Denied of secured credit card
 

So after I receive my SS I applied for a secured credit card at 53rd bank. A week later I receive a letter saying that I got denied because of "Excessive obligations in relation to income". What is that mean exactly? I have no credit and I'm trying to build it up. I've been reading that secured CC is the best way to build credit, but how am I going to build credit if I can't get a secured CC?

Re: Denied of secured credit card
 

Excessive obligations in relation to income - for some reason they see more liabilities that this bank would rather not be willing to risk.

Run a credit check on yourself to see if anything's off. Otherwise, just try a different bank.

Re: Denied of secured credit card
 

I was able to get $1500 in credit for my FIRST credit card through Wells Fargo. I have been banking with them for a few years now and my savings/checking accounts have always had a good balance. I'd assume that was able to help me get a pretty high amount of credit with no prior credit history.

Re: Denied of secured credit card
 

"Excessive obligations in relation to income" means that your monthly expenses are more then your monthly income. or your yearly expenses is more then your yearly income. if that is their reason then the bank may have reason to believe that you outstanding debt that is not being paid.

now, having no credit is different from having no debt. i would make sure that if you have an ITIN number that you get a credit check to make sure what exactly is on your credit check. if you dont have an ITIN number then the bank could be going off the information you provided when you filled out the SCC app.

Re: Denied of secured credit card
 

I don't think I have any debt cause I've never take any loans from any banks. About the credit check, where do I go to check my credit? Sorry I am very new to this.

Edit: Looks like I don't have any credit history. I applied for FirstProgress CC which they won't check your credit history. Hopefully I will get approve this time.

Re: Denied of secured credit card
 

It means they don't think you earn enough money to be able to handle a secured credit card.

Re: Denied of secured credit card
 

Your bank sounds like a local/community bank.
Go to a major bank and apply for a secured card from them. Wells Fargo, BoA, Citi, Chase, TD, and etc... which ever one suits you best.

Re: Denied of secured credit card
 

Do you have a job currently? If a bank thinks you don't have enough income, or no income at all, to own a credit card then it's obvious they will deny you one.

Banks will not only look at your credit history and score, but also income as well.

I would try to open a bank account if you don't have one, wait 2 months or so and try to apply for one of their credit cards.

Re: Denied of secured credit card
 

Try the capital one student card they gave me one and I have no credit history.

Re: Denied of secured credit card
 

Some of you guys are rushing to get credit cards. Especially if you don't have jobs. I had a bank account for almost a year before I even applied. I even discourage my US citizen siblings from credit cards, and they have had bank accounts for several years and held jobs.