NiteQwill

Okay, I applied for a new CC because I wanted some rewards. Now, I was denied an account because:

1. Current balances on existing/revolving accounts are too high

How can this be? All my credit balances have $0.00 balances except my CC which I use all the time but pay in full each month. I don't quite understand this.

I'm requesting a free credit report......

Any ideas?

dabuda

i believe revolving accounts are car loans or installment loans?

chef chris

Doesn't make sense...

I'd get a copy of your report to see what's up.

EDIT: Was that one card you use at it's limit anytime recently? That's the only thing I can think of.

CGTSX2004

iTrader: (1)

Sounds like you've been by fraud...

VeniceBeachTSX

They're going to look at your average balance over the past three months, if I recall correctly.

Paying it off in full doesn't cause them to see a zero balance.

Also, they can and do pay attention to things other than credit card balances, which include the balances on installment loans.

Generally speaking, the more rewards they give you, the tighter the standards are likely to be.

moeronn

I don't think car loans count the same as a credit card. Do you have a Home Equity Line of Credit (HELOC) or did you sign up for any "No Payments/No Interest" programs at any stores? Those are still considered credit and will count against you. Also, many of the "reasons" they give are so generic that they don't always help. Find out which credit agency they pulled your report from (Experian, Equifax or Transunion). I checked my scores recently and found that one of them was nearly 100 points below the other two since they don't always get the same data. Good luck sorting this out.

VeniceBeachTSX

Installment loans aren't counted in the same way, but they are counted.

And I agree, the explaination is often extremely generic and not particularly helpful.

doopstr

meh, just lie on the app and say you make 50k more than you really do.

When I was 18 I had CC with limits of $1000 or less.
I found one with an application that said "total household income". I said, hmm, they must mean my parents too . Bam, card with 15k limit. Oyeah, I applied for a normal card and they sent me a gold card. I almost sh!t myself.

chef chris

Good points. HELOCS and some store cards count as revolving debt.

And yes, all three bureaus can have highly different scores...almost too often you see a 50 or 100 point discrepancy.

dallison

maybe too many cards?

NiteQwill

Okay, I checked my credit. It says all 3 of my revolving accounts are in good standing , with two of them at $0 (a gas card and military credit card). My other card (Citibank) I use all the time has some money, but I always pay it off in full each month. I have one car loan that is paid ontime, every month (the CL-S). I just paid off another car. I have NEVER missed a payment, EVER (even my report says that).


So I'm still confused about getting denied credit? Oh, btw, I bought and paid for a FICO score through experian... 800.

fusionnv

They might have made a mistake. Ask them to check further. Revolving credit is credit that is consider credit that you have taken that will never be paid off. Like u moving balances from one card to another repeatly. I currently have that problem so I am trying really hard to pay of the cards. They don't want to give you more credit because they are scared you will add to the revolving credit. But since you checked and got such a high score on FICO then they must have made a mistake. Call it in and explain that you have a high score. I suggest doing this because they are getting information from somewhere and apparently it is wrong. This wrong info will be a pain later on if you wanted to take a big loan or something.

VeniceBeachTSX

I'm going to be a little more pessimistic here.

It's possible the "reason" you were given was just a "catch all" that is given out to just about everybody. They may be concerned about income levels, or maybe they don't WANT customers who pay off in full every month, but they don't want to tell you "we're not giving you a card because we think you won't be a very valuable customer," so they use some other blanket reason.

In my experience, the no-fee, high-benefits cards tend to do everything possible to avoid customers who won't run up finance charges and other fees.

Remember, you don't have a right to a credit card from any organization. They can't discriminate against you because of race, religion, etc., but it's perfectly legal for them to randomly deny, or deny for all sorts of reasons that aren't necessarily supported by your credit score.

Zippee

It's possible they screwed up. Call the CC company and ask why you were denied. Maybe a real human can get it sorted out for you.

Doom878

Screw them. If their guidelines are too stringent for someone with obvious good credit then send your business somewhere else. You could send a letter too and you might get a response from the cust. service dept.

DJDZ

No, because the term "revolving" means you can draw from the credit line, pay it back and use the same amount of availability again.

Car loans and other installment loans are amortizing term loans that do not revolve but have fixed principal and interest payments for a period of time.