Rejected from Paypal CC! (1 Viewer)

[Mark Larson]

I applied online for one of those cool-looking Paypal credit cards, and was rejected. :frowning:
Will this affect my credit rating? Cos i want to apply for a few other cards as well - want to build my credit history, and figured now's as good a time as any.

 

[Carl Johnson]

Such a rejection will have a minimal effect on your credit rating. They keep track of companies that have accessed your credit file and of your open accounts so it doesn't really show up as a rejection but rather a potential account that was never opened. If in a short period of time someone had a dozen or so inquiries without opening any accounts then that would have a negative effect but one is no big deal. Hell, I recently saw my credit report and I had inquiries from companies that I've never even heard of, much less applied to.

 

[Wayne Bundrick]

I recently saw my credit report as well, and it explained that the inquiries from companies that sent me junk mail to apply for their credit cards don't count. They don't even show up on the credit report when another company wants to see it. But an inquiry from a company that you attempt to open an account with, that is, an inquiry initiated by your action, will show up on your report for other companies to see. A lot of activity in a short period is not a good sign.

 

[Peter McM]

Every time someone runs your credit report, you lose five points from what is known as a "beacon score"--a three-digit number used as a general barometer of your credit. If you have a good beacon of upper 600's to low 700's, the effect should be negligeable. But the fact you were turned down from a credit card indicated you may not have established your good credit well enough yet.

 

[Mark Larson]

So how do i establish my credit so that i don't get rejected next time? I want a credit card precisely for the reason that i want to build my credit rating... :frowning:

 

[Peter McM]

A co-signer, usually a well-established parent, is usually a necessary element for many a young person trying to establish credit for the first time.

 

[Nathan*W]

A secured card may also be helpful to someone trying to establish credit. It's a credit card that is backed by money you deposit into an account.

 

[Philip_G]

go to college, I get bombarded with CC applications for students ALL the time.

 

[Mark Larson]

I AM in college right now... I think my credit is so bad they don't even bother to send me an application!

 

[Wayne Bundrick]

Do you have a bad credit history or just no credit history? Are you currently paying for a car or do you have a lot of money borrowed on student loans? You really ought to check out your credit report to see what's scaring the lenders.

 

[MickeS]

I had no credit history at all 4 years ago (when I moved to the US). What I did was to apply for a store credit card at Robinsons-May, which I got, with a $500 limit (I'm guess that must be an easy card to get). I then made purchases there, paid them off on time, and after just a little while, like 6 months, I had a credit of $1200 there. At that point I started getting the crappy credit card offers with $99 yearly fee and 29% interest, so I skipped those, but maybe that's a way to go too I don't know. I just stuck to my store credit, built that up, and then after a while I got better credit card offers (no yearly fee, lower interest), got one of those, bought stuff, paid it off... now I have pretty decent credit, good enough to buy a car with no money down (which sucks in so many other ways ), buy a house and have 3 credit cards. Boy, do I feel like an American now!
/Mike

 

[Leila Dougan]

You may just want to check with your bank or CU also. I was able to get a "student credit card" with a limit of $500 without any credit history at all. After having that for a while I started getting more CC offers and now I can't get rid of em! Good thing about the Visa I got through my CU is that it has a great interest rate on it too.

 

[Danny R]

Paypal and other "big bank" companies are pretty strict about who they give credit to. You have to have good credit to apply online with them and get the card. If you have any marks, or are unknown, then you might want to go with a company that specializes in higher risk folks.

Also if your debt to income ratio is above a certain point you won't be able to get credit no matter how good your rating is. Because my wife no longer works, my mortgage now costs 2/3s my income (used to be a sane 25% when we both had salaries) so I can't get credit now either.

Providian and Capitol One are two choices where you might be able to get a $1000 card easily enough. And both offer "secured" credit cards that are practically never turned down if you are really in bad shape (after all, there is no risk to the company because you are providing the cash up front).

However I'd avoid going for the secured approach. They rake you over the coals with fees, and have a very high interest rate.

 

[Michael*K]

As someone mentioned before, stores give out their charge cards to just about anyone. I'd try starting there. My first CC was a Sears one and after that, I didn't have any trouble opening a majore CC account.

 

[Kevin P]

One tip with store cards however--their interest rates are usually pretty outrageous, so make sure to pay the card off in full when you get the bill. This is the best approach with any card anyway, but if you plan on carrying a balance someday, wait until you get a Visa or Mastercard with a decent interest rate.

KJP

 

[David Susilo]

What happen to the credit rating if I cancel certain credit cards I'm carrying? I have too many CCs which combined limit quadruple of my income. I want to shave off about 6 of them. I have zero amount owing on any of the card. Can anybody shed some light into my situation?

 

[KyleS]

Banks or Credit unions that you use are some of the best places to start since they already have seen history from you and know that they may be able to trust you just a little bit. If that doesnt work then the department store Credit cards are the second best way to go. Just make damn sure that wheny you start your credit out you do it right and never go to the dark side. Its relatively easy to get a 1-5K credit card and even easier to run it up but a major pain in the ass if you ever have to pay them down with money you dont have.
KyleS

 

[Kevin P]

What happen to the credit rating if I cancel certain credit cards I'm carrying? I have too many CCs which combined limit quadruple of my income. I want to shave off about 6 of them. I have zero amount owing on any of the card. Can anybody shed some light into my situation?

This would be a good thing to do. Once the accounts are closed they'll show up on your credit report as closed, and their credit limits will no longer be applied toward your debt/income ratio, thus freeing up your credit for other uses such as car loans, mortgage, etc.

In any case, you don't need 6 cards. I recommend having two cards--either two credit cards, or one credit and one debit. That way you have a "spare" in case you max one out or something happens. I have one credit card (with a $500 limit) and a debit card and between the two of them I always have one I can use if I need to. I use the credit card for smaller items and pay it off in full. I only use the debit card at the ATM and for larger purchases, or if my credit card is maxed out.

KJP

 

[KyleS]

Yes you do have to remember that whatever limit is on your cards, whether youve used it all or not, counts against your income when you look at getting loans for a house or car. Its standard income to debt ratio and if you have 2 cards with a 5K limit on them then they assume you owe 10K because you theoretically could run them up. Keep only 2 cards at most and use them for emergencies. The smart thing to do is always pay them off at the end of the month... PERIOD. Unfortunately for a lot of us that is not reality so do your best at keeping them near or at zero
KyleS
KyleS

 

[David Susilo]

Thanks for the replies. However, I'm still somewhat confused about the debt/income ratio.

Here's my situation: my income is $ X, total of all my CC is $ 4X, but I owe nothing at all to any card or any institution. House and car are paid for completely.

Is it still bad to have multiple CCs that I don't use in terms of debt/income ratio? Right now I have one card for business, 8 cards for personal use and only actively using 3 of the cards and never even maxed them, not even half maxing them out.