topic Re: CC Rejection Letter from Bank + Reasons: Should I Be Concerned Going Forward With Other Apps? in Credit Cards

CC Rejection Letter from Bank + Reasons: Should I Be Concerned Going Forward With Other Apps?

Anonymous — Tue, 18 Feb 2014 21:45:18 GMT

Hey everyone,

So in my first thread on this forum a few weeks back, I asked about getting started in the world of credit and what credit cards I should get - I first applied with my bank (First Hawaiian Bank) for a Cash Rewards Credit Card that didn't have any qualifications listed or pre-approval links. Upon the advice of everybody, I checked my pre-approval links at the major companies and got a Chase Freedom with a $1,000 limit.

Today however, First Hawaiian Bank sent me my rejection letter with lender pull and reasons as to why I was rejected. It stated that I have an Equifax score of 689 (a nice surprise, higher than my FAKO), and stated the following reasons for my rejection. I wanted to get the community's take on my reasons as I checked my report again and if it's any means for concern going forward:

1. Length of Time Accounts Have Been Established
- Agree, I guess. Average age of accounts is 2 Years and 5 Months as of February 1 and does not count my Chase Freedom

2. Lack of Recent Revolving Account Information
- I agree, I didn't have any sort of credit card before applying for this one

3. Too Many Accounts With Balances
- This is where I'm a bit worried. I have six student loan entries (not six separate accounts) under Fedloan that total $14,660, but I pay them all on time and have done so for the eight months and have always paid more than the minimum. Will this really dock me going forward?

4. Too Many Inquiries Within The Last 12 Months
- Uhh...I had one, and that was to Citi, in September. I applied for the First Hawaiian Card two weeks ago which was before my Freedom application.

What do you guys think? I know other cards pull different firms, but I really want to try for an Amex (maybe Delta) and a Discover It come September when my Citi hard pull falls off at 12 months (I know it only affects your score for six, but just to make sure). Should I be concerned, or is this just First Hawaiian being silly and too vague?

Re: CC Rejection Letter from Bank + Reasons: Should I Be Concerned Going Forward With Other Apps?

Anonymous — Tue, 18 Feb 2014 21:42:03 GMT

go to www.annualcreditreport.com and pull your Equifax report. You can request one free report from each bureau every year. Make sure that what is on there is yours.

Re: CC Rejection Letter from Bank + Reasons: Should I Be Concerned Going Forward With Other Apps?

Anonymous — Tue, 18 Feb 2014 21:42:38 GMT

actually, scratch that- go to equifax directly- you can get a free one right from them due to being declined for a card.

Re: CC Rejection Letter from Bank + Reasons: Should I Be Concerned Going Forward With Other Apps?

Anonymous — Tue, 18 Feb 2014 21:42:59 GMT

@Anonymous wrote:
go to www.annualcreditreport.com and pull your Equifax report. You can request one free report from each bureau every year. Make sure that what is on there is yours.

Hey Fancy, I did that. Everything checks out just fine.

Re: CC Rejection Letter from Bank + Reasons: Should I Be Concerned Going Forward With Other Apps?

indiolatino61 — Tue, 18 Feb 2014 21:48:42 GMT

@Anonymous wrote:
Hey everyone,

So in my first thread on this forum a few weeks back, I asked about getting started in the world of credit and what credit cards I should get - I first applied with my bank (First Hawaiian Bank) for a Cash Rewards Credit Card that didn't have any qualifications listed or pre-approval links. Upon the advice of everybody, I checked my pre-approval links at the major companies and got a Chase Freedom with a $1,000 limit.

Today however, First Hawaiian Bank sent me my rejection letter with lender pull and reasons as to why I was rejected. It stated that I have an Equifax score of 689 (a nice surprise, higher than my FAKO), and stated the following reasons for my rejection. I wanted to get the community's take on my reasons as I checked my report again and if it's any means for concern going forward:

1. Length of Time Accounts Have Been Established
- Agree, I guess. This is 2 Years and 5 Months as of February 1 and does not count my Chase Freedom

2. Lack of Recent Revolving Account Information
- I agree, I didn't have any sort of credit card before applying for this one

3. Too Many Accounts With Balances
- This is where I'm a bit worried. I have six student loan entries (not six separate accounts) under Fedloan that total $14,660, but I pay them all on time and have done so for the eight months and have always paid more than the minimum. Will this really dock me going forward?

4. Too Many Inquiries Within The Last 12 Months
- Uhh...I had one, and that was to Citi, in September. I applied for the First Hawaiian Card two weeks ago which was before my Freedom application.

What do you guys think? I know other cards pull different firms, but I really want to try for an Amex (maybe Delta) and a Discover It come September when my Citi hard pull falls off at 12 months (I know it only affects your score for six, but just to make sure). Should I be concerned, or is this just First Hawaiian being silly and too vague?

Inquiries affect your FICO for 12 months, and stay on your CR up to 24 months. Some lenders weigh 6-month inquiries more heavily. I think that one inquiry is "too many" only because you have only one CC. I doubt that if a person has several open and active CC's, that one inquiry would be a reason for denial (at least I hope so...lol). I don't think you have any reason to be overly concerned. As soon as your profile ages, you will be in a better position. BTW, if you live in Hawaii, I am really jealous (NYC resident)!!! The best of luck to you.

