Reply
New Contributor
MrGoat
Posts: 158
Registered: ‎06-04-2011
0

Bogus rejection 'reasons'.

I applied for a 'excellent credit' Capitol One card a week or so ago.

I already knew it would be denied but I did it to see what the reasons would be as Im trying to find out if they are still seeing that PAID tax lien from years ago.

 

So I get the rejection letter (I already have a $4500 Cap1 card, so no big deal at all, getting a new card wasnt the point) and the first 3 reasons are fine.

1. too many revolving accts (I have 8 currently...of course thats' too many')

2. current account hasnt been used enough (yes, with this many cards some dont see action for months at a time).

3. insufficient credit history (well, I just got my credit straightened out in the last 4 years so this was a no brainer).

 

But the last one is confusing if not infuriating.

4. insufficient paydown of mortgage accounts.

 

I dont even have, nor EVER have had, a mortage/mortgage account....EVER. Never even applied for anything even remotely similar....not even before my credit went south after marrying my first hypochondriatic wife.

None of my credit reports even hint at a mortgage....current or old.

 

Do they just throw darts at excuses pasted to a dart board when they print these letters up?

EQ FICO 735 as of June 17, 2011
EX FAKO 767 as of April 3rd, 2012
Citibank($10,000@10.74%) Discover($5000) CapitolOne($4500)
USBank($3000) AMEX($2000) BOA($2000) NRAVISA($4000)
ChaseVisa($500)
Regular Contributor
ReVeLaTeD
Posts: 180
Registered: ‎06-14-2008
0

Re: Bogus rejection 'reasons'.


MrGoat wrote:

I applied for a 'excellent credit' Capitol One card a week or so ago.

I already knew it would be denied but I did it to see what the reasons would be as Im trying to find out if they are still seeing that PAID tax lien from years ago.

 

So I get the rejection letter (I already have a $4500 Cap1 card, so no big deal at all, getting a new card wasnt the point) and the first 3 reasons are fine.

1. too many revolving accts (I have 8 currently...of course thats' too many')

2. current account hasnt been used enough (yes, with this many cards some dont see action for months at a time).

3. insufficient credit history (well, I just got my credit straightened out in the last 4 years so this was a no brainer).

 

But the last one is confusing if not infuriating.

4. insufficient paydown of mortgage accounts.

 

I dont even have, nor EVER have had, a mortage/mortgage account....EVER. Never even applied for anything even remotely similar....not even before my credit went south after marrying my first hypochondriatic wife.

None of my credit reports even hint at a mortgage....current or old.

 

Do they just throw darts at excuses pasted to a dart board when they print these letters up?


Sounds to me like they're using VantageScore, not FICO.  I know VantageScore nails you for not having mortgage payment history showing to evaluate from, which I think is silly.

Credit Cards:
| Cabrillo Credit Union MasterCard @ $3,000 | Chevron Visa @ $2,000 | Amazon Store Card @ $1,800 | HSBC 2% Rewards MasterCard @ $950 (redeemed themselves)
Valued Contributor
trumpet-205
Posts: 2,505
Registered: ‎11-11-2010
0

Re: Bogus rejection 'reasons'.

I think what last one meant is that you don't have any history of mortgage.

 

Lenders likes to see you have a variety of loans, not just credit cards alone.

In My Wallet:
Citi Forward (12/2010) | Citi Dividend (05/2011) | Chase Freedom (11/2011) | GECRB/PayPal (05/2012)
Discover it (07/2012) | AMEX BCP (09/2012) | TD/Target REDCard (10/2012) | Chase Ink Classic (11/2012)
BofA BBR (04/2013) | FNBO/Overstock.com (02/2014) | Barclaycard Arrival (04/2014) | FIA/Fidelity AMEX (04/2014)
Senior Contributor
score_building
Posts: 3,577
Registered: ‎01-10-2008
0

Re: Bogus rejection 'reasons'.

[ Edited ]

MrGoat wrote:

I applied for a 'excellent credit' Capitol One card a week or so ago.

I already knew it would be denied but I did it to see what the reasons would be as Im trying to find out if they are still seeing that PAID tax lien from years ago.

 

So I get the rejection letter (I already have a $4500 Cap1 card, so no big deal at all, getting a new card wasnt the point) and the first 3 reasons are fine.

1. too many revolving accts (I have 8 currently...of course thats' too many')

2. current account hasnt been used enough (yes, with this many cards some dont see action for months at a time).

3. insufficient credit history (well, I just got my credit straightened out in the last 4 years so this was a no brainer).

 

But the last one is confusing if not infuriating.

4. insufficient paydown of mortgage accounts.

 

I dont even have, nor EVER have had, a mortage/mortgage account....EVER. Never even applied for anything even remotely similar....not even before my credit went south after marrying my first hypochondriatic wife.

None of my credit reports even hint at a mortgage....current or old.

 

Do they just throw darts at excuses pasted to a dart board when they print these letters up?


totally ur call but generally never recommended, an unforgiving frittering away of three INQ, OUCH!

 

we are not infrequently left to read beween the lines of declination responses.  some lenders like to see a solid mortgage history from an app, in this case cap1 didn't see one; so they spit out a related but not technically accurate prefab declination reason, as a clue.

 

It does seem so at times but appears to be some method to the madness in many cases.

 

Curious why again with cap1, instead of a CLI (I knw these are rare from cap1) jst sayin' since already have a decent limit card with that issuer?

