Declined for a Chase Freedom

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Mandain13
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Declined for a Chase Freedom

Postby Mandain13 » Tue Apr 15, 2014 12:49 pm

Hi. I'm new here so I hope you'll be gentle with me.

Here's my info: On the Credit Karma site, my credit is listed as 626, while on Credit Sesame it's list as 650. I'm a part-time student that makes around $10,000 a year. I have two credit cards currently, a Bank Americard, and a Capital One Platinum. My credit limit is currently a total of $1250, of which I am currently using about $1050. I had these credit cards for two years, and they are my first, with no other credit history.

I recently applied for a Chase Freedom card after getting many offers in the mail. On the application, I tried to get a balance transfer of about $650 to the new card (interest free, so it seemed like a good idea). Chase declined me last week.

I would like to get more credit, mainly because I've been attempting to start a business on eBay (I've made about $5000 in the last year). What do you see my options as?

Should I:
1) Call one of the Chase back door numbers and plead my case?
2) Apply for a credit increase on one of my existing cards?
3) Sign up for an alternate or lesser card of some kind
4) Possibly apply for a business credit card?

Or, should I just be happy with what I have, and continue to pay my bills on time? I appreciate any advice you may give me. Thanks a lot!


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djrez4
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Postby djrez4 » Tue Apr 15, 2014 5:16 pm

Mandain13 wrote:Hi. I'm new here so I hope you'll be gentle with me.


Sorry. Ain't gonna happen. ;)

Mandain13 wrote:Should I:
1) Call one of the Chase back door numbers and plead my case?

Worth a shot - worst they can say is no.

Mandain13 wrote:2) Apply for a credit increase on one of my existing cards?

This will get denied.

Mandain13 wrote:3) Sign up for an alternate or lesser card of some kind

Probably also denied.

Mandain13 wrote:4) Possibly apply for a business credit card?

Definitely denied.

Mandain13 wrote:Or, should I just be happy with what I have, and continue to pay my bills on time? I appreciate any advice you may give me. Thanks a lot!

I'm going to go with this option.

Your income is $10k. You have 84% utilization on your current cards. That is a pretty classic sign, to a bank, that you're over-extended. I wouldn't issue you any new credit either.
[RIGHT][size=100]- Sapphire Preferred - Freedom - Ink - Platinum - Everyday Preferred -[/size]
[/RIGHT]

Mandain13
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Postby Mandain13 » Tue Apr 15, 2014 6:40 pm

Well then, that went well. :D I guess I'll give Chase another shot then. Tell them about my extra income from ebay and the business I hope to start. Also, maybe not include the balance transfer? Should I have a complete look at all my credit scores as well?

Btw, Capital One did offer me a credit increase. I didn't take it though because I thought that might effect the Chase Freedom. Is that still an option although I was declined?

Will I be in a better position if I get my utilization down to say 30%? Thanks again for your help.

MemberSince99
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Postby MemberSince99 » Tue Apr 15, 2014 6:55 pm

djrez4 hit it right on the head. The utilization is I would guess the main factor that got you declined.


If I were you I would call them for recon and tell them that you just paid something big on the card and that's why your utilization is high and ask them to consider the dollar amount (1000 in revolving debt - not that much really) and tell them that you plan to pay that down immediately. Then do it. If you find the right analyst they MIGHT let you in the door for a low limit. It might take several tries.


The best thing you can do is lower that utilization that is what is just killing you and keeping you from approval. Chase is about as utilization sensitive as they come.

darkguy2
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Postby darkguy2 » Tue Apr 15, 2014 9:55 pm

You can try to get the student Discover IT. But you really need to pay down that debt.
Discover IT - $5,700
Chase Freedom - $5,700
Costco Citi - $13,000
Sallie Mae - $4,000
Chase Sapphire Preferred - $6,000
Chase Sapphire Reserve - $19,500
Citi Double Cash - $6,500
Amex BCE - $13,000

FICOs: Discover (777), SallieMae (764), Amex (767), Citi (772)
FAKOs: CK- TU (760), EQ (760)

Mandain13
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Postby Mandain13 » Wed Apr 16, 2014 12:33 pm

Thanks for all the advice so far. I think I'm going to give Chase a call sometime. I don't need to balance transfer, though it would be nice. I'll report back with the results. If they still decline, then maybe I'll try to accept Capital One's offer of a credit increase.

nguyenalvin
 
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Postby nguyenalvin » Sun Apr 20, 2014 3:30 pm

@Mandain13 Here's your problem:

" My credit limit is currently a total of $1250, of which I am currently using about $1050. I had these credit cards for two years, and they are my first, with no other credit history. "

You currently have more than 30% of your credit being used. So even if you are paying on time this is looked down upon.

What you need to do is pay down your balance and open more cards. So if you have 5 cards with a TCL of 5000 and you are using 1250 then you will be under that 30%.

Mandain13
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Postby Mandain13 » Wed May 14, 2014 3:34 pm

So, I called Chase and the person I spoke to said that I had let too much time expire since the decline. When I explained the situation though, she did sound hopeful that I might get approved this time.

Then, I called Capital One about my credit limit increase. They said to apply for the increase online, and that an answer is usually instant. I made sure to ask if the increase was a hard inquiry, to which they replied no. So, requesting the increase was risk free. This time around, I included the income I've made from eBay, which is around $5000, bringing my yearly income to $15000.

To make a long story short, I was approved! For a $1500 limit increase, bringing my Capital One Platinum total limit to $2250. I'm surprised to say the least! Obviously this is more than what I was expecting, but should I stop here? With the lower credit utilization, shouldn't that help me get the Chase Freedom? Also, should I apply for a credit limit increase with my Bank Americard? It would be a no risk soft inquiry, right?



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