Chase SW Application Help

Discussion in 'General Discussion | Credit Cards' started by salmon515151, Jan 14, 2012.  |  Print Topic

  1. salmon515151

    salmon515151 Active Member

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    Hey guys even though this is my first post don't be afraid to rip into me. I promise I can take it! I recently applied for the Chase SW plus card and I told them I earn 15k annually (I'm in college). However I work for a guy who pays me under the table and doesn't keep any track of how much I am payed. Chase told me to send in my W-2 or 1099 or pay stubs. Of course I don't have any of these because of my boss. The one thing that I can report is the annual return on my investments, but that's only about 500 dollars. I am wondering what you guys think I should do as I am trying to get into this points game and would really like to start racking up the bonuses. Any suggestions would be most appreciated! Thank you!
     
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  2. sharris503

    sharris503 Silver Member

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    I'm fairly new to this game so I may not have the best advice but I think you may want to apply for a card with no annual fee and build up a credit history and then try again when you have an income you can report. I'm not sure there really is any way to get around your situation. Instead I would focus on building up that credit history, make your payments on time, and don't carry any balances.
     
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  3. salmon515151

    salmon515151 Active Member

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    I forgot to mention that I currently have a wells Fargo student rewards card that I have had for the last year and a half. My dad thought maybe explaining my situation and sending in might work. Any ideas?
     
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  4. deant
    Original Member

    deant Milepoint Guide

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    Welcome to MP.

    Since you are getting paid under the table, I would let the issue drop. With the new laws, banks require that you provide proof that you can pay the bill. You mention that it is because of your boss that you don't have a W-2 or 1099. That is not entirely the case, it is also because you accepted getting paid under the table and thus save the taxes.

    Your first step should be to look at your credit report and make sure that it is accurate. I assume you do not have much of a credit history. Based on that, I would suggest you get one or two store credit cards. When you applied for the new card, they saw that you had the "student" card so they are aware of that. Also, calling and saying you want MORE credit without any proof of ability to pay would be a red flag. So I don't think calling would do any good as you can not give any proof that you can pay the bills.

    Once you have a job where you get a W-2 then I would start looking at the point type cards as you will have built up your credit background and can prove the income.

    Hope this helps.
     
  5. salmon515151

    salmon515151 Active Member

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    Thank you both for your help. So do you think I would have better luck for applying for the chase freedom card? Or just another student card? Thanks again for all the help. It's very useful!
     
  6. deant
    Original Member

    deant Milepoint Guide

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    Would not apply for another Chase card for a few months. They have done the credit pull and have it on their records. In fact many of their applications ask if they have denied you credit in the last 6 months.
     
  7. salmon515151

    salmon515151 Active Member

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    Ok would there be a way to change my existing application over to the chase freedom card or is that not possible? Also I have heard that you can apply after 3 months or is that only if you haven't been denied?
     
  8. deant
    Original Member

    deant Milepoint Guide

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    You can try and call to ask if you can change from the SW to the Freedom card but what will your answer be when they ask about the W-2 or 1099? That request is in your application file so they will ask the same question again. Until you can provide some proof, your current application is, in my opinion, a NO GO as far as getting any approval.

    Think of it from the bank's point of view. You already have one credit card and no real reported income - so how will they get repaid? Just think if someone came to you and wanted to borrow a few thousand dollars but they did not have any reported income or any obvious way to pay you back. Would you loan them the money? Remember that you KNOW they have borrowed, or the ability to borrow, from another person?

    My suggestion is to give up on Chase for the time being. In a month or so try Citi if you want but I don't think you will have any success with Chase in the next few months.
     
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  9. salmon515151

    salmon515151 Active Member

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    What specific card would you suggest from Citi? A student card or something else? Do banks always ask for proof of employment or is that only if you are pending? Thank you for all your help by the way. It's very helpful.
     
  10. deant
    Original Member

    deant Milepoint Guide

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    Have you looked at your credit score? Specifically Experian as I think that is what Citi and Chase normally pull. Please let us know what the score is so that we can provide better advise.

    Until you know what your credit report REALLY says, you run the risk of any credit company asking for verification of income. If your credit report shows an employer, which I doubt, then you will have an easier time getting a credit card.

    You might also want to follow Shannon at www.frugaltravelguy.com as she is a "newbie" and has posted some great tips. However, she does have the ability to prove income so she is a step ahead of you.
     
  11. daemon14

    daemon14 Gold Member

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    My first credit card was a while ago -- the Citi MTVu student card. I think the signup bonus was something like 2000 Thank You points, not a lot, worth about $20, but it was a card that I got while in school and no (recorded) job. I didn't need a cosigner and my limit was a paltry $800, but after paying in full for a few months, I got it increased to $1600, then $2600, and now $5100 (I haven't closed it as it's my first ever card and age of accounts is taken into consideration for credit scores.)

    It gives 5x Thank You Points at restaurants, bookstores, and movie theaters, so you'd get to build thank you points, plus they have a program where you can send it your transcript for extra TYPs. TYPs are worth about 1cent per point, so not the most valuable, but at least this card allows you to get rewards while still building your credit.

