Credit Cards

[amomusica80]

This will be a bit lengthy...

I applied for a blue amex card last week but was denied and a few months ago I applied for an increase in my ING direct overdraft protection amount and was denied for that too. The reason being "insufficient length of revolving credit history" and "insuffcient number of revolving credit references"... this is what I was told from ING and I assume Amex might be for the same reason. Last month when I got my credit report some of the suggestions/comments were similar to this...but how am I supposed to improve my revolving credit if I can't get any?

Maybe I'm looking at this the wrong way...I dunno I have a JCP card that I opened just over a year ago and in Feb 07 I opened a best buy card, both of these were approved with no problem..JCP was approved for over $1300 if I remember correctly..and BB for about $1400 or so...and both have been increased to over $2000 since I've had them. I've never asked for a credit increase for either one, I always pay on time and always pay more than the minimum and my balances aren't too high..never maxed out on them.

I would like to get a CC but maybe I'm applying for the wrong type of card? How long is a good amount of time for revolving credit? I don't have any other types of cards, no mortage or car payments or anything like that...though I have 2 additional cards(revolving) on my credit report where I am listed as an authorized user. Last time I checked(about 8 months ago) my credit scores were fine..between 710 and 730...though I know I need to look at them again sometime soon.

What's the chance of me getting a CC in the next few months? What might be the best kind to apply for? And finally, when the CC companies look into my credit reports/scores.. does this drop my score each time?

Thanks

[Timothy]

Yes the hard INQ's drop your score- but not by much 5 to 20 points

What does FICO state for negative reasons?

How is your UTL?

[jbh]

I've read that the Amex Delta Sky Miles might be a bit easier as an intro card to Amex. Lower limit but it would help you develop a relationship with them.

One site you can go to (after you check your fico score) is
whogavemecredit.com (I hope it's ok to post this, it's free and helps people search for card/loan types that people get denied/approved for)

You can even type in your fico scores and see what credit cards people get approved for when they share your similar record.

Have you also tried Discover? I would call Amex and Discover and ask them flat out what they look for after researching the site I listed above.

[amomusica80]

Sorry, what's UTL?

Ok, here are the negatives:

Not enough revolving debt experience, The balances on your bankcard accounts are too high in comparison with your credit limits, Your account balances are too high in comparison with your available credit, There are not enough premium bankcard accounts on your credit report, There are not enough mortgage accounts on your credit report.

I copied those from the credit scores/reports I pulled last month from truecredit... and then it gives me suggestions on what I can do to improve...  Now this is one where I'm a bit confused because it says my account balances are too high..but then says: Having credit available to you is a sign that you are able to manage your finances responsibly. Lenders like to see that consumers have a large amount of credit available to them, but not so much that they could spend more than they could afford to pay back. If you currently have multiple accounts open with high balances, try reducing your balances below 35 percent of your limits to improve your score. If you do not have many open accounts, consider opening a new credit account or asking your creditors to increase your limits in order to improve your credit score.

I never considered my account balances to be high...

[amomusica80]

Thanks, I'll take a look at that website maybe that will give me some good ideas. I haven't tried Discover mainly because I figured it's not accepted in as many places as Amex...or Visa and Mastercard of course. I suppose i'll look into it...but I don't want to end up applying for a bunch of cards since my points will drop each time.

[Timothy]

Get your balances down-

The High UTL (Balances/Credit limits) as a percentage on your revolving accounts is too high.

Don't bother with discover until lower balances are reported.

Pull a FICO complete- the "negative Factors" on page 2 are more accurate than TC. 20% off until the end of the month, 

[amomusica80]

Ok, I can do that. Once they do get down should I try for Amex again or try something else all together? Does it look bad when you try to apply for a CC again when you've already been denied?

Also...I was looking into credit unions, are they worth giving a try as far as CC?

[Timothy]

CU's are great 

FICO de-duplicates INQ's with the same lender in scoring.  It does not look bad if you have corrected the reasons for the intial denial.  

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amomusica80 wrote:

Ok, I can do that. Once they do get down should I try for Amex again or try something else all together? Does it look bad when you try to apply for a CC again when you've already been denied?

Also...I was looking into credit unions, are they worth giving a try as far as CC?

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[gordonbs]

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Timothy wrote:

CU's are great 

FICO de-duplicates INQ's with the same lender in scoring.  It does not look bad if you have corrected the reasons for the intial denial.  

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Can you please verify, point to where this is documented? I just read everything on myFico regarding INQs and they mention shopping periods and such, but it is always as INQs for Auto and Mortgage relate to your FICO score. They never once mention de-duping a CC INQ from the same lender.

[gemgirl222]

You need to keep your balances down.  Is your balance at least 30% of your limit.  If not pay it down.

You don't need to pay it off, just down. (A $1300 limit/balance should be $433 or less.)

Also, Your scores are based on info reported specifically on accounts you've had for the last 24 months.  They need to have had recent activity and have been paid on time as well.

Also, authorized users are no longer getting points for those accounts.  A recent fico change. (I read)

If someone had listed you as an authorized user and had bad credit on that account...it would factor into your score..so it was hurting too many people.(unless the primary card holder had favorable credit.)  Just something to consider.

Good luck.