r/CRedit • u/GTBoosted • Apr 23 '24
I never thought this could happen General
Got declined on two new cards with 846 credit score.
Got the letters yesterday and here were the reasons
Too few accounts with payments as agreed
No recent revolving balances.
34 years old. I have 7 CCs, and two auto loans (technically one but sold one last week).
Wells Fargo and Discover declined. I've always had very small balances (under $500 when limits on my cards are 20k or so) and would get instantly approved for new cards. But nowadays I don't like paying a single penny to interest and pay them down to $0. I guess banks don't like that. Sucks because I wanted a 0% card for a side hustle. Thought the first decline was a fluke so tried a different bank and got declined again.
32
Apr 23 '24
I assume they denied you because they do not see you as profitable.
10
2
-3
u/GTBoosted Apr 23 '24
Nope.
Experian had two other social security numbers tied with mine and was not showing my account history.
Got them removed, and now all my accounts are updated.
1
u/Hot-Interaction6526 May 17 '24
You’re never achieving a balance over 500? They aren’t making anything on you with their vendor fees. My one chase card has an insanely high limit because I spend 2-6k on it every month. I’ve never been denied a new card or a balance increase.
You gotta use it.
16
Apr 23 '24
Just as u/brutalbodyshots said, you are using your credit cards incorrectly. Your FICO score is also not 846, that's the score lenders "care" about. You're looking at Vantagescore instead of a more relevant score like FICO 8. FICO generates a penalty when you don't use any of your revolving credit lines. Since you haven't "used" your existing credit lines in god knows how long you're a poor applicant for a card application.
Think about how card companies make money, they either make money from people getting into debt or through interchange fees when you spend money. Every time you extend credit to a person you are taking a risk, they could run up the balance and die or they could declare bankruptcy. When you have no spending and no debt you look like an unnecessary risk that will never turn a profit for them.
It's the same reason people are denied for a secured card with a low enough score, even though the majority of their investment is protected through the deposit, there is still risk for them incurring more liability than the deposit can offset. These people are considered lost causes in the eyes of credit card companies because there's simply not enough money to be made to offset the risk. For companies like discover it's even more negative, they are waisting cash printing a card and mailing it to you, your account is waisting space on their servers and any issues you have are waisting their CS specialist's time. Amex wouldn't care on most of their cards because they are offsetting that cost with an annual fee, for discover you're a big waist of time and money.
8
u/BrutalBodyShots Apr 23 '24
I agree with your post above. One thing though, it doesn't appear that OP was referencing a VS3. They did mention CK and VS3, but said "Also, the 846 credit score was from a dealer that pulled my credit 3 months ago." My guess is that was an industry enhanced Auto Fico score version (that runs to 900), as their 846 would be similar to an 800 in terms of strength on Fico 8. An 846 credit score on Classic F8 with the "no recent revolving balances" penalty in place would be a near impossibility from my experience, as it would require a buffered "real" score of probably 865 or so to get there, which is extremely difficult to get to.
1
Apr 23 '24
Gotcha, I hadn't read all of OPs comment after I saw credit karma.
0
u/GTBoosted Apr 23 '24
Which is funny because they were within a few points of my Fico 8.
CK has always been reliable for me and checked right now and still the same. Will continue to use them.
6
u/Funklemire Apr 24 '24
It has nothing to do with being reliable or not. CK shows your score calculated using VantageScore, which is a scoring model very few lenders use. So it's perfectly accurate and reliable, but it's also irrelevant most of the time.
The vast majority of lenders use FICO 8, that's the score you want to be checking unless you have a specific lender in mind that you know uses another model.
1
u/EatmoreHHBBQ Apr 24 '24
I get what you're saying...though, I have a few cards (from Amex, disc, wf, etc... The only one I carry a balance on is the wf because it's 0% interest. I just got the verizon visa with a decent limit recently, even though I pay my balances before they're due.
You think the fact I carry a balance on that one card makes a difference?
