I was pre-approved for a credit card, then denied?

Question

I got in the mail a pre-approved letter from Americanexpress, so I called and filled out the app over the phone, but than was denied. I'm 19, I have a bill (phone bill with verizon) in my name that I pay every month and never had it cut off. I work 2 jobs and I was only going to use the credit card to pay my bills so I can bill my credit up. So why wasn't I approved. And are there any other cards that will aprrove me. Like I said, I'm not a dumb teen I'm not looking to go shopping with it and so forth, just to get my credit score high. Oh and no, I don't have any kind of bad credit

I have a checking account and a CD account as well

Answer 1

Those Pre-approval letters are sent out in mass-mailing situations. They're fishing for applicants. It's not really an approval, it simply means they got your name and address. You probably weren't approved for the very reason you want the card, you dont have enough credit history. I suggest researching for a secured credit card, the kind you send money into first, they report just like normal cards and it can help you build your credit. Just do your research and find one that's not going to charge you a big annual fee or anything like that.

Answer 2

Although it says you are pre-approved you are not guaranteed to be approved. Before getting my first credit card, I revieved about 4 capital on pre-approvals and 2 discover card approvals, and I still got denied from both of them at the time, even though I entered the "code" they send you. The best thing to do is get a card with your current bank or credit union that you have a good reputation with. They are very likely to approve you and than after that you will be approved more often for the cards you want.

Answer 3

You were pre-approved based upon the list that Amex purchased from a credit bureau. This is subject to a review of your application information and a reverification of your credit. Sometimes, they are looking to see that you are a student at age 19. That way, if you default, your parents would likely bail you out.

Keep in mind that your credit report does not show your income either. They may have found your income to be less than ideal.

You have the right to a free credit report within 60 days of being denied for a loan. This is in addition to the 3 free you get each year.

Answer 4

If you look at the fine print you'll see a line that says something like subject to verification or something like that.

What CC companies do is ask for a list with certain parameters. Age, income, credit score, etc. Then the pre-approved everyone, then after you call they check to see if they really want to give you a CC. In some states if they send you a pre-approved letter they MUST give you a credit card. I lived in one for a while and every pre-approved letter I received guaranteed only a $200 or $250 credit line. (fine print)

So your pre-approved letter was just bait to see if you wanted to apply.

Hope it helped.

Answer 5

Hi there...
Pre-approved doesnt mean anything. If you really want a credit card, try Capital One. Its the best credit card to get to establish credit, and their fees are not high at all. American Expess on the other hand has higher APR and they do require perfect credit. So thats why they denied your application.

Answer 6

"Pre-approval" really means nothing - it's just a mass mailing to get people to apply, when they really review your credit history and decide if you're credit worthy. American Express would be a very difficult first credit card to obtain. They require payment in full each month on the balance (not that that's a bad thing!), but you must have proven yourself for a long time beforehand.

To establish credit, apply for retail store cards. My first card was for Sears. I was very careful to charge just small amounts on it and paid my balance on time each month. After a few months, you can apply for other cards if you really need them. Remember, if you get turned down numerous times, that will decrease your credit score.

Answer 7

It's not that you have bad credit, but because you have no credit history. I'm sure there are other companies out there that will give you a card, but it will be a a high interest rate. If you get one use it wisely, and your credit history will build up in no time.

Answer 8

my friend got amx cards she came from the shelter gets food stamps doen't pay rent on time plus cable has been cut off for up to four months how

Answer 9

You don't need a credit card, pay cash for everything....