Denied Target's Credit Card

[AstroNerd]

I applied for a target red card this morning and was denied. I called them to ask why and they told me that I had a lot of inquiries and ratio of debt, etc, etc. I told them that I make $120,000 a year, gornment employee, software engineer and have worked for my current agency for over 12 years. She said my score was 168 or so but I had a lot of recent inquiries and some other ambiguous factors were considered.

Does anyone know what/why with my score and salary, I couldn't be approved even for a 200 or 300 credit limit? Does this business model even seem normal? It appears to make absolutely no sense. The excuse that I have a lot of recent inquiries seems to me bizzare. I was under the impression that the credit bureaus's job was to report my credit payment and history, not to monitor my habits or preferences.

What has the number of inquiries got to do with my ability to pay for my existing obligations? What has that gotten to do with my historical records? I have a Walmart Card with 5000 limit, Amazon with 4500 and JC Penny with 6000, all in good standing.

This is a store card, not even a credit card. No wonder these stores are going out of business in record numbers. I will never step foot in another Target store ever again.

[Anonymous]

I don't think 6 stores closing with 19 opening is 'going out of business in record numbers'.

With that being said, inquiries matter because they show that someone is actively seeking credit. That doesn't necessarily mean anything bad, but some lenders are significantly more sensitive to that than others. Active credit seeking, especially when combined with a low credit score, relatively decent income, and other low-limit store cards may just be setting off their alarms based on their credit algorithms.

Imho yes, the business model absolutely makes sense-especially if someone is willing to cut ties after not getting a $200 starter card.

[Anonymous]

Sorry for your denial.

First, remember that Target does not directly issue this card. It is issued through TD Bank and they make credit decisions on their own as they would any other card they may issue. I understand the frustration, however projecting that directly onto Target may be a little off base.

Secondly, if you’re just looking for the 5% discount by using the card, you might look into the Target debit card. You’d still get the same 5% discount that the credit card offers.

Lastly, the issuing banks want to issue cards just as much as consumers want to get them. The banks don’t make money by not having their cards in consumers hands. It helps from a perspective standpoint to keep this in mind. When credit profiles pose concerns to them, however, they have to hold back though.

If I may offer a suggestion, I’d obtain your true FICO scores and look at your credit reports to see what may have led them to the denial that they offered. Many times the “too many inquiries” denial reason is just a generic “we didn’t like your profile” excuse.

[Anonymous]

Sorry about your denial but I really doubt you not stepping on Target ever again. Good luck with everything!

[sccredit]

Remove the emotion from credit.  TD Bank is in the business of lending and they are the decision maker in this, not Target.  Nobody is entitled to credit.  The lender wasn't comfortable lending you their investor's money for numerous reasons, that is their right.  It isn't personal, it is strictly business.  If you start taking credit personally you will drive yourself crazy.

[AstroNerd]

That is what I am worried. The credit bureaus or banks should not be in the business of predictive analysis based on some vague and ambiguous reasons; they should look at my history of making payments on my obligations, period.

As I wrote, I am a government employee. I have a stable job. I make decent salary. I pay my bills. I am not perfect but my profile should tell them that. If their analysis does not tell them that, then something is very wrong with the model.

As a software engineer, it is obsence to my sense of logic that someone who makes $120,000 a year cannot be approved for even $200 CL store card. Seems like some kind of reverse psychology they are playing or something. That's all I am saying.

[AstroNerd]

Good advice. I have been driving myself up a wall all morning about this. Not worth it.

[Anonymous]

Unfortunately, credit decisions ARE based on predicting one’s ability to pay their debt. Just because someone has paid their debts in the past, doesn’t mean trouble can’t be brewing for the future. It’s all risk analysis.

Job, job stability, and pay rate are not always good predictors. Plenty of government employees on the job 12 years making $120,000 have defaulted on obligations before.

[AstroNerd]

In that case, no-one should be granted credit then because the probability of defaulting applies to everyone, rich and poor. Even those with perfet 850 credit score are not guaranteed to keep their obligations if a life event occurs. Predictive analysis are inherently flawed by nature because nothing is certain about the future. It is just the random nature of life. If it werent so, we'd all be billionaires. Decisions should be guided by both predictivive analysis and human-level reasoning. It is unreasonable that I be denied a store card given my credit profile simply because I have a lot of inquiries on my report.

[Anonymous]

You may want to check your Fico scores. A low score is more than just a ton of inquiries. You have other things at play that need attention.

Also, its important to remember that lenders do not owe you anything and no one is entitled to credit. Look at your credit profile and see what you can do to make yourself more attractive to lenders.