Denied for "Lack of recent revolving balances"?

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Okie21
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Denied for "Lack of recent revolving balances"?

Postby Okie21 » Tue Sep 04, 2012 8:56 am

I just got a pre-approval for an auto loan with a local credit union and i figured i would go ahead and open up a credit card with them while they had already pulled my credit (and i've only ever had one card). Anyway, they wound up denying the application citing AAoA, loan balances too high (student loan), and "Lack of recent revolving balances". They had my Equifax as a 747.

I also had pursued an auto loan with another local bank, but they wanted me to have a cosigner, as this is my first auto loan. Anyway, in that denial letter, they too cited that a factor involved was a lack of revolving balances. They had my Experian as a 745.

I thought it was good to use your card, keep the utilization% low, and pay it off before it gets reported. So is paying off before a balance is reported hurting me?


jeffysdad
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Postby jeffysdad » Tue Sep 04, 2012 1:17 pm

Probably what hurt you was the student loan balance, depending on how high it is.
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Okie21
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Postby Okie21 » Wed Sep 05, 2012 9:19 am

17k balance on a 19k loan. What I'm really curious about is if not having a balance reported us bad, even though I did use the card and paid it early.

Okie21
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Postby Okie21 » Wed Sep 05, 2012 9:20 am

Btw I've only been paying on that loan for 6 months

Crashem
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Postby Crashem » Wed Sep 05, 2012 9:31 am

How long have you has that card? What limit, issuer, tc?
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Okie21
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Postby Okie21 » Wed Sep 05, 2012 4:10 pm

I've had the card for 19 months. It's a Visa, and it is issued through Cabelas the outdoor store. $500 limit, and my utilization is always under 20%, often closer to 10%. The last several months I have used it but paid it off before it reported.

Crashem
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Postby Crashem » Mon Sep 10, 2012 10:14 am

A lot of institutions have hard rules for rejection on credit cards. They want to see 2-3 other credit cards. That's what that rejection means. Call the cu and talk to them.
Amex Centurion, Amex Platinum, Amex BCP 8k->24k (5/23/12), Amex TE 15k, Cap One 1.5% 15k->20k (8/7/13), CSP 25k, Chase Palladium 100k, Citibank AA 35k (AU), Firestone 1.8k->2.2k->2.4k (8/20/12), JFCU Jloc 30k, PenFed Plat Rewards 30k, SF Fire 30k, US Bank Cash+ 25k



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