i have an ok credit score of 570, almost no inquiries, only 1 debt in collection and 1 credit card that i'm paying off, my credit report says it's pretty clean, why do i keep getting turned down every time i ask for a credit card???
2007-01-11 05:05:36 · 15 answers · asked by AMC 2 in Business & Finance ➔ Credit
When you're denied credit, the company is legally required to tell you why exactly and in writing.
Possibly your debt in collection is an issue. However, they also look at your debt to credit ratio - in other words, is that 1 credit card maxed out or near the max every month? That's an issue in their eyes.
2007-01-11 05:10:55 · answer #1 · answered by zippythejessi 7 · 0⤊ 1⤋
A few reasons may be affecting it:
570 is not a great score. You're currently in collection with another company (regardless if you're currently paying it or not). You have a large number of credit card company inquiries in a short period of time. You have another card that you're "paying off". "Paying off" means what? How much of that card's credit have you used up so far?? If it's a $5000 and you're "paying off" the current debt of $4900..........Considering your score, I would make the assumption that your card has more credit used than available. The collection and your current credit card debt is probably decimating your debt-to-available-credit ratio and depending on the amounts, could possibly be putting you into an upside-down ratio. If your credit card is $5000 and your debt to the card is $4000 and your collection account is $2000 you have $6000 in debts and only $1000 in current available credit...or you could view it that you have $6000 in debt on a total $5000 credit limit. Even if your credit card debt was $2000...your debt is a massive percentage of your total available credit. You want more available credit than used credit. Then factor in your income, which they might look at what you make vs. rent and current minimum payments and they don't feel you can afford it.
Each letter you receive after being rejected has to include WHY you were turned down. It also will include what credit bureaus they used to make their determination and by law you can obtain a free report from the bureau.
2007-01-11 05:55:07 · answer #2 · answered by dougzinboston 4 · 0⤊ 0⤋
570 is not that great of a score. When you couple that with the fact that you have a debt in collection and an outstanding balance, I think you have a couple of strikes against you as far as credit folks are concerned. The one thing you did not mention was where your income is at - with a healthy income, this should not be a problem. With a smaller income, or no income, I would think you would be a credit risk that only the high-risk card offerors would want to take on.
If you already have a credit card you are paying on, you might be able to use that for emergencies....otherwise get a debit card from your bank and use it - but you can only spend what you have. It will help you keep from overspending and get you credit back on track.
2007-01-11 05:16:50 · answer #3 · answered by C 2 · 0⤊ 0⤋
The reasons could be:
1. You are in collection
2. Your existing card is maxed out frequently
3. A friend of mine had a secure credit card for $500, but he used more than $450 each month. As a pure percentage, his credit usage was shown to be >90% each month - this could be the case with you.
4. And finally, too many credit requests - a result of all of your recent credit card applications.
In most states in the US, there is available a free credit history report from the three credit reporting agencies - have you checked that up - it's on-line and free at www.annualcreditreport.com
2007-01-11 05:22:05 · answer #4 · answered by Zapata 2 · 0⤊ 0⤋
First off you have one in colelction.
Until that is done and paid off almost no one will touch you.
Secondly your credit score is low, stop trying to get a credit card as everytime you try it makes an inquiry into your credit report.
Go for a year , maybe even a year and a half paying off that one in collection, and stop trying to get credit cards. The inquiries are hurting your score.
It may also help to show a healthy positive balance in your checking and bank account.
2007-01-11 05:11:51 · answer #5 · answered by PDK 3 · 0⤊ 0⤋
You can't say that you have no debts and then say you have 1 debt in collection. You are in debit if you have accounts in collection. Your credit score is low. Consindered to be poor. You need to pay off your credit card, and then never use more than 20% of the available credit on the card, pay of the debit in collection, and stop applying for credit cards. Credit Card companies perform what are called "hard credit checks" and every time you have one of those, your credit score goes down a little.
Pay off your debit, regulate your credit card use, and stop applying for new credit cards, and you shoudl see your credit score start to rise.
2015-02-04 04:09:49 · answer #6 · answered by Mylinda 1 · 0⤊ 0⤋
You have to have credit references to have a higher score. If you have no track record, how does anyone know what kind of risk you are or what your payment habits are?
The second requirement for getting credit cards is having an income. If you're making above $1500/month, you shouldn't have a problem. Below that amount and companies might start questioning how you can maintain a household and pay credit card bills.
2007-01-11 05:11:42 · answer #7 · answered by Anonymous · 0⤊ 0⤋
The collection account is killing your score....570 is well below the average. The main reason your score is so low and banks won't lend to you is that you have a very high % of nonperforming credit accounts to your overall accounts opened. Assuming the only credit accounts you have ever had are the ones you stated in your question, 50% of the credit accounts you have in your history have gone to collections....that's not good and my advice is for you to take any credit that is available to you assuming you handle it wisely. Only time and good handling of future credit will improve your score.
2007-01-11 05:20:16 · answer #8 · answered by SmittyJ 3 · 0⤊ 0⤋
That score is bad. And being in collections is VERY bad. Having a credit card with a balance is not that big of a deal as long as you make timely payments. My wife and I each have a credit card with debt on it, and my score is 720 and hers is 780. Its all about payment history and staying away from collections.
2007-01-11 05:15:27 · answer #9 · answered by gdodd10 2 · 0⤊ 0⤋
Your credit score is very low. An average score is around 675.
You also are in collection. This indicates to the lender that you are not a good risk.
You either have to settle the collection item and start paying your bills on time. Otherwise probably the only card you can get is a secured card.
2007-01-11 05:11:42 · answer #10 · answered by Anonymous · 1⤊ 1⤋