Description: The author wants to tell us something about the reasons why he was rejected by Amazon Prime Credit Card, he will talk about more on filling in the financial gap between schools and the real world.
It’s not about your credit score stick around to find out the other lesser-known things that credit card companies are going to be looking for. Today we are filling in the financial gap between schools and the real world.
I will tell you a story about why I got rejected for the Amazon Prime credit card and what you can do to avoid this. First, I want to talk about my background with credit, building credit has been important for me ever since I turned 18, I got a credit card, essentially the day I turned 18, so I’ve had one for about a year now.
It’s been very important for me to build credit, because I want to be able to get a mortgage, get decent car loan potentially even a business loan, I want to keep my options open and that is why I’ve been prioritizing building my credit score from a young age.
I think that’s generally good advice for most people, it is to get a credit card in a responsible way, so when I was applying for the Amazon credit card, I had my first credit card for about six to eight months, I secured credit card like authorized user, it was a normal credit card, fifteen hundred dollar limit.
I wasn’t getting any points which was like the main thing that made me want to get a new credit card and upgrade to what could be getting points and not building my credit scores at this point, but when I was using credit, I wasn’t getting any points cash back, so that was my reason for going to the Amazon card.
I was looking at the Amazon Prime Rewards Visa Signature card, because I do most of my spending on Amazon and it gives you a five percent cashback on Amazon which is great, a 70 dollar gift card to Amazon.
When you sign up which was also great, I’ll save so much money on Amazon with this credit card, it sounds like the way to go and the other perks were that you also get two percent cashback on gas and groceries and one percent cash back on everything else.
If you do a lot of shopping at Amazon, it’s a great card for you to get 5% cash back, so I saw this, I was excited about the Amazon card, I apply for it, I’ve had a line of credit for nearly nine months, so I don’t think it should be a problem for me to get approved.
I knew my score was somewhere around 700, so I thought why they would refuse me, so I applied for it online, I wait for like a week, eventually I get a letter, so I got the letter, as you can probably see it’s a very thin letter, only one sheet of paper and no credit card.
As soon as I have the letter, I was feeling it, folding it to see if there was a card in there, there was no card, it was so light, let me share with you about why I got rejected and tell you how to avoid this.
When they ran this credit report a few of months ago, my credit score was sitting at a 729 pretty decent credit score. I would say for an 18-year-old person, let me tell you why they rejected me. There are two parts, the first part is not enough accounts, so I did not have enough lines of credit for them to give me a new line of credit in order to open a new line of credit, you have to amass a certain number of lines of credit which it is paradoxical to me.
You have to have experience, but to get experience, you have to have a job, so how is that going to work out? The second reason was not having long enough of a credit history which makes more sense to me. I only had six or eight months of credit history, so I understand that they don’t want to lend to somebody who doesn’t have a proven track record which totally makes sense.
I don’t have proven track record, so my main takeaways are paying your bills on time which is not enough, because that will build your credit score, but what you need to be doing is starting early, so when you want one, you need to start early and work to amass a credit history, not the credit score, because the credit score will only get you so far.
At that point, it’s a bigger picture than the credit scores, the second best time to start something is to go out there and give yourself a credit card, if you don’t have one and start building your credit history even if you use it once a month to buy gas or something and pay it off, that will be building your credit history and will be very valuable.
If you start soon, I’ll mention that more recently, I find another credit card that would offer me a five percent cashback off Amazon, I applied for that and I did get accepted, it is possible to get a credit card even if you don’t have that one.
If you do have a solid credit history behind you, it’s not all about credit score and there are other factors at play when companies are considering you for a new line of credit.