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.
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
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.
young teacher recently shared her credit card rejection
letter with me. The reasons were listed:
Too few accounts with sufficient satisfactory
Insufficient number of credit cards with your credit
Insufficient credit history on your credit report.
Low credit limits on installment trade(s) on your credit
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.
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.
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.
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."
in her generation would rather use debit cards to
believe that a lot of people think using a debit card
does create a credit history. It does not," said
Barrett Burns, president and CEO of VantageScore
Solutions, consumer credit-scoring model, created
through a joint venture of the three major credit
burueaus, Equifax, Experian, and TransUnion.
no credit history or a limited credit history can create
hurdles to getting a credit card.
it’s not uncommon for a lender to override an
otherwise satisfactory credit score because of a limited
credit history, said John Ulzheimer, a credit expert who
has worked for credit-scoring company FICO.
credit reports make lenders less confident that the
score is a solidly valid representation of the applicant’s
risk," Ulzheimer said.
credit score predicts risk by analyzing your history of
borrowing money and paying your bills on time, as
reflected in the credit reports compiled by the three
national credit bureaus.
scores take into account missed loan payments, high
balances on credit cards, and personal bankruptcy.
how to approach applying for a credit card and what to
know before you apply for a rich rewards card:
Understand that some cards aren’t in the cards for
consumers who have a limited credit history.
credit cards like the Chase Sapphire Reserve and the
American Express Platinum would likely be out of reach
for folks of all ages who have thin credit files,"
said Matt Schulz, senior industry analyst for
notes that plenty of millennials have full credit files
and some have gotten these cards.
fact, the Sapphire Reserve was such a hit with more
upscale millennials that it almost single-handedly
disproved the conventional wisdom that millennials don’t
like credit cards," he said.
millennials are deeply passionate about chasing rewards
cards, so they’re likely to go after an Uber Visa,
the rewards can be tempting: The Uber Visa perks even
include up to $600 for mobile phone damage or theft when
you pay your mobile phone bill with your card.
again, if your credit history is not that long — and
have avoided having a credit card into your mid-20s —
you might have more trouble than you’d expect getting
Shop for credit cards for people with no credit.
odds of getting approved for a credit card go up for
those with limited-to-no experience with credit if they
apply for cards marketed to that group.
options include the Capital One Platinum Card that
targets those with a limited or no credit history and
the OpenSky Secured Visa that has high odds of approval
but a $35 annual fee, according to WalletHub.com.
number of card issuers target those with newer credit
reports or less-than-stellar credit scores, Ulzheimer
unions tend to be more flexible with their offers too,
as are smaller local and regional banks," Ulzheimer
cards are an option, too, for someone who is just
getting started, such as the Discover it Secured card.
approved, the cardholder secures the line of credit with
a deposit. A $200 line of credit requires a $200
deposit. It’s not a prepaid card or a debit card. If
you pay your balance in full and close the account, you
could receive the security deposit back at some point.
a good, low-risk way to get started with credit. It is,
however, only meant to be a stepping stone," Schulz
you’ve done a good job with the card for six months to
a year, upgrade to an unsecured card with better terms
and more significant rewards," he said.
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