Hi. My 40 year old bf always pays in cash for everything. Litterally everything, rents from a family member, has a prepaid cell phone etc, etc. I had him apply for a secured credit card through his work credit union and he was denied. I thought the whole point of a secured credit card was to establish credit. Not sure what to do next
40 year old bf never established credit
byu/OkRecommendation2458 inpersonalfinance
Posted by OkRecommendation2458
14 Comments
does he have debt in collections?
Read the letter the credit union sent explaining why the application was denied. That will tell you what needs to be resolved before he can qualify.
He can also pull his reports from http://www.annualcreditreport.com – just because he has never intentionally had a credit account does not mean he has an empty report.
My brother died at 63 and never had a credit card in his life. A few weeks after he passed, he received a pre-approved credit card offer in the mail from Capital One.
Denied for a secured credit card as a grown adult in 40s is hilarious work
The man has zero credit debt at 40 and you’re trying to…?
He should try discover’s secure card.
Deposit funds in a bank . Borrow a little less than the deposit from the same bank .
Do this at three banks . Pay back the loans over 6 months . This will cost you some interest
Repeat .
When possible, obtain credit card , store card
Have you tried Capital One?
About 10 years ago, my credit score was around 530. It was absolutely terrible after years of bad credit decisions. Capital One was the only one that approved me. Today it is 820.
I didn’t even know they would deny someone for a secured card. I thought the entire point was to eliminate all risk for the issuer to allow anyone to build credit while they make money.
As a note, my dad was like this. He was literally terrified of debt. Eventually he took his own life because he inherited a house with a mortgage on it and the weight of it was unbearable for him.
Not saying that your BF is my dad, just pay attention to any anxiety he may have around credit. And definitely do what everyone else is suggesting: read the letter and pull a credit report to see why he’s not qualified.
For my kids, I got a credit card with my name and their name on it. I use it for spending. They get a credit score. It will take a couple of years but it is a far better deal than credit cards for non-credit consumers.
That said, I think your BF has the right idea. Debt is the gateway to paying more for everything and getting less out of life. You should listen to his perspective more and value what might be a very healthy insight into the FIRE sector. I’d be especially interested in how he plans to buy a house. I paid cash for mine, which saved me $millions. What’s his plan? There is also a very small chance that he doesn’t need a credit score because he never will need to borrow money. Ever.
I also would find out if he has had credit problems in the past. If he has, no credit is probably best. Don’t throw him in front of a speeding train he may not dodge. It will lead to misery.
While I am sure there will be at least 15 people on this thread screaming OMG! Dump him! — it is Reddit after all — do listen carefully to what he says. We make relationships through love and care and what is best for him may not fit your preconceptions but I tell you his ways *are* wise. Though mine hovers around 800, I have not needed a credit score in decades, and have given up doing anything to guard it. It is not that valuable.
If he wants to build up his credit (it’s unclear from your post if he cares), you could make him an authorized user on a card you have with positive credit history. You don’t even have to give him the card and he’ll get the benefit of that card’s history.
I think Discover will give anyone a card. If he can’t get a regular one, they have secured, too.
You can add him as a user on one of your cards. Even if you never give him the card and keep it locked down, it gets his name in the system and he’ll start getting pre-approved offers. Once that happens, you can remove his name.
He’s winning in life. Why trying to get him into debt?