Decent Score...Still Getting Denied

Anonymous · ‎08-31-2008

I have Tu of 629: Ex:641 and Equifax of 671...These are pretty new scores. Each score recent went up an average of 10 points, oddly enough, due to a balance increase on my Capital One Card. But my problem is I'm still being denied credit. I do have 3 collections and an old credit card that got out of hand when I was disabled is showing way too many late payments. I called the c.c company yesterday, and they said that if I pay the balance, then it'll be deleted from my report. But, it's due to fall off next June anyway.

Also, I'm currently paying on one of collections accounts which is a medical bill. Everything is pretty much due to fall off within the next 2 years.

I also have a Paid Public Judgement showing.

My overall question is, why am I still getting denied? I currently have 4 cards that I'm current on, along with an auto loan.

I'm new here, so excuse me if these are issues that have already been addressed.

(this is a repost from Credit Cards forum)

Anonymous · ‎08-31-2008

What are your balances on those cards/loan?

Economic times are tough. You have a PR and unpaid collections/charge offs.

Creditors are tightening their grip on who they let in. Don't take it personal.

When the economy starts booming again, you'll be able to get nearly any card you want. Money will get loose and CC companies will want in on the action, meaning they are going to loosen their policy of who is approved and who isn't.

In today's world, the more available credit you have, the more of a risk you are. Many have had to resort to living off their cards to make ends meet.

ambitious1118 wrote:

My overall question is, why am I still getting denied? I currently have 4 cards that I'm current on, along with an auto loan.

Message Edited by sidewinder on 08-31-2008 09:17 PM

want2b_800s · ‎08-31-2008

If only I could be so lucky. My scores are TU 646, EQ 612 EX 643 and I don't have any collections. I have a student loan 30-day from Jan '02 (which I believe the boards here say doesn't count in the score after 2 years -- obviously in my case they made an exception.)

I have a six figure job, which I've held for over 10 years, and which is verifiable. My total debt is not even 10% of my income, yet I'm still a FICO loser. I tell you sometimes this is all almost too much. I never miss payments, yet still have a 615. I must be Fico blacklisted or something because based on my history, I have lower scores than those who just flat out stop paying their bills and have multiple collections. I guess my score would go up if I just stopped paying my bills and started having everything go to collections.

I give up but good luck to the rest of you. ugh!!!!!

Anonymous · ‎08-31-2008

Well, my balances are about an average of 50% of the credit limit. And I owe about $11K on my car loan.

to be honest, I kind of thought about the economic times and thought that may have something to do with it. Guess I'll just have to wait it out and see. In the mean time, I'm going to try and see if I can get some of the collections removed from my report. I copied one of the letters someone used on here. It doesn't hurt to try.

Thanks for the reply....

MsKiwi · ‎09-01-2008

ambitious1118 wrote:
Well, my balances are about an average of 50% of the credit limit. And I owe about $11K on my car loan.

to be honest, I kind of thought about the economic times and thought that may have something to do with it. Guess I'll just have to wait it out and see. In the mean time, I'm going to try and see if I can get some of the collections removed from my report. I copied one of the letters someone used on here. It doesn't hurt to try.

Thanks for the reply....

paying down your balances should give you a nice boost in scores which will in turn give you better odds at getting better cards. Since you have a pd judgement you can always try a recon on denied cards and point out that the judgement is paid. a paid judgement still hurts your score but looks better in a manual review.

MsKiwi · ‎09-01-2008

want2b_800s wrote:
If only I could be so lucky. My scores are TU 646, EQ 612 EX 643 and I don't have any collections. I have a student loan 30-day from Jan '02 (which I believe the boards here say doesn't count in the score after 2 years -- obviously in my case they made an exception.)

I have a six figure job, which I've held for over 10 years, and which is verifiable. My total debt is not even 10% of my income, yet I'm still a FICO loser. I tell you sometimes this is all almost too much. I never miss payments, yet still have a 615. I must be Fico blacklisted or something because based on my history, I have lower scores than those who just flat out stop paying their bills and have multiple collections. I guess my score would go up if I just stopped paying my bills and started having everything go to collections.

I give up but good luck to the rest of you. ugh!!!!!

You say your debt is 10% of your income but what % is your utilization of available credit? Even if you never pay late, if you are maxing out your cc's, your scores take a hit. How many cards do you have, do you have store cards, what are your available limits? This also plays into your scores. If you only have 1 cc and a limit of $xxx but are maxing it out, that explains your scores. If you have no baddies except the late in 02 something else must be going on with your credit to have scores in the low 600's. Income plays No factor in your score.

want2b_800s · ‎09-01-2008

I have 13 cards...mostly cap1s etc...with very small limits (550, 750 and 500). I paid three of the cap1s down to 0 (of course none reflect that on my cr). I have an HBcard with a 1405 limit, which I paid down to 305 (not reflected either). I have two store cards (circuit city 1000 cl, paid down to 300 and Pottery Barn (thru wfnb) with a 1100 cl, balance at 300.

