rbai76 wrote:I just received the letter. It said there wasn't enough history. Said I had an average credit less than 12 months, balance on existing cards, and too many inquiries. My oldest account is more than a year old, the balances were still less than 15% of my credit limit, and I pay off my balances every month. It also said my credit score was around 700.
I will definitely give them a call and try to get them to reverse there decision. Is there anything I should tell them that will increase my chances of success?
I'll try to help clarify the reason better.
1). AAoA (Average Age of Account) is the Average of all your account together, not just the oldest. The new accounts you recently opened brings your average down and quite a bit because of your "Thin" file, being relatively new to credit as you are.
2) Your overall utilization is one thing, but having too many accounts reporting balances (regardless of the amounts) is a serious factor lenders look at.... So of those 5 accounts you have currently, any more than 2 reporting a balance on your Reports is too many, again regardless of the amounts reporting. If you actively use all of your cards regularly, and PIF, it's best to PIF before your Statement Closes for the month so that a 0$ balance reports on that Card to the CRA.
For instance take me, I use my CSP as my Everyday Card and route roughly 3K through it monthly, and for this card I PIF before statement closes so that a 0 always reports. It looks as if though I don't even use the card to any lender outside of Chase.
3) Too many Inquires, is pretty self exclamatory. Cap One pulls all 3 CRA so anyone of those reports with too many inquires could be the tipping point, and it could be the combine the amount of all 3 and then factor in what is too many. Not sure of the exact algorithm when all 3 CRA's are pulled.