STYLETHREAD -- LET'S TALK SHOP!

Drew · Gucci

Can Someone Explain Why I Was Denied Credit?

lsubatgirl · Gucci

Your actual credit score might have been too low (the # on the report) or they think you have too much debt and CC's open. Your score will go down if you have too much of either. I'd call and ask specifically why you were rejected and look into it.

Ally S · Kate Spade

Maybe it is because of the returns, that's all that I can think of...

It would require on their end processing paperwork, issuing credits, returning the merchandise to the warehouse, etc.

If this is the reason, it's ridiculous because you have an excellent record.

Elle · Hermes

If they approved you last year but denied you this year then they are ridiculous. Call them and ask for a specific reason as to why you were denied.

How long have you had a credit card? My SO has had a cc for more than 4 years and he still gets denied for 'lack of credit'. WTF? He has 4 ccs and has had 5 vehicle loans in that span as well (3 of those have already been paid off). Apparently, having a mortgage or cc with a high line of credit helps your score as well.

Basically, CC companies are stupid. I actually receive between 8 and 10 'Pre-Approved' applications per week, but when I apply for them, I'm denied!

Anyway, when you call let them know that while you would like to use them again b/c you had a good experience last year, you have another cc company that has offered you a 0% interest card. Go through their supervisor if you have to. They want your business so it is in their best interest to approve you if you have even semi-decent credit.

honey · Gucci

someone mentioned in another post that closing a credit card can negatively impact your credit. maybe if you've opened accounts before and then closed them after a short period of time, even if you've paid them off, that's the reason they're denying you.

Drew · Gucci

ISUBG, I don't know what my credit score is, because that was not free, but I can't see why it would be low or bad.

Ally S., Returns don't affect credit; maybe they piss off the retailer, but that's about it.

L Monet, It is actually through a different company, just the same deal. I don't know if all companies are like this, but I used to have a Capitol One CC and closed it when they refused to increase my limit for a different card with a higher limit. I applied over a year later for another card through Capitol One, and was denied credit. They told me that once a person closes an account they may never re-open another account, regardless of why the account was closed the first time. WTF? VS has let me close and open accounts.

Honey, I have opened and closed plenty of accounts because I was using their free interest for a few months, but in the summary of my report it said I had 0 potentially negative reports on my credit history.

Whatever. I will just pay off my CC and get over it. I don't need another CC anyway.

Tara · Dooney & Bourke

Drew - cc companies also take into consideration your amount of "available credit". So having 6 credit cards may be negatively affecting you. For example: say your income is $50,000 and your available credit is $20,000. If you have a limit on one card of $10,000 and $5,000 on another, etc you can basically "use up" your available credit.

This is all I can think of - I hope that made sense.....it is almost 7pm and I am still at work, so I am surprised I am even writing complete thoughts at this point.

jah · Dooney & Bourke

Your credit score is what is important, not just whether you have negative hits (late payments, etc.) on your history. Each of the 3 major bureaus has a different score, so the Exp. score is the one you need to check. Usually, the scores vary between 10-30 points per bureau. That's because not all retailers, banks and card companies report to all three of the bureaus.

Many things go into your credit score, but a biggie is your debt to income ratio. The greater your debt to income ratio, the higher the chance that you will default on your loans or obligations, thus the lower the credit score. Other things that are purported to affect score are years with credit, revolving credit, ANY late payments, any missed payments and possible debt. So, if you have 5 cards and you have minimal balances on them, the overall amount of credit you have been granted on those 5 cards could be seen as a burden that is great in comparison with your income, thus lowering your score because granting credit to an individual with so much "open" credit power is a greater risk.

I work in the business, and if you have any other issues with credit, I would suggest you pull all three of your credit reports and review them. I would actually suggest that everyone monitor their credit reports yearly in this time of rampant ID theft.

Okay, I'm going to stop talking "shop" now...