Wells fargo declined 2% my credit card application

[Safire]

I am an EXISTING checking account and a credit card holder with Wells Fargo that I opened 20 years ago! Granted my credit card has a very low limit (by choice) BUT I've paid on time every single month with no delays, so they've been able to make no money off of me. This is NOT an add-on card and was / is solely in my name.

I applied for the 2% cash back card they advertised each time I login to my checking a/c, on Aug 31. Today, I was informed my application was denied because my monthly expenses were more than my income. HUH!

I called Wells Fargo card application services and was told this was because I had input my son's IHSS payments as my income and put in a steep amount for my rent!

Well....yes, that is MY only source of "income" while my husband's income covers rent and the rest of our bills, with a bit left over for savings and investment. They did ask me what my monthly rent / mortgage payment was... should I have put down $0?

I also told them about my existing credit card, and how I've paid off my balances every month. The rep's response was to call the CC division and ask to up my limit. Gee, who'd have thunk that, eh?!

Alrighty then... no cashback card for me, I suppose. Interesting turn of events, there.

 

[Aerides]

I always put in household income when I apply, and then I fudge because it's never verified.

There are plenty of other better banks to get cards from.

 

[Safire]

I always put in household income when I apply, and then I fudge because it's never verified.

There are plenty of other better banks to get cards from.

YES, after 25 years with them, I'm starting to think there's better banks than WF out there. It was beyond frustrating to get the decline... surely they can see I'm an existing card holder!

 

[TriumphTR3fan]

You have to give them a reason to think they could make money off your account. Otherwise you just cost them money every month. Plus, a low limit probably makes them think you have a low income. What is IHSS? A form of government payment?

 

[RunningBum]

Didn't know they had a 2% card. I just applied, and I'll get rid of my other WF card. I use my spending from last year as my income. That's a fudge but I can justify it if asked. I'll let you know what they say.

 

[Safire]

Didn't know they had a 2% card. I just applied, and I'll get rid of my other WF card. I use my spending from last year as my income. That's a fudge but I can justify it if asked. I'll let you know what they say.

Thanks!

They only asked me what my income was and what my mortgage payment / rent was and promptly declined me.

 

[Safire]

You have to give them a reason to think they could make money off your account. Otherwise you just cost them money every month. Plus, a low limit probably makes them think you have a low income. What is IHSS? A form of government payment?

Yes.

Why not give me a 2% cashback credit card with my current existing low limit?

 

[MarieIG]

I am an EXISTING checking account and a credit card holder with Wells Fargo that I opened 20 years ago! Granted my credit card has a very low limit (by choice) BUT I've paid on time every single month with no delays, so they've been able to make no money off of me. This is NOT an add-on card and was / is solely in my name.

I applied for the 2% cash back card they advertised each time I login to my checking a/c, on Aug 31. Today, I was informed my application was denied because my monthly expenses were more than my income. HUH!

I called Wells Fargo card application services and was told this was because I had input my son's IHSS payments as my income and put in a steep amount for my rent!

Well....yes, that is MY only source of "income" while my husband's income covers rent and the rest of our bills, with a bit left over for savings and investment. They did ask me what my monthly rent / mortgage payment was... should I have put down $0?

I also told them about my existing credit card, and how I've paid off my balances every month. The rep's response was to call the CC division and ask to up my limit. Gee, who'd have thunk that, eh?!

Alrighty then... no cashback card for me, I suppose. Interesting turn of events, there.

If you weren't going to include your DH's income which actually goes to pay the rent, then yes.

The information is probably fed into a computer, which calculates the credit the company is willing to extend to you based upon a number of factors, including your income vs. expenses as well as your credit history.

 

[Bamaman]

Wells Fargo is a jack leg operation. Only reason I bank with them is because their checking account e-system is so doggone good.

Most national banks are not in the business to be in business. They act from the negative in that they think they have to substantiate to the FDIC why they should turn down an applicant--not why they accept their account.

I use Capital One on my Visa account, and we get at least one free trip to Europe every year out of them.

Don't take a turndown on a credit app personal. Those making decisions or establishing credit standards ae not exactly human beings--even though they may look like one.

I have a friend that's the CEO and biggest stockholder of a great local community bank. He told me that the banking industry just sucks. And I agree.

 

[CSdot]

What does this phrase mean: "my son's IHSS payments as my income."

What is IHSS?

 

[RetiredHappy]

What is IHSS? A form of government payment?

In Home Supportive Services, a government program which pays for taking care of someone with low income who needs help with Activities of Daily Living. I assume OP's son is disabled.

