Approvals & Denials

[1harmic1]

Hi

I've read a lot of posts here and don't understand how some ppl with recent collections still get approved for credit cards while others get denied with no collections?  I've read here someone on a $1000/month  fixed income with recent collections got approved for  multiple/major  credit cards.  What is the math in determining who gets approved? There has to be more than the typical uti, payment history etc. 

[recoveringfrombk7]

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@1harmic1 wrote:

Hi

I've read a lot of posts here and don't understand how some ppl with recent collections still get approved for credit cards while others get denied with no collections?  I've read here someone on a $1000/month  fixed income with recent collections got approved for  multiple/major  credit cards.  What is the math in determining who gets approved? There has to be more than the typical uti, payment history etc. 

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Credit scores and credit history.  Low income folks do just fine if they pay their debts, just like folks who earn more.  It can sometimes mean that it can take longer to grow limits.  But, once anyone demonstrates responsibility with higher limits other lenders extend high limits to start.  Takes a long time to build a good profile with lots of depth.  It cannot be bypassed/sped up somehow. 

People with bad credit history are most assuredly not getting good terms.  Getting an approval and getting the best approval are miles apart.

[K-in-Boston]

It also greatly depends on the type of card someone is trying to get.  The bar is MUCH lower for a GameStop store card than it is for a Chase Sapphire Reserve, for instance - $12,000 annual income without also having significant assets and/or the presence of major derogatory information would make the latter extremely difficult.

Rest assured, even those with high incomes and flawless reports get turned down from time to time.

[M_Smart007]

"Rest assured, even those with high incomes and flawless reports get turned down from time to time"

I can 100% confirm this!

[Iusedtolurk]

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@1harmic1 wrote:

Hi

I've read a lot of posts here and don't understand how some ppl with recent collections still get approved for credit cards while others get denied with no collections?  I've read here someone on a $1000/month  fixed income with recent collections got approved for  multiple/major  credit cards.  What is the math in determining who gets approved? There has to be more than the typical uti, payment history etc. 

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Basically the approvals and denials are an art and a science.  Whether you get denied or approved is pretty much profile specific and the algorithm of the particular creditor.

It's always a proactive move to check pre-qualifications to see if your specific profile meets the particular creditors algorithm or uderwriting to see if offers are generated. (keeping in mind that some pre-quals are not 100% approved, some pre-quals are less guaranteed than others).

[CreditInspired]

Hi OP

You've gotten great responses. I'll add one more thing. I take with a grain of salt those who spout recent collections and credit approvals. And so should you. Now, I'm not saying it cant happen, but it comes at a cost--lower SLs, no CLIs, higher interest, and usually no rewards.