MFCU card with 1000 limit, 297 balance
bof a 8000, 7400
wpcu 4000 cl, 3700 bal
juniper 1000 cl, bal 324
bofa 2000 cl, bal 968
Aspire 4250 cl, 3300 bal
applied card 2600 cl, 2126 bal.

I am working on paying 1/2 of my cards down to a 0 balance and trying to get the rest down to 1% cl.

I had a bk in 1992 for less than 10k. My ficos have always been in the 610 range since that time. I know there is something on my file that's dragging me down. SEVERAL lenders say that just can't figure out what it is with my history and with less util. I am going to pay everything down and then I'll be back to say that it's only 620.

Aside from the bk, I have not had any charge offs or collection accounts. I guess I just can't believe that fico's risk model would be more favorable to someone who has defaulted with multiple collections versus somebody who has poor util. When those who meet the former description have better ficos, then I would venture to say that fico places them in a more favorable light. AMAZING...no wonder our economy is on the verge of a major melt down.

IMO, my scores should not be with those who don't pay -- just because of my util, and I can't believe that the FICO formula doesn't think I'm less risky compared to those with defaults - especially since I have a 21 year history of paying and 100 paid in full, satisfactory accounts. Who can I complain to at the cras? I'm the one who is going to have to pay even more because somebody with a great fico just flat out stopped paying or defaulted. Could somebody let me know???? Sorry...I'm getting really frustrated but am still trying. I already pay $5400/month for my mortgage on an 800k property. Just image what my 5400 could buy me if fico didn't jack my scores because I filed a bk when i was 7 months pregnant, on state disability and my husband lost his aerospace job when the industry went belly up in the 90's. Sorry...this is just so upsetting to me. ;(

Anonymous · ‎09-01-2008

Looks like your utilization is about 72%. Maybe if you haven't yet paid down much of your mortgage yet, that might also figure in? I think they care about that as well.

It seems like you had to have decent credit at some point to get all those cards, and maybe they think you can't afford more now? Maybe you could pay off some and stop using them altogether. There's a "Closing cards the right way" thread somewhere.

They can't show a BK from 1992 - I think they don't even know about it.

cw81 · ‎09-01-2008

@want2b_800s wrote:
I have 13 cards...mostly cap1s etc...with very small limits (550, 750 and 500). I paid three of the cap1s down to 0 (of course none reflect that on my cr). I have an HBcard with a 1405 limit, which I paid down to 305 (not reflected either). I have two store cards (circuit city 1000 cl, paid down to 300 and Pottery Barn (thru wfnb) with a 1100 cl, balance at 300.

MFCU card with 1000 limit, 297 balance
bof a 8000, 7400
wpcu 4000 cl, 3700 bal
juniper 1000 cl, bal 324
bofa 2000 cl, bal 968
Aspire 4250 cl, 3300 bal
applied card 2600 cl, 2126 bal.

I am working on paying 1/2 of my cards down to a 0 balance and trying to get the rest down to 1% cl.

I had a bk in 1992 for less than 10k. My ficos have always been in the 610 range since that time. I know there is something on my file that's dragging me down. SEVERAL lenders say that just can't figure out what it is with my history and with less util. I am going to pay everything down and then I'll be back to say that it's only 620.

Aside from the bk, I have not had any charge offs or collection accounts. I guess I just can't believe that fico's risk model would be more favorable to someone who has defaulted with multiple collections versus somebody who has poor util. When those who meet the former description have better ficos, then I would venture to say that fico places them in a more favorable light. AMAZING...no wonder our economy is on the verge of a major melt down.

IMO, my scores should not be with those who don't pay -- just because of my util, and I can't believe that the FICO formula doesn't think I'm less risky compared to those with defaults - especially since I have a 21 year history of paying and 100 paid in full, satisfactory accounts. Who can I complain to at the cras? I'm the one who is going to have to pay even more because somebody with a great fico just flat out stopped paying or defaulted. Could somebody let me know???? Sorry...I'm getting really frustrated but am still trying. I already pay $5400/month for my mortgage on an 800k property. Just image what my 5400 could buy me if fico didn't jack my scores because I filed a bk when i was 7 months pregnant, on state disability and my husband lost his aerospace job when the industry went belly up in the 90's. Sorry...this is just so upsetting to me. ;(

Hi want2b_800s I did some calculations based on what you posted it seems your overall utl is 67% that is not good in Ficos eyes also you a bunch of cards that are pretty much maxed out like your BOFA (7400) , WPCU Aspire and your Applied card from what I know FICO looks at overall utilization and individual cards also I think you are getting dinged on those fronts. I am thinking if you get those down you will see some huge changes. Anything over 50% is going to be an anchor to your scores. I hope this helps

want2b_800s · ‎09-01-2008

Thanks, CW.

I'll keep trying and see what happens.