 Dear
Dr. Don,
I just paid Equifax, TransUnion and Experian to see my credit scores. They are 672, 672 and 654, but still I've been denied credit cards by Citicard, Discover, American Express, etc. -- except their cards for bad credit, which I don't need.
I do have some negative items: student
loan and collection accounts paid in full more
than a year ago. Why are the banks still denying
my credit applications? Will I have a problem
getting a job with these credit scores?
-- Quality Credit
 Dear
QC,
Even though you paid off your past due bills more than a year ago, that negative payment history stays on your credit report for seven years from the start of the payment problems.
Your credit scores are pretty good
given that it's only been a year since you paid
off those past due-debts. The following graphic
comes from the myFICO.com
Web site and shows how FICO credit scores are
distributed. All three of your credit scores are
in the same 650 to 699 band.
One problem with your approach in applying to all of the credit card providers listed in your message is that each application shows up on your credit report as an inquiry. An inquiry stays on your credit report for two years but is used in calculating your credit score only in the first year that it's on your report. Filling out multiple applications for credit cards reduces your chances of approval because the list of denied applications makes you look desperate for credit and lenders hate lending to desperate people.
Time heals most wounds when it comes to a credit history. Let some time pass before you attempt to get a new credit card. Use Bankrate's credit card search feature to shop for a card with the features you want, and only apply to one card provider.
Employers have the right to pull
your credit report and review it as part of their
hiring decisions. I'm not aware of any hard and
fast rules about what credit score an employer
uses as a baseline to keep considering you as
a candidate for a job. The Bankrate feature, "The
ABCs of pre-employment background checks,"
provides additional information about what an
employer can use when considering your job application.
|
