I applied last week for a Capitol One Secured Card. I received a letter today informing me that I was declined for the following reasons: ~Insufficient Satisfactory Open Accounts ~Previous Delinquency or Lack of Open Accounts ~Presence of Delinquency ~Current or Previous Delinquency on Revolving Accounts I was under the impression that this would be relatively easy to obtain since it is secured. Depression is setting in. By the way, they pulled Experian which is at 552.
It isn't so very bad... you just have to get in good with ONE credit card, and the offers for Cap1, Orchard, Premier and others will start coming in. Can I make a suggestion? If you have a checking account, especially with a credit union, you may be able to get a secured card through them. For example, my credit union offers elan secured cards. I had to send a rather large deposit, but it is actually a much better card than cap1- better terms and more generous credit lines. Its worth a try...
I'm DEPRESSED too, all I get is "ALL-READY APPROVED" GOLD card applications for CAPITAL ONE...$325-$3250 @ $72.00/year...
didn't see the credit score at the bottom... I am suprised that secured Cap1 didn't take you with a 552, your report can't be all that bad??
My confusion is that I was under the impression this product was for people EXACTLY like me. I thought I was a prime candidate.
Alot of the subprime credit card companies are applying higher standards to new applicants. This reflects the economy- these companies want to make sure they stay afloat in an uncertain financial environment and they do that by 1) cutting back on the number of new subprime cardholders 2) raising interest rates (notice all the posts on increasing interest rates??). Although I haven't heard much about Cap1 cutbacks, I will bet we start seeing a trend in that direction soon.
Personally, I think any company who will not give someone a 100% secured line of credit, ABSURD. What could they lose?? Worst case scenario.. someone maxes out the card, and does not pay.. ok they apply the security deposit .. and really only out the minimal costs of setting up the acct... etc... plus many of these companies charge annual fees as well, so I do not see how they can lose.
So what is my next step? Do I just keep trying to find a secured card that will accept me or give up? What about Orchard unsecured? How stringent are they?
You make a good point. I also think that companies do have a good chance of making money off of sub-prime. More Fees, higher rates. I guess they use some risk/profit formula, and some people make and it and some do not.
I think the board ate one of my posts... I was approved for orchard unsecured, 500 limit, I did not accept it though, I have also been approved for Providian and Direct Merchants Bank usecured, (also Cap1)
By all means, don't give up. Orchard, Premier, Plains... one of these will likely take you. Like I said, if you are/can be a member of a credit union, you may have a good chance at getting a BETTER card from them.
Toothman, do you have any unresolved issues with Cap One? IE: an unpaid charge off, collection, or anything else of the sorts. I'm surprised they turned you down for a 100 % secured card.
No, Mindcrime. Never applied before even. No issues at all. It surprises me greatly that they won't take my money.
...even worse, I applied to Cap 1 and FCNB on the basis of a post from last week where I inquired about the easiest and best secured cards.
Toothman, How about a credit union, do you belong to one? If so, I'd suggest you take up a previous posters suggestion about getting a secured card through them. Even if you belong to a bank, and you have a good history with it, you should be able to get a secured card. Not sure what to tell you about Orchard. I get offers from them a few times I year. Never took them up on one though.
That is what I have heard too, Mindcrime. I guess I'm wondering about their reasons for rejection. Insufficient accounts and delinquencies are usually the reason people turn to secured cards. Do you think if I called them, they may change their mind?