Re: CC Rejection Letter from Bank + Reasons: Should I Be Concerned Going Forward With Other Apps?

Stralem — Tue, 18 Feb 2014 21:50:07 GMT

2 years is a little short, but even still, you can get some amazing cards with that amount of history.

Too many accounts with balances is always a killer. But with student loans, I think you'll have a great shot at a recon with most institutions.

Too many inquiries... Some lenders considering anything more than 1 inquiry a year as "too many", but that's more a problem with their computers. Were a real live human to review your reports, I'd bet my leftmost testicular gonad that they'd approve you with that few inquiries.

In short: The computer can be a bastard. Talk to a live human. (Hint: The backdoor sticky is your friend!)

Re: CC Rejection Letter from Bank + Reasons: Should I Be Concerned Going Forward With Other Apps?

Anonymous — Tue, 18 Feb 2014 21:51:51 GMT

@indiolatino61 wrote:
@Anonymous wrote:
Hey everyone,

So in my first thread on this forum a few weeks back, I asked about getting started in the world of credit and what credit cards I should get - I first applied with my bank (First Hawaiian Bank) for a Cash Rewards Credit Card that didn't have any qualifications listed or pre-approval links. Upon the advice of everybody, I checked my pre-approval links at the major companies and got a Chase Freedom with a $1,000 limit.

Today however, First Hawaiian Bank sent me my rejection letter with lender pull and reasons as to why I was rejected. It stated that I have an Equifax score of 689 (a nice surprise, higher than my FAKO), and stated the following reasons for my rejection. I wanted to get the community's take on my reasons as I checked my report again and if it's any means for concern going forward:

1. Length of Time Accounts Have Been Established
- Agree, I guess. This is 2 Years and 5 Months as of February 1 and does not count my Chase Freedom

2. Lack of Recent Revolving Account Information
- I agree, I didn't have any sort of credit card before applying for this one

3. Too Many Accounts With Balances
- This is where I'm a bit worried. I have six student loan entries (not six separate accounts) under Fedloan that total $14,660, but I pay them all on time and have done so for the eight months and have always paid more than the minimum. Will this really dock me going forward?

4. Too Many Inquiries Within The Last 12 Months
- Uhh...I had one, and that was to Citi, in September. I applied for the First Hawaiian Card two weeks ago which was before my Freedom application.

What do you guys think? I know other cards pull different firms, but I really want to try for an Amex (maybe Delta) and a Discover It come September when my Citi hard pull falls off at 12 months (I know it only affects your score for six, but just to make sure). Should I be concerned, or is this just First Hawaiian being silly and too vague?
Inquiries affect your FICO for 12 months, and stay on your CR up to 24 months. Some lenders weigh 6-month inquiries more heavily. I think that one inquiry is "too many" only because you have only one CC. I doubt that if a person has several open and active CC's, that one inquiry would be a reason for denial (at least I hope so...lol). I don't think you have any reason to be overly concerned. As soon as your profile ages, you will be in a better position. BTW, if you live in Hawaii, I am really jealous (NYC resident)!!! The best of luck to you.

That makes sense! I was wondering what was weighed more heavily. And thank you! Irony is, I'm trying to move to NYC! This is the reason I joined this forum, really - because people like you have such an experience (look at all your cards!) I get a lot of wisdom!

Re: CC Rejection Letter from Bank + Reasons: Should I Be Concerned Going Forward With Other Apps?

Creditaddict — Tue, 18 Feb 2014 21:55:05 GMT

I treat denial letters as a way to get a credit score and a credit report... reasons are pointless to me because they are required by law to give you reasons, so the varience of weight each reason weighed into your actual denial could be a lot... most creditors will list 4, usually computer generated.

Re: CC Rejection Letter from Bank + Reasons: Should I Be Concerned Going Forward With Other Apps?

Anonymous — Tue, 18 Feb 2014 21:55:50 GMT

@Stralem wrote:
2 years is a little short, but even still, you can get some amazing cards with that amount of history.

Too many accounts with balances is always a killer. But with student loans, I think you'll have a great shot at a recon with most institutions.

Too many inquiries... Some lenders considering anything more than 1 inquiry a year as "too many", but that's more a problem with their computers. Were a real live human to review your reports, I'd bet my leftmost testicular gonad that they'd approve you with that few inquiries.

In short: The computer can be a bastard. Talk to a live human. (Hint: The backdoor sticky is your friend!)

I think I mistyped that - my total age of account is actually 3 Years, 5 Months. Average age was the 2 Years and 5 Months, I don't know which one actually does weigh more.

Hmm, interesting. Should I expect that to be a reason to get used to going forward? I'm just imagining the day I apply for an Amex and I'd have to recon because they'd be like "look at all of these open accounts..."

Right! Like the poster above, I believe that. And that's quite the bet! That's an important part of the human anatomy.

Thanks! I know I'll have to do that going forward...don't even want to recon for this card, though. It's not a great (or even good) general spend card and if I'm being a bit superficial, it's kind of ugly.

