Credit card application rejection..

[swbsam]

My credit is decent (675 last I checked, with a noticed from MyFico that my score has increased by 29 points, though I haven't pulled a complete report yet) and I thought applying for a Sears card would be a good idea. I applied and was rejected, even though I'm guessing my score is now in the 700s.

I cleared up all negatives from my credit report during the closing process so I'm not really sure what's going on..

My mom suggested that closing on a home puts a temporary dent in your credit (earning to debt ratio), and that I should have waited a few months before applying for any cards - is that true?

I have three other credit cards that have perfect payment histories and sub-50% utilization, and I rarely even apply for credit

 

[krylon]

ownd

 

[LuckyTaxi]

so why would you want a fourth one?

 

[swbsam]

Originally posted by: LuckyTaxi
so why would you want a fourth one?

Because sears has special discounts for card holders, along with 0% interest on large purchases

 

[Killerme33]

Originally posted by: swbsam
I cleared up all negatives from my credit report during the closing process so I'm not really sure what's going on..

If you had negatives on your credit history but cleared them (paid collections, charge-offs, etc..) it would show that they've been paid off but it would still show that they did exist. Likely this is why you can't get a Sears CC

 

[yh125d]

You (should) be paying off your CC balances in full every month anyway, so 0% incentives don't matter

 

[BoberFett]

Originally posted by: yh125d
You (should) be paying off your CC balances in full every month anyway, so 0% incentives don't matter

That's just plain stupid.

Hell, if you can get 0% financing on something you were going to buy anyway, the dumbest thing you can do is pay it off immediately. Even if you just dump the money you would pay into a savings account at ~1%, you're better off.

Pay off the credit cards that cost you money, but for crying out loud don't be stupid about it.

 

[Scarpozzi]

Originally posted by: swbsam

Originally posted by: LuckyTaxi
so why would you want a fourth one?

Because sears has special discounts for card holders, along with 0% interest on large purchases

So why would you want a fourth one?

You already have enough and make it sound like you carry a balance on them. Pay those suckers off... Credit card companies are being careful who they lend to because of market risk and it sounds like they're using good judgement for a change.

Read the fine print on the 0%...normally, if you don't pay those balances off, by a certain date/period they'll sometimes hit you with back-interest.

 

[waffleironhead]

its likely that they feel you have maxed out your available credit based on your income to outlay ratio.

 

[kranky]

You have to look at your reports to see if there is any negative information on them. Otherwise you can only guess what the problem is.

 

[Kelvrick]

If you just closed, don't you have a copy of the reports they pulled? You can get those...

I'm hoping to close by the end of the month and have 3 credit cards and will open a new one just to take advantage of that 6-12 months of 0% apr. Why not push off payments of 8k worth of flooring materials and another 3k of appliances if you can.

But yea, your debt/income ratio just got jacked.

 

[Platypus]

when did you change your name?

 

[Elbryn]

if i remember right, anytime you get denied for credit, it's in your rights to request a copy of your credit report. if nothing else, free credit report?

 

[Rumpltzer]

Originally posted by: Elbryn
if i remember right, anytime you get denied for credit, it's in your rights to request a copy of your credit report. if nothing else, free credit report?

Yeah, that's correct. The info about requesting the credit report is usually included in the rejection letter.



BTW, I stole the OP's identity.

 

[DanTMWTMP]

My brother's credit rating is above 800, and he got rejected from Sears. He just bought himself a house as well. I recently bought my own place, and wanted to get a Sears card to buy some appliances, but I too, got rejected. My score is in the mid 700's.

You're not alone, heh.

 

[StageLeft]

New house wouldn't impact debt to ratio in a way that would be much different in a few months. You don't need a new card anyway, I'd forget the 0% stuff, I think it's bringing you down a path of financial deceit (I know it sounds like hyperbole but it's not). Less credit, more cash = win, seriously.

 

[OCGuy]

675 is OK credit, but unsecured credit is hard to get right now. Buying a house shouldnt drop your score, and will only strengthen it over time.

I'd be skeptical of anyone claiming a score went up that much in an instant. Also, you have 3 scores. You wont have any way of knowing which bureau they pulled until you get your DoC letter in the mail.

 

[Thump553]

Wow Sears must have really tightened up because for decades they used to give a credit card to anyone with a heartbeat.

The creditor is supposed to followup and advise you in writing the exact reasons you were rejected. Assuming that those reasons aren't based on something false in your credit history I wouldn't worry about it. Odds are this says more about Sears' credit rating than yours (ie, Sears doesn't have and can't get money to loan out).

 

[Wreckem]

As others are saying. Unsecured credit is extremely tight right now. Credit Cards inparticular.

The minimum credit score needed to get both good credit cards, heck even store cards, has gone up. Alot seem to need a minimum of 720 now, other higher end platinum cards with low APRs need upwars of 760.

Even then, credit is tight and new credit cards arent going to have as large of credit lines even if you have the income. Right now its not uncommon for people with stellar credit and income to have a 1000 or less credit line on newly opened credit accounts. Right before all the dominos fell last fall I know someone that got a $7200 credit line on a student card without any income.

 

[Wreckem]

Originally posted by: Thump553
Wow Sears must have really tightened up because for decades they used to give a credit card to anyone with a heartbeat.

The creditor is supposed to followup and advise you in writing the exact reasons you were rejected. Assuming that those reasons aren't based on something false in your credit history I wouldn't worry about it. Odds are this says more about Sears' credit rating than yours (ie, Sears doesn't have and can't get money to loan out).

Sears Credit is by CitiBank which more than explains why he got denied.

The only store cards with "loose" credit requirements are backed by GEMBank(GE Credit).

 

[Anonemous]

I wonder if my Sears card still works...

 

[StageLeft]

Originally posted by: Wreckem

Originally posted by: Thump553
Wow Sears must have really tightened up because for decades they used to give a credit card to anyone with a heartbeat.

The creditor is supposed to followup and advise you in writing the exact reasons you were rejected. Assuming that those reasons aren't based on something false in your credit history I wouldn't worry about it. Odds are this says more about Sears' credit rating than yours (ie, Sears doesn't have and can't get money to loan out).

Sears Credit is by CitiBank which more than explains why he got denied.

The only store cards with "loose" credit requirements are backed by GEMBank(GE Credit).

Citibank can suck it.