I applied for a CC but was denied!! How can I improve my credit?

[Keego]

I was playing around with Dell deals and I think I screwed up my financing (you get a $50 off coupon if you apply for financing, get approved, but then don't buy what you were looking at)

I did that a couple of times to see if it'd work again, and the last time I got denied

Then, last week I tried to apply for an Old Navy CC so I could get 10% off and it was denied, I guess I screwed up my credit rating through Dell!!

So what do I do now?! :Q

 

[gopunk]

you wait for your score to go back up?

 

[Queasy]

You basically have to not apply for another credit card for 6 months or so. You have placed too many inquiries on your credit file so lendors probably will not approve you.

 

[RossMAN]

First of all you're doing but screwing up your credit by applying for credit everywhere, how do you fix this? STOP applying for any new credit and even credit increases. In 12 months most of those credit inquiries should drop off your credit report.

http://credit.about.com/library/weekly/aa102302a.htm

I would also strongly suggest ordering a copy of your credit report from EquiFax.com for $12.95 they are one of the 3 major credit bureau's, you can view your report online instantly and even see what your EquiFax credit score is. The credit report includes credit inquiries as well (although most credit bureau's are 2 months behind in their reporting).

 

[BoberFett]

I thought there was a law that if you were denied credit, then you could demand a free copy of you credit report.

I could be wrong, I've never done it.

 

[RossMAN]

Originally posted by: BoberFett
I thought there was a law that if you were denied credit, then you could demand a free copy of you credit report.

I could be wrong, I've never done it.

You're right, I forgot about that. It's the FCRA.

I believe you're entitled to a FREE copy of your credit report within 90 days of the decline if you still have the decline letter(s). But I still would rather $12.95 for mine because I can order it online and it's instant plus it includes your credit score. But yeah if you want it FREE and don't mind waiting 6-8 weeks then go for it.

 

[tk149]

Originally posted by: BoberFett
I thought there was a law that if you were denied credit, then you could demand a free copy of you credit report.

I could be wrong, I've never done it.

I believe you're correct. If your denial of credit was based on a bad credit report, you can get a copy of your report free.

 

[Keego]

So is my credit bad, or do I just need to stop inquiring about it? I plan on getting a car around March with my parents co-signing with me, so I'm assuming this will show up?

 

[RossMAN]

Originally posted by: Keego
So is my credit bad, or do I just need to stop inquiring about it? I plan on getting a car around March with my parents co-signing with me, so I'm assuming this will show up?

It's not the end of the world but the damage has already been done. You should STOP applying for ANY and ALL CREDIT. It will show up when you buy a car assuming you are on the loan since they pull your credit report using your social security number.

 

[Queasy]

Originally posted by: Keego
So is my credit bad, or do I just need to stop inquiring about it? I plan on getting a car around March with my parents co-signing with me, so I'm assuming this will show up?

Your credit isn't necessarily bad....bad credit would be something like if you had unpaid debt. What you have is too many inquiries within a certain time frame. When credit card companies see that, they are not going to lend you money. A car loan would be different. If you have one available, I would check the rates at a credit union. They are usually better than what you could get at a regular bank and more willing to work with you.

Oh, and if your parents are co-signing, make sure you never miss a payment. If you do, you'll screw up their credit history.

 

[Keego]

Would my credit be knocked down 5 more points if I get an equifax report?

 

[Queasy]

Originally posted by: Keego
Would my credit be knocked down 5 more points if I get an equifax report?

If you pull your own credit file, it does not affect your score in any way.

 

[RossMAN]

Originally posted by: Queasy

Originally posted by: Keego
Would my credit be knocked down 5 more points if I get an equifax report?

If you pull your own credit file, it does not affect your score in any way.

Correct. It's still an INQUIRY however it's a personal inquiry rather than a merchant requesting your credit.

It's a good idea to order a copy of your credit report, make sure that everything is accurate and see just how damage you've done. If you give it enough time (that's the hardest part is WAITING) it will get gradually better.

If you do get approved for the car loan and make all your payments on time that will help A LOT.

 

[dakels]

Good advice here. Hey Rossman you changed your face! I didnt recognize you

btw if you have a credit rating of say 500, getting rejected for a card may drop you all of 5-10 points. Its not a huge deal but getting rejected alot can be.

