Why am I being denied? What is wrong with me?

[venus0517]

I have has bad credit for ever but all but 1 repo ( happened 4 years ago ) is off my credit report now and 1 have one credit card I have been paying on well for 6 months and I have a student loan and another car I paid for on my credit from a long time ago. SO I have 3 good things and one bad thing. Depending on who you asking my credit score is 670 - 710 so why in the hell am I being denied for a new credit card?? I wanted a credit card with gas rewards but nooooooooooo. I am worried now because I need to buy a new car in 2 months or so and I am dont think I will be approved. I am thinking about going to companies that I made installment payments with ( but didnt report to my credit ) and ask them for a letter of recommendation will that help anything? It might sound crazy to WANT debt but I have been paying cash for everything for years and I am sick of it, I paid my dues, learned my lessons and I want access to credit.

[SunriseEarth]

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@venus0517 wrote:

I have has bad credit for ever but all but 1 repo ( happened 4 years ago ) is off my credit report now and 1 have one credit card I have been paying on well for 6 months and I have a student loan and another car I paid for on my credit from a long time ago. SO I have 3 good things and one bad thing. Depending on who you asking my credit score is 670 - 710 so why in the hell am I being denied for a new credit card?? I wanted a credit card with gas rewards but nooooooooooo. I am worried now because I need to buy a new car in 2 months or so and I am dont think I will be approved. I am thinking about going to companies that I made installment payments with ( but didnt report to my credit ) and ask them for a letter of recommendation will that help anything? It might sound crazy to WANT debt but I have been paying cash for everything for years and I am sick of it, I paid my dues, learned my lessons and I want access to credit.

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You also have a thin file, so the baddies can have a stronger effect.  Have you done a lot of apps recently?  What's your UTIL like on your CC?   Have you pulled your CRs to see how they look (you should be able to get one due to denial).  We'd probably need a bit more info to help you more.

[venus0517]

I have a 300 limit on the one credit card I have. I have used all 300 before but right now my useage is 100. I got my credit report on creditscore.com. Thats where I got all the info. I thought it looked pretty good so I applied for another card and got turned down. I applyed for another card too 5 months ago and was denied so I have 2 inquires on my report. I know my credit history is thin thats why I am trying to beef it up with another credit but no one will give me credit, catch 22.

[mrvoicelc]

There are two routes you may be able to bulk up your file...one is with "subprime" cards and the others is to get a secured card from a prime lender...it will take time but you can do it...as far as your auto loan in two months...credit unions take chances on members when banks will not...I wish you well...I have been where you are...

[gdale6]

SDFCU secured CC is the way to go, join the CU put the money you want for your limit in the savings account then call and ask that the secured card be opened there will be no HP to open the CC, there may be to join the CU. I would also check with your local CUs to see if they can help you with secured CC as well. Since you already have 1 bankcard I would only get 2 secured cards, use them all for next 6 months while working on your baddies and then app for some more unsecured credit.

[venus0517]

I would consider I secured card and just use it to pay monthly bills I already have. But seems like abit of a step back because I already have a credit card. Capital one said they will increase my credit limit in 1 month so that is good. I was approved for their blank check auto loan program but I am afraid its going to be at a high rate. That was a big problem with my repo I was burried in a high rate upside down loan for 72 months. If I had my way I would lease a car or use that Ally bank program where they buy the car at 48 months so I am not stuck with it forever till its junk. Rebuilding credit is stressful.

[trzarocks]

Your thin file and lack of positive accounts is hurting you. 

Start trying to attack that repo to try and get it off your credit report.  There are lots of resources describing this in detail.  Find them.

Get a secured card from a credit union.  I'd suggest a local one where you can develop a relationship with somebody face to face.  Hopefully they'll help you get to the point of the auto loan.  If they offer suggestions, follow them above anything people here write.

Give that a couple months and pay off your $300 card.  Since the limit is so low, it's really easy to make your utilization high.  You want to pay down the card before the statement cuts.  Then go for something pretty easy and useful.  Say a Wal-mart card.  The limit can grow quickly if you treat it well, and you get a monthly FICO from TU which many credit unions use for pulls.  The motivation might help keep you on track.

3 revolving cards seems to be a healthy amount to build up a credit score.  Garden this for a while.

The CU should like to see you use your card well.  It will help a borderline app.

There's always somebody who will loan you on a car.  But you don't want to be in a situation where you're victim to an unfavorable loan.  Put off the car purchase as long as you can.  If it's an absolute need, make sure you can refi without penalties.  There are worst decisions you could make than paying 16% on a modest car for 6 months before you qualify for a better loan.

[Smooth954]

You should invest in a credit report and score from here myfico as that is a better picture of the score the lenders are seeing. Credit.com is a FAKO score and may not be reflecting what the lenders are seeing. I would get all three reports and score as they can vary greatly Depending on what is being reported on each one. Then we may be able to provide you with more advise based on what is on your reports and scores etc..

[tyler84098]

I second this from Smooth954. Certain creditors only report to one or some report to all three bureaus. Also some lenders and CC's only pull from one bureau, like AMEX is EX in most places. Like I had a collection account that was only on TU so I kept getting denied a Discover card because they mainly pull TU. But while I was disputing that collection account on TU, I was able to get 2 AMEX cards because they only pulled EX. So pull the "real 3" to see where everything is placed and reporting.

I also second what someone else has said about a secured card. I was in the same boat as you 6 months ago and opened a USAA Secured CC and within 2 months it jumped my score 50 points. They reflect on your report just as if it were a regular revolving account. It is a catch-22 for sure but you can only prove what you can show with creditors.

Hang in there, you'll get the better cards. It does take time.

[slimpickins]

Also, revolving, unsecured credit like a credit card is often more difficult to obtain than secured, asset backed credit like an auto loan.