It's been four months since having my Chapter 7 bankruptcy discharged, and I've just been denied for a secured credit card. Thinking of piggy-backing onto my mom's account in order to rebuild. Is there any downside to that? For me or for her? Also, on this recent credit application, the reason they listed for denying my credit, interestingly enough, was: "Based on the application information for (my name), there are worsening economic conditions in your area." It goes on to state that, because they didn't request a copy of my credit file, no inquiry will be placed on my credit report. Any thoughts on that?
"Based on the application information for (my name), there are worsening economic conditions in your area." That's kind of funny in a sad way. We were recently turned down for a home equity and a car loan. The stated reason was due to charge offs and collections. My wife said she wondered if it was because of the economy, especially in the industry I was working in. I said...naaa....
It's just a new way to screw you.You know these cc companies could give the Marquis DE Sade a lesson.
The piggybacking will not hurt you in any way, and I agree with ccbob...keep on trying with a different company. Things are just so volatile lately in the credit industry, you never really know what kind of response you will get.
If I keep trying, won't that hurt my score if I get denied, that is, for having too many inquiries on my credit report? Also, does anyone know, my mom said she heard Suzie Orman saying that you should never close a credit card. Is that true, that is, does closing an account adversely affect your credit? I was offered an Orchard account with a $39 annual fee, but if I close it later won't that hurt me? I don't like the idea of paying $39 in the first place so I may just wait, piggyback with mom, and then get a card with no annual fee.
Closing an account lowers your credit history and available credit. So, closing them can have an adverse effect on your score. OTOH, an annual fee can have an adverse effect on your wallet. Credit inquiries also have a slightly negative impact but it's small and short-lived as long as you don't have a bunch. 2-3/year isn't unusual (nor is it bad). 20 would be bad, but I've had more (when I was mortgage shopping, each broker would contact several lenders who would contact each bureau. In a couple of months, I had about 20 new inquiries But I got a new mortgage. Ahhh, for the good ol' days when they actually approved mortgages.
All mortgage inquires within a short period of time are supposed to be counted as one inquiry. Operative word is "supposed." But the effect is pretty short-lived. Closing the account would have a greater impact, especially if it were your oldest card. It sounds like you didn't get an inquiry for this one, so one or two isn't really going to hurt you.
Short term Thanks for the replies. I'm thinking, short-term I'll piggy back onto my mom's account to rebuild. I'll pass on the Orchard card for now, so I don't have to pay their $39 annual fee. Then, maybe 6 months from now, when I have more savings, and have established some credit by piggy backing onto her account, I'll apply for a no annual fee card. If there's any downside to that, please let me know. Thanks.