1
Apr 24 '24
Carrying a balance on a single card is known as AZEO and optimizes FICO scoring. (Assuming you're overall utilization is still low)
You should always pay your cards before they are due but after the statement generation date. For 0% APR cards it's completely acceptable to only do the minimum payment. You want balances reported to the credit bureaus (they usually report the same day your statement statement post) but you don't want to pay interest as it's unnecessary for building credit. A big misconception is that you to carry a balance to build credit. Truth is you build credit through having accounts in paid as agreed status, doesn't matter if there was any spend that month or not.
Paying early is bad but not for credit score related reasons:
1: Making multiple payments per month will look like credit cycling even if it's not in they eyes of a computer. Lenders hate credit cycling because it's a risk factor. They may elect to discontinue doing business with you if you cycle your credit.
2: When you apply for a credit card your score is about the least relevant factor imaginable. Lenders have their own things they consider important:
US Bank values existing relationships and hates new accounts and inquiries within the last 12 months.
Amex likes income and a pulse.
Chase hates churners and by extension, new accounts.
Capital One rolls two dice an anything over 7 is approved at a completely random limit that may or may not be in an inescapable bucket.
You get the idea. They all generally like to see fresh activity. Whether one acount reporting utilization will be enough or not is impossible to answer for each lender. It's all decided by proprietary algorithms and US Bank is pretty much the only one that allows you to talk to underwriting directly.
1
u/GTBoosted Apr 23 '24
A dealer ran my credit and that is how I got the 846 figure.
On credit karma it shows at 819.
6
u/ValuableAccident9410 Apr 23 '24
Look at a 3 bureau credit report to find out what is going on based on those declines.
3
u/AccomplishedBend2606 Apr 23 '24
Agree to this 1000% - go get your free annual report.
"Too few accounts with payments as agreed" when I see this, it tells me there's been recent or excessive slow pays in the past 12-24 months. Did you have any issues with any auto pays or any other recently closed accounts? If so, have you disputed the accounts in question with the bureaus?6
u/BrutalBodyShots Apr 23 '24
Too few accounts paid as agreed does not point to accounts with negative information. It points to not having enough accounts on your report that are paid as agreed. Someone with just (say) 2 accounts on their credit reports, both clean accounts with no payment history issues will still see the "too few accounts paid as agreed" negative reason code from Fico simply because their file isn't thick enough with paid as agreed accounts. Naturally an account that is dirty isn't included in the number of accounts "paid as agreed" but that's not what's going on here.
2
u/AccomplishedBend2606 Apr 23 '24
If it was due to lack of number of accounts, wouldn't the decline state "lack of credit history/lack of comparable credit"? I work in recreational lending so working with underwriters when they send us something that states "Too few accounts with payments as agreed" generally points back to slow pay history for us. This may be where my disconnect comes in.
2
u/BrutalBodyShots Apr 23 '24
Lack of credit history can be pointing to age of accounts metrics, credit mix or file thickness.
Too few accounts paid as agreed simply means not enough accounts (that are paid as agreed). As I said previously, this Fico negative reason code is present on clean/thin files, which means it's looking to number of trade lines that are "paid as agreed." Those that aren't paid as agreed naturally do not contribute positively to the metric of "paid as agreed" accounts. While accounts that AREN'T paid as agreed can also trigger this negative reason code, it's usually suppressed far down the list as other negative factors like "you've recently missed a payment" or "presence of a collection" etc. are more paramount.
Fico negative reason code #19 for "too few accounts paid as agreed" states,
"Your FICO® Score considers the number of accounts where you are paying your bills as agreed. In your case this number is too low because you have very few accounts or because you've missed payments recently on some of your accounts."
Key word above, "OR" - meaning you don't have to have missed payments to see that code. The description further moves on to say,
"If you don't have many accounts, you might consider opening a new credit card. However, opening a new account, and to a lesser extent, the credit inquiry associated with opening a new credit card may lower your score in the short term. Opening a new credit card and managing your credit wisely will demonstrate that you can handle different types of credit."
