This morning, while I was having coffee at my daughter's house, I found an unopened credit rejection letter from Umbrella Bank. I recalled several people inquiring about Umbrella Bank's policies on this board, over the last few days, so I asked if I could open and read it. She told me I could take it, and this is what I found: My daughter's rejection was based on information provided by Experian. The two reasons they provided for denying her were an "insufficient credit history" and "excessive credit inquiries". My daughter has a charge-off for $250 from a collection agency, in behalf of a utility company dated 1995. She has no other negative lines, but she has 18 open accounts showing no delinquencies or other negative activity. While she has a lot of positive lines, her oldest account listed is a Capital One Visa Classic account, with a $200 unsecured credit limit, opened in November of 1999--just short of a year. Obviously, they look for accounts AT LEAST a year old, perhaps even more. She also has an UNGODLY number of inquiries. She has 41 inquiries over the past two years, with 20 having occured within the last 6 months. While Umbrella Bank offers a secured Visa, there was no push for it or mention of it on the rejection letter. It was the standard, generic rejection letter that most banks send out. Although they pulled Experian, it's possible they could rotate CRAs when performing credit checks. Many creditors do. Also, the CRA used can depend on the state in which you live. We live in Texas. Hopefully, this will answer many peoples' questions on Umbrella. I also hope my daughter will someday cool it on applying for credit. While her goal is to rebuild her credit, she's doing nothing but pissing in the wind as long as she keeps wracking up those inquiries.
Thanks Doris, that was very interesting, I know people have been curious but nobody seemed to know anything, but thanks to you we now do
Thanks for the info Doris. By the way, is there ANYTHING you can do to stop your daughter from applying for so much credit? Maybe lock her up in your basement for a couple of years? Tell her she will hate you now, but love you for it in 24 months. Just kidding!
Doris could take away her computer privileges and make her fill out paper applications. That would slow her down, and possibly create a lifelong aversion to credit.
I would spank her and send her to bed like I did when she was younger; however, now that she's 41, such tactics no longer work. Hell, these days people her age would actually pay to be spanked and thrown into bed! I've tried to reason with the hard-headed little wench and get her to knock it off with the inquiries, but I guess she thinks her old mama just doesn't know beans from car wheels. If she wants to continue paying around 20% or more interest on her credit cards for the rest of her life, I guess I'll have to sit back and let her. She takes after her father's side of the family.
