First off, here is a list of the credit cards I do have:
GTEFCU Visa Classic 12.9%APR $875 limit
CapitolOne Visa Platinum 7.9%APR $2700 limit

I received in the mail my bill for the GTEFCU and noticed they have a Visa Platinum with 6.9%APR. So I called them and tried applying. They said that it was declined, but they upped my credit limit to $1000. I don't care about the credit limit on that card though, I just wanted a lower APR.

They didn't give any reason as to why other then "it was declined". Would anyone happen to know why or are there too many possibilities?

My info:
I'm 20 and have had about 2 and a half years of credit. I've paid all my bills before they were due and way over the minimum amount due. 2 years ago I took out a 1k loan from GTEFCU and paid it off in a month. However, I took out another 1k loan out couple months ago from them and am about halfway through paying it off.

Could me having a loan out possibly be the reason? I was denied when I tried to get an AMEX Blue too and I don't understand what they want from me. Longer credit history?

Thanks for any and all help
-shawn

Most likely you were denied for an "insufficient credit history." Contact the CC company to get your free copy of the credit report that they pulled on you, though.

A big part of it depends on what your income is. They look at your debt to income ratio--they see how much credit you currently have available to you (not how much you're using, but your total credit limits) and calculate how much debt they think you can afford to pay off. It could be that at your current income, they think that you already have as much credit as you can handle...so they upped your limit a tiny bit instead of giving you a new card. Or maybe they have income requirements for the platinum card that you didn't meet. Or age requirements. Read the fine print on that card and see if there are any such stipulations.

The more times you are denied for a card, the worse it looks to people you're applying for credit with--I'd advise not applying for any more credit right now.

Get a copy of your credit report from all 3 agencies. You should be able to get a free copy from whichever agency they used--the denial letter will say which credit bureau they went to. But check your credit report and see if there's any false info on there too. You wouldn't believe what a mess mine was when I checked it. Tons of wrong info. Things that should have been deleted, things that were wrong, and I actually had two reports--one in my maiden name and one in my married name, as if I was using an alias. I had to get them combined and then corrected, and I'm still dealing with that. My car loan was showing up twice...it was a mess. So check it! It can't hurt to make sure everything is accurate.

Shawn,

In accordance with the FCRA (Fair Credit Reporting Act (http://www.ftc.gov/os/statutes/fcra.htm)) the lender is required to send you a letter listing the reasons for their decision to decline you credit. With that letter you are entitled to a FREE copy of your credit bureau report.

Based on the information you provided it seems you're doing a good job so far with your credit but it's still very new. I would continue to USE your credit cards, make on time payments every month and give it time to establish your credit profile.

I remember trying relentlessly to get two credit cards I really wanted (not sure why). The Amazon.com VISA and Amex CostCo, both declined me at least two times a few years ago. So I stopped trying, kept using my other cc's and always making on time payments. 2 years passed and I tried again, APPROVED for both credit cards. Unfortunately it's going to take time.

Thanks for the responses, I will look into getting that report.

I agree with you outnumbered in the fact that they do look at your income. What I did notice, however, is they didn't ask my current living arrangements. That is, with my current income I would not be able to afford to live on my own, however, I live with my parents, so that essentially would make my income look almost doubled since I don't pay rent, etc. But, I do not know if they would even take that into consideration.

I will not try to apply for any more cards in the near future and continue establishing my credit.

Thanks again
-shawn

Is it true you have to have a loan out for a certain amount of time before it goes on to your credit? I mean like the loan you got for $1,000 and paid it off in a month, would that show or no? I've heard this but don't know if it's true.

It all depends on how long it takes for you lender to report it, and what agencies they report it to. If you don't have a paypoff on your file that you should, call your lender to get things moving.

Just an update:

Well, I ended up applying and getting a Amex Blue. 9.9% fixed APR. Not too shabby, better than 12.9%. Gonna finish paying off that one (only $130 balance) and then cancel it. I only want 2 cards, don't want debt! :)

Thanks again all,
-shawn

Shawn,

Congratulations, thank you for the update :)

Ross

Just an update:

Well, I ended up applying and getting a Amex Blue. 9.9% fixed APR. Not too shabby, better than 12.9%. Gonna finish paying off that one (only $130 balance) and then cancel it. I only want 2 cards, don't want debt! :)

Thanks again all,
-shawn

Don't close it, if anything cut it up or put it in a safe place for absolute emergencies. Closing it would increase your utilization % and hurt your credit.