 

[Another Reader]

I just went through the preliminary pages of the application out of curiousity. You have to authorize them to obtain information from Social Security. Yep, they get to access your SS account information. WTH?? Never saw that on the 10 other applications for cards I have filled out over the last 10 years. Already received two good bonuses from Amex and Chase Sapphire Preferred in the last few months. No request for SS access info from either.

Wells Fargo is my oldest bank. As in 42 years banking with them. Six figures in one checking account because of the rentals. Guess I will pass on their credit offers in the future...

 

[Car-Guy]

Wells Fargo is a jack leg operation.

I use Capital One on my Visa account, and we get at least one free trip to Europe every year out of them.

I have a friend that's the CEO and biggest stockholder of a great local community bank. He told me that the banking industry just sucks. And I agree.

+1 on Wells Fargo... Dropped them years ago because of their practices...

+1 on Capital One too. I'm very happy with their CC's, cash back and customer service in general. Hope they can maintain....

Also, just cancelled my Chase CC this week for their practices too.

 

[TrvlBug]

Watch out for WFB 2% cash back card. Applied for it when we opened a HELOC with them a few years ago. I never check the amount and one time when I charged a $30K item and was surprised to see only 1% credited. Called them and, yep, no more 2% cash back. Was told they don't have one. I missed the fine print telling me the 2% was no more . That cc now gets used often enough to keep it active as it has a very high limit.

 

[marko]

We were declined by Barclays for a JetBlue card. Why? Because we were honest in stating our income and employment status (retired).

They claimed that they found our income "unrealistically high for a retired couple" and requested a copy of our tax return. That was the end of it for us.

 

[FLSUnFIRE]

I have yet to apply for any new credit but "income" is rather ambiguous if they don't specify (and IIRC most have had passive income as a source on the application). I would put my income as the current yield on my accounts and/or, recent market appreciation, or gross reported to the IRS whichever made the most sense and benefit to me as all are provable and justifiable. I've never been asked for proof before. Heck, I had over $25K in CC LOC when I graduated college in 1997 with a stated income of $2K/yr! Have yet to pay a dime in interest but have made a lot off the float, bonuses, and rebates over the years. For me credit cards are 20% convenience and 80% fun gaming for "free" money!

 

[disneysteve]

Yes, you should have listed household income if you were also listing household expenses. Otherwise I can totally understand them declining your application.

 

[RetiredAt55.5]

I just applied for the WF 2% card, and put "retired" with a monthly mortgage payment of $475 and income of $75k. They approved with a credit limit of $12k.

I don't think they have a way of verifying income, especially since a fair amount of our income is capital gains distributions.

I'm guessing they rely more on FICO scores.

 

[Sunset]

OP - Raising your credit limit on your existing CC, will improve your credit score , which is 1 measure of how you can afford a new credit card. Having a higher credit score will help getting a new credit card.

Plus - income is household income. I always state around $110K , as it can be that number if I wanted it to be, they cannot check, and it's enough to not get refused.

 

[FANOFJESUS]

Alliant Credit Union has a 2.5% card you will need to put 1k in the checking account.
https://www.alliantcreditunion.org/bank#filter=credit-cards

 

[Another Reader]

When Amex had Costco's business, I was denied an increase over whatever the limit was. The problem was that you could only select one source of income. I put retirement, which did not include all the other income. The algorithm didn't like that, probably because the numbers were not consistent. They apparently ignored my credit score. So I opened up a Chase card the same day... That's how I learned about the algorithms. A week later I got a letter from Amex asking for my tax returns to continue the application process. I passed on that offer...

For those who like to play this game, I find Doctor of Credit to be helpful. It's fairly comprehensive. https://www.doctorofcredit.com/best-current-credit-card-sign-bonuses/

 

[Montecfo]

The 2 pct active cash card looks like a darn good card. I may apply.

 

[RunningBum]

I noticed it also has a $200 bonus if you spend $1000 in the first 3 months.

 

[Walt34]

There are plenty of other better banks to get cards from.

Agree. I have a policy - they can turn me down ONE TIME. If so, they'll never hear from me again.

I have a friend that's the CEO and biggest stockholder of a great local community bank. He told me that the banking industry just sucks. And I agree.

I've had more than one banker tell me that. The last time was the manager of FIL's bank (a small local one with three branches) when we were dealing with FIL's final years and the financial issues that went with it. The guy was straight out of Jimmy Stewart's character, George Bailey, in "It's a Wonderful Life". Super nice guy who genuinely cared about his customer's welfare. For example he refused to sell reverse mortgages, having seen so many people put themselves in a box from which there was no escape. He was about to retire and was very happy about it.

 

[Safire]

I noticed it also has a $200 bonus if you spend $1000 in the first 3 months.

Yes. That was what made me want to apply in the first place. BUT as someone else mentioned, that's only guaranteed when it happens.