Why can't I get a credit card?

Question

I am a graduate student with a steady income, have one credit card (3 + years) with a $1500 limit that I pay completely, on-time, every month. I had a major error on my credit report that was finally resolved last month (my file had been fused with someone elses), but now I finally have a "good" credit score and a moderately lengthy credit history. So, why can't I get a second credit card or even an increase in the credit line of my current card? Any advice?

p.s. i already know that my credit reports have been fixed (i've checked all three this month) and are flawless.... and unfortunately i will be a student for another ten years (ma/phd program..) so i can't really wait until i'm out of school...

Answer 1

Lenders don't only look at credit score and payment history.

They also look at current income, income source, and length of employment. They weigh the current income against total potential debt. These are all considered good metrics for evaluating the risk that a borrower will be able to take on and pay back debt.

They look at the length of time the applicant has lived at an address, and whether or not it's a rental. They look at total other assets. They do these things because if it turns out the applicant can't or doesn't pay off the card, they want to know that there are other assets they can go after, as well as a reasonable shot at finding the applicant.

Most grad students show up as higher risk for these other factors. Their employment history isn't as long, it isn't as steady, they move a lot, the disposable income isn't as high, and they have no other property.

Answer 2

Check your report to make sure that the corrections have been posted and your score has been adjusted. Also see if there is any outstanding debt, such as an unreturned video from sophmore year. Sometimes companies automatically deny borrowers based on things like this regardless of thier credit score.

Answer 3

I was once told that a good way to boost your credit rating is to ask the bank for a small loan, have them keep the money at the bank (to eliminate their risk), and then just pay the interest on the loan for a year or so.

Answer 4

although your credit has been fixed, but no transaction has taken place in between the time. You just have to be patient to build up more credit. my advice...don't bother applying for credits while you are in school....