Denied for credit card…what does it mean?

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I checked my credit report last week on equifax and saw that my score was 739. Last month I consolidated a $ 16,000 loan at a rate of 29% into a $ 20,000 loan at a rate of 11.5%(payment is $ 518). I also have a student line of credit (now inactive) for $ 12,000 with a balance of $ 7,500 (rate is 5.75, min payment is $ 75). I have a mastercard with limit of $ 2500 and a balance of $ 4. I have another inactive visa on my report with a balance of -$ 23.

I was looking to get a new visa in order to benefit from the air miles, insurance, and other benefits that my active mastercard does not have. The adviser at the bank figured that I would be ok to apply since I make $ 75,000 and have no current mortgage or rent payment (I don’t own a house though or other assets though).

She put the application in on Friday and it came back declined today. The stated reason was that “client has a new consolidation loan, and trades are high. Client also is without savings”. that’s the extent of what it said.

My adviser was a little surprised but told me that she could check with her manager as sometimes they can vouch for a clients low risk status. I told her that I just wanted to know what I should do to improve my credit worthiness. She’s checking with the manager and will get back to me in a few days.

I’m in need of a new car. Does this mean that I would not qualify for an auto loan at this point? What is my best course of action to improve my situation?

Thanks.

Mike

“On Friday, the Fed’s move to cut its discount rate by 50 basis points to 5.75% was seen as an attempt to help distressed banks borrow money”

I have read so many news articles about banks getting lower rates (like over-night lending to other banks) but what types of loans do they effect?

1) Will ARM mortages adjust lower?
2) Will traditional 30-yr mortgages fall? If so, to what APR?
3) Will my student loans change?
4) Will credit card companies be giving better interest rates?
5) Will the interest rate on my online savings account go down?

4 Comments
  1. Reply
    Fuzzy
    February 12, 2011 at 4:01 am

    t all depends on your debt to income ratio. Check that out and you will be better informed on your situation.

  2. Reply
    Janiah
    February 12, 2011 at 4:53 am

    If you are unfortunate enough to have a bad credit rating then you will probably know how hard it is to get any kind of credit. Lenders will turn you down for as long as you are seen as too big a risk even if the credit problem was long in the past and you are back on your feet again. When it comes to loans for those with a bad history of credit then they are available and your best option is to look for the best deal for bad credit loans online. When shopping for a car loan, it is important to compare many aspects of the different car loans you might be offered. You will want to compare car loan rates, terms, and read all of the fine print. The best way to begin to compare auto loans is to familiarize yourself with the different types of auto loans out there. The first type of auto loan is a loan with a fixed interest rate. this means the interest rate does not change through the life of the loan. this is the most important typical type of car loan.

    http://best-loans.awardspace.com/guaranteed-car-loan.htm

    It is important to compare auto loan rates carefully when looking at fixed auto loans, because there can be fine print relating to the loans that can change the price.Another type of car loan is a variable rate loan. This is often that has an interest rate that changes over the course of the loan. There is usually a range that is acceptable according to the terms of this type of loan. This rate could require your approval, or it could be up to the loan for the entire duration. But the best way for finding a car loan is to shop around. Check out what deals are offered in the marketplace before you decide to buy a specific car. Find out your credit score and, if necessary, correct errors at the credit bureaus. Compare interest rates at banks and credit unions, and ask about fees and early payoff calculations. When you’ve found the best outside loan, apply and get pre-approved. Then visit the car dealer with a check in hand to cover the purchase price of the car, plus any sales tax and registration fees.

  3. Reply
    Kea
    February 12, 2011 at 5:36 am

    It depends on the bank. Some banks aren’t taking any risks these days. I have more debt and less income than you and never had a problem getting a credit card through Chase, Amex, Citibank, Bank of America, or Discover. Try another bank. I wouldn’t think you would have any problem getting a car loan with your score and income.

  4. Reply
    Mike
    February 12, 2011 at 6:05 am

    The answer to all your questions (1-5) are NO.

    The discount rate effects very short-term loans by regular banks, and it does not effect any consumer or business loans or savings.

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