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Someone explain this to me...

Whoozyerdaddy

Whoozyerdaddy

Lifer
I got turned down for a new credit card. I was applying for a card from a company that I have my current card from (BoA). I only have one credit card. $8k limit, $400 balance and I pay it off every month.

So I pulled my credit report to see if there was anything going on that I needed to know about.

FICO - 802
NO late payments on record.
NO collections.
DTI is about 6%
Only four inquiries in the last two years.
Basically my credit is flawless.

What gives? Any ideas?

Edit: Just got off the phone with them. The person taking the app somehow did a double entry. The second entry was declined. The first was approved. So... Everything's cool.


 
You don't meet their income requirement for a 2nd card, but you need to ask yourself, why do you nee a 2nd card whe nyou don't max out your current one?
 
Originally posted by: Whoozyerdaddy
I got turned down for a new credit card. I was applying for a card from a company that I have my current card from (BoA). I only have one credit card. $8k limit, $400 balance and I pay it off every month.

So I pulled my credit report to see if there was anything going on that I needed to know about.

FICO - 802
NO late payments on record.
NO collections.
DTI is about 6%
Only four inquiries in the last two years.
Basically my credit is flawless.

What gives? Any ideas?
Click to expand...

Did you pull you credit score from all reporting agencies?

The rejection letter should tell you the agency they used, You should be able to call the people who rejected you and find out what they didn't like about you - the letter might tell you.
 
Originally posted by: Garet Jax

Did you pull you credit score from all reporting agencies?

The rejection letter should tell you the agency they used, You should be able to call the people who rejected you and find out what they didn't like about you - the letter might tell you.
Click to expand...
Yes. Pulled a 3 in 1 from Equifax. That shows you all three reports. All three are flawless. I called them yesterday and all they would say is that I'll get a letter in 7-10 days explaining why. Guess I'll have to wait.

Originally posted by: JeffreyLebowski
You don't meet their income requirement for a 2nd card, but you need to ask yourself, why do you nee a 2nd card whe nyou don't max out your current one?
Click to expand...

Income is not a problem. I'm a biscuit away from a six figure income. I need the second card because I want to change milage plans to a different airline. They can't just change the plan. I have to get a new card. The current card will stay active but I won't use it. I'll just hang on to it for the longevity of the account.
 
maybe because you do pay it off every month and not a high enough balance. why should the credit card company give you a card when you pay it off every month. they dont make any money in that.
 
just get a card from a different company

it probably has something to do with your other account with them
 
Originally posted by: FoBoT
just get a card from a different company

it probably has something to do with your other account with them
Click to expand...

How? That account has never been over and I've never had a late payment.
And I can't get a card from another company, the milage plan is only available through BoA.
 
Originally posted by: Citrix
maybe because you do pay it off every month and not a high enough balance. why should the credit card company give you a card when you pay it off every month. they dont make any money in that.
Click to expand...

Bingo. They love late payers and over limit types. Those fees are pure gravy for them.

 
Originally posted by: Citrix
maybe because you do pay it off every month and not a high enough balance. why should the credit card company give you a card when you pay it off every month. they dont make any money in that.
Click to expand...
That's not true, they still make money from the transaction fees. Plus, the bank/lender/creditor mentality in those cases is usually that the customer doesn't have enough debt and needs more. "Quick, sell that guy some money!"

Some possible reasons I can think of for the decline are if the OP recently changed his job or address, or if a possible fraud alert showed up on the credit report. There's also the possibility that BofA just doesn't want to give him another credit line as he already has one with them.
 
Originally posted by: Vic
Originally posted by: Citrix
maybe because you do pay it off every month and not a high enough balance. why should the credit card company give you a card when you pay it off every month. they dont make any money in that.
Click to expand...
That's not true, they still make money from the transaction fees. Plus, the bank/lender/creditor mentality in those cases is usually that the customer doesn't have enough debt and needs more. "Quick, sell that guy some money!"

Some possible reasons I can think of for the decline are if the OP recently changed his job or address, or if a possible fraud alert showed up on the credit report. There's also the possibility that BofA just doesn't want to give him another credit line as he already has one with them.
Click to expand...

I just sold my house. Maybe that's it. Oh well.
 
I have three cards from Chase. I only use one, and I pay it off every month. The limits are $13k, $5k, and $5k.

That's not totally true - the third card is the Sony card from Hot Deals ($150 account credit). It's 0% APR, so I'm paying the minimum every month until I get my account credit, then I'll pay off whatever balance I have and not use it either.

Chase approved the Sony card instantly. I'm not sure why BoA wouldn't approve you for the second card, unless like someone said, they don't think you should have another one because you pay your bill each month. I guess Chase doesn't care, because they approved my other two cards easily, despite me paying the bill off every month since I've hard the first Chase card.
 
Originally posted by: dainthomas
Originally posted by: Citrix
maybe because you do pay it off every month and not a high enough balance. why should the credit card company give you a card when you pay it off every month. they dont make any money in that.
Click to expand...
Bingo. They love late payers and over limit types. Those fees are pure gravy for them.
Click to expand...
Not exactly pure gravy. The servicing costs for late payers is considerably higher than for those who pay their bills on time. Plus, the higher default risk significantly reduces the value of the paper. Consistently over-the-limit is a bankruptcy in the making.
For credit card providers, the ideal customer maintains a high but reasonable balance, with a good volume of transactions, while always making the payments on time.
 
Originally posted by: Citrix
maybe because you do pay it off every month and not a high enough balance. why should the credit card company give you a card when you pay it off every month. they dont make any money in that.
Click to expand...

My mom was reading her credit report earlier today (the advanced one that describes how they rate things) and it said low balances and making your payments are a good thing (as I'd hope they'd be). It said any card above 50% of the max balance is a bad thing.
 
Originally posted by: Whoozyerdaddy
Originally posted by: Vic
Originally posted by: Citrix
maybe because you do pay it off every month and not a high enough balance. why should the credit card company give you a card when you pay it off every month. they dont make any money in that.
Click to expand...
That's not true, they still make money from the transaction fees. Plus, the bank/lender/creditor mentality in those cases is usually that the customer doesn't have enough debt and needs more. "Quick, sell that guy some money!"

Some possible reasons I can think of for the decline are if the OP recently changed his job or address, or if a possible fraud alert showed up on the credit report. There's also the possibility that BofA just doesn't want to give him another credit line as he already has one with them.
Click to expand...

I just sold my house. Maybe that's it. Oh well.
Click to expand...

There you go. Recent address change. If the address on the application doesn't match the address on the credit report, it throws up a fraud alert. They should have asked you for documentation (i.e. utility bill, etc.) instead of declining you.
 
Could be lack of credit history. Having little to no history of credit (perfect credit score) can be as bad or worse as having a slightly imperfect credit (700's) with a long credit history in the eyes of a lendor. Could be your age as well (if you are young)
 
Originally posted by: patentman
Could be lack of credit history. Having little to no history of credit (perfect credit score) can be as bad or worse as having a slightly imperfect credit (700's) with a long credit history in the eyes of a lendor. Could be your age as well (if you are young)
Click to expand...

I'm 34. I've had credit since I was 18. That's not the issue. I think Vic is right. Recent change of address always causes problems. Not sure why I didn't think of that, although when I pulled my CR it did show my current address. Must be time at present address.
 
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