Dealing with Rejection Citibank Rewards Visa

I got a lovely letter from Citibank thanking me for my interest in their Rewards Visa. While they would have valued me as a customer, they apparently didn't like the skull and crossbones Firstusa and Macy's scribbled in the margins of my credit report.

I can qualify for seemingly any 0% APR for 1 year card I want, but when I apply for a rewards or cashback card I get the smackdown. AMEX has been so hot for my business that it's getting a little embarrassing and they're like the most stringent. But I don't need an Amex, or a low interest line of credit for that matter.

So what gives? Is it possible that my checkered credit history has me marked as someone who will run up a bunch of cards, carry a crazy balance and pay dearly on their post-promotional 16% interest for the rest of my life?

I'm going to drown my financial sorrows in an entire tub of Ben and Jerry's Chocolate Chip Cookie Dough.