I applied for a jewelry LOC to try my own bdd. I currently have $2300 total MBNA credit, with one card and one gold LOC. But I got a letter saying that I had a sufficient amount of credit from MBNA given my income, and the denial was based solely on the application. I make $40,000 a year and also put $80,000 (from other people here) to make a household income of $120K. So this does not compute with me. Anyone have any ideas? I confirmed no reports were pulled.
author_22, A year ago, I applied for Quantum Card and they denied because insufficient income. They upgraded my Garfield Platinum Plus Card into Quantum Card, they pulled credit from TransUnion. Ron.
They've pulled a report as a condition for Quantum upgrade, even though no credit increase was involved? Saar
Sounds like your scores were too low -- what do you have for available credit, what are your ratios, what's your mortgage vs. income... If you report a $120k income but your mortgage shows $800/mo. and the rest of your credit looks like $40k/year... it could raise a flag. Call and talk with someone - get their opinions and ask them, point blank, "what do I have to do to increase the amount of business I do with MBNA?" Granted, there are better terms/cards out there tho... -mj
Saar, I don't have anything to hide from them. They can check my credit all they want. By the way, they pulled my credit report for account review every 2 to 3 months. Ron.
HIDING is not the deal...it's you already have the account...SO WHY PULL A CREDIT REPORT??? If you have the account BEFORE the credit report, and you will have an account AFTER the report...WHY PULL??? And WHY PULL "HARD" when they do AR'S all the time???
I have no mortgages or car loans. I have about $9K of credit, with only $700 being used. MBNA confirmed with me they did not look at my reports.
Every time you "unhide" your report from them in a way that results in a hard INQ, your credit rating is injured. If they injure your credit without you even asking for an increase, then that injury was totally unnecessary. Saar
George, I think you have their account and their card.By using the card, you borrow money from them. They can do whatever to make sure you have money to pay them back. Ron.
They agreed to loan you money for a given amount of time, be it one month or 6 years... They DON'T know how much money I have in my 401k, stock, checking, savings, they have very old income (10 years old)...NEVER LATE WITH THEM... HOW DOES THE CREDIT REPORT SAY I CAN PAY THE BILL TODAY??? (THATS AS GOOD AS "SEEING" HOW YOU DRIVE BY CHECKING YOUR CREDIT REPORT)!!! This is "UNSECURED" credit!!! I have PERFECT credit since 1978...ALL-BE-IT...LOTS...
George- don't take it personally. There are many things going on here... (1) Bankruptcy filings have been on a steady increase. Most problematic for the issuers is the increase in "surprise" filings - good customers not even 1 day late - BOOM. Whatever the reason (pending law changes, job loss, margin calls, divorce). (2) Consumers are getting much smarter about rate surfing. Gone are the days of blind loyalty. YOU (and I) know this very well. The issuers are watching carefully to see if you are likely to move your balance. If your profile indicates you are imminently going to move a balance, they can try to pre-empt with a special offer. Another "trick" is to do this while you have a balance- so that if you to accept it and move a balance, you will in effect "lock" the existing balance at the higher rate since payments will go against the "promotional" new transferred balances first. (3) Economic uncertainty... I've noticed an increase in AR inquiries by BofA, NextCard, Sears, Fleet, Amex. At least 2x/year FirstUSA and CapitalOne reportedly evaluate their portfolios and cut limits/increase rates on cardholders whose credit quality deteriorates. Keep in mind that they sell securities backed by your credit card balance ... the amount they pay out to investors on a given portfolio is based on the aggregate risk. Kind of like "portfolio A is FICO 680-700" and has a certain rate it pays to the investor. If your score drops, the issuer has to pay the investors more - so you can be pretty much assured that you'll be paying more. Bottom line - as information gets easier to move around, conservative banks will make use of it (and credit reporting agencies will market it). A big unknown is how the banks merge and blend the credit report information (and scores) with other data they have (census, purchase histories, data from those little warranty registration cards you send in, information from your cable company ... who knows what else!). -mj
If you have a good account with MBNA (or anyone else) with no annual fee, a low apr and you do not maintain a high balance,or if you pay it in full each month,beware of the newest trick!Refusing to renew your card! They don't need any reason! AND unless you catch it in time it is reported to the CRA's as "closed by creditor".Which can set off a chain reaction of problems !
Yup, that's what happened with my brother-in-law with his Fleet Gold. Bam- sent him a letter informing him that he had high balance (zero balance with Fleet for 4 months, perfect payment history) and that his card is closed. Best regards, Mirage
