Re: Denied credit card???
Bill
from the bank where you have a checking and/or savings account. Getting
a credit card is not a rational process at the moment.
I moved to a different city early this year at the peak of the
financial crisis and, for various reasons, changed banks to Wells
Fargo. I was astounded when they refused to give me a card and I have
higher scores than you do. I waited a few months until the financial
markets calmed down and Wells Fargo had repaid their TARP loan. I then
had my branch manager resubmit the same exact application and in 48
hours I had a card with an $8k credit limit.
Right now getting a credit card depends more on which bank you apply
to, what shape they are in and the phase of the moon than it does on
your credit score.<g>
--
.Bill.
Tad Borek
> I recently applied for a credit card from Chase, as I find my old card
> to be not so convenient.
>
> To my dismay, my application was denied with a vague reason related to
> my credit report.
>
> 3) We also always pay all credit card bills in full.
The reason could well be that you're a horrible customer to a bank. As a
group, credit card borrowers are profitable to a bank to the extent they
do the sorts of things MIFP'ers consider financially irresponsible:
carrying balances, paying double-digit interest rates, missing payments
and paying the late charges, etc. If you pay your balance in full the
bank makes only their cut of the VISA/MC system surcharge which is far
less lucrative, especially with cards that give rewards/miles.
Banks are trying desperately to repair their balance sheets, while they
gradually recognize loan losses from all the junky lending they've done.
"Repair balance sheets" in large part means "earn money from customers"
and there are limited ways of doing that.
With respect to credit cards, that new consumer protection bill is about
to go into effect, which will cut into the profitability of that
business. For example it won't be possible to crank up the rate out of
the blue for little/no reason.
The days of generous benefits may be numbered for us "free riders" on
the credit card system. Card issuers' sweet spot, no doubt, is those who
are still charging, who are unlikely to go into bankruptcy, but who
carry balances consistently. Banks can afford to ramp up rewards
programs for those customers, while borrowing at 1.5% and lending at 22%.
-Tad
Bill
is exactly right and that is another reason to look for a bank that
will give you a credit card as part of a package of services.
In my case I am sure that consideration of my second application at
Wells Fargo was helped by the fact that I made it clear to the branch
manager that I still had my accounts at Bank of America open with
minimal balances and that if the answer was no on the credit card all
of my business was going back to BofA. Yes, Wells Fargo will not make
much on the credit card in my case but they are also making money on
the other services I use and profit is not the only goal of many banks
today. They are also trying to make their risk profile more
conservative. As a customer I offer moderate revenue but I offer it at
very very low risk.
The secret to getting what you want is to present your request in a way
that emphasizes the benefits you offer the bank.
--
.Bill.
Avrum Lapin
wrote:
My bank has always acknowledged that there are two other banks at the
same intersection. I have changed banks 6 times over the last 30 years
when charges have increased or services reduced.
The Henchman
>
> Could the credit card industry be in a state of distress, rejecting
> most applications due to losses?
If you pay your bills on time then how will the credit card company make
money on you? If you pay your outstanding balance in full at the end of each
month then how will the credit card issuer make any profits from you? Why
should they extend you credit when you claim they cannot make money from
interest on your account.
Of course they can make money from transaction fees but enuf to justify you
as a customer?
Piet de Arcilla
> I recently applied for a credit card from Chase, as I find my old card
> to be not so convenient.
>
> To my dismay, my application was denied with a vague reason related to
> my credit report.
>
> so I ordered a free promotion of "three agency credit review" on
> TrueCredit.com. I hope to be able to cancel it in time.
You can get your credit reports from all three major agencies one a
year from www.annualcreditreport.com for free. That's the government
affiliated site. Unfortunately, it doesn't have a .gov ending, so it's
not obvious that it's the one you want.
Also, when you are denied credit, you are entitled to a free report
from whoever the lender dealt with.
You'd probably be better off trying your local bank or credit union
where you have a checking account, rather than someone national. I
have a very negative opinion of anyone with a well-known national
brand due to the bailouts and customer service horror stories on the
net.
American Express raised my interest rate, so I got a Visa from my bank
with a lower rate and 1% cash back. It's as though they are paying
_me_ 12% a year to borrow money from them as long as I pay it off
every month.
Piet de Arcilla
> Tad's description of the most profitable customer for the card issuer
> is exactly right and that is another reason to look for a bank that
> will give you a credit card as part of a package of services.
>
> In my case I am sure that consideration of my second application at
> Wells Fargo was helped by the fact that I made it clear to the branch
> manager that I still had my accounts at Bank of America
Why even bother with banks like that? Anybody who's a national
household name probably got TARP money and is totally screwed up in
all respects.
Just go with someone who's relatively small, but still has a
reasonable number of branches where you live.
You may be surprised at what credit unions are available too. For
instance, SEFCU is the State Employees Federal Credit Union, but
virtually anyone who lives in a certain area of NY can join, not just
NY state employees.
Piet de Arcilla
This is missing the point. There are a lot of screwed up banks, and
the biggest got huge bailouts, so they're still around. Just stay
away. People who are sensible with their money are perfectly good
customers for sensible, conservative banks.
Wallace
"The Henchman" <whya...@trybuddry.org> wrote in message
news:hdi3kl$7mf$1...@news.eternal-september.org...
you need to offset the losses from deadbeats from all the fees and interest
from slow-pays to get the real picture. I am sure they make more money over
all as compared with us pay off in full each month, but it seems there is
money to be made from both.
Default User
> American Express raised my interest rate, so I got a Visa from my bank
> with a lower rate and 1% cash back. It's as though they are paying
> _me_ 12% a year to borrow money from them as long as I pay it off
> every month.
Discover has been my main card for a long time. They often have
quarterly cashback bonuses on top of the usual. This period it's 5% on
groceries and some other stuff.
Brian
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Day 287 of the "no grouchy usenet posts" project