I have 4 years of credit history but still getting denied?

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sfoboy85
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I have 4 years of credit history but still getting denied?

Postby sfoboy85 » Sat Apr 21, 2012 6:42 pm

Hello CC people,

I am fairly new to this "world" but I have been doing a lot of research in the past few months about building credit and decided to take it to the next level and finally open up a new line of credit/ credit card.

I would need some advice, what you would do in my situation to improve credit score and gain some line of credit.

History:

  • I came to the USA 4.5 years ago, therefore my credit history is only 4 years old (there is not much I can do about that).
  • I opened up a bank account at a Credit Union bank and to build credit, I figured it is a good idea to open up a secured credit card/account. So I did, secured $500 and paid off ~$22 every month and when it was all paid off I opened another one and did that all over again therefore I generated payment history.
  • 2009 March, I bought a car 50% cash, and 50% finance via Wells Fargo and paid off the balance by paying 3X the monthly minimum (which was basically the maximum amount allowed per month to pay back, but I did not want to stretch out this payment history, since WF gave me a delicious 21% interest rate :D .
  • I always paid/pay my bills on time and that gave me an excellent bill payment history up until now.
  • End of 2010, I reached a credit score of 700 and applied for an American Express Platinum. I was naive, I did not know how prestigious that card was, but what surprised me even more is that I got accepted and they issued me an AMEX Platinum with no pre-set limit. Since it is a charge card, I always pay 100% off every month as soon as the bill comes out.
  • Now, I have my third $500 secured loan and I have been paying these mini-amounts back but I am ready to establish some line of credit (unsecured).
So I decided in January,2012 to apply for a Mileage Plus Explorer Visa card by Chase since I fly United Airlines frequently (that time with a credit score of 721, and an annual income of $65k), and GOT DENIED due to the lack of credit history.

Now I am in need of help. I want to get one or two VISA credit cards because they might lower my score in the next month but would help building my credit tremendously in the long-run. I would always submit 100% of the payments at the end of every month, and would ONLY use 10% of the available credit on each card to maximize the credit score in terms of gaining points.

But now, I truly do not know where to look for. Should I try the credit union where I established my credit? Or should I try Bank of America where I have my business and personal account? Which company is more likely to give me a line of credit? What type of credit cards should I apply for?

I was thinking about a bank credit card, such as the credit union or BoA AND the Capital One Venture Rewards credit card that would still gather me 2 miles for every dollar.

The only thing is, now I am really afraid that I will just accrue another inquiry on my report which I really do not need but do not know what / how to do it.

PS: I only have one inquiry in the past 12 months on my report.

Your responses are appreciated!
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PlatinumAMEX94
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Postby PlatinumAMEX94 » Sun Apr 22, 2012 5:50 pm

You should go back to your credit union. First off, credit unions are always nicer as it is all member based and driven. Second, you have a relationship with them. Now that you have your AmEx Platinum card they should gladly give you a Visa or MasterCard.
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sfoboy85
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Postby sfoboy85 » Sun Apr 22, 2012 6:56 pm

PlatinumAMEX94 wrote:You should go back to your credit union. First off, credit unions are always nicer as it is all member based and driven. Second, you have a relationship with them. Now that you have your AmEx Platinum card they should gladly give you a Visa or MasterCard.


Hello PlatinumAmex,

Thanks for your response. I also did quite a lot of reading about it since I posted this and your post also confirmed that the Credit Union is the best solution to my problem. Now my only question is, nothing changed in my report since that, only thing is my credit score is now 731.

I have that $500 secured loan with my CU I just do not know whether:
A.) Request a credit limit raise? If yes by how much ?
B.) Convert my existing $500 secured loan into an unsecured and ask for a raise?
C.) Leave this AS IS, and just apply for a new unsecured credit card (VISA)? If yes, how much limit can I request? Is that something that I request or they just assign a CL automatically?

Never done this so I am curious. Thanks for your post!
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Postby Crashem » Sun Apr 22, 2012 9:51 pm

Have you pulled your credit report? Also where are you getting your scores from? The rejection from chase should give you true fico score. I would call chase reconsideration number in any case ASAP.
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sfoboy85
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Postby sfoboy85 » Sun Apr 22, 2012 11:01 pm

Crashem wrote:Have you pulled your credit report? Also where are you getting your scores from? The rejection from chase should give you true fico score. I would call chase reconsideration number in any case ASAP.


Of course, I always have the most recent credit report. My true FICO score is 731, I had a 721 FICO score when I was denied. I get my score from Equifax. But it was not the credit score, it was the "lack of credit history" which is why I got denied. At least that's what the senior underwriter told me because she said everything else looks perfect on my report. She could not reconsider my application since I called her 30 days after the denial letter ( got home too late to find out I got denied).
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Postby JCarter » Mon Apr 23, 2012 11:48 am

sfoboy85 wrote:Of course, I always have the most recent credit report. My true FICO score is 731, I had a 721 FICO score when I was denied. I get my score from Equifax. But it was not the credit score, it was the "lack of credit history" which is why I got denied. At least that's what the senior underwriter told me because she said everything else looks perfect on my report. She could not reconsider my application since I called her 30 days after the denial letter ( got home too late to find out I got denied).


You can re-run the application and ask an underwriter immediatly for reconsideration, or to avoid a hard pull you may want to just purchase all (3) reports and fax them over to the underwriter.

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Postby BCF » Mon Apr 23, 2012 8:09 pm

I guess your credit history is fine for most of the cards. But are you sure that your car loan with WF has been reported to all credit bureaus? most of the times Chase only pull your credit from Experian.
I would say that the best way for you is to first get rid of the secured card. DON'T close it, just ask your bank to convert it to a non-secured version.
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Crashem
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Postby Crashem » Mon Apr 23, 2012 9:12 pm

sfoboy85 wrote:Of course, I always have the most recent credit report. My true FICO score is 731, I had a 721 FICO score when I was denied. I get my score from Equifax. But it was not the credit score, it was the "lack of credit history" which is why I got denied. At least that's what the senior underwriter told me because she said everything else looks perfect on my report. She could not reconsider my application since I called her 30 days after the denial letter ( got home too late to find out I got denied).


If you got from equifax, you probably got fako. You sure it is fico?
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sfoboy85
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Postby sfoboy85 » Mon Apr 23, 2012 11:31 pm

Crashem wrote:If you got from equifax, you probably got fako. You sure it is fico?


Nope, ordered the 3 credit bureaus report as well... so it is not that...
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Crashem
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Postby Crashem » Mon Apr 23, 2012 11:59 pm

sfoboy85 wrote:Nope, ordered the 3 credit bureaus report as well... so it is not that...


I really doubt you bought a real FICO score. You can only get it from one spot in Equifax's website and from MYFICO.com.

This link is FICO Score
http://www.equifax.com/credit-score/

This link is 3 in 1 credit report with FAKO score
http://www.equifax.com/cs/Satellite/EFX_Product_C1/1162298924870/5-1/5-1_Layout.htm?packedargs=Locale%3Den_US

Why do I think you are mistaken? You keep quoting 1 FICO score. Each credit bureau gives several versions of each FICO score, but there are at least 3. Since you are talking about AMEX, they pull Experian. So what is your Experian FICO score? You can't get that anywhere (they don't sell it). However look at your rejection letter from AMEX and it should tell you what your Experian FICO score is. What does it say on it?
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