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Can't get no credit anymore

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Posted: #1
I have a problem and I'm seeking some help. I have a credit card with $14k in balance($22k limit) and at the end of Feb the 0% APR stops and they start charging me. I owe on another account for $19k($37k limit) with fixed 7.99 APR. I have 6 lines of credit all put together would be roughly $100k. So my debt ratio is about 33%, right? Here's my problem, I tried to apply for 0% APR balance card(12-15 months) to transfer from the $14k account. One from Citi and another from Capitol One(both pre-approved offers in the mail) I was rejected for both. I applied for Citi, got denied, then tried Cap One, got denied. I'm surprised they would do that because  #1 they would make 3% ($420) right off the bat on transfer fees.... #2 I have credit score higher than 750. Did they reject me because my account balance is higher than 50% of the credit line? So what's my option now, is the market so tough now that you can't get credit anywhere? I have the funds to pay off the 14k card, but then I would rather keep the money in the bank in case I need it. I'm okay with paying the other card at 7.99APR, I'm paying about $140 a month in interest on that 19k. If you work with credit or know the inside scoop I would appreciate some suggestion, thanks.
 
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Posted: #2
I know what you are talking about. I have no credit card debt with lines of 120k and I was going to buy a LCD TV from Wal-Mart. Credit score is 780 and only debt is my mortgage which is almost paid off and I applied for their 0% interest for 18 months, the tv was 1299 and they only approved me for $750; which I denied. I make roughly 100k and single..........looking scary out there for the credit.
 
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Posted: #3
screw walmart
 
Covers Linesmen
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Posted: #4
I think you have it mixed around.

The debt ratio is debt to earnings, not what you have used on available credit lines.

Ive noticed ZERO ads hitting the mailbox over the last 6 months or so when before I would get 5 plus a week, not that I take them just stating the facts.

I think you got denied another CC because you have too high of available credit relative to your income. Even if you are only using 35% of it, you COULD use more and in this environment, companies are getting tighter with ratios and credit.
 
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Posted: #5
Quote Originally Posted by dillon24:

screw walmart


You are missing the point, and for the record i do not shop there and i did not buy it from them, it was an online offer so i gave them a call to try to get their offer and was denied from one of the only companies making money and yet they still wouldnt give me enough for it
 
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Posted: #6
Bankers are out to f--k you over, man.
 
If you use credit cards, pay them off if you can.
 
These banks are shysters from "the land of God," if you know what I mean.
 
Paulson is one of them, and he let them all off the hook with his gd bailout packages that got rammed right up the taxpayers' arses.
 
I am getting really farking pi--ed off now, so I think I better stop before saying something ethnically insensitive.
 
Oh yeah, I just love GOLDMAN SACHS.  Just look at the 2 words.....Goldman and Sachs. 
 
Better stop there.
 
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Posted: #7
 
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Posted: #8
Quote Originally Posted by claycourtlesson:

Bankers are out to f--k you over, man.
 
If you use credit cards, pay them off if you can.
 
These banks are shysters from "the land of God," if you know what I mean.
 
Paulson is one of them, and he let them all off the hook with his gd bailout packages that got rammed right up the taxpayers' arses.
 
I am getting really farking pi--ed off now, so I think I better stop before saying something ethnically insensitive.
 
Oh yeah, I just love GOLDMAN SACHS.  Just look at the 2 words.....Goldman and Sachs. 
 
Better stop there.

How are bankers screwing him over (nothing personal) but he is sitting on 33K in unsecured debt.  Why would I loan someone money that can't seem to know how to handle a debt in this environment.  I would guess the guys he talked to about approving him for the cards were laughing their asses off (again, nothing personal). 

So, my simple answer to the original poster is that you appear to be a credit risk and no one is going to give you another credit card.

As for the guy making 100K and no CC debt.  Buy the tv with your CC and pay it off after a month.  Or do something really crazy and sock 100 bucks a pay check for it and buy it out right in 12 paychecks like most of our parents use to do.

It isn't rocket science.

 
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Posted: #9
you are missing the point steel, I know I can pay for it now but the point is that companies are cutting back on credit and when a company makes an offer like there did i do not see how I could be a credit risk so they simply are not lending. Thanks for the advice on how i should pay for my tv, but as i stated i did it to see how the credit market is doing and obviously it isnt working because i would have been approved for the amount. In response to your comment on buying it outright like our parents did.....why do you think I do not have debt right now?
 
