Credit Score ZERO? SERIOUSLY?

[Anonymous]

I have a savings and checking acount at a Credit Union sonce 2009. I also  have a bank account at Wells Fargo.

Back in 2004 I filed bankruptcy. It has been discharged and I have no  outstanding debt with no late payments.

I recently applied for a unsecure loan through my credit union. I was  turned down. Then several weeks later, I go back into the same credit union and apply for a SECURE auto loan. Again, even before I fill out the form, I am told that they will only pull the same FICO score number for the UNSECURED loan. I walked out.

I was informed that my Credit Score (provided by Transunion only) was a  ZERO. I argued this with the loan manager and informed her that I had personally checked my credit score online with Transunion back in 2010 and I was at 674. In January of this year my  other two scores with Equifax and Experian were 643 and 678.

I have all the paperwork printed out with all more scores from each bureau.

Needless to  say my small request for a measly $6500 loan was turned down.

The next day I ran my credit score online through Transunion myself. My number was 654!

I even called and spoke with a representative and he informed me that my score was indeed, 654 and that there was no way I could have an actual score of zero.

I also checked my credit score with Credit Karma.com and produced a number of 654.

My Credit Union still informs me to this day that my FICO score is still a ZERO.

How can this be?

I do not have any credit cards and I understand that these banks and credit  services all look at that as a number one factor. I did apply for a Chase card and a Wells Fargo credit card each with a maximum limit of $500. Both turned me down. Wells Fargo also noted that not only do I not have credit (no kidding) but my bi-weekly direct deposit paychecks are not enough to receive a credit card. Really? I gross right around $1500 every month.

I'm not sure what to do. Part of me wants to withdraw all my money out of the Credit Union and Wells Fargo. 

How can I get a credit card and rebuild my credit if I keep getting denied? Even more so, what happens if I go through a car dealership and attempt to buy a car? Will they pull the same FICO number of ZERO? I really don't feel like going through the embarrasment of getting laughed at trying to buy a used car and having the salesman telling me "sorry."

This frustration has been going on all summer and I'm completely burned out trying to figure it all out.

Joining this forum so I can vent a little and more impratntly find some answers is my last hope.

Thanks

Erik

[RnJ]

From what I understand, when you filed/discharged BK, any accounts IIB would negate any credit (depending on your accounts, payoffs, etc), save for any new credit you initiated after.  If you have no active/open revolving or installment accounts on your credit reports, it may indeed produce a "Zero" score pulled by the lender - because you have no open or active accounts, and with only derogatories, this really hurts.  What I don't understand though, is why your credit union denied you a Secured card, since you secure it by funding it yourself. Is there another local CU you can join or talk to and try applying with them?

We went through the same thing, after BK, score appeared "zero", but once we disputed credit reports (and got deleted some of the IIB accounts, we started fresh again and we were able to get a local-bank issued secured card as well as a WF secured card.   I think it also depends on the score method your lender is using, ask them, ask them to show the report to you.  Since denied, you can also get free credit reports, so check them, but I'd recommend only getting them via myFICO (try to get your scores here too, see what it comes up with).  Any way you look at it, you shoud work on getting at least one secured card, and establishing payment history on it, which gives you a score and it will increase as the months go by.  Maybe the CU is using a score method that won't budge as opposed to maybe trying with other forms of secured credit card issuers (the forums here have lots of advice for what type of secured cards to apply for, given your circumstance).

[AndySoCal]

Do you have any active credit accounts that have been open for at least six months and reported reported in the last six months. ? This part of the requirements to receive a FICO score. What Credit Karma or TU is using is either a Vantage or a Risk score which does not have the same requirements as the FICO score.

[Anonymous]

No. I do not have any credit cards nor have I since filing my bankruptcy in '04. Another thing that bugged me was Wells Fargo telling me that my direct deposit paychecks didn't meet their requirements. Apparently, I don't make enough money for them to warrant them giving me a credit card?

I just think that it is VERY misleading that the score you get online from the credit bureaus is different than the FICO score. I mean, what's the point then of even checking your scores with these agencies if that score isn't even used in any of the formulas that decide whether or not you get approved for loans, credit cards or auto loans?



I will definitely be gathering info on this site now that I discovered it.

[Jlu]

Saw the title and lol'd.

Seriously though, just get a secured card or check to see if you're pre-approved for a Cap1 card. That will at least get you started.

