Denied credit card???

Try a different bank. Try getting your credit card as part of a package from the bank where you have a checking and/or savings account. Getting a credit card is not a rational process at the moment.

I moved to a different city early this year at the peak of the financial crisis and, for various reasons, changed banks to Wells Fargo. I was astounded when they refused to give me a card and I have higher scores than you do. I waited a few months until the financial markets calmed down and Wells Fargo had repaid their TARP loan. I then had my branch manager resubmit the same exact application and in 48 hours I had a card with an $8k credit limit.

Right now getting a credit card depends more on which bank you apply to, what shape they are in and the phase of the moon than it does on your credit score.

The reason could well be that you're a horrible customer to a bank. As a group, credit card borrowers are profitable to a bank to the extent they do the sorts of things MIFP'ers consider financially irresponsible: carrying balances, paying double-digit interest rates, missing payments and paying the late charges, etc. If you pay your balance in full the bank makes only their cut of the VISA/MC system surcharge which is far less lucrative, especially with cards that give rewards/miles.

Banks are trying desperately to repair their balance sheets, while they gradually recognize loan losses from all the junky lending they've done. "Repair balance sheets" in large part means "earn money from customers" and there are limited ways of doing that.

With respect to credit cards, that new consumer protection bill is about to go into effect, which will cut into the profitability of that business. For example it won't be possible to crank up the rate out of the blue for little/no reason.

The days of generous benefits may be numbered for us "free riders" on the credit card system. Card issuers' sweet spot, no doubt, is those who are still charging, who are unlikely to go into bankruptcy, but who carry balances consistently. Banks can afford to ramp up rewards programs for those customers, while borrowing at 1.5% and lending at 22%.

-Tad

Tad's description of the most profitable customer for the card issuer is exactly right and that is another reason to look for a bank that will give you a credit card as part of a package of services.

In my case I am sure that consideration of my second application at Wells Fargo was helped by the fact that I made it clear to the branch manager that I still had my accounts at Bank of America open with minimal balances and that if the answer was no on the credit card all of my business was going back to BofA. Yes, Wells Fargo will not make much on the credit card in my case but they are also making money on the other services I use and profit is not the only goal of many banks today. They are also trying to make their risk profile more conservative. As a customer I offer moderate revenue but I offer it at very very low risk.

The secret to getting what you want is to present your request in a way that emphasizes the benefits you offer the bank.

My bank has always acknowledged that there are two other banks at the same intersection. I have changed banks 6 times over the last 30 years when charges have increased or services reduced.

If you pay your bills on time then how will the credit card company make money on you? If you pay your outstanding balance in full at the end of each month then how will the credit card issuer make any profits from you? Why should they extend you credit when you claim they cannot make money from interest on your account.

Of course they can make money from transaction fees but enuf to justify you as a customer?

This is missing the point. There are a lot of screwed up banks, and the biggest got huge bailouts, so they're still around. Just stay away. People who are sensible with their money are perfectly good customers for sensible, conservative banks.

you need to offset the losses from deadbeats from all the fees and interest from slow-pays to get the real picture. I am sure they make more money over all as compared with us pay off in full each month, but it seems there is money to be made from both.

You can get your credit reports from all three major agencies one a year from

Also, when you are denied credit, you are entitled to a free report from whoever the lender dealt with.

You'd probably be better off trying your local bank or credit union where you have a checking account, rather than someone national. I have a very negative opinion of anyone with a well-known national brand due to the bailouts and customer service horror stories on the net.

American Express raised my interest rate, so I got a Visa from my bank with a lower rate and 1% cash back. It's as though they are paying _me_ 12% a year to borrow money from them as long as I pay it off every month.

Why even bother with banks like that? Anybody who's a national household name probably got TARP money and is totally screwed up in all respects.

Just go with someone who's relatively small, but still has a reasonable number of branches where you live.

You may be surprised at what credit unions are available too. For instance, SEFCU is the State Employees Federal Credit Union, but virtually anyone who lives in a certain area of NY can join, not just NY state employees.

Discover has been my main card for a long time. They often have quarterly cashback bonuses on top of the usual. This period it's 5% on groceries and some other stuff.

Brian