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Posted: #10
Quote Originally Posted by kingpincarbs:

you are missing the point steel, I know I can pay for it now but the point is that companies are cutting back on credit and when a company makes an offer like there did i do not see how I could be a credit risk so they simply are not lending. Thanks for the advice on how i should pay for my tv, but as i stated i did it to see how the credit market is doing and obviously it isnt working because i would have been approved for the amount. In response to your comment on buying it outright like our parents did.....why do you think I do not have debt right now?

 

King,

Sorry, I didn't mean to be a jerk.  I just deal tangentially with these issues and I see it all the time.  I see people making 30K buying $500 jackets or 100 dollar pair of shoes with huge CC debt when me and my wife make a nice salary combined 6 figures but not wealthy by any means and would never even contemplate making those purchases (same as you no CC debt, mortgage and a quickly shrinking student loan debt).  I know down the road that eventually when the bill comes do to cover for the people that acted responsibly are the ones going to get their taxes increased to pay for those less responsible.  Just PO - sorry.

 
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Posted: #11
Steel, so I assume that you're working in the credit industry, and your admonishment based on the wisdom that I'm one of those many you deal with about to default on my obligations. That's far from the truth, like I said in my original post I have the funds to pay off the credit card, so that's not the issue. It's my debt, and nowhere did I say that I feel banks are ripping me off. They want to make money off me on interest and I am simply looking for the best option trying to pay a little of it as possible. My question is about why I was denied for credit when my debt is 33% and my credit score is over 750. I got my first CC with BofA back in 1988 by putting down $500 as security deposit, slowly I have build my credit where I got that line of credit from Chase $22k and BofA $37k, so please don't tell me I don't know how to take care of my debt. As for them laughing their asses off at me, they were the ones who extended the pre-approved offer to me. I guess they did it because they wanted my business? I know credit is still out there because other people I have talked to have recently applied for a got approved online for $8k- $15k, granted their debt ratio is below 15-20% So yeah, I'm one of those people you see everyday, on your computer screen.
 
Legend
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Posted: #12
Quote Originally Posted by wallstreetcappers:

I think you have it mixed around.

The debt ratio is debt to earnings, not what you have used on available credit lines.

Ive noticed ZERO ads hitting the mailbox over the last 6 months or so when before I would get 5 plus a week, not that I take them just stating the facts.

I think you got denied another CC because you have too high of available credit relative to your income. Even if you are only using 35% of it, you COULD use more and in this environment, companies are getting tighter with ratios and credit.

 I believe this is correct. Yes, there's the rule of thumb about your actual debt/credit limit ratio but there's a line you cross when you have TOO MUCH available credit.............enough that you could conceivably bury yourself & then raise the white flag.
 
 No offense, but they probably should've tightened these parameters long ago. Bankruptcies have been a problem for a long time & it made me nauseous to see some declare it & then qualify to buy a house 2 years later.
 
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Posted: #13
Quote Originally Posted by gunonenic:

Steel, so I assume that you're working in the credit industry, and your admonishment based on the wisdom that I'm one of those many you deal with about to default on my obligations. That's far from the truth, like I said in my original post I have the funds to pay off the credit card, so that's not the issue. It's my debt, and nowhere did I say that I feel banks are ripping me off. They want to make money off me on interest and I am simply looking for the best option trying to pay a little of it as possible. My question is about why I was denied for credit when my debt is 33% and my credit score is over 750. I got my first CC with BofA back in 1988 by putting down $500 as security deposit, slowly I have build my credit where I got that line of credit from Chase $22k and BofA $37k, so please don't tell me I don't know how to take care of my debt. As for them laughing their asses off at me, they were the ones who extended the pre-approved offer to me. I guess they did it because they wanted my business? I know credit is still out there because other people I have talked to have recently applied for a got approved online for $8k- $15k, granted their debt ratio is below 15-20% So yeah, I'm one of those people you see everyday, on your computer screen.

No, I am not but deal with it tangentially and just leave it at that.

When did you get those lines of credit.  It is a different ball game, now.

You said you can pay off the 14K account but you would feel the squeeze in case of an emergency.  That tells me you are upside down on your credit i.e. your liabilities out weigh your assets.  Hence my point about them laughing at you b/c they don't want to take any risks on what is viewed as a potential bankruptcy issue.  Sure, you have built up your credit but you still show recklessness with it b/c the debt is unsecured.

