Applied for a Capital One Platinum Visa. Reasons for denial of card. Number of Bank Cards Number of Inquiries Insufficient Monthly Payment Obligations Too many active accounts Their decision was based on Experian report. They pulled all three. Score was a 778 when I checked today at www.creditexpert. I agree with too many bank cards, number of inquiries, and too many active accounts. I do not understand the insufficient monthly payment obligations. Why then would I be automatically preapproved to accept another card at $6 a month totaling $72 a year at 19.8%. This is a sign your name and receive a card with 200 - 1000 limit? Thank you for your interest in a Capital One credit card. We regret that we are unable to extend you the credit terms you requested, but we are excited that you have qualified for a pre-approved account with alternate credit terms. Too many bank cards and active accounts, yet they will send a low limit, high fee, and interest card out.
I agree when in the Experian file is MBNA 13000 NextCard 12000 First USA 10000 FNANB 10000 AMEX 9000 GM 7500 Direct Merchants 7300
Sounds like you rate their best card, I would complain via planet feedback.com and ask that they call you. I believe this card has a max limit of $2,000. My mother who carries a number of prime cards with high credit lines and low balances received a $1,000 line on this card.
Why are you applying for another credit card, Doug? You have an enormous amount of credit already. You ought to get rid of some of those accounts. MBNA 13000 NextCard 12000 CLOSE -> First USA 10000 CLOSE -> FNANB 10000 AMEX 9000 CLOSE -> GM 7500 CLOSE -> Direct Merchants 7300
I guess Cap1's requirements for the Platinum Visa (0% intro. and 9.9% fixed thereafter) are higher than their Platinum MC. I recently applied for a Platinum MC with 3.9% intro. and 9.9% fixed. I didn't get the Platinum, but I got a regular card with the same terms, but only a $1,000 limit. Something has to be done about these bait and switch tactics by Cap1. I think it's really ridiculous that Cap1 doesn't give out their Platinum cards to people with scores over 720. If they feel their card is so exclusive they should send it by invitation only so that people don't hurt their scores by adding another hard inquiry.
Have to agree w/ aigle, his suggestions would eliminate some of the applicable reason codes, not to mention getting rid of FUSA, which is always good. Closing these accounts would bring you closer to where you want to be. If you don't have any dept store cards, apply for one. Although an inquiry and a new tradeline are damaging during the first 6 months, it would be a good long-term score building strategy. I'd also consider the 2 Citi cards: Platinum Select and Diners Club. Saar
First USA = 9.90% GM = 2.9% for 6 months Direct Merchants = 6.9% till January 2002 By keeping accounts, receive numerous special rates, don't want to lose any leverage.
I don't know the "secret algorythms" from FICO, but I suspect that if your score is high enough, the "reason codes" represent very small amounts of points. For example- if you're a 728 and reason code #1 is too many cards, I'd guess that closing a few cards would only add 10-20 points to the score. This hunch is based on my closing a handful of retail accounts and only seeing my score go up 8 points. In other words- if you fix the one sympton, you still don't crack the 750 barrier, and don't get the offer. Now you've increased your balance to limit ratio, decreased the age of active accounts, and potentially have done more harm than good. ANyone out there have any real-world experience on this and want to share?
What is it exactly that you wanted to discuss: Increasing score or Maintaining low APR cards? I'm sure George would be glad to tell you about his ""9.90%"" APR from FUSA, which they one day upped to over 22% without blinking and for no reason at all. Same with the 100's of posters at http://www.firstscams.com Personally, I would declined a 9.90% offer by FUSA, just like I would decline a 0.00% offer by CCB; Some lenders use criminal tactics and no interest rate they offer you is worth the risk. But it's all up to you. Saar
Are you sure it said "Insufficient Monthly Payment Obligations" or "Sufficient....."? I don't think Insufficient Monthly Payment Obligations is even an official FICO Reason Code. If you've got big balances on all of those cards, that likely whey they declined you. Your credit report also lists a monthly payment for each of the accounts with balances on them. They compare that to your stated income. It's possibly that someone might have keyed in your income incorrectly or you entered a monthly income on the application where they wanted an annual income.
Well, if you have all the answers, why ask the question? You can bet your score was NOT 778 at the time you applied. Either because - as we've learned today - the score generated by CreditExpert is NOT FICO's, or because the score on your other reports was not high enough, or finally because Capital One uses a proprietary scoring model in addition to the bureaus'. Reason codes help de-mystify score generation; There's no reason to re-mystify it. Saar
No, I do not have all the answers, seems like when you said closing these accounts would bring me closer to where I wanted be. Just stating a fact that closing accounts is not where I want to be.
