait a bit and have her re-apply in a couple months. If she gets her own card later would it make any sense to remove her as an AU, or just let it ride?

 

Kim -

 

A couple of quick points. First, once this CrapOne AU begins to report, it will take a minimum of six months to even generate a FICO Score, so don't have your daughter apply for anything until she has FICO scores generating for all three CRA's!

 

Second, in regards to AU accounts, you don't even have to give your daughter the card and I would not recommend you remove her as an AU unless there are issues, let the account continue to age and report to her reports. Don't forget that whatever balances report for you on this card will also appear on her reports. And on a final note, you should add your daughter to a couple of more cards to maximize her FICO, a store card and another major CC would be sufficient. Try to utilize cards with the most age and minimal balances. Good Luck!

 

Rogue, you're confusing AU accounts with brand new accounts. AU accounts will report ALL credit history once it reports. Brand new accounts take 6 months to generate a score.

 

Kat -

 

Not all AU accounts will begin to report ALL the account history, however there will still be the benefit of age based upon the open date. In regards to generating a FICO Score, and this now be dated, but FICO did require six months of actual reporting of an account to a credit file in order to generate a score, irrespective of the account open date. Again this may have changed and it would be great if the OP could provide us with a DP here!

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Did the application get made online or in a B&M bank location? If online, then it may be worth going in and talking to an officer at the branch where you do the banking.

 

Other options, as noted, are to go the secured route. Also look at store cards since retail is generally easier to procure with anorexic and non-existent files...

We did the application online. I wondered if it would be worth it to call them and discuss, but I went ahead and added her as an AU on my own Cap 1 card, and will wait a bit and have her re-apply in a couple months. If she gets her own card later would it make any sense to remove her as an AU, or just let it ride?

 

Kim -

 

A couple of quick points. First, once this CrapOne AU begins to report, it will take a minimum of six months to even generate a FICO Score, so don't have your daughter apply for anything until she has FICO scores generating for all three CRA's!

 

Second, in regards to AU accounts, you don't even have to give your daughter the card and I would not recommend you remove her as an AU unless there are issues, let the account continue to age and report to her reports. Don't forget that whatever balances report for you on this card will also appear on her reports. And on a final note, you should add your daughter to a couple of more cards to maximize her FICO, a store card and another major CC would be sufficient. Try to utilize cards with the most age and minimal balances. Good Luck!

 

Rogue, you're confusing AU accounts with brand new accounts. AU accounts will report ALL credit history once it reports. Brand new accounts take 6 months to generate a score.

 

Kat -

 

Not all AU accounts will begin to report ALL the account history, however there will still be the benefit of age based upon the open date. In regards to generating a FICO Score, and this now be dated, but FICO did require six months of actual reporting of an account to a credit file in order to generate a score, irrespective of the account open date. Again this may have changed and it would be great if the OP could provide us with a DP here!

 

I'll be sure to update. So far nothing's happened other than AU card is in the mail.

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I added my daughter to two of my cards (a Cap1 and Walmart card) as an AU as soon as she turned 18 this past June..she’s a freshman in college...an application came for a Discover IT student card a couple of weeks ago and she was approved for $500..I signed up for CreditCheckTotal for her to check her scores and they are all over 760 now!!

 

 

Sent from my iPhone using Tapatalk

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^^^To add... Amex AU is the exception.

 

TIA for updating us, Kim.

 

ETA - I'm assuming your Cap One card is at least 6 months old?

 

Yeah, about 3 years. Not super old, but in good standing.

 

Please tell me the Cap One card you added your DD to, is not the one with a 30-day late?

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^^^To add... Amex AU is the exception.

 

TIA for updating us, Kim.

 

ETA - I'm assuming your Cap One card is at least 6 months old?

 

Yeah, about 3 years. Not super old, but in good standing.

 

Please tell me the Cap One card you added your DD to, is not the one with a 30-day late?

 

Yeah....I wrote that in the other thread, hopefully NOT!

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^^^To add... Amex AU is the exception.

 

TIA for updating us, Kim.

 

ETA - I'm assuming your Cap One card is at least 6 months old?

Yeah, about 3 years. Not super old, but in good standing.

 

So no lates on this card?

 

No this is the same card. One late two years ago. Honestly didn't think it would be an issue since it's current and in good standing, but I guess maybe not. On it's way now, so not sure I can do anything about it?

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No this is the same card. One late two years ago. Honestly didn't think it would be an issue since it's current and in good standing, but I guess maybe not. On it's way now, so not sure I can do anything about it?

 

 

 

 

Uh Oh,,,

 

This will not help your daughter, (but kudos for trying). I don't know if you can stop this, (but you should try).

 

My suggestion is to call Cap 1 ASAP!!!

 

Ask them to Terminate the AU relationship, (since once this reports to the CRA's the delinquency won't impact her FICO score). You should also ask if they can avoid even reporting the AU relationship at all, (I've no idea whether they even can or will do this).

 

To Help your daughter generate a FICO score the AU route is a great way to go, (but the account should be clean). Obviously Rogue & Kat58 have been following another thread of yours, I've not been doing this.

 

Do you have any other "Clean" CC you could add your daughter too as an AU? The ideal would be oldest with NO negative history reporting, (the credit limit means nothing as long as utilization is <5%)?

 

I did this for my own daughter well before her 18th birthday with 5 old cards, (with only 1 reporting a small balance), 1 day after her 18th she was a prime borrower according to FICO without ever having a single credit account she was legally responsible for.

 

Good luck KimShea. :wave:

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No this is the same card. One late two years ago. Honestly didn't think it would be an issue since it's current and in good standing, but I guess maybe not. On it's way now, so not sure I can do anything about it?

 

Uh Oh,,,

 

This will not help your daughter, (but kudos for trying). I don't know if you can stop this, (but you should try).

 

My suggestion is to call Cap 1 ASAP!!!

 

Ask them to Terminate the AU relationship, (since once this reports to the CRA's the delinquency won't impact her FICO score). You should also ask if they can avoid even reporting the AU relationship at all, (I've no idea whether they even can or will do this).

 

To Help your daughter generate a FICO score the AU route is a great way to go, (but the account should be clean). Obviously Rogue & Kat58 have been following another thread of yours, I've not been doing this.

 

Do you have any other "Clean" CC you could add your daughter too as an AU? The ideal would be oldest with NO negative history reporting, (the credit limit means nothing as long as utilization is <5%)?

 

I did this for my own daughter well before her 18th birthday with 5 old cards, (with only 1 reporting a small balance), 1 day after her 18th she was a prime borrower according to FICO without ever having a single credit account she was legally responsible for.

 

Good luck KimShea. :wave:

This^^^

 

After you have removed your DD as an AU, then dispute online (if/when it shows up) as not being an AU on the account. You need to take care of this ASAP.

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Most AU accounts I have seen on reports only reflect the reporting from the date of addition to the report...I have had a couple of people I added to accounts with more than a decade of age but they only have the month-by-month stuff from the date of addition. Granted, there were no lates on them, but reporting is reporting...

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I helped her go to Cap 1 and apply for their student card, as she currently has a checking and savings account through them. She was denied. She got an email that states she was denied because no credit bureaus have information on her. She doesn't exist!

 

 

 

She does now. The act of applying and the bank attempting to pull a credit file(s) will actually create the file(s) on the bureaus that were accessed. That date will become her on-file date.

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