Discover Card Rejection Letter

[Greg12]

I dont understand two of the 3 reasons I got rejected from discover card.

1.) Excessive revolving balance. I really dont get this one. I have a 1500 dollar credit limit and I never go over, but I often get close to it. Yet I pay the balance in full every month. I have always paid every penny that was due on time.

2.) Excessive credit enquires. This is dumb, how r they gonna punish me for applying for cards.

3.) Year in college-apparently freshmen do not get discover cards.

[ViRaL1]

The best part is when they send you another application a month later. It doesn't mean you're approved, just that you're in their database.

The Matrix has you.

[lordsmurf]

Discover sucks ass anyway.
Get a VISA.

[thayne]

2.) Excessive credit enquires. This is dumb, how r they gonna punish me for applying for cards.

That will kill your credit with any bank. It makes you look desperate for $$$ Each stays on your record for 2 years too. It's almost as bad as late payments. You need to lay off applying for credit for a couple of years.

[Greg12]

I'm beginning to think they dont actually read your credit report. If they read it they'd see I want a second card but i have no trouble paying my first one off

Thank you for pointing that out though, no more applications till I buy a car

[Conquest10]

How the f**k do people get a credit card?

[Rookie64]

You're better off without all the finance charges plus member fees (depending on your creditor's rates) - it's you're paying twice the amount of what you charge to your card.

As long as you keep paying on the card you already have, your credit will increase - allowing you more money to charge.
They want to keep giving you more money - that's more money for them


You can try applying for other cards from other creditors, instead of the same one you keep applying for.
They won't all reject you.

Some will reject you depending on your income.

[glockjs]

2.) Excessive credit enquires. This is dumb, how r they gonna punish me for applying for cards.

That will kill your credit with any bank. It makes you look desperate for $$$ Each stays on your record for 2 years too. It's almost as bad as late payments. You need to lay off applying for credit for a couple of years.

no no, not for 2 years. more like 6 months. each time you enquire it takes i think 7 isaac points off your score.

sometimes it can hurt you to pay off the balance right away. to build credit you have to hold a balance.

and yeah discovercard sucks, i used to work for them. of course every credit card company sucks too though.

[JohnnyCNote]

Try to avoid plastic handcuffs at all costs. I worked for Citicorp for a while. Credit cards are evil (and I very rarely use that word)....

[ViRaL1]

sometimes it can hurt you to pay off the balance right away. to build credit you have to hold a balance.

This is very true. Although credit card companies do make SOME money on service fees from merchants that accept their cards, the bulk of their revenue comes from finance charges and fees (late fees and annual fees). I wouldn't recommend being late on the card you have, but don't pay it all off every month. If you can afford to, pay off maybe 1/2 one month, 1/2 the next, but keep something on the card. It WILL cost you some money, but it will also help your credit rating. If they can't make any money by having you as a member, it's not as worth it to them.

[Greg12]

my current credit card is issued by citibank

they must hate me. I run up 1400 dollar balances and then pay them off completly the day they are due.

I want the discover card because I want to get the cash back.

I also see citi has a cash back card, i applied for it to.

[redwudz]

I use a VISA card. I pay it in total before the due dates each month. I've paid a dollar or two interest in 4 years. I use it for business expenses and VISA pays me back the 1% or so bonus. I make about $100 a year off them. They probably don't like me, but so far they haven't done anything about it.

A few 'secrets' I've found with VISA: Pay it off before the 15th of the month. That's when they close out the month. Mine is paid automatically on the 13th, supposedly in full from my savings account. If the balance is over $500 the bank will never pay it in full. They can't or won't tell me why. I make sure to transfer the full amount on the 14th and they have to accept it. It took me a while to figure out their system.

[JohnnyCNote]

my current credit card is issued by citibank

they must hate me. I run up 1400 dollar balances and then pay them off completly the day they are due.

I want the discover card because I want to get the cash back.

I also see citi has a cash back card, i applied for it to.

Here's some inside knowledge:

Call up Citibank, tell them about the Discover offer and tell them it includes a balance transfer for 0%, no service charge and a lower APR. Ask them to do better. If they can't, tell them you won't accept that and you want to cancel your card. They'll probably transfer you to the retention dept., which has more power to offer better deals. Don't back down until you get a good deal.

Citibank does have some cash-back cards, too, so be sure to ask about them. The botton line is that this is a very competetitive industry and they'll do just about anything (within reason) to get your business, and you can use this against them to get yourself a better deal.

