What could be the possible reason for my student credit card denial?

Question

I have a SSN about 30 days old and I am a University student and just started my internship. I applied for a student credit card online ( the requirements were average credit which meant I can start with 0 credit). As soon I completed my application and clicked the 'submit' button, I got a reject (within seconds). DO any of you know what possible reasons could have gotten me an immediate reject for a student credit card?

Answer 1

There are a couple of things it could be.

First, if the credit card application said that it was for people with "average credit," then someone with no credit history such as yourself would not be eligible for that card.

Second, if you are under 21, then the provisions of the Credit CARD Act of 2009 apply. Under the rules of this act, someone under 21 cannot be given a credit card unless they prove that they are financially independent (with either an income or a savings account) or they have a co-signer.

Answer 2

The reasons for rejection are the same for a student credit card as for any other credit card: They aren't convinced you're a low enough risk. You may need more income (or more reliable income) or fewer expenses already consuming that income. You may need more of a banking history generally. Or there may be something else that raises a red flag.

If you really need a credit card, you might want to check whether your school has a credit union that students can join.

On the other hand, many folks are better off avoiding credit cards until they have some serious income. You might want to consider a debit card instead.

Answer 3

Zero credit is not a good thing. You have what is called in the biz as a "thin file" You should check with a credit union and see if they have a program for people in your situation.