How To Get A Credit Card When You’ve Never Had One

By Susan Tompor
Detroit Free Press

WWR Article Summary (tl;dr) John Ulzheimer, a credit expert who has worked for credit-scoring company FICO says it’s not uncommon for a lender to override an otherwise satisfactory credit score because of a limited credit history.

Detroit Free Press

The Uber Visa, launched last fall, targets on-the-go millennials with amazing rewards, such as 4 percent for eating out and 3 percent on airfare.

But the odd thing, as with many high-reward credit cards, is that getting approved for one of these Barclays Uber cards isn’t a slam dunk for some Generation Y consumers.

Many millennials might have college degrees and new jobs, but they’re held back from some of the more lucrative rewards cards in some cases because they were too cautious about handling credit in college. Yes, really.

One young teacher recently shared her credit card rejection letter with me. The reasons were listed:

–– Too few accounts with sufficient satisfactory performance.
–– Insufficient number of credit cards with your credit report.
–– Insufficient credit history on your credit report.
–– Low credit limits on installment trade(s) on your credit report.

The strange part? She had a 719 credit score, according to the rejection letter. Typically, 719 is a good score; an excellent score tends to be around 750 to 850.

Did someone make a mistake? How do you reject someone with a 719 credit score? Did we mention she has a job? And she’s not drowning in credit card debt? She remembers being late once with a utility bill.

“In my opinion, no credit is better than bad credit,” said Clare Naughton, 24, the teacher who lives in Greenville, Mich., and purposefully never applied for a credit card while in college.

“I’ve heard horror stories of getting a credit card too young,” she said. “I just didn’t want to have one until I was financially stable.”

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