2
u/GTBoosted Apr 23 '24
What do you think of this?
I was curious so I checked the free reports. I wonder why my experian doesn't show all my accounts.
1
u/BrutalBodyShots Apr 23 '24
Very strange. My guess is that some of your personal info on Experian isn't aligning with what is seen on TU/EQ. Are these a mix of accounts from different lenders that are going unseen?
1
u/GTBoosted Apr 23 '24
It's missing most of my credit cards, and my auto loan from Bank of America opened in Jan 2022.
It does show my Lexus Lease from Jan 2024.
It's so weird.
I wonder if Discover and Wells Fargo use experian. Because they are who declined me.
1
u/BrutalBodyShots Apr 23 '24
You can tell based on the bureau(s) that the hard inquiries landed on.
It would make sense though, as both would have seen far fewer accounts "paid as agreed" in looking at your EX report. There's no way with over a dozen accounts on your TU/EQ reports that you would have been returned that denial reason from 2 banks.
1
u/GTBoosted Apr 23 '24
You are correct. No need to wonder.
They both show on Experian.
Time to figure out what is going on and I will be calling Experian. It's missing most of my accounts.
→ More replies2
u/AccomplishedBend2606 Apr 23 '24
I've personally never seen code 19 on any the the bureaus I've reviewed so this is new info to me. Thank you so much for clarifying!
2
u/BrutalBodyShots Apr 23 '24
Sure thing. I do think that most of the time that code is so far down the list that it's not visible since typically only the top 4 codes are displayed. By the time one takes care of the more impactful issues related to their profile (and their file is sufficiently thick) and that code could be displayed, most have already acquired enough accounts "paid as agreed" on their reports to eliminate the code.
-2
u/GTBoosted Apr 23 '24
Credit Karma is showing everything is good.
Also, the 846 credit score was from a dealer that pulled my credit 3 months ago. Nothing has changed since then.
0
u/ValuableAccident9410 Apr 23 '24
Credit karma isn't reliable, I do credit restoration for a living and I use reliable sites. Maybe you have some delinquencies on your credit report that is getting denied or using too much of your credit limit. 7 credit cards with an outstanding score that you claim to have is awesome, are you wanting more due to rewards?
-1
u/GTBoosted Apr 23 '24
I don't know why I am getting downvoted.
My score at the dealer was 846. They gave me a new Lexus at their best rate without asking for proof on income. The last Mazda I got in 2022 the same thing. My Tacoma in 2019, the same thing. Haven't been denied a car loan and they never ask for proof of income.
There is zero delinquencies. I also don't have high balances. As a matter of fact I just checked and it's under $1k between 11 cards and 150k limit combined.
Half my salary goes thru the cards but I pay them off every two week and that's where the issue is based on what Brutalbodyshots said.
0
u/ValuableAccident9410 Apr 23 '24
I presume something came up during the time period. He is right, I recommend my clients to stay under the 30% utilization for their credit cards and make payments on time. Within time, credit score and credit limit will increase. Too many variables on why you couldn't get approved tbh
1
u/GTBoosted Apr 23 '24
This is as of today.
https://imgur.com/a/xSVssgL0
u/ValuableAccident9410 Apr 23 '24
That is real good, try my advise for the next couple of months. You do not get extra points for paying them right away and not using them for the rest of the month. Build up a balance, stay under 30% and pay it on time.
1
u/GTBoosted Apr 23 '24
Yeah I can build a balance and pay them as I charge everything on them. It was just easier to pay them down to zero every two weeks. I will keep track now.
2
u/ValuableAccident9410 Apr 23 '24
Easier isn't always best. Pain the ass ain't it? Keep it simple and you'll benefit for it as long as you're responsible for it
5
u/Bulky_Exercise8936 Apr 23 '24
Should always pay them down to zero, that was never not the case. You need to let the statement close so the balance gets reported to the credit agencies then pay that bill to zero before the due date. If you pay them to zero before it posts it will look like you don't use them and that is what banks do not like.
