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Denied by Target; approved for $5,000 by Credit Union

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Denied by Target; approved for $5,000 by Credit Union

Well, this is interesting.  I was approved for a $5,000 Visa credit card by my credit union.  Two days later, Target declined.  They said my Equfax score of 659 was not high enough and that my 1 year of on-time car payments and 2 years of my Capital One was not enough.  Rats, I wanted that 5 percent discount since I grocery shopping there at times.  At least I used to.  Should I dispute this after the CU reports my new card and my score rises?
As you can see, I like to focus on the negative.Smiley Tongue

 

Message 1 of 14
13 REPLIES 13
Super Contributor

Re: Denied by Target; approved for $5,000 by Credit Union

It probably won't report before your timeframe for disputing expires. You can just get the Target Debit card for the 5%.








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Message 2 of 14
Valued Contributor

Re: Denied by Target; approved for $5,000 by Credit Union


@GoWings wrote:

Well, this is interesting.  I was approved for a $5,000 Visa credit card by my credit union.  Two days later, Target declined.  They said my Equfax score of 659 was not high enough and that my 1 year of on-time car payments and 2 years of my Capital One was not enough.  Rats, I wanted that 5 percent discount since I grocery shopping there at times.  At least I used to.  Should I dispute this after the CU reports my new card and my score rises?
As you can see, I like to focus on the negative.Smiley Tongue

 


I'm guessing you meant to say that you would request reconsideration aka "recon" from Target and not "dispute."  And its unlikely your score will rise immediately after the new card reports because you've now incurred a new account penalty i.e. your Average Age of Accounts is lower and your Age of Youngest Account is reset to 0 months.





Message 3 of 14
Established Member

Re: Denied by Target; approved for $5,000 by Credit Union

I don't think I will be penalized for getting an additional $5,000 credit line.  That will increase my credit line to $7,500, which is way more than I need.  I'm assuming that ratio will increase my score.  I have a little over $100 balance on my card now.  I also realized that I have 12 inquiries that will fall off my report by Nov. 1.  They got put on when I bought my car. That should help too.  Am I right?

Message 4 of 14
Established Member

Re: Denied by Target; approved for $5,000 by Credit Union

I guess I'll wait unti January 2019 to reapply. My new CC and credit line will be there, the hard inquiries from my car loan will be gone, and I should have a 0 balnce on my revolving debt by then.  What do you think?

Target has such cheap milk though.

Message 5 of 14
Valued Contributor

Re: Denied by Target; approved for $5,000 by Credit Union


@Brian_Earl_Spilner wrote:

It probably won't report before your timeframe for disputing expires. You can just get the Target Debit card for the 5%.




Message 6 of 14
Moderator

Re: Denied by Target; approved for $5,000 by Credit Union

As mentioned upthread OP, the Target Debit card is another alternative. Unfortunately, TD Bank, the issuer of the Target CC, does not reconsider system-declined applications.

Optionally, you can reapply at a later timeframe if you wish.
Message 7 of 14
Established Member

Re: Denied by Target; approved for $5,000 by Credit Union

Do you think January would be too soon to reapply for the Red Card? Should I wait longer?  I'm not comfortable attaching my bank account to another card.

Message 8 of 14
Mega Contributor

Re: Denied by Target; approved for $5,000 by Credit Union


@GoWings wrote:

Do you think January would be too soon to reapply for the Red Card? Should I wait longer?  I'm not comfortable attaching my bank account to another card.


What I did is get a new bank account (one of the many many free checking accounts) and put "enough" money in there, and link the debit card to that.   Target debit requires a PIN (it's chip & pin) and is only usable at target, so I wouldn't worry about someone draining your account through fraud or theft

Message 9 of 14
Established Contributor

Re: Denied by Target; approved for $5,000 by Credit Union


@GoWings wrote:

I don't think I will be penalized for getting an additional $5,000 credit line.  That will increase my credit line to $7,500, which is way more than I need.  I'm assuming that ratio will increase my score.  I have a little over $100 balance on my card now.  I also realized that I have 12 inquiries that will fall off my report by Nov. 1.  They got put on when I bought my car. That should help too.  Am I right?


Yes, your scores will take a hit when your new CU Visa hits your report. Average age of account is definitely a metric that is factored into the FICO algorithm and assuming you only had that one CapOne and a car loan, your AAoA will drop by 1/3 to ~12 months. While you may gain a boost on the overall utilization %, that may not completely compensate for a new credit penalty. 

 

As for the car loan inqs falling off, you mentioned 1 year of car loan payments so I assume you got your loan (and all those HPs) around 1 year ago. HPs fall off after 2 years so they will remain on your report for another year. They start counting less after 6 months and stop counting towards your score after 1 year. But if they are all for a car loan and all incurred within a short period then FICO already treats them as just 1 inq so the effect of them not counting anymore may be minimal. 

Message 10 of 14
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