With the presence of collections on your CR, you're in a very dirty scorecard, which is high risk. The fact that you've paid them off is great, but they will still remain on your report and other lenders can see that you've had account(s) go to collections. Anyone that's been late on accounts in the past is statistically more likely to have it happen again, so you're high risk.
Not all 650 scores are created equal. There are people with 650 scores that can get approved for lots of things, where others can't get approved for anything. Profile > Score. The lenders with which you're applying aren't comfortable with your profile.
The best advice you can be given at this point is to simply stop applying. Continuing to do so will only hold your scores back more and make your profile look even more risky due to constant credit-seeking. All you can do is allow time to pass. You can also work on trying to get those paid collections removed from your CR, as ultimately they are the source of your denials.
If you have collections, you have negative payment history, not positive payment history. If you're talking major negative items (collections, charge offs, late payments of 90 days+, etc) on your CR your payment history is poor. IMO, there's no in between poor and excellent; either you have no payment history issues (excellent) or you do (poor). Much of the CMS fluff front end software will make it seem like there are gray areas here (fair, good, very good, etc) but when it comes to Fico scoring that isn't the case. It doesn't matter if you have just one 90D late payment or if you have a dozen of them; if they're from about the same length of time ago the credit scores possessed will be roughly the same. Different lenders will view them different ways depending on their age, especially upon a manual review of your file. Someone with a single major late payment (say) 2 years ago could be viewed similarly to someone with 5 major late payments that are (say) 5 years old. Some lenders may look at a single late payment the way the Fico algorithm does and that it's a big deal for 7 full years, where others may discount it more after (say) 5 years, 3 years, etc.
Thank you! I at least have more insight on what is going on now.the credit world is so confusing I really wish they used a more simplified system.. I just find it crazy that I can get a mortgage and a brand new car but I can’t get a loan or a credit card even with positive payment history and 10% cc utilization but I guess I will keep waiting
A mortgage and a car loan are both backed by collateral. A credit card is not.
Unfortunately you're too soon out of debt problems, it's gonna take some time to build a decent file for Lenders to trust enough to take that chance. And racking up HP's aren't going to help approval odds. I don't know which Secured card you have, but I'd advise you to put regular spend and pay on time to help rebuild that status. Though those collection are alwasy going to hold you back, the more responsible activity you show improves your chances. It's going to take some patience is all.
I have. 650 credit score and no collections. I paid them all off 8 months ago and my score went from a 480 to a 650. I also got a secured credit card which is my first ever cc for $300 I keep the balance at $10. I also have a car loan. $11000 left on it I have had it for 5 months my wife has a 450 credit score she gets pre approvals and all sort of stuff she even has 3 unsecured card I have tried countless times I can’t get approved for a measly $300 credit card unsecured for any type of loan it’s like there is a secret note on my credit file that says “don’t loan to this guy” my dad and sister got the same capital one card with low scores and no payment history and I’m declined I just don’t understand and it is frustrating me.
You shouldn't be discouraged, you are making progress.
If you answer these questions, we can give you guidance on how to keep on moving up:
1. You say your score is 650. What scoring model are you using and where are you getting it from?
2. How much is the original amount of the car loan?
3. When you say you 'keep the balance at $10' on your credit card, are you carrying the balance over, or are you paying it off; if so at what point are you paying it off?
4. Who is the lender on the credit card?
5. You say you've been denied "countless times". Your applications are in and of themselves no doubt causing a problem. How many applications and denials have there been in the last 12 months?
6. Please lay out all your current installment loans, including the original amount, and the current balance.
One piece of advice I can give you right now: you should stop applying for new credit until your applications and denials have died down. Once we know the number of them, we can give you more definitive advice as to how long you need to wait.