So I've read and read and read and I try to understand how credit works, but it's starting to make my head explode.
I have a limited credit history. There's an AmEx card with a 30K limit that has reported on my accounts for 20 years because my father added me to it when I was 18. (I no longer have actual access to this card but it seems stupid to remove it from my reports.) 100% positive payments, low balance always paid off. I've never had a mortgage or a student loan or an auto loan. I had some basic credit cards in my early 20's which were always positive but are long closed and dropped off my report.
About 2 years ago someone opened fraudulent accounts in my name which I only discovered a few months ago. Been working to get those removed, but they dropped my FICO score down to the high 500s.
I opened a Target store card, a Capital One card and a Credit One card. All with $300 balances, all paid in full for the past few months.
Where I get confused is that I applied for a Wal*Mart Card and an Old Navy Card, and both were declined. Yet two days ago I applied for a line of credit with Klarna and I was instantly approved for a $1,250 line of credit! I know that Klarna doesn't report to the CRAs but I wanted to buy a nice bed and pay it intallments, and Klarna has a 0% APR if paid in full in 12 months.
As I understand, Klarna is through WebBank. I just can't fathom how I would be declined for a low limit Wal*Mart card, yet be given $1250 from WebBank!
Forgive my naivete, but I'm just trying to figure this all out.