I feel for you having to pay interest and trying to lower that amount but that was the deal you signed up with and racked up 30K+ in CC debt (now I have no idea of how you did it maybe it was because of medical bills but I sort of doubt it) and you want to try to lower that expense.  My suggestion is to take half of the money and pay off the higher interest rates and try to get you debt down.  Also, elminate several of your credit cards.  There is no need for 6 cards.

 

 
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Posted: #14
Steel, I have enough money in my bank to paid off both accounts, I would like to keep the extra cash because I might get into buying a condo for myself or investment(currently I rent). These two accounts are the only ones I carry balance on, the others ones I pay off monthly.
 
WSC, I know I keep referring to my debt ratio as 33% which is incorrect based on your info. idk the correct terminology so don't take offense.
 
Guys, I'm thinking of doing this....
 
I own my truck free and clear and it's worth about $13-$14k. I was thinking maybe selling it to paid off the chase CC, then buy a cheap car like the Versa or Focus and get financing. They have offers anywhere from 0% apr for 36 months or 3.9- 6.9% for 60mos. The payments would range from $277mo to 197mo, so for what I'm about to pay for interest on this chase account I would pay a little more and get a car which I will eventually pay off. If I'm denied financing I would take $10k from my BofA account and pay the 7.99 interest rate. Good idea?
 
Legend
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Posted: #15
Credit games are too complicated an risky.

Just pay for your shit and don't worry about the rest.

Reasonable mortgage.  Reasonable low-interest car loan.  And student loans if you have them.  Any other debt is a recipe for disaster.

Pay off your credit cards.  Period.
 
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Posted: #16
probably the best idea if you can actually sell your truck for real value in this market, if not then obviously do not take less than what you want to sell it for
 
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Posted: #17
Quote Originally Posted by gunonenic:

Steel, I have enough money in my bank to paid off both accounts, I would like to keep the extra cash because I might get into buying a condo for myself or investment(currently I rent). These two accounts are the only ones I carry balance on, the others ones I pay off monthly.
 
WSC, I know I keep referring to my debt ratio as 33% which is incorrect based on your info. idk the correct terminology so don't take offense.
 
Guys, I'm thinking of doing this....
 
I own my truck free and clear and it's worth about $13-$14k. I was thinking maybe selling it to paid off the chase CC, then buy a cheap car like the Versa or Focus and get financing. They have offers anywhere from 0% apr for 36 months or 3.9- 6.9% for 60mos. The payments would range from $277mo to 197mo, so for what I'm about to pay for interest on this chase account I would pay a little more and get a car which I will eventually pay off. If I'm denied financing I would take $10k from my BofA account and pay the 7.99 interest rate. Good idea?

You are just moving around debt.  Why sell a car that you own free and clear and only pay insurance, gas and maintenance on for another car payment particularly since you are not likely going to get the real value of your car right now.  The big three are giving away new cars right now if they can - why would someone buy a used one unless at a deep discount.

I would take 1/3 of the money you have in the bank and pay off one of the credit cards - the one at the higher rate. Then take the money you are going to use for the new car payment and add that to the money you pay on the other card.

The sooner you get out of bad debt - car payments and CC debt the closer you'll be to buying a house.

 

 
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Posted: #18
Thanks to all of you for the helpful suggestions. I think maybe the best option for me now is to pay off the Chase CC with my own money. Since I will most likely not buy any property within the next six month. And if I do need that money I can always sell my truck then. Buying a new vehicle would easily cost $1k plus in fees and taxes alone, so that's extra money I could keep in my pocket. Plus, this way I'll bring my debt ratio down to under 20%(WSC) So maybe after 3-6 months I can apply and get approved for a 0% APR CC to transfer balance from the other card.
 
What do you guys think of this idea?
 
Another quick question, do you know how much lower your credit score drop when you apply for new account, and if being denied/approved makes any difference?
 
Many thanks
 
Captain
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Posted: #19
it drops 5 points for every inquiry if i remember right
 
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Posted: #20
 d
 
 
 
on a side note, guy I know got approved for $12k at Citi, Capitol One approved him for platinum CC, but only $500 limit. needless to say he cut it up
 
anyone know the math table(debt ratio/yearly salary) they use to caculate/determine credit extension?
 
 
Legend
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Posted: #21
In housing when I sold real estate in the mid 90's  I liked to see no more than 1/3 income paying for housing expenses.. 20-25% was more ideal..
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