Finally, always check every few months and ask for a lower interest rate. It can never hurt to ask. If you're a good customer, they'll lower it incrementally every 3-6 months, but you have to ask....

[stiltman]

Sure credit cards (if you're in the market for cards that is)
Providian
Citi Bank
Capital One

[VideoTechMan]

Credit Cards.....ugh dont get me started on those . The whole credit system is a complete joke. Nothing but a bunch of money-hungry bastards waiting to lure victims to trap them in debt. I have done more than enough research on the credit system to a point to be sick of them and those "for-profit" f***ing credit buereaus. Ive vowed to quit credit and just pay cash for my things. Once your credit is screwed, then you most likely will never get a second chance at credit since these lenders and banks expect our credit scores to be perfect, like 900 and up.

As for the original posters questions:

If you apply for too many accounts within a 6 month period, that will count against you. And those inquiries WILL stay on your report for 2 years.

I dont know how many CC's you have, but too many high balances can also count against you, like if you are always close to you limit or something, that can count against you.

And, college is usually where alot of companies try to bombard new students with credit offers...unfortunately ones who dont need credit until they learn proper money management.

Several months ago I tried to apply for a loan for my laptop at my credit union....got turned down when that letter came in the mail (threw it in the trash w/o even opening it, i just know what reject letters look like). I was like, f*** them and the credit system; I'll get my laptop without their help. So saving up the cash, I saved enough to get the laptop anyway--and defeated the credit system. If they say no, I just find ways around it.

Anyway, you just have to show that you dont need credit and that you dont need them. Id pay cash for my things and never bother with credit again. I can't wait until the day where I show up at a realtor's office and tell them I want this land and house, and then when they ask about "how's your credit?", i'll just show them the cashier's check for the amount and say, this will be a cash payment. What a good feeling that will be! In reality, that will be happening sometime soon.....

VTM

[glockjs]

discovers cashback is a joke anyways. you can get 1% of real cash back. but if you choose the 2% you basically get a credit towards selected companys. at least thats the way it was when i worked there. there are better cards out there with better programs

[thayne]

no no, not for 2 years. more like 6 months. each time you enquire it takes i think 7 isaac points off your score.

No, it's 2 years. I'm 100% sure about it...

[thayne]

Once your credit is screwed, then you most likely will never get a second chance at credit since these lenders and banks expect our credit scores to be perfect, like 900 and up.

That's not true. My credit was complete shit when I was younger. Once I got everything fixed and bought a house my credit score has gone through the roof. I went from not being able to get any credit card to being able to get Platinum cards with 4% intrest in less than 4 years

Trust me, my credit was as bad as it gets and now it's about as good as it gets. Although I still cannot get an Amex (I think the black listed me for life) but I don't care, Amex sux balls anyway....

[JohnnyCNote]

Time heals all wounds, especially credit ones....

[glockjs]

no no, not for 2 years. more like 6 months. each time you enquire it takes i think 7 isaac points off your score.

No, it's 2 years. I'm 100% sure about it...

edit. my bad..it stays on for 2 years. but the main thing of what im sayin is i dont think it counts against you for that long

[sacajaweeda]

American Express only here. I get stuff in the mail all the time from people wanting to give me their cards, but I don't want anything to do with them. Cash for me. If I ain't got it it goes on the Amex card and they get their cash within 30 days. **** 'em.

[ViRaL1]

Time heals all wounds, especially credit ones....

Equity doesn't hurt either. You're seen as less of a credit risk when you either own your own home, or are buying it. Those of who aren't doing so have a tougher time. Credit doesn't bother me quite as much as the idea of financing and interest rates. Someone please explain the sense in this (other than pure greed).

John and Mary are both looking to buy themselves new cars. John has great credit, Mary doesn't. Because of John's good credit, John gets a very low interest rate. Because of Mary's poor credit, she gets a much higher rate. Let's assume that John gets APR of 5% and Mary gets an APR of 18%. For a $25,000 loan paid off over 5 years, John will pay roughly $3,300 in interest while Mary will pay about $13,100 in interest. John will spend 53 months paying back $25,000 (with the remaining 7 months worth of payments going toward interest) while Mary will pay back $25,000 in about 39 months (with the remaining 21 months worth of payments going toward interest).

I'm trying to understand some logical justification for penalizing a person who's paying back a loan more quickly. I completely understand the idea behind wanting to recoup your money more quickly from someone who is considered a greater credit risk. What I don't understand is the reason for requiring so much more additional money after the initial loan has been repayed.