Why was my credit card application denied?

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alicia
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Why was my credit card application denied?

Postby alicia » Tue Oct 12, 2010 9:25 pm

Hello,

I have a very unusual situation ( at least I can't make any sense of it ). I have one credit card (Chase Plus One) which was offered to me by the banker and I have applied for credit cards 3 more times and all of the 3 times I got rejected, by Amex(Blue), Chase ( Plus One, which I applied by mistake around the same time I got my first Plus One card ) and more recently by Chase again (Freedom).

I was offered the Chase Plus One card with an initial credit limit of 300, which although was really low, did not bother me as I just wanted to start building my credit history. The limit was was subsequently raised to 700 after about 8 months of use. I have been using this credit card for most of my small purchases and for paying utility bills. I have zero late payments on my bills and have never used more than 50% of the available credit at any given point of time. Usually, my usage is around 20% of the available credit.

A little bit about me. I came to the US about 4 years ago as a student. At the time I was 26 but I was offered the student card from Chase. I was told that I would be able to apply for a much better card in about an year's time and that I should just focus on building my credit history.

I have been tracking my credit score using the Chase ID Protection service and my credit scores across 3 bureaus are ~680. The reason mentioned for having a lower credit score is that I have low existing credit, which is not surprising as I keep getting rejected when i apply for more credit.

Considering that I have no debt, no late payments, no overdrafts of any sort and a solid 2-3 year credit history, why do my credit card applications keep getting rejected? I have a respectable monthly balance in my checking account and my paycheck gets directly deposited into it. I must also note that none of the credit card applications that I made were within 6 months of each other.

I am totally lost and extremely frustrated at this. I am waiting for the report from Chase that states WHY I got rejected and I will update the reason in this post to get input. I would like to get advise from anyone who is or has been in a similar situation and of course from all the credit gurus in this forum.

Thanks for taking the time to read through the post.

Regards,
Alisha


computerchris
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Postby computerchris » Wed Oct 13, 2010 8:09 am

Do you have any loans? Maybe you don't have enough mix of credit (installment, revolving..etc)..

alicia
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Postby alicia » Wed Oct 13, 2010 10:06 pm

I do not have any loans. Regarding revolving credit, I have just the one credit card that I mentioned before and no other source of credit. So I guess, the mix does not work in my favor, but I have my friends with a similar background with excellent credit scores and great credit lines on good cards. Would professional credit counselors be of any help?

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fffresh
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Postby fffresh » Thu Oct 14, 2010 3:49 pm

It's likely due to only having one credit card with a low limit. Today issuers are reluctant to extend credit in that type of scenario.

alicia
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Postby alicia » Sun Oct 17, 2010 1:09 pm

fffresh, I do agree with you, but how am I going to gain credit if I am not given any credit? 700 is barely sufficient for anything. I wish there was a person I could speak to who can look into my account and past credit history and actually override the decision. Is that even possible?

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Mogul of Pineapples
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Postby Mogul of Pineapples » Wed Oct 20, 2010 8:12 pm

Alicia, I agree with fffresh and that is the predicament with building credit. This is why you have to start small and build it up incrementally. I can actually be done rather quickly if you do it right.

You might have to go with a lower rung credit card because Chase is known to be picky with an applicant's credit.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

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