Chipping Away - Busting Debt in Boston

A personal finance weblog about my own journey to eliminating my debts and building net worth. Hopefully this will serve as a place for me to share and discuss my strategies and ideas, as well as keeping me on track and focused.

7/17/2006

Denied for Credit - Check Those Reports, People

After waiting almost two weeks for Capital One to process and respond to my application for a card with them, and an associated balance transfer from my current Citibank card, I received a letter stating that my request for credit had been denied. I was more than a little surprised since my credit score is a 714 and I've held credit with ZERO problems (minus one that will be repaired on my credit report by next cycle) since 2000.

The two biggest reasons they cited were that I haven't held a revolving line of credit for a long enough period of time and that i had too many delinquencies on my record. As I mentioned, I've held a credit card in good standing since 2000, so I'm not quite sure how long is long enough for Capital One. Also, my credit report, unbeknownst to me at the time of applying for the new line of credit, has a single ">30 day" late mark from an Old Navy credit card which I held for some time last year. There was a period shortly after I moved where the customer service folks over at Old Navy couldn't seem to take down my new address properly, because it took three calls to eventually start getting statements sent to me again. All in all, I didn't see a single shred of paper from Old Navy for a little over three months.

Long story short, the final time I called and was successful at having my address properly changed, I paid off the remaining balance. I was sucessful in getting the representative to remove the late fee that had been assigned and was informed that the late payment would not be reported to the credit beaureu due to the circumstances. Apparently that wasn't the case...

Fortunately, this will all be behind me by next billing cycle as after a short chat with yet another representative at Old Navy, the late payment mark on my credit report will be corrected and all the accounts listed will have nothing listed except timely and accurate payments. But the moral of the story here is that had I been in the habit of checking my credit report before I applied for that new card, I would have spotted the error sooner and had it corrected. Keep an eye on those credit reports, people. Especially if you're looking at anything like a house or car purchase anytime soon. Don't let someone else's mistake cost you money!

Next post I'll explain why getting denied for that card by Capital One turned out to be a blessing in disguise, since it opened my eyes to a better possibility for consolidating and shifting my debts...

1 Comments:

  • At 4/16/2008 11:00 AM, Anonymous bad credit advice said…

    Glad you saw the positive side of this!

    Great advice with regard to checking your credit report. I don't think many people realise that they can do this & even correct any errors that may be on your credit file that can be causing a bad credit rating.

    Keep it up!

     

Post a Comment

<< Home