FICOS:
06/13 EX 765 (PSECU) EQ 771 (DCU) TU 779 (Barclays)
Senior Contributor
O6
Posts: 3,626
Registered: ‎10-13-2009
0

Re: Bogus rejection 'reasons'.

[ Edited ]

MrGoat wrote:

I applied for a 'excellent credit' Capitol One card a week or so ago.

I already knew it would be denied but I did it to see what the reasons would be as Im trying to find out if they are still seeing that PAID tax lien from years ago.

 

So I get the rejection letter (I already have a $4500 Cap1 card, so no big deal at all, getting a new card wasnt the point) and the first 3 reasons are fine.

1. too many revolving accts (I have 8 currently...of course thats' too many')

2. current account hasnt been used enough (yes, with this many cards some dont see action for months at a time).

3. insufficient credit history (well, I just got my credit straightened out in the last 4 years so this was a no brainer).

 

But the last one is confusing if not infuriating.

4. insufficient paydown of mortgage accounts.

 

I dont even have, nor EVER have had, a mortage/mortgage account....EVER. Never even applied for anything even remotely similar....not even before my credit went south after marrying my first hypochondriatic wife.

None of my credit reports even hint at a mortgage....current or old.

 

Do they just throw darts at excuses pasted to a dart board when they print these letters up?


 

Many times they do have monkeys throwing darts at a board.  :smileyhappy:

 

If they want to deny someone, they can always justify it.

 

1.  You have no mortgage / You do have a mortgage.

2.  You have too many accounts (10) / You have too few accounts (10)

3.  Too many accounts with a balance (2) / Too few accounts with a balance (2)

4.  UTIL too high / Insufficient use of current CLs

 

What is worse, you can apply today and get one set of reasons and next week apply and get a totally opposite set of reasons.

 

 

IAALBNYL
Moderator Emerita
LilMirth
Posts: 3,091
Registered: ‎08-09-2008
0

Re: Bogus rejection 'reasons'.


MrGoat wrote:

I applied for a 'excellent credit' Capitol One card a week or so ago.

I already knew it would be denied but I did it to see what the reasons would be as Im trying to find out if they are still seeing that PAID tax lien from years ago.

 


What the others have said.

 

I just wanted to add that if the tax lien is still being reported on your credit reports, paid or not, anyone who pulls your credit can see it. I wouldn't waste INQs, submitting credit apps to see if a prospective lender could see it. Just go pull your reports on your own.

-------------------------------------------


Friendly, Supportive & Respectful


Understanding Your FICO Score  |  Credit Scoring 101  |  Common Abbreviations  |  FTC: FCRA Links  |  FTC: FDCPA Links  |  Opt-Out  |  State Resources


"However gradual may be the growth of confidence, that of credit requires still more time to arrive at maturity” ~ Benjamin Disraeli

Regular Contributor
ReVeLaTeD
Posts: 180
Registered: ‎06-14-2008
0

Re: Bogus rejection 'reasons'.


trumpet-205 wrote:

I think what last one meant is that you don't have any history of mortgage.

 

Lenders likes to see you have a variety of loans, not just credit cards alone.


And then deny you for being overextended.

Credit Cards:
| Cabrillo Credit Union MasterCard @ $3,000 | Chevron Visa @ $2,000 | Amazon Store Card @ $1,800 | HSBC 2% Rewards MasterCard @ $950 (redeemed themselves)
New Contributor
MrGoat
Posts: 158
Registered: ‎06-04-2011
0

Re: Bogus rejection 'reasons'.

"Curious why again with cap1, instead of a CLI (I knw these are rare from cap1) jst sayin' since already have a decent limit card with that issuer?"

==================================

Just to see what the result would be.

Im not overly concerned about a few points off my score right now since we're not looking to buy a house or get any loans.

But I am interested to see if that PAID tax lien got removed or if its still being used against me.

I tried for a higher end card to see what would happen.

Pretty much exactly what I expected other than the mortgage thing

:smileyhappy:

EQ FICO 735 as of June 17, 2011
EX FAKO 767 as of April 3rd, 2012
Citibank($10,000@10.74%) Discover($5000) CapitolOne($4500)
USBank($3000) AMEX($2000) BOA($2000) NRAVISA($4000)
ChaseVisa($500)
New Contributor
MrGoat
Posts: 158
Registered: ‎06-04-2011
0

Re: Bogus rejection 'reasons'.

"I just wanted to add that if the tax lien is still being reported on your credit reports, paid or not, anyone who pulls your credit can see it. I wouldn't waste INQs, submitting credit apps to see if a prospective lender could see it. Just go pull your reports on your own.

==============

I might not be being clear enough.

I disputed the lien on the EQ report yet again and it has been 'removed'.

I wanted to see if it was showing as far as what the creditors are seeing...thats why I applied....I WANTED to get the report hit at this point.

EQ FICO 735 as of June 17, 2011
EX FAKO 767 as of April 3rd, 2012
Citibank($10,000@10.74%) Discover($5000) CapitolOne($4500)
USBank($3000) AMEX($2000) BOA($2000) NRAVISA($4000)
ChaseVisa($500)
New Contributor
MrGoat
Posts: 158
Registered: ‎06-04-2011
0

Re: Bogus rejection 'reasons'.

Thanks for all the input guys.

Very helpful :-)

EQ FICO 735 as of June 17, 2011
EX FAKO 767 as of April 3rd, 2012
Citibank($10,000@10.74%) Discover($5000) CapitolOne($4500)
USBank($3000) AMEX($2000) BOA($2000) NRAVISA($4000)
ChaseVisa($500)

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}