A solid way of improving your credit, especially if you have no credit or bad credit, is to secure a card through a bank. You put $500 (or whatever, depending on your bank) into a special locked savings account (where you collect interest too). The bank issues you a credit card with a limit based on how much you have locked in the secure account. As you use it more often and pay it on time, you improve your credit. After 6 months to a year of using it and paying it off, you should have no problems getting a unsecured credit card (which requires no money in the bank). After you get an unsecured card, every 6-9 months, call the credit company and say you are changing companies because you want a higher credit limit, alot of times they will just try and keep you by giving you a higher limit.

Also getting a personal loan for a minimal amount (usually arund $2-3k depending on the bank) can be a great way to skyrocket yuor credit. A good thing to do is just keep that money in the bank and make your payments. The interest you get will help offset the load's interest. Just don't pay it all back within a month. Making your payments on time over a course of time is much better for your credit.

Also as stated, you can also get a cosigner like your parents, but if you don't pay up, they go after the cosigner. A good thing to do is have your parents put you on their card and just have them hold the card. They can charge a few things with it if they like but this way they don't have to worry that you are running to Vegas with a charge card in their name BTW if you are in college, its EASY to get a CC, especially if you have a student loan.

 

[RossMAN]

Originally posted by: dakels
btw if you have a credit rating of say 500, getting rejected for a card may drop you all of 5-10 points. Its not a huge deal but getting rejected alot can be.

IMHO that's a bad example, 500 is a really sh!tty credit score to have ... 620 or higher is considered average.

 

[Keego]

Well I did the equifax thing, and my credit score is 747! The bad things are:

The length of time your accounts have been established is relatively short
There is a lack of recent bank/national revolving account information on your credit file


I've had the same bank account since 1986! (Credit Union)
(but my first credit was established 21 months ago, a debit card)

 

[RossMAN]

LOL your credit score is about 100 points over mine.

Just STOP applying for any credit at all, get the car loan and you should be perfectly fine.

BTW I hate you!

 

[Keego]

I think I was denied because I used my college address, not my *billing* address :/

 

[RossMAN]

Originally posted by: Keego
I think I was denied because I used my college address, not my *billing* address :/

Your decline letter(s) should list all the exact reasons as to why you were declined.

It's still not a good idea to re-apply using your correct *billing* address.

You have a good credit score, be thankful for that and keep it that way.

 

[Carbo]

Pass along your social security number to me. I'll take care of things. Trust me.........

 

[edro]

Credit is retarded.

I have a Sears card that has a balance of about $800 on it (my laptop). I have paid all the payments on time for the last year. Every credit card I have applied for from Student cards, to cards with a $500 limit, I have been denied for. After my 5th denial in 2 years, I decided to get an online credit report (Equifax). My FICO rating is 748. 7 fvckin 48! According to their site, that is extremely high and most people get discaounted interest rates with that score. Tell me then, with that score, why the hell I can't get a freakin $500 credit card?

The only thing on my credit report was DEFERRED school loans (still in college) and my Sears Card.

WTF! On the last application I even lied about my income and said that I make $45k a year JUST to see if that was the problem.... Wrong.... DENIED again.

EDIT: WOw! I didn't even see your FICO score when I posted this! We have like the same score!

 

[Ime]

My credit score back in May was 770.

I'm sure it's gone down a bit, though. When I got married I inherented my wife's massive debt-load. Good news is may this coming May we should have all that debt paid off and have my wife's credit well on the road to recovery.

 

[RossMAN]

edro13 - If it's any consolation my credit score is a lousy 643 but I can easily get approved for a $10,000 cc without lifting a finger (maybe except to sign the application and the card but that's it).

One day I'll have a 700+ credit score, as if.

 

[dakata24]

Originally posted by: edro13


WTF! On the last application I even lied about my income and said that I make $45k a year JUST to see if that was the problem.... Wrong.... DENIED again.

EDIT: WOw! I didn't even see your FICO score when I posted this! We have like the same score!

hmm. ya think maybe they check that sort of info when you apply?

 

[kt]

Have a little self-control. Don't apply for department store CC's just to get discounts. That's not really worth it. Your credit history is worth much more than that $20-30 you save from the discount. As for your credit score.. that seems normal for someone who just starts out with a clean and good credit history. First time I check my credit score, I got 742. Ever since mine has gone up and never down because I don't apply for any kind of credit cards besides the two I have (a MC and a VISA).