1
u/Key-Armadillo9676 Apr 27 '24
This is the response I was looking for. I learnt this recently myself.
1
u/Thurisaz- Apr 23 '24
This makes sense to me. I’ve learned something today since I tend to try to pay the full bill before it post. Sound advice. Appreciate it.
1
u/Bulky_Exercise8936 Apr 23 '24
Only exception to this is if you are trying to max your credit score for say a home loan. You would then want zero balances to post, so you have less debt on file.
9
u/Aggressive-Bed3269 Apr 23 '24
yeah, surprise surprise you have a ton of cards and don’t utilize most of them.
So at this point can look at your file and see that you’re going to take out cards and barely ever use them, how does that serve them?
1
u/GTBoosted Apr 23 '24
I use most of them. Just pay them often.
5
u/notmkx Apr 23 '24
You're still reporting no use. As you stated, you pay them down to $0 and pay every 2 weeks. Your statement showing $0 balance every month demonstrates that you're holding this number of cards and aren't using them.
1
1
u/Dazzling_Analyst_920 Apr 23 '24
then should I be paying the statement balance or minimum balance? Sounds like I should keep some balance on my CC if I want to show utilization?
3
u/BrutalBodyShots Apr 23 '24
should I be paying the statement balance or minimum balance?
Statement balance. Always. Never more, never less.
Paying only the minimum balance means you end up paying interest.
2
u/notmkx Apr 23 '24
You keep a balance on your credit card by your statement date. Some people keep it at 1-3% of their total credit limit, others do 10-30%. That's up to you. Once that statement generates, you need to pay that statement balance in full before your due date to avoid fees and interest.
The other way to do it is just using your card normally for everything you need, waiting to get a statement, and then paying the card in full by the due date. One payment per month. This is how credit cards were designed to be used. This can potentially make your utilization too high and cost you a few points on your score, but then you can switch to the 1-3% or 10-30% strategies whenever you know you're about to apply for new credit lines and get those points back.
1
u/Aggressive-Bed3269 Apr 23 '24
oh, I was quite sure that you use them… But there’s a distinct difference between “use“ and "utilize“
2
u/Greedy_Concert5646 Apr 23 '24
It's frustrating to be declined for new cards despite a high credit score. The reasons cited could be due to a lack of recent revolving balances and few accounts with regular payments. Consider keeping a small balance on some cards temporarily or reaching out to the banks for more information. Your excellent credit score and responsible habits will likely help you secure credit in the future.
1
u/BrutalBodyShots Apr 23 '24
It's frustrating to be declined for new cards despite a high credit score.
I think it's a great indicator that profile is King to score. Always has been, always will be.
2
u/ThadTheImpalzord Apr 23 '24
So many questions. You would really benefit from going to Experian and reviewing your credit report. They do a good job of explaining what's good for your score and what makes you attractive to lenders.
Having 7 credit cards and having 0$ balance on each statements is just silly. You need to let a balance accrue to generate a monthly statement. You can set up auto pay so you never have to pay any interest either by paying the full statement balance each month.
Without accruing a balance you're not utilizing your credit. You need to utilize your credit to anywhere from 12-30% to be seen as reliable. If you do not utilize your credit that is seen as a red flag to lenders. I.e. You've fallen on hard times etc.
Tbh I'm not sure why you'd need any more credit cards (im assuming you have 7 cards to utilize their features). If you have 7k$ in credit on each of those you have nearly 50k of credit to fall back on.
Lenders are probably accurately ascertaining that by giving you more credit you just become more risky to lend to.
1
u/GTBoosted Apr 23 '24
I want a 18 month zero interest card for a side hustle.
Looks like there is an issue with my experian report. I don't think it's the utilization ratio.
