Question: Hello fellow consumers. . . .
I have a credit question – I know there is a FAQ, but I wanted some opinions too. My workmate here has a problem. He’s 24, and works with me here at HP – he makes in excess of $35K. He has worked here for 2 years. He has requested his credit report, there is not a single bad mark on it! He has an American Express Corporate card through work, yet NOONE will give him a credit (charge?) card.
He has applied for Discover, one VISA, and one Master Card over the last two years. I know that a reason for rejection is excessive requests for credit, yet this hardly seems the case here. His most recent rejection from Discover said rejection based on the reason of “insufficient credit record” Hmmmmmm. . . .
What else can he do to fortify himself to get a credit card? It would make traveling for him MUCH more convienient! Any ideas?
Answer: That’s kind of the way that I built my credit history in order to get the BIGGER cards – i.e. VISA, DISCOVER, MC, AMERICAN EXPRESS – but I didn’t spend a penny. I got a couple of gas cards and a few dept store cards and I tucked them away and NEVER used them. After 9 months to a year or so I started to receive pre-approved card apps in the mail because of my EXCELLENT CREDIT RATING. I got that because I never missed a payment, never went over my limit, was never late on a payment and my balances were low. The first three things are the ones credit reports show and companies look at. Patience is the key to this method but so is early planning. This fellow never spent on his credit cards, and yet got an excellent rating.
It is true though that he “never missed a payment” because he never needed to make one; he “never went over my limit” because any limit is high than 0; he was “never late” on a payment because there was never one due. If credit rating is based on those three things, his rating is indeed excellent.
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