Credit Advice » Loans » Denied Credit » Secured Credit Card Application Denied

Secured Credit Card Application Denied

Dear Experian,

In order to establish credit, I recently deposited $500 into a checking account and applied for a secured credit card. I received a letter from Experian stating that the secured credit card application was denied based on my past credit history. If the credit card is secured by the money in the account, why is my past credit history being considered by Experian?


Dear KDH,

Experian doesn’t approve or decline credit, and it doesn’t send letters to tell you that your application was declined. Take a closer look at the letter your received. We are certain you will find that it was sent by the lender and says it based its decision on a credit report from Experian.

Lenders may review your credit history when you apply for credit, even when it is a secured account. If you look at your application documents you will probably find a statement indicating the lender may review your credit history as part of the application review process.

Federal law requires lenders to provide a declination notice that describes why your application was declined and, if a credit report was used, how to get a copy of a credit report from the credit reporting company from which the lender received the report.

The declination letter must state the decision was not made by Experian or any other credit reporting company.

It must also provide information about why the application was declined. If a credit score was used in making the decision, the lender must provide a credit score it used along with the risk factors that most affected that score.

Thanks for asking.
– The “Ask Experian” team

Review Your Free Experian Credit Report Today

Good credit begins with knowing where your credit is today. Get started with your free Experian Credit Report, updated every 30 days on sign in. No credit card required.

Get Started for Free
Get Your Free Credit Report

View your free Experian Credit Report every 30 days on sign in.

No credit card required.

Get Started for Free

Here’s How Much Your Personal Information Is Selling for on the Dark Web

The dark web is a huge marketplace for stolen data and personal information. Find out how much your information is selling for on the dark web.