As most of us here are, I'm in the process of rebuilding my credit. In my case, I had a BK7 discharged back in July of '11, in which of course I dropped all my debts, with the exception reaffirming my mortgage (for various reasons, one of which being quicker credit building, but I did think carefully about all the options, trust me!).
In October, I qualified for a bottom-feeder (but at least not secured) Orchard Bank card, which I've paid down to 0 or carried less than a $25 balance each month since. In Jan, I applied for and was granted a PayPal/BillMeLater credit line (for the purpose of having a lower balance to credit available ratio). Currently, my debt to credit ratio is about 25%. My score has improved roughly 75 points since my discharge.
A few days ago, I figured I would try for a more mainline card from Capital One. It was a bottom of the line card, but more favorable terms than Orchard, and CapOne at least has a history of increasing your credit limit occasionally. I was declined. I wasn't TOO surprised, figuring that it was just too soon since the bankruptcy discharge.
When I got the declination letter, I was expecting the reasons to include insufficient credit history, or too soon since recent chargoffs, recent BK7, etc. CapOne apparently didn't care about any of that... Their reason for declining me was that I hadn't paid enough of my mortgage down yet.
Now, I had gotten a loan modification, so technically the current balance is "higher" than the original loan amount, even though I haven't been late since the mod. Could this be what they mean by that? Any ideas on how I can address this, or if I can?
Thanks for any insight!