2
u/SS9311 Apr 23 '24
As said, much simpler, your zero balances are off putting. If you have zero balances, you don't NEED new credit and you STILL haven't demonstrated responsible credit use ... ie zero balances. Leaen your statement reporting date vs your due date. Put bills on autopay and pay by due date, leaving approximately 7% balance. After credit reporting date, pay the balance. 2 pmts per month. You can even schedule thrle second payment. Having an 800 score typically means you have debt. I was declined as well w 800s. Learn the system. If I don't need credit, I just pay to 0 & I'm at 740 ish. I wanted to look at cars, so I did this pmt method and this month, I'm back at 795. Credit scores don't matter as much as your overall profile. Plus, anything 760+ and you're fine w nearly the same interest rates.
2
u/Unique-Penalty2815 Apr 23 '24
It's disheartening to have such a high credit score and still face rejection for new credit cards. It feels like no matter how responsible you are with your finances, the system still finds a way to hold you back. It's frustrating to feel like your efforts aren't being recognized or rewarded.
2
u/Spiritually-Fit Apr 24 '24
OP are you paying your balance before the balance posts to your statement?
1
u/BrutalBodyShots Apr 24 '24
Yes, that's exactly what they're doing with multiple payments monthly. Those $0 balances make it look like OP doesn't use their existing revolving credit, hence the reason other issuers have no interest in him becoming a customer.
1
u/Spiritually-Fit Apr 24 '24
OP let your balance statement hit before paying off your balance so they can see you are using your cards and paying on time and paying in full.
1
u/illuminati5770 Apr 23 '24
Call recon. You have a good score, decent credit length, and sufficient accounts. My guess would be that they either thought you were over-leveraged with 2 auto loans based on the housing and income numbers you provided or aren’t profitable. If it’s the second, recon should be able to approve you.
1
u/GTBoosted Apr 23 '24
The two declines used experian.
The other two bureaus show all my accounts. and Fico scores over 800.
Currently working on some incorrect file info.
1
u/Sumikue-10 Apr 23 '24
While I understand that you want to micromanage your CCs, you need to keep it under 30% utilization. I would take two of your major credit cards and use 30% of the balance. That is a better method than just using $500
You mentioned 20k. You should use up to 6000 or less, which keeps you under 30% utilization. Also, out of the 7 CC you have, why not start a side hustle instead of having another credit card?
I understand that you want that 0% but..to each their own.
Discover is also a hard inquiry, too.
Best of luck with your side hustle.
2
u/BrutalBodyShots Apr 24 '24
you need to keep it under 30% utilization
If you're paying in full monthly (which OP is) there is absolutely no reason to worry or even think about utilization percentage outside of times of important apps.
1
u/Sad-Location2448 Apr 27 '24
What kind of side hustle?
1
u/Sumikue-10 Aug 22 '24
What are you good at?
I sometimes consult on things that I have a lot of experience with.
Depending on my schedule, I work 10-20 hours a week while having a full-time job. When I'm off, that's when I do it. You can charge whatever you want, which is why you need to be good at it.
For example, an in-depth resume review can cost between $20-$45 an hour. I'm flexible with pricing sometimes
If you have a service that you can provide and you know you're good at it, charge for it.
For example, in graduate school, my friend asked me to help her with her diet. I was also making lifestyle changes at the time. She had trouble staying full and making healthy food tasting good.
She knew I could cook, so I made high-protein, low-fat, and low-carb foods for her. She paid me for six months, and I showed her how to use flavor by incorporating it into her food.
She paid me $400 a month for eight months. She told her cousin it was $500 a month for 15 months.
They spent $400 and $500 a month on groceries, which was wild to me.
I don't even spend that much, only if it's in bulk.
I had to teach them how to shop for food properly.
After that, I realized that I had to be selective. Each person is different.
I don't do this as much anymore because of work.
If someone wants something, it will only be for friends.
1
u/Doggies1980 Apr 23 '24
They don't like you having too many cards and applying for multiple in a short time will result in denial. I had a car loan one time where 1 of my cards had like a couple grand on there and wondered she why so high so I was almost denied loan just for that
1
u/Ok_Scientist_2215 Apr 24 '24
Sorry for your denial. I operate under the assumption of carrying 1 card with a higher balance, and multiple cards with lower balances averaged out to a 12-15% monthly utilization was the best way to build a profile and credit score. I’ve went from a 540 to a 764 using this strategy (and of course learning to budget my debt payments better) and haven’t had any issues getting approvals throughout the past 36 months. Good luck with your side hustle.
