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Frequent Contributor
watch44
Posts: 322
Registered: ‎09-18-2013

Rebuilding after 5 years, 1st rejection, what now?

First of all, great forum you guys. I've learned so much already.

 

On to my dilemma. I recently applied for a Barclaycard Ring after living off cash/debit for the past 5 years and was rejected. Called the recon number, rejected. So I'm coming on this forum to get some advice before freaking out and getting a bunch of hard pulls on my report or getting a worse card than I can realistically get.

 

Some background is in order. About 5 years ago, I quit my dead-end job and was basically sitting at home depressed for 6 months. The result was 90 days late on 5 credit cards (all closed) and 2 student loans. But I got my act together and have not been late since, and as of July of last year, all my credit cards and one of my student loans were paid off. Right now, all I have is a 4K student loan. I currently make 42K a year, single, rent, with no car payment. My discretionary income (- rent & expenses) is 1K a month.

 

Currently, I'm at 714 Equifax and 680 TransUnion, but I've only personally seen the Equifax report. 

 

My Barclaycard rejection letter (TransUnion) listed these reasons:

1. Too many accounts with balances

2. Lack of recent revolving account information

3. Number of accounts with delinquency

4. Serious delinquency

 

The only balance I have is 1 student loan (broken down as 3 installment loans on my Equifax report). All other accounts are closed with a 0 balance.  Why is this my worst offence? Also, since these reasons are ranked from worst to least, what does that mean for me? Is this good or bad news?

 

What should be my next step? My 2nd choice was a Citi Simplicity card. Should I gamble and use my 2nd hard pull of the month for the Citi Simplicity or just not waste my time and go directly to secured apps?

 

As for secured cards, I bank at Wells Fargo, so the WF secured would be my 1st choice. 2nd is BoA secured. 3rd is either USAA or NFCU (ex-military so I qualify, but I don't like these since they don't graduate to unsecured cards). 

 

Thanks in advance for any help you guys can give me. :manhappy:

 

  (Hover over pics for details) 
FICO:  TU 731 (05/14/14)   EX 749 (04/24/14)   EQ 684 (02/05/14)   Goal 700
FAKO:  TU 761 (05/20/14)   EX 761 (05/20/14)   EQ 743 (05/20/14)
Moderator
Shogun
Posts: 12,883
Registered: ‎04-15-2011

Re: Rebuilding after 5 years, 1st rejection, what now?

You need to crawl just a bit before you walk.  Unfortunately, you need credit to get credit.  I'd start with a small secured card and garden it for a few months.  Then a store card or two.  

 

Also, the ones that are paid, the old baddies, have you tried to GW them?


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July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
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Current scores after adding $81K in CLs and 2 new cars since July 2013
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Community Leader
Senior Contributor
myjourney
Posts: 25,241
Registered: ‎02-07-2013

Re: Rebuilding after 5 years, 1st rejection, what now?


watch44 wrote:

First of all, great forum you guys. I've learned so much already.

 

On to my dilemma. I recently applied for a Barclaycard Ring after living off cash/debit for the past 5 years and was rejected. Called the recon number, rejected. So I'm coming on this forum to get some advice before freaking out and getting a bunch of hard pulls on my report or getting a worse card than I can realistically get.

 

Some background is in order. About 5 years ago, I quit my dead-end job and was basically sitting at home depressed for 6 months. The result was 90 days late on 5 credit cards (all closed) and 2 student loans. But I got my act together and have not been late since, and as of July of last year, all my credit cards and one of my student loans were paid off. Right now, all I have is a 4K student loan. I currently make 42K a year, single, rent, with no car payment. My discretionary income (- rent & expenses) is 1K a month.

 

Currently, I'm at 714 Equifax and 680 TransUnion, but I've only personally seen the Equifax report. 

 

My Barclaycard rejection letter (TransUnion) listed these reasons:

1. Too many accounts with balances

2. Lack of recent revolving account information

3. Number of accounts with delinquency

4. Serious delinquency

 

The only balance I have is 1 student loan (broken down as 3 installment loans on my Equifax report). All other accounts are closed with a 0 balance.  Why is this my worst offence? Also, since these reasons are ranked from worst to least, what does that mean for me? Is this good or bad news?

