DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Why Dont I get approved for Credit cards ?

**Gazeboss** · 12-24-2007, 12:59 PM

well it seems like I dont get approved for any credit cards or they dont seem to want to raise my limit. I tryed applying 2x for amex, once like 3 months ago and again today. Both times I got declined. I have a rewardzone master card from hsbc and a discover card, one has a $500 limit and the other a $400 limit, I called in the other day to try and get the limit raised for some holiday shopping, and get declined...I dont get it. I pay off my cards in full every month, have had them for about 7 months, and also its not like I'm in debt, I have a considerable amount of money in savings/investments....wtf ??? could it be my age ? I'm 18 ? a couple people I've talked to say thats it...but I dunno...I'm getting pissed...

For the love of geekdom, don't take this wrong, but I'll be flat honest with you: Discover is like the scavengers of credit cards and will damned near accept anyone. HSBC? Same with them. Those will almost hurt your credit as much as help, because they're generally known for giving credit to high-risk applicants. My wife used to work in the credit industry, and the more likely someone is to default on payment, the less likely the card is to be accepted anywhere; if you notice, Discover is getting accepted by fewer and fewer places. HSBC? Best Buy goes through them, so that says enough right there.

If you want to build up your credit, here's some suggestions:

1) Ditch the Discover card, and have them explicitly state on your account it was closed at your request.
2) Ditch the HSBC card. Again, have them explicitly state on your account it was closed at your request.
3) Get a secured credit card from some place reputable. Capital One used to be a reputable creditor (I've heard they're going downhill, though). If you're not sure, look at the creditors that prey on college campuses, and steer far clear of them.
4) Get a cell phone, or something with a regular, monthly bill that you have to pay.
5) Get a checking account linked with a credit card (ie, your card you carry is backed by Visa, and Visa charges your account).
6) Ask your parents if you can "share" a credit card with them. . .ie, be a card-holder and don't ever use their card [thumbup]

#6 works like a charm; when I got my AmEx One, I had my wifey placed as a secondary card holder; her credit score the next month shot up 80 points, and that was
with her paying off no more debt. [thumbup]

Also, keep in mind, applying for AmEx is almost pointless. When you've got the score to possibly get one, they'll send you the application. I've heard time and time again of people applying, and they don't get approved, or if they do get approved without being solicited, they're given a credit limit. AmEx is a known creditor that is really, really, REALLY tight with credit. And their cards can be a blessing and a curse; if you're lucky, you get a limitless credit amount (woot). On the flip side, when they report to a credit agency, the limit on the card is the highest balance you've ever carried. So if you only run it up to say, $1500 in a month and then pay it off, you "only" have a $1500 credit limit, and your credit score reflects as much. Hence why my credit score dropped when I first got the card, but when I started hitting $20,000 on it, my score started creeping back up (but let me tell you, moving expenses suck ass). That being said, they can "impose" a "limit" on your card; my latest was $34K being allowed to be kept on my card, but they've lifted that cap fast enough.

Those are my suggestions. I was lucky enough to have a credit score hovering around 765 before I bought my house and the wife's new car, and I can tell you from experience, when I closed my Discover card, my score did come up, even though I still had a god-awful debt-to-income ratio.

Also, while it sounds daft; sometimes keeping a small balance on your card is better than having nothing on your card. Why? It shows your creditor you can manage money. Paying everything off right away can hurt in the short term, because a creditor assumes you know you can't keep an eye on your credit. It's stupid, but hey. :-\

12-24-2007, 12:59 PM	#10
Gazeboss Join Date Oct 2005 Posts 430 Senior Member	well it seems like I dont get approved for any credit cards or they dont seem to want to raise my limit. I tryed applying 2x for amex, once like 3 months ago and again today. Both times I got declined. I have a rewardzone master card from hsbc and a discover card, one has a $500 limit and the other a $400 limit, I called in the other day to try and get the limit raised for some holiday shopping, and get declined...I dont get it. I pay off my cards in full every month, have had them for about 7 months, and also its not like I'm in debt, I have a considerable amount of money in savings/investments....wtf ??? could it be my age ? I'm 18 ? a couple people I've talked to say thats it...but I dunno...I'm getting pissed... For the love of geekdom, don't take this wrong, but I'll be flat honest with you: Discover is like the scavengers of credit cards and will damned near accept anyone. HSBC? Same with them. Those will almost hurt your credit as much as help, because they're generally known for giving credit to high-risk applicants. My wife used to work in the credit industry, and the more likely someone is to default on payment, the less likely the card is to be accepted anywhere; if you notice, Discover is getting accepted by fewer and fewer places. HSBC? Best Buy goes through them, so that says enough right there. If you want to build up your credit, here's some suggestions: 1) Ditch the Discover card, and have them explicitly state on your account it was closed at your request. 2) Ditch the HSBC card. Again, have them explicitly state on your account it was closed at your request. 3) Get a secured credit card from some place reputable. Capital One used to be a reputable creditor (I've heard they're going downhill, though). If you're not sure, look at the creditors that prey on college campuses, and steer far clear of them. 4) Get a cell phone, or something with a regular, monthly bill that you have to pay. 5) Get a checking account linked with a credit card (ie, your card you carry is backed by Visa, and Visa charges your account). 6) Ask your parents if you can "share" a credit card with them. . .ie, be a card-holder and don't ever use their card [thumbup] #6 works like a charm; when I got my AmEx One, I had my wifey placed as a secondary card holder; her credit score the next month shot up 80 points, and that was with her paying off no more debt. [thumbup] Also, keep in mind, applying for AmEx is almost pointless. When you've got the score to possibly get one, they'll send you the application. I've heard time and time again of people applying, and they don't get approved, or if they do get approved without being solicited, they're given a credit limit. AmEx is a known creditor that is really, really, REALLY tight with credit. And their cards can be a blessing and a curse; if you're lucky, you get a limitless credit amount (woot). On the flip side, when they report to a credit agency, the limit on the card is the highest balance you've ever carried. So if you only run it up to say, $1500 in a month and then pay it off, you "only" have a $1500 credit limit, and your credit score reflects as much. Hence why my credit score dropped when I first got the card, but when I started hitting $20,000 on it, my score started creeping back up (but let me tell you, moving expenses suck ass). That being said, they can "impose" a "limit" on your card; my latest was $34K being allowed to be kept on my card, but they've lifted that cap fast enough. Those are my suggestions. I was lucky enough to have a credit score hovering around 765 before I bought my house and the wife's new car, and I can tell you from experience, when I closed my Discover card, my score did come up, even though I still had a god-awful debt-to-income ratio. Also, while it sounds daft; sometimes keeping a small balance on your card is better than having nothing on your card. Why? It shows your creditor you can manage money. Paying everything off right away can hurt in the short term, because a creditor assumes you know you can't keep an eye on your credit. It's stupid, but hey. :-\
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