Road to Nowhere

[Christie0909Participant]

I finally got the nerve to apply for the capital one secured card. I was very nervous because I NEVER get approved for anything. I got the care credit card and that was about it. Well apparently I was right to be nervous because I was denied. All it says is that I will receive and letter in the mail in 2 weeks with the reasoning behind the decision. So basically i just lowered my score by adding another hard inquiry.

[AmyParticipant]

Sorry to hear that, Christie. Credit inquiries may cost a few points, but they do not affect your credit score after 6 months though they stay on the report for 2 years. Your score should bounce back up from those points in a few months. I’m assuming the Care Credit card reports to the bureaus? If it does, it can help build good credit. After 6+ months, maybe you can try applying to a secured card again. Also, are you part of a credit union? If you are or are eligible to join one, consider getting a credit union secured card. I heard they are more willing to work with you on (re)building your credit.

[Christie0909Participant]

I know the Care Credit card reports, but I’m not sure to which one. I am not apart of a credit union. What are the eligibility requirements? I have 6 inquires on my report already so I may be waiting longer than six months to try again. I’m not really sure what to do, but I am starting to feel like this is a lost cause.

[AmyParticipant]

Don’t give up, Christie. I’m sure a lot of people out there are in much worse positions than you. Credit unions usually allow people who work, live in the local area or relatives of members to join. You can search and check to see if there are any local credit unions you qualify for. I heard there are even some credit unions that offer secured cards to their members with no credit check as long as you agree to attend their credit management sessions or something like that.

[Christie0909Participant]

That sounds pretty cool. I need to do some looking around.

[AmyParticipant]

Also, have you tried the Orchard Bank pre-qualifier? They have a very popular secured card. If you fill it out, they show a card you will most likely be qualified for (no guarantee though) and this is only a soft pull, meaning it will not affect your credit score and no one can see this on your credit report except you. You will not get a hard inquiry unless you actually accept/apply for the offer. Here is their website if you’d like more info: http://www.orchardbank.com/

Don’t give up! Your credit will gradually improve after baddies fall off and time will make it better. Credit (re)building is a difficult process that takes time. Even though I am building credit, not rebuilding, I still find it hard to be patient sometimes.

[ambersunParticipant]

Christie, they are right, yes don’t give up! You have a $1k credit line…I dream of a credit line that large!

[fontanamanModerator]

Hi Christie,

Sorry to hear that you were denied for the Capital One Card. Are you trying to rebuild or establish credit? I believe that my credit score was a little lower than yours when I applied and I was approved. Do you have any idea why you were denied?

Whatever it was, don’t be discouraged, there are plenty of secured cards out there. Amy mentioned a couple of good choices. Other banks that offer secured cards: Bank of America, Citi, Wells Fargo.

You should call Capital One to ask why this happened. Explain them your situation, maybe they’ll reconsider.

[Christie0909Participant]

I am rebuilding credit. I have some medical debt due to a procedure that I had to have done without any insurance.. I really have no idea why I would be declined; unless it was because two of those bills are still on my credit report. All they said was that they would send me a letter in a couple of weeks with their reasoning. Thanks for all of the ideas on other secured cards. I’m just kind of nervous about applying for anything else right now because that will be another inquiry; which also looks bad. Thanks everyone for all of your support.

[Christie0909Participant]

So I received my denial letter in the mail today from Capital One. Apparently my denial has nothing to do with my credit report. It was due to “insufficient income.” So I don’t guess there is anything that I can really do about that.

[fontanamanModerator]

It’s good that you know what the issue was. I don’t know how long you need to wait to re-apply once you’ve been denied, but I would suggest waiting a couple of months and applying again, reporting a higher income.

[Christie0909Participant]

I thought about that, but wouldn’t they realize that I changed my income?

[fontanamanModerator]

According to the following article, you should wait at least 90 days to reapply: http://www.yourcreditnetwork.com/blog/DeniedCreditCardApplicationsHowLongToWaitBeforeReapplying.aspx

Here’s another good article I found, called “Credit card application rejected? 3 steps to getting next one approved”: http://www.creditcards.com/credit-card-news/how-not-to-get-rejected-for-new-credit-card-1267.php

Also, make sure you are including all of your income: Alimony, child support, or separate maintenance income, odd jobs, etc! Every penny counts.

Maybe consider applying for a different secured card. I also recommend applying in person. My wife was offered a secured card the other day that she went to the bank.

[Christie0909Participant]

Thank you for the articles, they were very helpful. I was thinking about trying another secured card, but I also think I am going to wait a little while. I want to see if those medical bills are going to be deleted. According to Capital One the score they got when reviewing my app was 658. If those medical bills to get deleted then my score should improve. Also, I only have a couple of inquiries on Transunion and Experian, but I have 6 on Equifax. So I am probably going to wait a few months of building my history with my care credit and go from there. Thank you for your help.

[fontanamanModerator]

Sounds like a good plan Christie. 658 is not that bad, I wish mine was up there! Patience is the key for all of us trying to rebuild or establish credit. Patience.

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