 

What should be my next step? My 2nd choice was a Citi Simplicity card. Should I gamble and use my 2nd hard pull of the month for the Citi Simplicity or just not waste my time and go directly to secured apps?

 

As for secured cards, I bank at Wells Fargo, so the WF secured would be my 1st choice. 2nd is BoA secured. 3rd is either USAA or NFCU (ex-military so I qualify, but I don't like these since they don't graduate to unsecured cards). 

 

Thanks in advance for any help you guys can give me. :manhappy:

 


Welcome to the forum 

Smart move to join before making a bad move by continuing to apply for more cards and piling up the HP's  Yay

At this point you need some reporting TL's and secured in this case is the way to go:smileywink:

 

I like your thoughts of which secured cards to get and would go with the 2 that graduate.

Use them for 6-9 months while you start a GW campaign to attempt to remove the lates from your CR's while building positive history 

After that time you maybe in a position for cards like Discover and Freedom and Cap1

 

The order Barclay listed for denial reason means nothing it really all boils down to the negatives on your file and you made one critical mistake and that was you went for one of the best low int% cards on the market which is for excellent credit .........no harm no problem it was only one HP 

"Intelligence plus character--that is the goal of true education"
Cap1 EO link below
http://lmgtfy.com/?q=Capital+One+CEO+email+address+#seen
Last 5 apps 6/6/13
Community Leader
Senior Contributor
myjourney
Posts: 25,241
Registered: ‎02-07-2013

Re: Rebuilding after 5 years, 1st rejection, what now?


Shogun wrote:

You need to crawl just a bit before you walk.  Unfortunately, you need credit to get credit.  I'd start with a small secured card and garden it for a few months.  Then a store card or two.  

 

Also, the ones that are paid, the old baddies, have you tried to GW them?


Ok you type faster than me Lol

Hi ya Shogun:smileywink:

"Intelligence plus character--that is the goal of true education"
Cap1 EO link below
http://lmgtfy.com/?q=Capital+One+CEO+email+address+#seen
Last 5 apps 6/6/13
Frequent Contributor
watch44
Posts: 322
Registered: ‎09-18-2013

Re: Rebuilding after 5 years, 1st rejection, what now?


Shogun wrote:

You need to crawl just a bit before you walk.  Unfortunately, you need credit to get credit.  I'd start with a small secured card and garden it for a few months.  Then a store card or two.  

 

Also, the ones that are paid, the old baddies, have you tried to GW them?


I was hoping to start off on a slow shuffle, but if I have to crawl, that's what I'm going to do.   :smileyhappy:

 

Would a GW campaign be worthwhile when they'll come off my record in 2 years anyway? I guess that's why I listed the reasons for my rejection. I'm not quite sure what's hurting me more, not having credit right now or being delinquent in the past. But it behooves me to consider all options right now, so I'll definitely put that at the top of my list anyway. Also, I hadn't considered the store card route (are those easier to get?). Thank you for the quick response, Shogun. 

 

  (Hover over pics for details) 
FICO:  TU 731 (05/14/14)   EX 749 (04/24/14)   EQ 684 (02/05/14)   Goal 700
FAKO:  TU 761 (05/20/14)   EX 761 (05/20/14)   EQ 743 (05/20/14)
Frequent Contributor
watch44
Posts: 322
Registered: ‎09-18-2013

Re: Rebuilding after 5 years, 1st rejection, what now?


myjourney wrote:

Welcome to the forum 

Smart move to join before making a bad move by continuing to apply for more cards and piling up the HP's  Yay

At this point you need some reporting TL's and secured in this case is the way to go:smileywink:

I like your thoughts of which secured cards to get and would go with the 2 that graduate.