Re: CC Rejection Letter from Bank + Reasons: Should I Be Concerned Going Forward With Other Apps?

SunriseEarth — Tue, 18 Feb 2014 21:59:15 GMT

From what it looks like, you just have a lack of CC history. Garden that Freedom for 6 months and you should be good for any card you want.

I would call up First Hawaiian Bank and recon. You clearly have a good payment history on your SLs. You just don't have a history with a CC.

Re: CC Rejection Letter from Bank + Reasons: Should I Be Concerned Going Forward With Other Apps?

SunriseEarth — Tue, 18 Feb 2014 22:01:02 GMT

@Creditaddict wrote:
I treat denial letters as a way to get a credit score and a credit report... reasons are pointless to me because they are required by law to give you reasons, so the varience of weight each reason weighed into your actual denial could be a lot... most creditors will list 4, usually computer generated.

+1. The reasons given are often totally arbitrary. On a thin file, INQ will have a much stronger effect, however.

Re: CC Rejection Letter from Bank + Reasons: Should I Be Concerned Going Forward With Other Apps?

Anonymous — Wed, 19 Feb 2014 01:48:38 GMT

Thanks everyone, I definitely feel better after getting this settled. I just reread the letter - the reasons I gave in the original post was what Equifax said "adversely affected my credit score" (which seems to me like just a lack of history as you guys said). The top reason given by First Hawaiian Bank said "Length of employement" - I've been employed for 7 months.

So in closing, it looks like I just need to garden throughout the year and...not get fired.

Re: CC Rejection Letter from Bank + Reasons: Should I Be Concerned Going Forward With Other Apps?

toi34 — Wed, 19 Feb 2014 04:41:15 GMT

In my experience those "reasons" are just generic; the REAL reason is that your credit score is not high enough.While 680+ is commendable, you probably need a minimum of 720. In 2-3 months try again -- those "reasons" will still be there, but if your score is high enough, they won't be used against you.

Re: CC Rejection Letter from Bank + Reasons: Should I Be Concerned Going Forward With Other Apps?

sailor_mercury — Wed, 19 Feb 2014 04:59:53 GMT

@SunriseEarth wrote:
From what it looks like, you just have a lack of CC history. Garden that Freedom for 6 months and you should be good for any card you want.

I would call up First Hawaiian Bank and recon. You clearly have a good payment history on your SLs. You just don't have a history with a CC.

RECON!!! RECON!!!! RECON!!!

Student loans are issued in 2 parts every year subsidized and unsubsidized. If you pull 2 loans every year for 4 years you leave a 4 year school with 8 loans! Or you can go to school more slowly, do one loan a year, etc.... Multiple student loan are VERY common. I bet if they do a manual review of your application you will be approved. You've taken the hit on the HP. It doesn't hurt to call them and ask them to reconsider their decision.

Re: CC Rejection Letter from Bank + Reasons: Should I Be Concerned Going Forward With Other Apps?

AndySoCal — Wed, 19 Feb 2014 05:38:38 GMT

Here is a link to assist you in understanding the what the score reasons mean.

http://www.scoreinfo.org/FICO-SCORES/Pages/Score-Factors.aspx

Hope this helps

Re: CC Rejection Letter from Bank + Reasons: Should I Be Concerned Going Forward With Other Apps?

Anonymous — Wed, 19 Feb 2014 13:17:35 GMT

@sailor_mercury wrote:
@SunriseEarth wrote:
From what it looks like, you just have a lack of CC history. Garden that Freedom for 6 months and you should be good for any card you want.

I would call up First Hawaiian Bank and recon. You clearly have a good payment history on your SLs. You just don't have a history with a CC.
+1

RECON!!! RECON!!!! RECON!!!

Student loans are issued in 2 parts every year subsidized and unsubsidized. If you pull 2 loans every year for 4 years you leave a 4 year school with 8 loans! Or you can go to school more slowly, do one loan a year, etc.... Multiple student loan are VERY common. I bet if they do a manual review of your application you will be approved. You've taken the hit on the HP. It doesn't hurt to call them and ask them to reconsider their decision.

I haven't read into this a lot but (and others feel free to chime in), but wouldn't doing a recon result in another hard pull? I'm a bit weary of the idea as that's a possibility + my first month hasn't been reported on my CC + I'm a few weeks into garden mode.

Oh, and First Hawaiian Bank doesn't have a backdoor number...they just gave me the number for a "loan representative"

Re: CC Rejection Letter from Bank + Reasons: Should I Be Concerned Going Forward With Other Apps?

Anonymous — Wed, 19 Feb 2014 21:59:58 GMT

@AndySoCal wrote:
Here is a link to assist you in understanding the what the score reasons mean.

http://www.scoreinfo.org/FICO-SCORES/Pages/Score-Factors.aspx

Hope this helps

That does help - I'll finally know what all of this means when rejection happens (hopefully not much at all!)

I slept on the idea doing a recon and still don't know if I want to do...asked a friend and he said he tried with the number on this letter and they hard pulled him about eight months ago, so I have no idea if policy is different.