According to their letter, my credit score is 654 (though Chase Credit Journey shows 552), and I’m still waiting for my Discover It report. I know these applications resulted in hard inquiries, so I likely won’t be able to get approved for another credit card for some time, but I’m unsure how long I should wait. My Chase Credit Journey indicates I have two hard inquiries, which could now be 3-4 due to my recent applications. Should I try again with these institutions after some time, or look for a different one? How long before applying again?
Consider trying for a secured credit card.
Absolutely! Apply for a secured credit card—you should be able to get approved for that. If you’re not approved, wait about 6 months before trying again.
Vicky said:
Absolutely! Apply for a secured credit card—you should be able to get approved for that. If you’re not approved, wait about 6 months before trying again.
I believe the Discover card I applied for is a secured credit card. Do you have any suggestions for me?
@Bret
Wait, you were declined for a Discover secured credit card?
Vicky said:
@Bret
Wait, you were declined for a Discover secured credit card?
If the ‘Discover It Cash Back’ was a secured card, then yes, I believe so. I haven’t received the letter in my email yet, but it said they couldn’t process my application and I’d receive a letter explaining why in 7-10 days. My Chase statement for the Freedom Rise highlights that my score was considered in the decision. It reflects various key factors affecting my score, including too few accounts paid as agreed and too many inquiries in the last year. I’m quite young—almost 21—and recently got my first credit score report that wasn’t blank about 8 months ago.
@Bret
Ah, got it! There’s something called ‘Universal Default,’ so if you’ve been late on payments or have overdrafts, other credit card issuers might reduce your credit limits or even shut your cards down. They perceive you as a risky borrower.
@Vicky
Oh, that does not sound very good. Am I just in trouble for quite a while because of that?
Bret said:
@Vicky
Oh, that does not sound very good. Am I just in trouble for quite a while because of that?
You may want to check your credit report to see how many hard inquiries you have. Have you been late on any other credit cards or loans? If so, that could be damaging your score. It’s wise to review your report, which can be accessed at https://annualcreditreport.com.
There could be a few reasons for the denials. One might be having too many hard inquiries in a short period of time. Another could be lack of income or negative payment histories. Review your credit report to pinpoint the issue. You may have to wait 6-12 months before reapplying.
@Vicky
I just recently landed a good-paying job. Do you think I could reapply after my full income is recorded in my bank? Right now, it’s starting to build up but isn’t consistently flowing in and out yet. Shouldn’t it stabilize in the coming months? Or will I still have to wait 6-12 months because of the inquiries?
@Vicky
Also, thank you for taking the time to assist me with this!
If I were you, I’d wait for some of the hard inquiries to naturally drop off. If you have late or missed payments affecting your credit score, the process could take longer; it may take up to seven years for that to be removed from your report.
@Vicky
Yeah, I truly believe it’s because of missed and late payments. I struggled with them over the past two years because I didn’t understand credit well. So, it looks like I’ll have to wait until I’m around 25-27 to even think about getting a secured credit card, sadly.
You’re welcome!
I’m really sorry to hear that. Remember that hard inquiries drop off your report every two years. Depending on how many you’ve applied for, it might be wise to let many of them drop off.
Vicky said:
I’m really sorry to hear that. Remember that hard inquiries drop off your report every two years. Depending on how many you’ve applied for, it might be wise to let many of them drop off.
I might be wrong; it could very well be the hard inquiries affecting me, not just the missed payments. I just signed up for Credit Karma, and it shows my situation is decent aside from having 7 hard inquiries, which is likely impacting me. I’d say that’s preferable to having missed payments on my record.
Yes, missed and late payments will definitely impact your score.
Oh, okay.