Denied for credit card…what does it mean?
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?
“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?