Keep getting rejected for Capital One Quicksilver and Citi Double Cash

Well I am not an expert and wont pretend to be but here is how I understand it.

As a person you can have two kinds of debt and credit available to you. You have have secured debt that is backed by assets(like cars and houses) and unsecured debt(student loans, medical, and credit cards).

Most people find it easy to under the secure debt one. You earn only X amount of money and therefore you can only get Y amount of credit to buy assets.

Unsecured debt is more complicated and I dont fully understand how it ties in but if you think about it it makes sense. You can only get a credit card with a limit. Because what happens if suddenly you say fuck its I'm gunna max out my cards, suddenly you are 20k in credit card debt. You can get this debt and rack it up in less then a day.

So some what using OP as an example. We have a 20 year old college student with 25k in credit cards. I wont give him a car loan because based on his credit history(which is only 2 years old) he has alot of debt he can rack up very quickly and low income. He is way to risk of a risk of not being able to pay it back.

Also there is a question of why does he keep asking for so much credit card credit available? That is a red flag. There is zero reason why he needs so much available credit. He is not a business man traveling thr world for work.

/r/personalfinance Thread Parent