I am soon moving to my first apartment and I need to buy furniture to fill the place. I decided to check my credit report online, since I will need it for both things. It shows up as excellent.
However I went to Rooms To Go website and applied for credit online and they declined my application?!
I checked again with a different credit report agency to make sure everything was fine and it still shows as excellent credit. This credit was established by paying a student loan for almost 5 years and counting. I don't have any credit cards but have a quiet high yearly income.
Anyone has an idea why would my credit be declined and if so what I can do to fix the problem?
2007-03-18 13:30:21 · 9 answers · asked by Joy 2 in Business & Finance ➔ Credit
Could be because you don't have any credit cards. Thta can actually be a red flag for some.
Also, could be that you have bad info on a different credit report. There are three credit reporting agencies and you should check with all three. It's also possible that someone's stolen your identity.
2007-03-18 13:40:05 · answer #1 · answered by ISOintelligentlife 4 · 0⤊ 0⤋
even though you've been paying the student loan off, not having a diverse enough mix of credit can hurt you. The different types of credit accounts comprise of 10% of your score. If you have just that student loan alone, it won't get it done for you. It would be the same as if you had a credit card with a low limit. Now I'm not telling you to knock off more points to go and apply for a credit card to get the furniture, but what may help is getting a secured credit card from BOA(Bank Of America), Wells Fargo, or Orchard Bank(HSBC) and make small purchases that you can pay off in full on time every month. That's a start. And what you may want to do is look through craiglist for something temporary in the meanwhile until you've saved up enough to buy the furniture outright.
2007-03-19 03:13:27 · answer #2 · answered by Anonymous · 0⤊ 0⤋
While it is great that you have been paying off your student loan, I suspect that you were declined because you don't have a history of paying any revolving lines of credit. You need to establish a payment history with a credit card issued by a bank. (I don't mean where you have a checking account, I mean a major credit card company.) A good payment history with them carries more weight than a store credit card. Be sure to keep your balance owed down to half or below your available credit line. Once you have a good history with them, you can get any store card you want.
2007-03-18 13:55:07 · answer #3 · answered by Erin 1 · 0⤊ 0⤋
Insufficient credit history, the same thing happened to me. Buy the furniture on a zero percent for one year credit card and that will help your credit. Just be certain you make large enough payments each month that you will have the card paid off at the end of one year. Also, don't use the credit card for anything else. Good luck!
2007-03-18 13:59:36 · answer #4 · answered by financial-guru 2 · 1⤊ 0⤋
Some lenders want you to have a credit card because it's a revolving credit AND because the government can't step in to garnish your wages like they can with student loans, child support, etc. Perhaps you could apply for a credit card? You don't need to go into debt to use credit... just use it for small purchases here or there. There are other furniture stores that may accept you, but it's up to them to make that decision.
2007-03-18 13:58:15 · answer #5 · answered by Anonymous · 0⤊ 0⤋
I agree with most of the posters, you probably don't have enough of a credit history if all that you have is student loans.
They should have sent you a letter stating the reason for the decline and which credit reporting agency they used.
If you had been denied recently (last couple of weeks) call them and ask them to reconsider. Make sure when you ask for the recon that you tell them to use the report they pulled and to NOT pull another report. (pulling another report would mean another inquiry)
2007-03-18 13:59:15 · answer #6 · answered by echo 7 · 0⤊ 0⤋
The lack of credit can hurt you..i suggest getting a small credit card...something to show you have credit and able to maintain it. Your still considered a risk if you dont have credit..it sucks but its the way of the world
2007-03-18 13:58:32 · answer #7 · answered by myownsecretarydotcom 3 · 0⤊ 0⤋
It just takes one creditor reporting a late payment to mess things up. Check again and see if you can offer an explanation.
2007-03-18 16:50:41 · answer #8 · answered by Carole J 2 · 0⤊ 0⤋
The site below has a link to cc's and there is one there stating no one gets denied and no credit checks. Maybe you could try this as you must be able to9 get a cc with your score.
2007-03-18 13:51:26 · answer #9 · answered by Anonymous · 0⤊ 5⤋