What do I have to do?

[YoungCPA]

I just applied for my first credit card (Marriott Rewards through Chase) and I was declined. I'm a Certified Public Accountant who graduated college last May. I make almost 60K a year working for a public accounting firm. I have absolutely no debt, no loans and no bankruptcy history. I live at home with my parents and pay no rent and no bills. I'm practicly swimming in money for the first time in my life right now saving up for a downpayment for a Condo yet I can't qualify for a basic Credit Card???!!!!

The letter I recieved from Chase says I have too few "revolving accounts" and not enough credit history. I've had an electric bill in my name from my college apartment but that was it. I'm very responsible with money, I lived by the philosphy that if you can't pay for something in cash you can't afford it. Obviously I should of opened an account earlier but still, how am I a credit risk?

Here is my question, what can I do now to get Chase to give me this card. I do a lot of business travel and will get a lot of free hotel rooms with this card not too mention the obvious of building a credit history. Is it worth my time calling Chase to talk to someone because to be honest I might be the the smallest credit risk they have seen this month! Should I move my personal banking account to Chase? I figure if I have 10K in a Checking/Savings account with them they would be more willing to lend to me. Any advice would be greatly appreciated... Thanks!!!

[hannah]

If your parents have good credit and have some good old credit card accounts, it would help if they would agree to put you on as an authorized user giving you some much needed credit history. You need to start building credit and that is one good way.

Do you need a car? While credit is tight right now, you might have some luck establishing credit by buying a car. If you can't finance on your own, ask a parent to co-sign. Don't go overboard however, buy something new that is under $20K.

[jlynn]

The credit markets are tight, and while you may be swimming in money, there is simply no history to determine how you use your money. That is why you were declined. Don't take it personally

I'm not sure what the requirements are for the card you applied for, but you may have to set your sites lower to start with.

[Hedwig]

I agree. Just because you've always had money and paid cash for everything doesn't prove that you can handle debt.

As hannah pointed out, getting added as an authorized user on someone's account (make sure it has a good record and a low utilization rate) is a quick way to do it. They don't even have to give you the card, so there would be no danger of you running up their account. But having the history on your file makes you a better credit risk in the eyes of the creditor.

[VexatiousLitigant]

Get some store cards IE Target, Sam's Club, Macy's. After a year of not running up balances and paying on time, you will (would) qualify for most prime cards.

Your credit report is your debt management resume. Yours is currently blank. Your income only determines how much risk the bank will take with you once you prove you are a good debtor.

[Pokey]

Quote:

Originally Posted by YoungCPA I just applied for my first credit card (Marriott Rewards through Chase) and I was declined. I'm a Certified Public Accountant who graduated college last May. I make almost 60K a year working for a public accounting firm. I have absolutely no debt, no loans and no bankruptcy history. I live at home with my parents and pay no rent and no bills. I'm practicly swimming in money for the first time in my life right now saving up for a downpayment for a Condo yet I can't qualify for a basic Credit Card???!!!! The letter I recieved from Chase says I have too few "revolving accounts" and not enough credit history. I've had an electric bill in my name from my college apartment but that was it. I'm very responsible with money, I lived by the philosphy that if you can't pay for something in cash you can't afford it. Obviously I should of opened an account earlier but still, how am I a credit risk? Here is my question, what can I do now to get Chase to give me this card. I do a lot of business travel and will get a lot of free hotel rooms with this card not too mention the obvious of building a credit history. Is it worth my time calling Chase to talk to someone because to be honest I might be the the smallest credit risk they have seen this month! Should I move my personal banking account to Chase? I figure if I have 10K in a Checking/Savings account with them they would be more willing to lend to me. Any advice would be greatly appreciated... Thanks!!!

Why don't you just use a debit card or cash? You're young with a a good job so stay out of credit card debt!

[Hedwig]

Using debit cards for everything is dangerous. For example, rent a car or a hotel room, and they'll put a hold on your account for as much as twice the amount they project your bill will be. Sometimes the hold isn't released for a week or more after the transaction is complete. And sometimes the hold remains and they put the charge through. Unless you have a lot of money sitting in your account, the result will be bounced checks (or charges), resulting in overdraft fees, not to mention the possible damage to your credit.

Besides, a good rewards card, used and paid off every month, gives you some sort of benefit, such as hotel points, airline miles, or rebates. If you pay it off every month, it won't cost you anything and you get benefits to boot.

Also, properly managed, using OPM (Other People's Money) will help you build wealth in the long run. Keep your money in an interest-bearing account for that month or more until payment is due, and earn some interest in addition to your other rewards.

