Questions About Scores and Credit Denials...

[EaglesFan2006]

Hi...I have spent a few years now rebuilding credit and have done a nice job (for the most part).  I'm looking to get a better card but had a few questions before applying

1) I recently got an automatic CLI on a Capital One card I had for over a year...it went up to $1,000 from $500.  Is this just a typical Capital One thing or is it an indication that my overall credit has improvd?

2) I was looking at a website about which cards are credit-friendly and read that many people are denied online but then call 'recon' numbers and get approved.  Why would that happen?

3) Are store cards really easier to get than store cards without a VISA or MasterCard logo?

[pizzadude]

Here's my take, I'm sure others will chime in as well:

1)  Congrats on the CLI !  CapOne gives CLIs unpredictably, sometimes never to some customers, others report small increases up to a certain threshold ( maybe $3K ) for the CapOne rebuilder "platinum" cards.

2)  All CC companies have system generated approval/rejections, which come from their own analysis of your CR and other factors such as income, etc...   Many people have success when they call in for Recon and talk to a credit analyst to explain things on their CR or provide additional information.

3)  Some store cards are easier, yes but not all.  It really depends who the underwriter is for the cards, such as GEMB, HSBC, etc...

[Odiseous]

---

@pizzadude wrote:

Here's my take, I'm sure others will chime in as well:

1)  Congrats on the CLI !  CapOne gives CLIs unpredictably, sometimes never to some customers, others report small increases up to a certain threshold ( maybe $3K ) for the CapOne rebuilder "platinum" cards.

2)  All CC companies have system generated approval/rejections, which come from their own analysis of your CR and other factors such as income, etc...   Many people have success when they call in for Recon and talk to a credit analyst to explain things on their CR or provide additional information.

3)  Some store cards are easier, yes but not all.  It really depends who the underwriter is for the cards, such as GEMB, HSBC, etc...

---

I believe you covered the questions accurately. 

With a note:

- The initial App, is ually approved/denied/sent for review; by a computer.

- A 'recon' means you talk to a live person (after the computer denies you, or gives you a low limit/high APR); which you want to be 'reconsidered'. 

[Duke-of-Earl]

---

@pizzadude wrote:

...

1)  Congrats on the CLI !  CapOne gives CLIs unpredictably, sometimes never to some customers, others report small increases up to a certain threshold ( maybe $3K ) for the CapOne rebuilder "platinum" cards.

---

Hi, not to hijack this thread, but pizzadude's response above leads to a question that's probably not worth a new thread ---

I'm wondering about the reference to  "CapOne rebuilder 'platinum' cards".  I don't usually take much note of it when I get a replacement CC referring to some other element in the periodic table, but checking my wallet just now I see I have a C1 "platinum" card,  Is this really a rebuilder card?  As far as I know my credit relationship with C1 is very stable, CL=9,700 back into antiquity (=Y2K), never changes.  Does the recently received platinum indicate they are doubtful about me?

[pizzadude]

Duke-of-Earl - if you have a Cap1 Platinum card with a 9,700 CL then you are not in the same bucket as the rebulders.   It is confusing though, since Cap1 Platinum cards can be either rebuilder or prime CL cards.

[Duke-of-Earl]

Great, thanks for clarifying, pizzadude.

[RobertEG]

My take on store cards.....

They might be easier to get, but are not weighted the same by FICO, and opening one can have some peripheral effects that arent worth it to me.

Opening one will hit you for a credit inquiry, will lower your average age of accounts, and wont provide a very significant CL to increase your overall percent util.  To the extent that FICO also scores % open cards with a balance, just putting a few bucks on it might increase your ratio of cards with a balance, also reducing your score.  Additionally, should inaccuracies or disputes arise, I dont like the thought of having to deal with the FCRA expertise of a store credit department.

In my opinion, the peripheral negative factors outweigh the postive, steering me from opening any.  And of course, you cant use a Target card at Walmart.....

I would only want a store card for credit score purposes if I had no other revolving credit, or in order to show multiple lines of revolving credit.

Once you have one bank card and at least one other revolving line of credit, I personally would not seek a store card for CR purposes.