[RnJ]

SaveTheWolf,

You said you applied for the WF card, so was that for a secured or NON-secured card?

Is your WF account checking, or savings, or both? (I.e., our local branch just started requiring we keep 1500.00 in the checking account at all times, or suffer fees, or require to open yet another account to satisfy their new requirements).  In our case, we add direct-deposit of a paycheck in small amounts to the checking account, and over time, we don't worry because we are above the requirements.  But, we don't actually draw from checking or savings at WF, we just consider them a savings (we bank with another bank).

So, if you only have one account, say for checking, and you're using that account to draw from, perhaps you're not meeting some of their requirements. (like the 1500.00 minimum at ALL times, this doesn't count what you're drawing to pay bills etc, your account must not be below 1500.00 at any time.  Opening another account just for that purpose may be an option.  Now maybe that's not what they're saying to you at all, but look into their requirements, and if you were applying for a non-secured card, apply for the secured card instead, I think their minimum deposit is 500.00 (you'd have to ask them). Of course, your secured card would be a totally seperate account, just like a credit card.

[Anonymous]

Thanks everyone for the advice.

I have to double-check to see which credit card I applied for. I do have a savings and a checking but keep most of my money from my direct deposit check in my checking. The total in my savings is has been low because I keep the bulk of my savings at my credit union whom I also applied for a card. Haven't heard anything back from the credit union yet.

[Anonymous]

OK...I just took another look at the Wells Fargo credit card that I applied for and it was indeed for a secured card. Here's a excerpt: [This is a great card for establishing credit or rebuilding credit. This card requires a deposit that will be held in a “Collateral Account.” ] Not sure what that means but I also checked the paper I received in the mail and I here's what was indicated: 1) Low total balances in deposit accounts. (2) No revolving account reported within the last 6 months. (3) Insufficient or no recent credit reported.

[RnJ]

SaveTheWolf,

Ok, it sounds like they are saying your checking account always has low balances because maybe you're using it to pay bills, perhaps living paycheck to paycheck? (if that's the case, nothing wrong with that, we've all been there).   From my experience with WF, they are getting a bit more stricter with accounts, meaning, they like to see you keep money in your accounts on a regular basis, and a good amount of money, if you know what I mean (higher available funds on a regular basis).

Is your savings account connected to your checking account?  I.e., does your branch take out say, 25.00 each month out of checking and automatically apply it to your savings account?  I ask, because if so, that is a great way to accrue extra money and keep it there (savings).  It adds up, trust me.  You can specifiy the amount they take out each month, but if you do, be sure your checking account covers that amount every month, and you still have sufficient funds left over in your checking account.

Otherwise, as explained above, they may be changing their account requirements, it should be explained on their website, or in your monthly statements what those requirements are, read them carefully, and whatever you don't understand, call one of the reps and ask questions. If your branch works the same as ours, you should have received in mail a copy of their new requirements, giving you a chance to review and adjust your funds to act accordingly.

One thing you could do:  Offer to open a new checking/savings account (I know I know, yet another darn account to keep track of!), or ask them to modify your current checking/savings account.  The purpose:  to always have the required 1500.00 in it (remember this does NOT count whatever you're drawing from the account).  Additionally, ask to automatically transfer 25.00 (or whatever extra you can afford monthly) to your savings account, and don't touch the savings for any reason.

In order for this to work, you have to have additional money available to deposit so your checking account always has the required 1500.00 each month, and you have the extra 25.00 in the account to transfer to the savings account.  If you are unable to manage the amount in checking, then this entire option may not be feasible to you.

In that case, talk with another bank, or hound your credit union to try to get a secured card from them.  Mind you, with the WF info, I'm basing this on our local WF branch's requirements, your branch might be different, but I doubt it's much different.

It doesn't however, explain why they won't give you a secured card, since the "collateral" they refer to (for a secured card), is your money you deposit into the account for the card.  You could also ask to speak to a different rep, or escalate it to a senior supervisor.

[jsucool76]

I got denied for the Cap1 secured card, so don't feel bad. There are some CUs that will give you a secured card without a credit check (I believe DCU and SDFCU are two that do this. You might have to make a $10-$20  donation to one of their non-profits in order to obtain membership if you don't qualify otherwise, however, if you really are having trouble it's definitely a viable option.

Good Luck