citibank, creditcards, stupidity? is this normal

[Davegod75]

So i tried to apply online for a new citibank credit card (the dividend one) I didn't get an instant response so I called a couple days later asking about my status.

They said I had be declined because I don't have any "revolving transactions on any other credit cards" He explained that this means I don't carry a balance on my current (and only ) credit card.

I argued with him as to why I was being penalized for having a perfect record of paying off my bill every month with my current card.
He said this is the only reason I got turned down. My current FICO is 730+ and I have my car loan and have just payed off mucho students loans, etc, etc, so my history is very good.


has anyone ever heard of such a lame reason?

 

[notfred]

They don't make any money if you don't pay any interest. If they don't make any money, why should they waste thier time on you?

 

[jmcoreymv]

Originally posted by: notfred
They don't make any money if you don't pay any interest. If they don't make any money, why should they waste thier time on you?

They make a percentage on everything you buy.

 

[Davegod75]

well i still think it's stupid to get turned down for that reason

 

[Noirish]

i pay off every month.
they always give me what i want.

 

[TaylorD]

Originally posted by: jmcoreymv

Originally posted by: notfred They don't make any money if you don't pay any interest. If they don't make any money, why should they waste thier time on you?

They make a percentage on everything you buy.

They don't actually get that percentage, that goes mostly to the processing companies. Interest is their main source of income.

 

[hawkeye81x]

Originally posted by: TaylorD

Originally posted by: jmcoreymv

Originally posted by: notfred They don't make any money if you don't pay any interest. If they don't make any money, why should they waste thier time on you?

They make a percentage on everything you buy.

They don't actually get that percentage, that goes mostly to the processing companies. Interest is their main source of income.

This can't be true. I applied for a dividend card and I was instantly approved. (Managed to get a lower APR as well).
I've never paid Citicard a cent in interest ever. But I do use the card very frequently to make purchases.
So they must get something from keeping me as a customer.

 

[Rumpltzer]

See, I've been turned down for a car loan for having too much "revolving credit". I've never not paid off a credit card at the end of the month, and I only have two of them.

I don't think that looking at the reason for being denied is very useful. I think they just make something up when they don't want you... but I don't know why they don't just tell you the real reason.

 

[TaylorD]

Originally posted by: hawkeye81x

Originally posted by: TaylorD

Originally posted by: jmcoreymv

Originally posted by: notfred They don't make any money if you don't pay any interest. If they don't make any money, why should they waste thier time on you?

They make a percentage on everything you buy.

They don't actually get that percentage, that goes mostly to the processing companies. Interest is their main source of income.

This can't be true. I applied for a dividend card and I was instantly approved. (Managed to get a lower APR as well). I've never paid Citicard a cent in interest ever. But I do use the card very frequently to make purchases. So they must get something from keeping me as a customer.

I am not saying you need to pay interest to get a card, but thats where they get most of their revenue.

As for actually getting a card, most use the FICO score, which has many factors. Some require verification of income. Finally, it is a bad thing to have a lot of credit ant not be using any of it... but it is also a bad thing to be using too much of your available credit (in terms of applying for a new credit card, etc.)

 

[Davegod75]

well i was out of the country for about 6 weeks prior to applying for the card. During that time I didin't use my card at all so there was a billing peroid with no activity and a balance of zero. maybe that was the reason

 

[Mallow]

I think the CC company gets like 2-4 percent on each and every purchase... I think they do make money off that. If you spend $1000 a month they easily make money.

 

[n7]

That would seem more possible, though the bullshit reasons they gave you still don't make sense

 

[catnap1972]

I don't think that looking at the reason for being denied is very useful. I think they just make something up when they don't want you... but I don't know why they don't just tell you the real reason.

It's probably not in their best interest to tell you the exact reason...either you wouldn't understand it, or they don't want to give out clues to whatever proprietary formula they may use in making credit decisions.

For the record (OP), Citibank does NOT take FICO into account on a credit card application...they use their own model to make a decision (based on what's in your report). You can have an excellent FICO score and they'll still turn you down (as you found out).

 

[dethman]

Originally posted by: notfred
They don't make any money if you don't pay any interest. If they don't make any money, why should they waste thier time on you?

as mentioned previously, they make plenty of money on you whether or not you carry a balance.

 

[DamnDirtyApe]

I wouldn't get a card from Citi anyway, they have a tendency to suck IMHO.

 

[dxkj]

What is a dividend credit card?

 

[jagr10]

If you have no balance on your other card, why would you need a new card?

If you're looking for a lower interest rate then cancel the other card and get the new card. It's obvious why they won't give it to you.

 

[LS20]

i think it is a stupid reason, too... i think my fico score also noted my non-revolving balance... whatever... they penalize you for paying off all your stuff, and they penalize you for not paying enough of it (too high of revolving balance)

im gonna keep using my CC for convenience, and paying it the same way ive always paid it (full balance)... not bending over backwards for those fuggers