Use them for 6-9 months while you start a GW campaign to attempt to remove the lates from your CR's while building positive history 

After that time you maybe in a position for cards like Discover and Freedom and Cap1

The order Barclay listed for denial reason means nothing it really all boils down to the negatives on your file and you made one critical mistake and that was you went for one of the best low int% cards on the market which is for excellent credit .........no harm no problem it was only one HP 


 

I'll definitely adjust my expectations going forward. And you may not have been as quick as Shogun, but you were more thorough. I respect that.  :manvery-happy:

 

Nest step: secured cards and GW campaign. Thanks guys.

  (Hover over pics for details) 
FICO:  TU 731 (05/14/14)   EX 749 (04/24/14)   EQ 684 (02/05/14)   Goal 700
FAKO:  TU 761 (05/20/14)   EX 761 (05/20/14)   EQ 743 (05/20/14)
Community Leader
Senior Contributor
myjourney
Posts: 25,241
Registered: ‎02-07-2013

Re: Rebuilding after 5 years, 1st rejection, what now?


watch44 wrote:

myjourney wrote:

Welcome to the forum 

Smart move to join before making a bad move by continuing to apply for more cards and piling up the HP's  Yay

At this point you need some reporting TL's and secured in this case is the way to go:smileywink:

I like your thoughts of which secured cards to get and would go with the 2 that graduate.

Use them for 6-9 months while you start a GW campaign to attempt to remove the lates from your CR's while building positive history 

After that time you maybe in a position for cards like Discover and Freedom and Cap1

The order Barclay listed for denial reason means nothing it really all boils down to the negatives on your file and you made one critical mistake and that was you went for one of the best low int% cards on the market which is for excellent credit .........no harm no problem it was only one HP 


 

I'll definitely adjust my expectations going forward. And you may not have been as quick as Shogun, but you were more thorough. I respect that.  :manvery-happy:

 

Nest step: secured cards and GW campaign. Thanks guys.


Thanks...:smileylol:

It just takes a little time and you will be on your way to more approvals and better cards 

We have a saying around here:

"good credit is a marathon not a sprint" :smileywink:

"Intelligence plus character--that is the goal of true education"
Cap1 EO link below
http://lmgtfy.com/?q=Capital+One+CEO+email+address+#seen
Last 5 apps 6/6/13
Regular Contributor
themizlyne
Posts: 185
Registered: ‎07-06-2013

Re: Rebuilding after 5 years, 1st rejection, what now?

If you can get NFCU membership - that is where you should start. Apply for nrewards or gorewards cards and if needed they'll approve for secured instead. I understand that they do graduate. You can also check preapprovals from Capital One - might get an unsecured or might not. But there is a start for you.


Valued Member
Kalamazoo2714
Posts: 56
Registered: ‎04-29-2012

Re: Rebuilding after 5 years, 1st rejection, what now?

I'm gonna give you a couple places to try. First as other members said try Capital One. But I would try their regular Platinum card for average credit first, or you can try their secured but its your choice their pretty easy though for the regular unsecured platinum card. It has a small annual fee that is waived the first year. You get in the credit steps program with that card. They give you a $300.00 limit and if you make 6 on time payments without going over limit they guarantee to increase you in the seventh statement cycle. Also try Fingerhut . Their stuff is real pricey but they give credit to anybody and if you don't qualify for their revolving account they give you an installment loan for 6 mos with a $150 installment loan but you have to ail them a $30.00 down payment first. After you pay that purchase off they review you for an revolving card with a limit. They only report to Equifax and Transunion right now, but will start reporting to Experian by Decenver. Then finally I don't know where you do your banking, but if you join a credit union and they are mostly relationship based. They will give you like a $500 Visa card limit most of them, or if you have a checking account many have unsecured credit lines with overdraft protection that start out usually with a $300.00 or higher limit. You access by overdrawing your account, funds transfer, debit card withdraw, or direct check access. Many credit unions are community based now. Based on living in a certain county. It's better to join a smaller credit union with less than $500,000,000 in assets than a larger credit union. So those are some options for you.
Contributor
rockinn8
Posts: 92
Registered: ‎08-08-2013

Re: Rebuilding after 5 years, 1st rejection, what now?

Do you know which bureau they pulled? Remember you can get a free report from which ever bureau they pulled when denied credit, it's always good to see if there were any changes to your CR you didn't know about


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