Strange Reasons For Credit Card Denial

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Ratfacedudeguy
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Strange Reasons For Credit Card Denial

Postby Ratfacedudeguy » Thu Jun 07, 2012 8:25 pm

So I got my adverse action letter after Chase denied my Sapphire application. The list of reasons wasn't quite as extensive as it had been in the past, which I guess is a good thing, but I noticed that one of the reasons listed was "number of active accounts or too much open credit".

I couldn't help but scratch my head at this one, and even the rep from the backdoor line seemed to be kind of perplexed at this odd verbiage.

Anyone else ever get weird reasons for denial like this?
Amex Green - NPSL - 05/12
Amex Zync - NPSL - 06/12
Discover it - $7750 - 11/12
Chase Sapphire Preferred Visa Signature - $5000 - 11/12
SECU Platinum Visa - $5000 - 08/08
Bank of America Cash Rewards Platinum Plus Visa - $3000 - 06/08
Citi Diamond Preferred Mastercard - $3000 - 05/12
GECRB Old Navy Visa - $2500 - 11/12
Chase Amazon Visa - $2000 - 11/12
Chase Freedom Visa - $2000 - 07/12
Citi Thank You Visa - $1000 - 06/12
Amex Blue Cash Everyday - $1000 - 01/13


tinninches
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Postby tinninches » Thu Jun 07, 2012 9:32 pm

What is your income relative to available credit?
[size=80]Amex Zync[/size]
[size=80]Amex PRG[/size]
Amex Costco TE
Amex Hilton
Amex Delta Gold
Barclay US Airways World MC
Chase SWA Signature
BOA Spirit World MC
[size=80]Barclay Apple Visa[/size]

Ratfacedudeguy
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Postby Ratfacedudeguy » Thu Jun 07, 2012 11:02 pm

The thing is my utilization across multiple cards was reporting higher than usual because I had a big return and balance transfer go through that eliminated a good chunk of my revolving debt but it hasn't reported yet. My available credit was reporting as about $2600 where I gross roughly that same figure a month.

By the end of the conversation we essentially determined that that statement actually meant I had several trade lines with balances on them, and that the thing about too much available credit just got lumped in with that same comment somehow.

I just found it strange that any creditor would see a high amount of available credit as a negative when everything I've heard up to this point seems to contradict that
Amex Green - NPSL - 05/12
Amex Zync - NPSL - 06/12
Discover it - $7750 - 11/12
Chase Sapphire Preferred Visa Signature - $5000 - 11/12
SECU Platinum Visa - $5000 - 08/08
Bank of America Cash Rewards Platinum Plus Visa - $3000 - 06/08
Citi Diamond Preferred Mastercard - $3000 - 05/12
GECRB Old Navy Visa - $2500 - 11/12
Chase Amazon Visa - $2000 - 11/12
Chase Freedom Visa - $2000 - 07/12
Citi Thank You Visa - $1000 - 06/12
Amex Blue Cash Everyday - $1000 - 01/13

tinninches
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Location: Franklin, Tn

Postby tinninches » Fri Jun 08, 2012 5:53 am

They certainly can be hoky like that
[size=80]Amex Zync[/size]

[size=80]Amex PRG[/size]

Amex Costco TE

Amex Hilton

Amex Delta Gold

Barclay US Airways World MC

Chase SWA Signature

BOA Spirit World MC

[size=80]Barclay Apple Visa[/size]

FutureBillionaire
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Postby FutureBillionaire » Fri Jun 08, 2012 4:26 pm

Too much available credit could mean that if you decided to charge up all of your cards, you would be in way over your head. They deemed that risky and decided not to give you more. My credit union wouldn't give me more credit for a similar reason. My available credit is equal to 75% of my yearly income. That could scare some issuers. I have to be sure to report additional income to help this.
Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape

Ratfacedudeguy
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Posts: 362
Joined: Wed May 30, 2012 8:10 pm
Location: Baltimore

Postby Ratfacedudeguy » Fri Jun 08, 2012 5:59 pm

I can see that as a deterrent to a potential lender for sure. In my case, my total credit in general (both available and utilized), is just over 1/3 of my gross annual, so even that still seems on the low end to me. Should I perhaps close out some of my current trades to help alleviate this? First thing that comes to mind is my Diamond Preferred -- while it has my second highest limit, the only thing it really has going for it is the 0% intro apr, where I'd much more enjoy collecting rewards or cash back, and it hasn't even been open for a month so my AAoA certainly won't suffer. They won't let me convert it to a Forward either, so that doubly sucks. 5x points on restaurants is sounding really good right about now...
Amex Green - NPSL - 05/12
Amex Zync - NPSL - 06/12
Discover it - $7750 - 11/12
Chase Sapphire Preferred Visa Signature - $5000 - 11/12
SECU Platinum Visa - $5000 - 08/08
Bank of America Cash Rewards Platinum Plus Visa - $3000 - 06/08
Citi Diamond Preferred Mastercard - $3000 - 05/12
GECRB Old Navy Visa - $2500 - 11/12
Chase Amazon Visa - $2000 - 11/12
Chase Freedom Visa - $2000 - 07/12
Citi Thank You Visa - $1000 - 06/12
Amex Blue Cash Everyday - $1000 - 01/13



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