    *i think this may have turned into the Citi Forward Student card

    Sent from my iPhone using milepoint
     
  12. salmon515151

    salmon515151 Active Member

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    My score on creditkarma is 749. I don't know how to get specifically the experian score though. Does this help at all?
     
  13. daemon14

    daemon14 Gold Member

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    Have you accessed your credit report at all this year? You're allowed one free check each year. You won't get your score but you will be able to see what exactly is on your report and start to fix any mistakes.

    Sent from my iPhone using milepoint
     
  14. salmon515151

    salmon515151 Active Member

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    No I have never accessed my credit report. Wouldn't that put a hard pull on my credit though? And as far as opening another card is it worth it or should I just hold onto the one I have right now? About 3 months ago my limit increased from 1000 to 1600 and I always pay my bill every month. I was hoping to maybe get a lower credit card. But still get something that had a bonus that I could redeem for miles. Obviously I don't the expenses/income to be paying off 2500 in 3 or 4 months hence why I thought I could apply to the SW card.
     
  15. daemon14

    daemon14 Gold Member

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    If you were to ask for your own credit report, I believe it is a SOFT inquiry -- a credit card company would pull a HARD inquiry, which is what gets shown on your report and stays for 2 years. I really recommend checking your credit report before applying for any cards, especially since it's free once a year.

    It's really up to you on what credit cards to get -- keep in mind that a lot of these rewards cards require certain limits. I believe Visa Signatures, which include the Sapphire Preferred, Chase BA, and Citi AA cards that I have, all require at least $5000 limits. If your highest limit right now is 1/3 of that, that may hurt your chances.

    Considering the Southwest Visa gives your Southwest point, which have monetary values affixed to them, then getting a Citibank student card like the Citi Forward Student Visa may be a good alternative. It's a student card, so it should be easier to get and will help you build your credit for future cards.
     
  16. salmon515151

    salmon515151 Active Member

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    Is there a specific company that I should request it for?
     
  17. daemon14

    daemon14 Gold Member

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    Annual Credit Report

    There are 3 credit bureaus -- Experian, Equifax, and Transunion. From most people's experiences, credit card companies usually pull one of the first two. However, they may be able to see any of the 3.

    When you request your 3 reports, I would take PDF saves or screenshots of them so that you can refer back to them later.
     
  18. salmon515151

    salmon515151 Active Member

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    Ok I looked at my credit reports, so where should I go from here?
     
  19. kansaskeith

    kansaskeith Gold Member

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    If your income is salary, wages, commissions or tips, seems to me by law it's taxable. Your boss isn't reporting your income on a W-2 or 1099, but are you doing your part and paying taxes anyway by declaring it as misc. income or self-employment income on a 1040 form? Or by otherwise reporting it to the I.R.S.?

    If so (and yes, I suppose that might unleash the anger of the I.R.S., especially on your boss -- but still, the law is the law, isn't it?), then you could show Chase a copy of your 1040 form because that would show legitimate income, and compliance with the system and the law on your part.

    If not, then it seems to me you are in kind of a fix: I wouldn't be applying for mainstream credit and would let the matter drop until I was able to remedy the "under the table" situation, and somehow come into compliance as you should be.

    I congratulate you on paying your debts so well under your current card and by working towards your future by attending college. But as the previous paragraph may betray, I may have a little difficulty with your income situation as you describe it. Sorry!
     
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  20. deant
    Original Member

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    Are the credit reports accurate? Do they show an employer? If it does not show an employer then that is the problem you are running into. Once you get an employer's name on your credit report, I assume you will have a much easier time.

    As I said before, what makes a bank think you can pay them back without any documented income. Solution is to get a job where you pay taxes and the income is reported.
     
  21. salmon515151

    salmon515151 Active Member

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    The credit report did not show an employer as I was worried it wouldn't. I figure I really have no chance to get a better credit card until I have a tax reported job. I guess now my question is it better to just stick with one card or is it better to get another card?
     
  22. deant
    Original Member

    deant Milepoint Guide

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    You could probably go for another student card in a couple of months. This would help in the long run. The reason for waiting a few months is that the Chase pull is on your credit report and the bank can not immediately tell if an account was issued.
     
  23. salmon515151

    salmon515151 Active Member

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    Ok I think I will do that then. Is the citi forward card the best one available for students right now?
     
  24. salmon515151

    salmon515151 Active Member

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    Hey just for an update to all who were curious about my application to chase bank, I was approved! Wooohoo! Thank you to deant, daemon14, sharris503, and kansaskeith for your guys' help. I really appreciated the knowledge that you all so willingly shared with me. Thank you!
     
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  25. kansaskeith

    kansaskeith Gold Member

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    <picking self of floor where I had fallen in shock :) > Shows how much we know! Out of curiosity did you respond at all to the bank's request for W-2 or pay stubs?

    I'm happy for you, though not in the quality of my understanding how the American banking system works!
     
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