CapitalOne denied me when I applied for their secured credit card due to "insufficient income"?

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  • CapitalOne denied me when I applied for their secured credit card due to "insufficient income"?


Answer #1 | 19/12 2013 22:51
It may not just be your income amount, but your income amount IN RELATION to your existing credit situation. In other words, maybe $8,520 is enough if your credit report doesn't show that you have other exiting cards or obligations that you are re-paying. But, for example, $8,520 is not enough if they can see that you make a car payment of $200/mo. Debt to income RATIO and past credit history would also be factors. I highly doubt they would tell you what it "needs to be" anyway - to do so would invite customers to report a number sufficient to get the credit line when that number is untrue. They are measuring risk. Edit: Haha... I saw your comment back to me and now noticed I missed the word "secured" in your question. Sorry... I have no idea... I really don't know how they work or how they rebuild credit - though I agree that a quick Google search makes many references to them being used and marketed for that purpose. Keep in mind too that to the extent these companies are pulling a credit report each time you apply, this can further reduce your credit score - at least for a bit. I'd get some sound advice from a trusted financial expert at your local bank before you keep going at this. Even though you aren't seeking a loan from them, maybe a loan officer would give you a few minutes of advice if you are a checking/savings account customer there. I'm not qualified to give you financial advice on how to proceed and don't want to misguide accidentally - but I do suggest you talk to someone that is qualified before you make your next move.
Positive: 100 %
Answer #2 | 19/12 2013 22:46
Honestly... it's your credit score and you income.... and SSI although income.. isn't working income.. and I am betting that your credit score isn't all that stellar..... so sorry.... you probably don't need this as you have all the financial hardships you can handle.
Answer #3 | 19/12 2013 23:11
They have decided that you will not be able to pay your debts easily. It's their money and they don't have to tell you how they decided that.
Answer #4 | 19/12 2013 22:52
Credit cards are an expensive way to borrow. I always pay off mine in full every month anyway. Try using a debit card.
Answer #5 | 20/12 2013 00:29
SSI cannot be garnished. As such, you are judgment proof. Therefore, they could regard you as having zero income. Many firms will not extebnd credit to people who can walk away from their debts. Just a thought.
Answer #6 | 20/12 2013 02:25
one way to build credit is to pay your bills on time. If you have something in collections make arrangements to pay it off. The way they are looking at it is if you can't afford what you have then they are doing you and them a favor by not granting you a credit card where you could get yourself over your head, And as someone else mentioned they can't garnish SSI. You could however get a prepaid card at the local grocery store for a Visa or Mastercard
Answer #7 | 21/12 2013 10:44
You are on welfare - SSI is federal welfare. An SSI couple could have 4 SSI children, so now their income is like $36,000. No credit card, because it is all welfare. So they make 4 more SSI children, another $34,000. $70,000 a year but no credit card since it is all WELFARE. Not a penny of that income can be garnished since it is all welfare. As far as the credit card company is concerned there is NO income, none of that $70,000 counts as income since it is WELFARE. Hope that helps.
Answer #8 | 20/12 2013 04:11
I'm sorry, but everyone is telling you the truth. If SSI is your only means of income, that isn't something banks will consider. Even if they were able, you honestly can't afford to have credit cards with income below poverty level. With credit cards, you're likely to spend more than you make because you make so little. If you don't pay them in full at the end of the month, you'll be paying interest every month you carry a balance. Even if you were to pay your monthly payments on time without being late, it would still take you years and years to pay off due to interest fees. What happens if your monthly payments were to take most of what you make per month and your due date weren't around the time you get your check? You'd be late every single month and getting hit with a $35 fee every time. For you, getting a credit card is a VERY bad decision. If you have no job and unable to pay cash for what you need, that means you can't afford it.
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Answer #9 | 20/12 2013 03:05
You say you need a credit card, but you don't say why. You say "my credit score is a little bad right now due to an unresolved internet balance going to collections" Until that matter is resolved, no bank will give you a credit card. Sounds to me like you are spending more than you receive, and you are looking for more money to keep spending on things you don't need. If you cannot afford to put $200.00 on a secured credit card, to maintain that balance of $200.00 and pay off all charges made during each month's billing cycle, then you aren't credit-worthy. To persuade a potential lender you are qualified to handle an unsecured credit card, you need to show you have no outstanding debts, a history of paying all of your bills before the due date, and have a little cushion of cash set aside for emergencies. There is an old saying, you can't borrow money when you need it, only when you don't need it. So reduce your needs and get stingy with your wants.

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