Declined secured credit card

[Anonymous]

Sorry you got denied. I am no expert on this subject, but I think your denial has little to do with whether or not you would be a profitable customer and more to do with money laundering protections. If you have 3 credit cards already (especially if unsecured) they might be suspicious as to why you would need/want a secured card. Secured cards are a very popular means of money laundering, so solid banks tend to be very cautious about issuing them.

[joltdude]

I

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@Anonymous wrote:
1) Grasshopper bottom line there is a reason, these cards are not pushed like other products (💰)
Secondly as for missed $30 payments costing ppl their entire $500+ deposits... I'm sorry that sounds like hogwash....I'd love to have that claim substantiated.


@2) I like @joltdude find it intriguing how 2 different institutions have not sent back security deposits after half a DECADE of responsible use, neither USAA nor State hasn't unsecured with 5k and 2k well managed TLs in addition to $2500 at Citi over a year????

Perhaps there are some identity issues or something that presents as a RED flag towards offering unsecured TLs to the OP
Generally, companies wouldn't even ask, they just inform folks...hey Congrats you've been unsecured your checks in the mail but over 5 years worth of ARs with the usage and behavior as described, doesn't add up

*I will say with several thousand dollars tied up in secured accounts and wanting to secure more I can see a question regarding money laundering etc being a concern

As for the most recent denial, one has to wonder WHY a secured? why with a decent enough credit score and based upon that profile a decent enough score exist to app unsecured again why, what's the catch...is it I.D. theft...is it laundering....

Odd things = Potential Risk

Conservative CUs, like non profit University based ones in Indiana, ain't taking no chances, if it's odd it's a NO....that sounds about right

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I will say this in the OPs defence.. SDFCU secured cards DO NOT UNSECURE...  but surprised they haven't suggested the op app for a unsecured card after all this time...

Id really suggest the op pull his full reports and see if theres some issues with addresses, possible ID theft .... and some real scores....

Something just seems off...and you may be able to 1. find it.. and 2. address it...

[sjt]

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@Anonymous wrote:

I don't quite understand it, however, I was declined for a secured credit card through my credit union Indiana University credit union. When I reached out to them they advised that I have too few trade lines reporting? I have two auto loans, and three credit cards. How many trade lines do they want to see? A secured credit card has no risk. It is secured by the funds I provide. So why offer this type of account if you are going to decline applications? Makes zero sense!!

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You might want to contact them again. The reason they gave you doesnt make sense. I have heard of banks declining because you already have established credit but not for not having enough established credit.

You might try other banks and credit unions.

[Anonymous]

All three are between 710 & 735. Citi has offered to unsecure my card. I chose not to. All are zero after the statement date. When I get the bill I pay all of my cards to a zero balance. I have two different auto loans, and a mortgage that shows PIF on my credit report as well.

[Anonymous]

All three have offered to unsecure my CC's I requested they did not. I prefer a secured CC. I feel like there is less risk involved. Anything could happen. If the card is secured then the trade line can be paid.

[Anonymous]

I did call them, and they stated the same thing. I did apply for a CC through another Credit Union that I use (Financial Resources Federal Credit Union: Membership open to everyone through American Consumer Council) I applied for the secured CC, and they called me and stated that they could approve an unsecured card if I like. I opted for the secured CC. It was approved, and is on its way.

[Anonymous]

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@Anonymous wrote:

All three are between 710 & 735. Citi has offered to unsecure my card. I chose not to. All are zero after the statement date. When I get the bill I pay all of my cards to a zero balance. I have two different auto loans, and a mortgage that shows PIF on my credit report as well.

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I am not sure why you are applying for secured cards with those scores. Why would you not unsecure your Citi card?  Just apply for regular credit or charge cards if you want them. 

[Anonymous]

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@Anonymous wrote:

All three have offered to unsecure my CC's I requested they did not. I prefer a secured CC. I feel like there is less risk involved. Anything could happen. If the card is secured then the trade line can be paid.

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That doesn't make any sense at all. Just put the money in your savings account.  If you already have 3 secured credit cards what possible reason could you want for more?  Also even what you are saying doesn't make sense. If you owe 300 dollars on a 500 dollars secured card and you can't make the payment you still get a late fee and messes up your credit.  If you kept the 500 dollars in the bank and you had issues you could just transfer money from your savings to your checking and pay the bill. 

[Anonymous]

I 'get' what the OP is doing in his/her mind, they in a certain way don't TRUST themselves with an unsecured account...they feel somehow the mere having of an unsecured account, increases chances of failure...
Like a superstition

As with all superstitions, those that "suffer" or have them make/feel certain things to be true that ppl that don't stress over the lucky sock can't/won't understand....

The secured account gives the OP a safety blanket feeling internally, like Linus from Peanuts... I'm not judging, I'm understanding the thought process.

All, we can is assure the OP us that based upon their past behavior and evaluation of such, it really seems that you can be trusted to pay, your bills w/o a hitch.

As mentioned, by placing the same funds...that you can't get to in a pinch to pay your bill, because the secured account doesn't work in the fashion where you just pull out a payment, you generally have to default to access those funds, so really the safety you FEEL is there really isn't....
For what you're trying to do ( have access to save yourself in a pinch) you are much better off, taking the unsecured account and putting your "security blanket" in a Money Market/Savings etc that you can write a check from if you feel the walls closing in.

* The reason folks ( bankers included) question certain behaviors is as mentioned, odd = possible RISK and will always cause some uneasiness, especially in the money business.

The 'concern' drilled into ppl to be careful, can sometimes over-program certain ppl to not trust themselves to move on.... like a kid not wanting to graduate and go to the high school, they just lack a little confidence that they can handle the situation but most will be fine ( of course, some will never leave the house again 😨)

This is just a matter of being confident, one can Captain the ship.... again some players can NOT mentally perform w/o that lucky sock....or can they?