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Help Me Make Sense of This

A while ago, we got DHs credit report -- only one charge-off less than $50. We then ordered the actual score & was unable to get it online. Had to send off copies of personal records to get it, which we weren't comfortable with, so we never did it.

He then applied for a couple of credit cards, and was denied. Again, to get a reason & credit score, they wanted personal records mailed to them... so we just assumed his credit was bad & moved on. Ended up getting him a secured credit card to try to improve his credit score.

Then, last week, he tried another site to get his score again. THIS time, no problem getting his score from all 3 creditors.... his credit score falls under "EXCELLENT" with all three!!! We double checked all the personal info (birthday, SS#, prior addresses & employers to make SURE they were his scores, too)

So WHY was he being denied basic credit cards? Anyone have any insight?

Answer Question
 
Laura1229

Asked by Laura1229 at 10:48 PM on Jan. 13, 2009 in Money & Work

Level 4 (56 Credits)
Answers (6)
  • Maybe, even with the good credit, he does not have enough HISTORY for creditors to be comfortable.
    CarolynBarnett

    Answer by CarolynBarnett at 10:50 PM on Jan. 13, 2009

  • Some credit card companies require that you establish credit before they approve you. Also, they may have been in the period when they were freezing all credits so that could have been it. However, chances are that you still didn't have your credit established and now you do.
    SimplyCreative

    Answer by SimplyCreative at 10:53 PM on Jan. 13, 2009

  • There are many reasons why a creditor will deny credit. It can depend on credit previously established. It can depend on the debt to income ratio. It can depend on the individual company's requirements (the company he was applying for credit with). Some companies actually prefer people with more debt than people with less debit (guess they figure they can make $$$ on the interest of them). I know there's probably several other reasons.

    Several years ago I was denied credit for a department store credit card, which I thought those were easy to get. When I called to find out why I was denied, I was told my income was above the minimum requirement, I had a house which payments were never late and my other debts were fine. The "problem" for them was that I did NOT have a car payment!!!!! My car was paid for and they didn't like that! So, ya just never know why, unless you ask them.
    Ginny19

    Answer by Ginny19 at 11:01 PM on Jan. 13, 2009

  • My previous answer was too long, so I cut this off of it, and will paste is here.......................


    I believe that when a company does deny a person, they have to explain why the credit was denied. And, you should also be able to get your credit report for free then, too. Those statements used to be true, but I'm not sure if they still are.
    Ginny19

    Answer by Ginny19 at 11:01 PM on Jan. 13, 2009

  • I think that when you get a credit denied, you will get something in the mail from that company officially denying you, and that should have the reason on it.
    CarolynBarnett

    Answer by CarolynBarnett at 11:17 PM on Jan. 13, 2009

  • Do you have a Checking account? I applied for a Best Buy card when I was 18 and was denied...I didn't know why...then when i got the paper it was a duh! You need a checking account
    OneToughMami

    Answer by OneToughMami at 3:29 AM on Jan. 14, 2009

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