I agree, I would not be bummed out. You are going to get rejections, but this does not sound like a rejection. Credit One told me the same thing but I was able to provide them with the information and I was approved for a card with a $500 Limit. Your scores will go up, just pay on time and follow the advice given on this board.
Starting Score: TU 477 EQ 533 BK 1/27/2012