[centex]

Quote:

Originally Posted by dafeeder Why don't you just use a debit card or cash? You're young with a a good job so stay out of credit card debt!

God I hate the kool-aid drinkers...they refuse to understand or comprehend that available credit is NOT debt.

While debit cards and cash have their respective places, they also come at a tremendous cost when relied upon in their entirety. Dr neglects to tell his sheeple that there are many rewards that can be had through the responsible use of credit and that it is quite possible to use credit and still have no debt...

[Pokey]

Quote:

Originally Posted by centex God I hate the kool-aid drinkers...they refuse to understand or comprehend that available credit is NOT debt. While debit cards and cash have their respective places, they also come at a tremendous cost when relied upon in their entirety. Dr neglects to tell his sheeple that there are many rewards that can be had through the responsible use of credit and that it is quite possible to use credit and still have no debt...

What would those tremendous cost be? Who needs a good credit score if you have plenty of cash? Cash is king and if it's not then why is Citibank going under? The Fed(you and I) loaned them $70 Billion 5 months ago and their worth MAYB 30 billion now(probably less). Yep credit is the way to go, that's how the smart educated banksters got us in to this mess.

[jlynn]

Quote:

Originally Posted by dafeeder What would those tremendous cost be? Who needs a good credit score if you have plenty of cash?

Are you serious?

[Pokey]

Quote:

Originally Posted by jlynn Are you serious?

Are you? Cash is King!

[centex]

I like my rewards. Be they points, cashback or miles, I like them. I also like being able to use the bank's money for 20-50 days (depending on where in the billing cycle I might be).

Just looking at trips and hotel stays, my use of credit is worth several thousand dollars per year, to say nothing of the upgrades that I get as a benefit of simply HOLDING some other cards.

I've done the all cash thing before...while it works for some people, there are far too many benefits left on the table.

The last thing we need is the kool-aid drinkers to come on a credit board and tell us that all-cash is the way to go...AVAILABLE CREDIT IS NOT DEBT!!!

[Hedwig]

It certainly isn't. And you won't build wealth by paying cash for everything. Do you think the Kennedy, the Rockefellers, Getty, and so many more made their money by paying cash? No, they made their money by using OTHER PEOPLE'S MONEY.

Let's look at this. I have a credit card that gives me 5% back. I use it for EVERYTHING (even a cup of coffee at McDonalds). Now, not only am I getting back 5% of everything I spend, I'm keeping my money in the bank for, as Centex said, 20-50 days. So I'm getting interest there. Let the interest and the 5% keep compounding, and it doesn't take long to start accumulating some serious money. It's call compound interest, described as Albert Einstein as the most powerful force in the universe.

So, pay cash for everything and some day you'll be like my neighbor when I was growing up. He always paid cash for everything, including his house. When he had three kids in college or close to college and needed a new car, he decided to finance it. Imagine his amazement when he couldn't get a loan. Now, he thought that because he paid cash for everything he was a good risk. Not so--he never proved he had the discipline to pay it back over time.

[Pokey]

Quote:

Originally Posted by Hedwig It certainly isn't. And you won't build wealth by paying cash for everything. Do you think the Kennedy, the Rockefellers, Getty, and so many more made their money by paying cash? No, they made their money by using OTHER PEOPLE'S MONEY. Let's look at this. I have a credit card that gives me 5% back. I use it for EVERYTHING (even a cup of coffee at McDonalds). Now, not only am I getting back 5% of everything I spend, I'm keeping my money in the bank for, as Centex said, 20-50 days. So I'm getting interest there. Let the interest and the 5% keep compounding, and it doesn't take long to start accumulating some serious money. It's call compound interest, described as Albert Einstein as the most powerful force in the universe. So, pay cash for everything and some day you'll be like my neighbor when I was growing up. He always paid cash for everything, including his house. When he had three kids in college or close to college and needed a new car, he decided to finance it. Imagine his amazement when he couldn't get a loan. Now, he thought that because he paid cash for everything he was a good risk. Not so--he never proved he had the discipline to pay it back over time.

Joe Kennedy was a booze bootlegger in the 20s and early 30s, Getty Oil, and Standard Oil.

Do some research on those 3 names and see if they used credit card points to get rich, LOL. Also your neighbor didn't need a new car if he couldn't afford to pay cash for it. Wake up America!

[Hedwig]

As Centex has been saying, debt and credit are not the same thing. Responsible use of credit does not increase your debt, and can increase your wealth. Buy what you can afford, and pay for it when the bill comes.

And yes, he did need the car. Three kids, him and his wife all working with three cars was a little tricky.

