posted: May. 23, 2011 @ 3:26p
I recently applied for my first credit card to Citi (Citi Forward Card for College Students). I am looking to establish credit as I have no credit history yet. I am 22 years old, a full-time student, and have never incurred any credit as I have paid in full with cash on my car and have my phone bill taken care of by my parents while I am schooling. I received a letter back from Citi after a few days with an SSA-89 form inside (Social Security Administration Authorization for the Social Security Administration to Release Social Security Number Verification form). It noted that they will do another hard pull whenever they receive it. I made about $18,000 last year and got a raise at the beginning of this year, where I will now make $30,000 for the year. I am applying for the card solely to build credit. I will only use it once a month and pay in full to keep it active, but with <5% credit utilization.
I am worried now if this letter means I am going to be denied as that was what I read here: http://answers.yahoo.com/question/index?qid=20110302100123AAKT6Y...
I have tried to do free credit reports in the past bu they never go through. After talking to Experian (or was it Equifax?) 6 months ago or so they said that I couldn't view it because I have no credit history. I am worried now that I may get denied, especially if there are 2 hard pulls on there. This may make it much harder for me to get a different card from someone else, correct? My goal was to get approved for one card, so that my credit profile would get filled in. Then get added as an authorized user on my parents' cards as they have perfect credit history and pay everything off monthly. I have read that this still works, despite FICO 08, but perhaps I am wrong? From there I wanted to get a small short term loan just to pay it off and get a different type of positive credit on there. Then wait several months and app for a second card to also use once and pay in full.
My question is, should I send back my SSA-89 form and take another hard pull or is it likely that I am going to get denied and should try for an 'easier card' (suggestions?) or just get a secured card? I have the form all filled out with a copy of my SS card as well as an additional short letter which said that I received a pay raise and will be receiving $30,000 this year rather than $18,000 like I reported last year (as I put $30k as my income on my app) and was including a copy of my recent paystub to verify this.
I figured it would be smart for me to ask the financial minds here about what they think would be best for me to do as I trust your advice.
Sidenote: On the credit card app it said to put your personal income if you were under 21 and your household income if you were over 21. I am 22, but recently moved back in with my parents for a bit. They make $270,000 a year and I figured that 'household income' for persons over 21 was actually referring to your income with spouse's income (I am single). I went ahead and put $30k instead of the $300k actual 'household income' as I figured that is what they really needed and the lack of congruence between my $30k income should they asked for me to verify it and the $300k household income noted may raise a red flag. Hopefully this was correct? It is what my parents suggested.