Declined for U.S. Bank secured card

[stewart504]

Made the mistake of trying to apply for a U.S, Bank cash+ secured card.  I already have a checking account with U.S. Bank so I thought I would give it a shot since they waive the monthly fee if you have a credit card.  They didn't take the deposit from my checking account and they said I would get an explaination in the mail in 7 to 10 days.  The only card I have right now is a secured card from Capital One with a $200 limit.  Cap 1 won't let me add to my deposit and they said I would have to wait 6 months to see if I get a CLI.  They won't even let me apply for another secured card right now.  

I tried to get a secured card with a larger security deposit from U.S. Bank, but that didn't work.  I should have waited until I got Amex paid off and applied for the Optima card.   Now I can't risk having Amex pull my credit again.  My only choice might be to close the Cap 1 card I have then wait until Cap 1 lets me apply again.

[FicoMike0]

It's not clear to me, did usb turn you down, or defer the answer? If the latter, if contact them and see if there's anything you can do to, sometimes banks run into some documentation issue. I think I'd make an appointment to meet with a usb banker and find out what is so bad with your credit history that they won't even approve a secured card. Post that story here and get some expert advice on how to address it.  If it ends up a no, id look for a bank with a no fee account.

I should have waited until I got Amex paid off and applied for the Optima card.   Now I can't risk having Amex pull my credit again.  

If you plan to pay amex off, the optima is a way back with them. What are they going to find pulling your credit again that you can't risk?

My only choice might be to close the Cap 1 card I have then wait until Cap 1 lets me apply again.

Why close the Capone card? Does it have a fee? Even if it does, is it your only card? Closing your only account won't help your credit. 

The point of a $200 secured card is to demonstrate that you can handle credit. Keep utilization on it under 29% and pif every month. It's not complicated, just make one small charge every month and pay in full, on time!

[Patient957]

USB is known to be fairly conservative.  Try a credit union or ask Cap One if they'll let you open a second larger secured card.

[FicoMike0]

I agree usb is tight. I can't get a cli from them. Still, we're talking a secured card here. You're right about credit unions, but the op finds usb convenient. 

If your elgible, everyone loves navy!

[stewart504]

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@Patient957 wrote:

USB is known to be fairly conservative.  Try a credit union or ask Cap One if they'll let you open a second larger secured card.

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I tried the Cap One pre approval tool and it said they didn't have anything for me at this time.  It's only been 2 months with my current card and from what I heard, I will need to wait a full 6 months then try again.  

[stewart504]

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@FicoMike0 wrote:

I agree usb is tight. I can't get a cli from them. Still, we're talking a secured card here. You're right about credit unions, but the op finds usb convenient. 

If your elgible, everyone loves navy!

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I'm getting several different answers about Navy, but then I'm not sure I have my facts straight.  My dad passed away back in 2008, so I can't ask him.  For years I dismissed Navy because I didn't think I was eligible, but then someone pointed out that my dad was a civilian employee at an Army air field durring WWII.  The Army built the air field in 1942 for the purpose of training pilots.  I found my dad's draft card and he was drafted into the Army in 1944 but he failed the Army physical due to health reasons, so somehow they sent him to work at the airfield as a civilian.  I can't be 100% sure, but I think he was a supply clerk.  It was actually a huge air field at that time with 3 sets of runways and over 100 buildings.  Operations at the air field shut down when the war ended in 1945 and the Army turned the airfield over to the state in 1946.  I know my Grandpa was running a service station and my dad went to work for my Grandpa after he was no longer needed at the air field.  

The war ended on September 2, 1945 and it's unclear if civilians remained employed there or not.  Today, all that's left of the air field is 1 airplane hanger and 1 runway.  The dates make a big difference because if my dad worked there in 1944, he was a civilian employee of the Army, but if it was 1946 he was an employee of the State.  We do know that 100's of civilian employees worked at the air field from 1942 to 1945.  I don't know if civilians continued to work there after the war ended or not.

[FicoMike0]

I'm not sure what the navy rule is even if dad was a civilian army employee. Getting the records is difficult anyway. If I were you, id call them. My experience is that the online app asks for docs, on the phone they do not. If they say you're in, take yes for an answer. Join and open a free checking, put a few dollars in it.

If your situation with usb doesn't improve, move your direct deposit to navy, they value a relationship. I suppose your direct deposit is keeping your usb checking fee free, so if you won't want to move it unless you close the usb checking.

[Jeffster1]

I'm surprised. On the secured side, USBank was known for being fairly lenient. I applied for a USBank secured card a year after my 13 DC and was approved. In addition, I had IIB USBank. My card graduated at one year 7 months. I hardly ever used the card, but it did come in handy to get my checking fee reversed.

[stewart504]

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@FicoMike0 wrote:

It's not clear to me, did usb turn you down, or defer the answer? If the latter, if contact them and see if there's anything you can do to, sometimes banks run into some documentation issue. I think I'd make an appointment to meet with a usb banker and find out what is so bad with your credit history that they won't even approve a secured card. Post that story here and get some expert advice on how to address it.  If it ends up a no, id look for a bank with a no fee account.

I should have waited until I got Amex paid off and applied for the Optima card.   Now I can't risk having Amex pull my credit again.  

If you plan to pay amex off, the optima is a way back with them. What are they going to find pulling your credit again that you can't risk?

My only choice might be to close the Cap 1 card I have then wait until Cap 1 lets me apply again.

Why close the Capone card? Does it have a fee? Even if it does, is it your only card? Closing your only account won't help your credit. 

The point of a $200 secured card is to demonstrate that you can handle credit. Keep utilization on it under 29% and pif every month. It's not complicated, just make one small charge every month and pay in full, on time!

USB is one weird duck!  When I applied for the card online it said something like "sorry but we can't approve you at this time, we will notify you by mail in 7 to 10 days regarding our decision".  I called customer service today and when the rep I talked to looked up my application, he said it had just been approved.  They took the funds from my checking account minutes before I called and he said since it was an internal transfer, the funds had already cleared and it's showing I should have my card in 4 days!  

There are only a few things I would do in the next year. 1. Capone will let me apply for another card in 6 months (4 months from today) but I can't see that would really do anything for me.  2. If Amex invites me to apply for the Optima card, I think I should, not that I really want the Optima card, but it would leave me open to a better Amex card later.  3.  If I'm able to join Navy.  I really don't need another secured card but Navy graduates their cards quickly and in 6 months with my current cards they might give me an unsecured card.  

I have 4 inquiries in the past year, I was turned down by Discover and when I got my Sam's Club Plus membership the lady at the customer service desk put my application in for Sam's credit without me realizing what she was doing and of course I got declined.  The other 2 are my secured cards from Capone and USB.  

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