And I didn't say they got rich using credit cards, which didn't exist back then. I said they got rich using OTHER PEOPLE'S MONEY, which is what responsible use of credit is doing.

[centex]

Quote:

Originally Posted by dafeeder Also your neighbor didn't need a new car if he couldn't afford to pay cash for it. Wake up America!

If I can get a note at 0%, then please explain to me why I should pay cash and lose the investment potential of those funds instead of using the banks money and paying the car out across 24-36 months?

No rush, I have plenty of things to keep me busy while I await your trip back to the fountain of kool-aid to figure out an answer to that one...

[Hedwig]

Well, Centex, similar, but this will probably give him apoplexy. Not all debt is BAD debt.

Years ago, I got an offer of a fee-free balance transfer at .99% for life of the transfer. Yes, you read that correctly. Less than 1% until it's paid off. I maxed the card with the BT (I didn't care about the hit to my score) and set it up on autopay so that a payment will never be missed or late. I put the card away so no other charges would go on it (they would be at a higher rate with the lower rate being paid first, so no other charges can go on the account as far as I'm concerned).

I took that money and put it in CDs at multiples of the interest rate.

I make minimum payments on that card. Why should I ever pay off money at less than 1% when I can make much more than that on it? I'd be losing money to pay more than the minimums on that account, much as you would lose money if you took it from an interest-bearing account to buy a car when you could use someone else's money and keep more of your own.

And if you could get the 0% for 60 months, take it and pay even less a month, letting even more money compound for you.

[centex]

Good thing I wasn't holding my breath...smurf blue just isn't my color :

[Pokey]

Quote:

Originally Posted by centex If I can get a note at 0%, then please explain to me why I should pay cash and lose the investment potential of those funds instead of using the banks money and paying the car out across 24-36 months? No rush, I have plenty of things to keep me busy while I await your trip back to the fountain of kool-aid to figure out an answer to that one...

Guys/Gals I know what you're getting at and that is fine. Credit cards used right are okay but some people start out using them right and then find themseleves covered up in debt. I really didn't mean to high jack the thread and I appeciate all the information that everybody has posted in this forum.

Thanks

[Enigma]

Debit cards offer ABSOLUTLY NO PROTECTION if the account is compromised. I don't care what your bank, Visa or MC say about protection.

If you want to fly, it is damn near impossible to buy a ticket without a credit card. Most car rentals companies will not rent on cash alone, some will do debit cards.

[Pokey]

Quote:

Originally Posted by Enigma Debit cards offer ABSOLUTLY NO PROTECTION if the account is compromised. I don't care what your bank, Visa or MC say about protection. If you want to fly, it is damn near impossible to buy a ticket without a credit card. Most car rentals companies will not rent on cash alone, some will do debit cards.

Why can't you use a debit card like a credit card and can't you keep say $500-$1,000 in a different checking account that has a debit card for it to limit your risk? Do you know many people that have lost a lot of money because their account was compromised using a debit card?

[Qtip]

Quote:

Originally Posted by dafeeder Why can't you use a debit card like a credit card and can't you keep say $500-$1,000 in a different checking account that has a debit card for it to limit your risk? Do you know many people that have lost a lot of money because their account was compromised using a debit card?

I seen a guy that lost his whole savings, he had the accounts tied together, so when the checking was drained, the bank over drafted his savings until there was no more money for the crooks to get.

That is why I never tie my checking with my savings...

Here are is some related information;

http://www.rd.com/content/printConte...ontentId=50626

http://www.abcarticledirectory.com/A...isguise/142448

http://today.msnbc.msn.com/id/23129824/#storyContinued

http://abclocal.go.com/kabc/story?se...ide&id=6661673

[centex]

Quote:

Originally Posted by dafeeder Why can't you use a debit card like a credit card and can't you keep say $500-$1,000 in a different checking account that has a debit card for it to limit your risk? Do you know many people that have lost a lot of money because their account was compromised using a debit card?

Spending limits and the lack of rewards for debit cards render them largely an unusable option for some...I'm one of them.

And we won't even get into the unreasonable holds that come into play with debit cards for certain transactions...

Face it...credit has a very real place in today's society and DR does a tremendous disservice to the kool-aid drinkers who seem to hang on his every word.

[Enigma]

Quote:

Originally Posted by dafeeder Why can't you use a debit card like a credit card and can't you keep say $500-$1,000 in a different checking account that has a debit card for it to limit your risk? Do you know many people that have lost a lot of money because their account was compromised using a debit card?

Yes I do, me; and I know numerous others.

[Hedwig]

Me, too, but it's been a while.