- Centurion Member
- Posts: 188
- Joined: Tue Jan 10, 2012 7:11 pm
- Location: New York, NY
Don't close it and try not to take it personally. I used to take denials a little to heart myself, but if you look at your position objectively you can generally see the logic. As you have pointed out, you are probably pretty new to the credit game. Also, most likely, your file is quite thin, meaning you don't have a whole lot of credit experience. You need to know that your credit score is just ONE factor in approvals. Types of credit you have, your experience, your payment and usage history, your income and other factors play a role in what you are approved for and what you are not. I kind of learned this the hard way when I went on a who gave my credit-type website and looked at approvals and denials of people with my score or very close to it. I applied for two of these cards thinking that my chances should be good based on my score and...rejection. For both. I was astonished that I was denied for one of the the cards, a Citi card, because I have two accounts and two credit lines with Citi. Just goes to show you that all things credit is YMMV: your mileage may vary.
I don't know that much about 5/3, but don't throw a tantrum, as it were, and close the card just because you didn't get an increase that you asked for. There's a good chance that, with time (months/a couple of years), that card will grow with you.
If I were you, every six months (after you have had this card and the other for at least a year), apply for a few other cards like Chase, Citi, Amex, Discover, etc. I would apply for four or so, just don't get nutty. Most of these cards are good about growing your limits over time, both automatically and with hard or soft credit report pulls. Then, after a couple of years if 5/3 doesn't grow with you and the others do, you might consider closing the door on them. If you close it, you have seven years while it still reports to improve your AoA (age of accounts), which helps your score. If you have the other cards open that are five or so years younger than the 5/3, that will help cushion the blow of the older card dropping off your reports.
You might also want to consider getting an installment loan of some nature if you haven't had one. Creditors like to see your experience with those as well as revolving lines. You can often go to a credit union or another bank which offers secured loans with collateral.
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).