Chase credit line increase denied

For just about anything you want to get off your chest about credit cards.
6 posts
xstayfrosty
Green Member
Green Member
 
Posts: 4
Joined: Wed Feb 26, 2014 4:12 am
Location: Detroit

Chase credit line increase denied

Postby xstayfrosty » Wed Feb 26, 2014 4:13 am

Hello,

A little about myself before I explain this:

I am 18, a student but employed full time, still live at home.

I have had absolutely no credit in the past, nor any credit cards opened. In November, I decited to open up a chase freedom card to build a credit. I got approved right away. my credit line limit is $800. Ive had a checkings account with them for over 3 years, and have over 20,000 in the bank. Today, I called up chase and asked for a credit raise limit because I would like my credit to go up, and because I am in need to make a purchase every month that are well over $800 . Right away on the phone, they denied it after asking my annual income (which is $37,000). I am not sure why.. I pay my bills WAY before the due date, and have no history of bad credit. They can also see that I have money WELL OVER $800 in the bank which can also be good I am assuming. Note that I've only had this account for a few months. I know it doesn't seem like a long time, but I feel like I shouldn have a higher limit in my opinion. They said they will send me a letter in 5-7 days explaining the reason why I got denied.

I would like to hear from you guys, what is a good way to increase your credit limit fast?

Thanks!


travisrauh
Centurion Member
Centurion Member
 
Posts: 167
Joined: Sat Aug 17, 2013 1:01 pm
Location: Fort Lauderdale, FL

Postby travisrauh » Wed Feb 26, 2014 10:50 am

My guess would be two things - both the fact that your credit card account is still relatively new, and that you just have too little credit history. I would recommend using your card, let the balance reflect on your statement and then pay it in full every month. After a few months (I would suggest no less than 6), call back and see if you can reapply for the CLI.
I am an employee of American Express. All posts are those of my own and do not reflect the actions or opinions of AXP. While all efforts are made to ensure accuracy in my posts, for official statements or responses, please consult with @AskAmex on Twitter or dial the number on the back of your card.

432521
Centurion Member
Centurion Member
 
Posts: 379
Joined: Thu Apr 26, 2012 3:15 pm
Location: USA

Postby 432521 » Wed Feb 26, 2014 12:25 pm

you requested it to early, you have to wait 6 months
March 2011- Wellsfargo Cash Back College Card
May 2012- Chase Freedom
May 2012- Discover IT
August 2012- American Express Blue Cash Everyday

randeman
Centurion Member
Centurion Member
 
Posts: 188
Joined: Tue Jan 10, 2012 7:11 pm
Location: New York, NY

Postby randeman » Thu Feb 27, 2014 7:58 am

Agree with the above poster's comments. You applied for an increase too soon. You should wait six months, but you may do better by waiting a full year since you are so new to credit cards.
Cards and Credit lines Acquired:

Escape by Discover (7.75K), Barclay Holland America Visa (7K), Macy's store card (7K), Bloomingdale's store card (2.6K), Citi Custom Credit Line (3.5K), PayPal Smart Connect credit line (2.7K), Chase Freedom Visa (5K), Chase United MileagePlus Visa (5K), Chase Sapphire Preferred Visa (6K), Amazon store card (2.2K), Lord & Taylor store card (550), Nordstrom store card (1500), Gold Delta SkyMiles from American Express (3K), Discover It (6.5K), PayPal Credit Line (1K).

takeshi
Centurion Member
Centurion Member
 
Posts: 1741
Joined: Wed Jun 05, 2013 3:12 pm
Location: US

Postby takeshi » Thu Feb 27, 2014 12:38 pm

xstayfrosty wrote:I pay my bills WAY before the due date

xstayfrosty wrote:They can also see that I have money WELL OVER $800 in the ban

Neither of those really matter. I recommend reading up on credit scoring. Here's just one resource of many out there:
http://www.myfico.com/crediteducation/whatsinyourscore.aspx

Note that when you pay and how much you have in your account do not factor in. Having cash and credit are two entirely different things. There are those with a lot of money and poor credit and those with not a lot of money and good credit.

As indicated above, not only is your account relatively new but your entire credit history is as well.

xstayfrosty wrote:what is a good way to increase your credit limit fast?

There are no quick fixes with credit. It takes time to build. The 6 months mentioned above is a generic rule of thumb but it doesn't guarantee anything. It might help to have 1 or 2 more cards if you can get approved for them but, again, your credit history is still very new.

The usual recommendations for builders and rebuilders are to try credit unions with more lax approval standards and, if needed, to go with secured cards.

xstayfrosty
Green Member
Green Member
 
Posts: 4
Joined: Wed Feb 26, 2014 4:12 am
Location: Detroit

Postby xstayfrosty » Thu Feb 27, 2014 9:33 pm

takeshi wrote:There are no quick fixes with credit. It takes time to build. The 6 months mentioned above is a generic rule of thumb but it doesn't guarantee anything. It might help to have 1 or 2 more cards if you can get approved for them but, again, your credit history is still very new.

The usual recommendations for builders and rebuilders are to try credit unions with more lax approval standards and, if needed, to go with secured cards.


Thank you! I did call the rcon number to have them give me the exact reason, and you were right. They also recommended me to open up other credits card like a walmart discover or Discover it. I applied for the discover IT and got approved right away! $500 limit, but I can deal with it. :)

I am just in need to buy a $30,000 car in november, and I hope they can approve me and give me a low APR :/



Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 3 guests