Community Chat

[Venezia]

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@CLEM wrote:

@chrystaltree  I sure should have credit.  I had a mortgage, sold my house, and bought my apartment with the cash from the house.  Doesn't that count?

I think I just go to my bank now and get one.  Surely they can't deny me.

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@CLEM- Don't count on that!  I recently applied for one with my bank because they kept inundating me with offers as a "preferred customer" and then did a promotion where, if you spent something like $500 within 90 days, you'd get $250 cash back.

My DH had gotten one a while back, as did my sister-in-law, so I finally thought "why not", even though I didn't need it.  (They applied at the counter, I made the mistake of applying online.)

I won't give personal details, but I will say I have a lot of money in this bank and I have a credit card rating just a few points off the maximum.  And they denied me on the basis that my "income is insufficent for the amount of debt".  WHAT DEBT?  I own my own home, I have no outstanding loans, etc..   I have never been late with payments on any other CCs or loans (hence the stellar credit rating).

I went into the bank and asked what the heck they meant and the woman they got on the phone (at corporate) kept saying "if I had a mortgage..."  I said "I DON'T.  I own my home free and clear."  She couldn't tell me "what debt" and kept repeating that until I ended the call.

Needless to say, my investments are being shifted from that "Bank Human" bank!  No idea what they're playing at these days.

[hckynut]

@CLEM

I get applications for credit cards in the mail almost daily. Every single one of them goes into our Micro-shredder. I have only 1 credit/debit card and why would I need another one? Answer, I don't.

Turned down with an 800 credit score, who would want one with a company like that one?

hckynut(john)

[MarieIG]

I don't recall being turned down for a cc, I have a few. I pay off the cards in full ever month. I get offers in the mail and put them in the shredder. I really don't want to many cc cards. My score is in the low 800's. The report that I get on my cc statement, states that the negatives (against me) are that I don't have an installment loan, such as a mortgage or car payment. I pay on time and have a good credit history. Needless to say, I see no point in paying for a loan I don't need so that I can raise my cc score.

[riley1]

A friend of my DH had many credit cards years ago. I don't know if he ran into trouble with them or just decided to pay everything off and use cash. His house was paid off and his cars were much older. 

Well fast forward to 2017 when he was trying to buy a condo. He had trouble because they couldn't establish his credit rating. I imagine the bank was wondering exactly why this guy was paying cash for everything and never used a CC etc. and I guess they were nervous as to whether or not he would pay up. He did finally get the loan but it did take some time.

I wonder if only using cash and never using a CC is becoming a problem for one's credit rating.

[Tique]

@CLEM     the reason you were denied was provided by @sherylsiu. Although you have a score which is 800+, your credit worthiness is determined by how well you manage your debt. Even though it looks good that you pay off your bills on time, the bank wants that plus someone with whom they can make a little money. If you owe $100 and pay $80, the remaining $20 will be subject to a small finance charge. The next month you pay that $20 and maybe an additional .20 of interest. Then before the month ends, you charge another $25 which you carry over to the following month. You  prove to the bank you are responsible, you pay your bills on time, and you can manage your debt. They like you. They offer to increase your limit which you will probably refuse but it won't stop them from periodically extending the offer again.

[occasionalrain]

While credit card companies make money from the interest paid by those who carry a balance, they also make money from the fee paid by the business where it's used. I have always paid off my ccs every month and have never been denied credit. 

Likely, Barkley doesn't want to lose the yearly payment you're making so is unwilling to issue a card that doesn't require it.

I recommend applying for a citibank card that pays 1% on every purchase  and another 1% when the charge is paid. That's 2% in cash. Why limit your reward to miles when you can use the cash for whatever you wish? 

[Linmo]

@CLEMIf you are denied credit for any reason, you will receive an explanation letter from the company with a contact #.  If I were in your position, I would definitely pursue it.  Good luck!

[CAcableGirl2]

@CLEM  My thoughts are that if you pay your balance BEFORE the statement is made, then the CC companies don't show the activity.  Go ahead and pay the statement balance each month to avoid any interest, but let the statement generate with a balance.

This will help to improve your credit score. 

[Desertdi]

I hate banks.    My own bank, where I have been a customer since 1974.......accused me of forging my pension check (from a Fortune 100 company).    It was quite a scene, with a whole line of spectators.

[KingstonsMom]

We're also one of those whose mortgage is paid off, we pay cash for our vehicles and never carry a balance on any of our 6-7 credit cards (most of which haven't been used in years).

Just yesterday, I received a letter from Dillards re: their credit card saying that since it hasn't been used in 24 months, they are reducing the credit limit on it.

Oh okay, LOL!