Credit Cards Center Credit cards from our partners
Reply
Established Member
Posts: 28
Registered: ‎04-23-2008
0

Re: Is it time for a new Credit Card?


haulingthescoreup wrote:


Sorry to hear that. Her score looks decent, so I'm guessing it was an income issue or thin, short file.

Did they give her the reason for the decline?



Here is their reply...

Your consumer credit bureau score from Experian is too low (See below)

Number, type, and recency of inquiries (Experian)

Minimal or low credit limits (Experian)

The amount of spending on your bank and retail credit card accounts over the last twelve months is too low. (Experian)

Your consumer credit bureau score mentioned above was determined using a scoring system that evaluated the information in your file at the consumer reporting agency named above. The following are the primary factors in your credit report that affected your credit bureau score:

Length of time accounts have been established.

Proportion of revolving balances to revolving credit limits is too high.

Too many accounts with balances.

Too many inquiries last 12 months.
Established Member
Posts: 28
Registered: ‎04-23-2008
0

Re: Is it time for a new Credit Card?

Would the best approach be to just write a reconsideration letter?
Moderator Emerita
Posts: 28,098
Registered: ‎04-01-2007
0

Re: Is it time for a new Credit Card?

It seems to be the universal experience that AmEx doesn't do recons.

It would be useful for her to address the reasons for the decline:

  • Length of time accounts have been established. --All she can do on this is get older, I'm afraid.

  • Proportion of revolving balances to revolving credit limits is too high. --Her util is too high. Many college students - and others - don't realize that continually carrying balances is a really bad idea. She should pay down her cards until her overall util is under 10%.

  • Too many accounts with balances. --She should only allow one or two cards to have balances. This is tough, I know, when you have very few.

  • Too many inquiries last 12 months. --Again, she'll have to wait this out. Are all the inqs really recent? Or are some almost 12 months old?

    Really, this is a typical list of negatives for college students with few cards and without a lot of disposable income. (It looks quite similar to my 20-year-old's reports!) She probably needs to hold off on AmEx until she has more history, although maybe the Student Blue card would be worth it after getting her balances down and under control. Once this is addressed, she would probably have better luck with other companies, like Bank of America, or again, student cards.
  • * Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
    FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
    Established Member
    Posts: 28
    Registered: ‎04-23-2008
    0

    Re: Is it time for a new Credit Card?

    If she wants to try for the Student Amex does she need to reapply or can she ask to be considered for the student card in her reconsideration letter or by phone?

    All of the inquiries are recent.
    Moderator Emerita
    Posts: 28,098
    Registered: ‎04-01-2007
    0

    Re: Is it time for a new Credit Card?


    Texcalibur wrote:
    If she wants to try for the Student Amex does she need to reapply or can she ask to be considered for the student card in her reconsideration letter or by phone?

    All of the inquiries are recent.


    I'm completely out of my territory here, I'm afraid.

    Other AmEx people, would they use the same inq to apply for a different product? Alternatively, would the inq be de-duped?

    (Although I do think that for AmEx, she needs to reduce the util first.)
    * Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
    FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
    Established Member
    Posts: 28
    Registered: ‎04-23-2008
    0

    Re: Is it time for a new Credit Card?

    She only has one credit card now and PIF each month.

    I think I read somewhere that you should pay early or twice a month in order for the account to report a zero balance, I'm not sure how that works.
    Moderator Emeritus
    Posts: 6,794
    Registered: ‎09-29-2007
    0

    Re: Is it time for a new Credit Card?



    haulingthescoreup wrote:

    Other AmEx people, would they use the same inq to apply for a different product? Alternatively, would the inq be de-duped?


    No, they won't use the same INQ.  They'll pull a new one if it's not the same day.
     
    Also, Blue for Students is not as easy to get as one might think.  I don't even know why they call it a student card.
     
    If you're baddie-free, the main thing you want to concentrate on in order to get an Amex is your revolving utilization.  In spite of what the denial letter says, they really don't care much about lots of inquiries or short credit history.  We see approvals with both of those characteristics all the time.
     
    They are picky, however, about utilization.  Get it low, low, low before you apply for an Amex.
     
    ----------------------------
    App free since 7/11/08.
    TU 744 / EX 710 / EQ 694 (Starting to slip. Smiley Surprised )
    Established Member
    Posts: 28
    Registered: ‎04-23-2008
    0

    Re: Is it time for a new Credit Card?

    Do inquiries stay on the report for 1 or 2 years?

    Does anyone have the link to the thread that talks about how or when to pay the card balance in order to have a 0 balance reported.

    Her only card had a $500. limit (she just got CLI to $1,000.) and she has been charging on the card all month then paying in full when the bill came in.
    Established Contributor
    Posts: 709
    Registered: ‎04-20-2008
    0

    Re: Is it time for a new Credit Card?

    They stay on for 2 years.  I dont have the link your talking about, but your supposed to pay it down to 7% a few days before the cc reports to the credit bureaus.  then pay it to 0 before your due date. 
    "WTB Access Number"
    Established Member
    Posts: 28
    Registered: ‎04-23-2008
    0

    Re: Is it time for a new Credit Card?

    On the ScoreWatch report from MyFICO when it shows the inquiries it only shows the last 12 months.

    Why would it not show the full 2 years?
    Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
    † Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

    Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

    IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

    FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.