A little background: I filed bankruptcy about 6 years ago. I own a home which I purchased 8 years ago. I filed BK when I filed for divorce since my ex left me with $30,000 in bills, a 10 month old baby and 6 months pregnant. I did not have any credit cards until about 8 months ago. I dont' want to charge things, I just want to rebuild some credit and have a decent CC in case of emergency. Kohl's (department store) turned me down for their card and sent me the standard letter. I can't figure out what two of the reasons mean. They sound like they contradict each other to me. LIMIT UTILIZATION ON ALL OPEN ACCOUNTS HIGH CREDIT LIMIT ON OPEN BANKCARD TRADES I do have 2 cards now, Orchard Bank and Capitol One. Both have annual fees, one is $450 limit, the other is $750. I have monthly charges on them which I pay off before the end of the month. Does anyone know what those rejections mean?
Let's say that you charge $350 this month on your $450 card. If the CC issuer reports your account to the credit bureau before you make the payment, it looks like you're using a high percentage of your CC limit. That explains the first reason code you were given. The second one sounds like a mistake. Or, you might have some old tradelines on your report that are skewing your report. Have you looked at your report?
Thanks for the reply. That makes sense now about the first reason they gave me. I don't know what a tradeline is, but I did order a copy of my credit report to see what is going on there.
A tradeline is just the name used to describe a line of credit on your reports. I'll tell ya whats happening. Some companies such as capital one will only report to the credit bureaus your high credit limit. That is the most you ever charged on your card. Lets say you have $500 limit but the most you ever charged was $50. You decided the kids need some clothes so off you go to wally world. You spend $46 on clothes. Now then, when the credit card reports to the credit bureau for that month, it makes it looked like your at 92% utilization or nearly maxed out This sort of thing will kill your score, even though its only a lousy $43!
Re: Re: CC rejection letter - translation? Somethin tells me that credit reporting and scoring ain't exactly on the up and up.
Let's say that you charge $350 this month on your $450 card. If the CC issuer reports your account to the credit bureau before you make the payment, it looks like you're using a high percentage of your CC limit. too much ============ Credit Reports are always out dated.
