Not being able to get instant credit after unlocking report

[Anonymous]

Hello,

I was a victim of identity theft around Dec 2016, so I went ahead and got the Credit monitoring services from Equifax, Transunion and Experian while I was cleaning up the mess, and to keep the credit reports locked (back then it wasn't free). Also, to know if anybody was still using my identity, which they were for almost all of 2017. I ended putting a fraud alert on my credit report with all 3 credit bureaus as well.

I did get rid of all the fraudulent accounts along with all the hard inquiries, but I decided to keep the monitoring service with the credit bureaus, since I knew people were still filling out applications with my information

After almost 2 years, I finally applied for a Retail credit card at the beginning of this month, so I unlocked my credit report with all 3 credit bureaus, and applied. I got a message saying that a decision couldn't be made and that I was going to get a letter in 5 to 7 business days.

The letter normally means you've been denied, and eventually I got the letter stating that they were unable to Authenticate identity of applicant, even though my credit score is 850 points. My credit score was actually listed on the letter, so this was not a credit worthiness decision

I called Transunion, and they confirmed that Wells Fargo in this case was able to retrieve my credit report, which I already knew, and that they are the ones who decide whether to provide the credit or not.

I called Wells Fargo Credit Card Services, and they couldn't really give me a reason as to why I was denied. All they told me is to apply again because my original application had already been closed. Screw that and get another hard inquiry. I just said forget it.

Tonight I tried to apply for a CitiBank card through their Website and again I got a message stating that they needed more time to process my application, and that a letter was going to be mail in 5 to 7 days.

I called CitiBank and tried to explain them that it was me applying for the Credit card, that they could go ahead and proceed with the application. I even have 2 Credit Card accounts with them already in case they wanted to verify my identity.  At the end, the lady just told me that she couldn't process the application right now, that other information needed to be verified, and that they would call me if they had any questions, and that a letter was going to be mailed to me if I didn't get a call.

Well, I know how this story is going to end unfortunately...  my question is to anybody else who also keeps their credit reports locked, have you attempted to apply for a credit card recently, and if so, did you get a decision right away? Having said that, did you do anything besides unlocking your credit report before applying for new credit?

Any information is appreciated.

Thanks

Victor

[thornback]

Sorry about your issues, Victor.  I keep all 3 of mine locked and have had no problems with apps (including instant decisions) so long as I unlock prior -  I generally unlock at least 20 mins before submitting an app tho just to be extra sure the unlocking process has had time to complete (although I believe it's usually instant - i'm just naturally distrustful). 

Is there still a fraud alert on your reports?  If so, perhaps that is causing an issue (I have no fraud alerts so cannot speak on its potential effects).

[Anonymous]

I have opened CCs and deposit accounts via HP after unlocking with mostly instant approvals except for Freedom that needed security verification over the phone, and Ink Cash that needed recon after initial denial. In many cases I would unlock the moment right before hitting submit online or by CSR over the phone, never a problem.

I would look into whether the fraud alerts are still active, fraud alert is the one that stops instant approvals and require lenders to verify applicants.

[Anonymous]

Yes, I have fraud alerts with all 3 credit bureaus, and now that I remember the Transunion guy did mention something about the fraud alert.

The fraud alert does say to contact me, but I didn't get any phone calls from Wells Fargo, and nothing so far from CitiBank

CitiBank does allow me to check the status of my application online, so I am hoping they do contact me at some point rather than just sending me a letter

Personal Statement(s)

ID FRAUD VICTIM ALERT FRAUDULENT APPLICATIONS MAY BE SUBMITTED IN MY NAME OR MY IDENTITY MAY HAVE BEEN USED WITHOUT MY CONSENT TO FRAUDULENTLY OBTAIN GOODS OR SERVICES. DO NOT EXTEND CREDIT WITHOUT FIRST CONTACTING ME PERSONALLY AND VERIFYING ALL APPLICATION INFORMATION AT DAY XXX- XXX- XXXX OR EVENING XXX- XXX- XXXX. THIS VICTIM ALERT WILL BE MAINTAINED FOR SEVEN YEARS BEGINNING 10- 20- 17.

[Anonymous]

Thanks for the info. I will have to contact them and aks them to remove them. No point in having it if I can lock and unlock on demand.

[thornback]

Well, there you go.  That seems like enough to eliminate instant decisions and require additional verification - thus extending the app process.  It could also result in a higher possibility of denial if the creditor is not fully satisified with ID verification - better safe than sorry as far as they're concerned.  You may need to do all of your apps over the phone - from a verifiable number - instead of online from now on and be prepared (and maybe even preemptively offer) to forward documents necessary to verify your identity and address.   It's a hassle and you'll lose out on the thrill of instant decisions but safegaurding your credit from further fraudulant activity is well worth it, IMO.  

EDIT:  Removing is also an option but think about that a bit before doing so  - your fraud issues were relatively recent and a determined trickster could work around credit locks -  I would probably be overly cautious for a while... 

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@Anonymous wrote:

Yes, I have fraud alerts with all 3 credit bureaus, and now that I remember the Transunion guy did mention something about the fraud alert.

The fraud alert does say to contact me, but I didn't get any phone calls from Wells Fargo, and nothing so far from CitiBank

CitiBank does allow me to check the status of my application online, so I am hoping they do contact me at some point rather than just sending me a letter

Personal Statement(s)

ID FRAUD VICTIM ALERT FRAUDULENT APPLICATIONS MAY BE SUBMITTED IN MY NAME OR MY IDENTITY MAY HAVE BEEN USED WITHOUT MY CONSENT TO FRAUDULENTLY OBTAIN GOODS OR SERVICES. DO NOT EXTEND CREDIT WITHOUT FIRST CONTACTING ME PERSONALLY AND VERIFYING ALL APPLICATION INFORMATION AT DAY XXX- XXX- XXXX OR EVENING XXX- XXX- XXXX. THIS VICTIM ALERT WILL BE MAINTAINED FOR SEVEN YEARS BEGINNING 10- 20- 17.

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[Anonymous]

In case if you don't already know, you can get credit lock for free for at least TU (TrueIdentity) and EQ (Lock & Alert) and possibly EX (IDnotify as a continuation of EQ TrustedID subscription after the data breach in 2017), you can cancel TU and EQ paid subscriptions if you still have them.

[Anonymous]

Thank you everyone for your help. I really appreciate it