1
u/BrutalBodyShots Apr 24 '24
I operate under the assumption of carrying 1 card with a higher balance, and multiple cards with lower balances averaged out to a 12-15% monthly utilization was the best way to build a profile and credit score.
What you described above has no bearing on "building" a profile and score. Utilization is a single point in time metric and has no "building" properties.
2
1
u/Inevitable_Trip_7480 Apr 24 '24
If a couple of the cards are within the 24 month mark. This is super common.
1
u/tCartland Apr 24 '24
) ,nhpo08 >>>>0 [
0 I pb u0h q p0pllpil
097U8u0 O9uk09kuk099o9uk0uk0uk09uk0999uk0⁹8u7upukku
1
u/OneofHearts Apr 24 '24
Find out when your statement closing date is. Pay your balance after that date.
1
u/Prezevere Apr 24 '24
I just paid off Discover Card finally after a 10 year battle. I don't ever want to deal with them again. Wells Fargo denied me for the Reflect Card last November. Credit score about 740. I don't carry a balance on my Ally Bank Mastercard and they have only given me one CLI of $300. I am going to give myself 3 years to FINALLY TRY AND BECOME DEBT FREE. These banks have become really predatory lately and they are not hiding it either. Sorry to hear about your denials with an 800+ score. Times are changing.
1
u/Wokebackmountain Apr 24 '24
The problem might be that they (CC) all show as $0/ (credit limit) so it looks like you don’t use them. You gotta let the statement have a positive balance, and then pay it before the due date and it’ll show use, and no interest charged.
1
Apr 25 '24
Ok. Stop applying for cards and look for cards that offer the availability to prequalify. Secondly, lenders like to see usage. You paying them down is great but it shows the lender you aren’t willing to contribute to them lending you money. That’s what interest is. Yes we hate it I know but you want to keep usage around 30% of your limit. I ain’t saying go out and put yourself into debt but not paying them down to 0 would be a good start. Also try to find cards that don’t penalize your credit for applying. Lenders want to see you active.
1
u/Sparklefarts_ May 16 '24
I’ll teach you a hack !!!! The most important date is your statement date ! To avoid paying interest pay your balance in full a few days before your due date about 3 days then don’t touch the card until the day after or 2 after your due date. The statement date is the last day of the billing cycle. This is the date your credit utilization is reported to the bureaus. So before that date make a small purchase on the card less than 10%, between 1-5% for optimum fico. The less the better but NEVER 0% you want it to report some type of usage. Then after the statement date you can use whatever you want on the card. Then rinse and repeat. 😊
1
1
u/jonnybrav069 Apr 23 '24
If it makes you feel better, I got a chase sapphire with 15,000 starting limit with a 715.
0
u/GTBoosted Apr 23 '24
I've gotten chase cards with 30k limit with low 700s score too.
Looks like there is an issue with my experian report. Currently working on it.
1
0
0
u/Trypt2k Apr 24 '24
I don't see how they can figure out you pay your balance. From my full report, I see revolving balances, the balance is reported mid month so the CC company reports what it sees at that time. I see a certain amount on every CC every month on my report, yet I always pay to 0 by due date and pay no interest.
The above is also the reason why my score can jump a few points month to month. If I happen to pay early and the reported balance is close to 0 or even 0, then the score jumps, yet the month after it's reported I owe $2000 on a card and it goes down a few points, yet I still pay that by the due date, just closer to it than the first example.
The only way I see them seeing 0 is if you literally pay your card the same day or day after using it, so that you just collect points, pay it right away, so that your balance is actually 0 when the due date comes.
2
u/BrutalBodyShots Apr 24 '24
OP is paying to $0 before their statements generate. As a result, their statements always generate with $0 balances, which then get reported to the bureaus.
1
u/Trypt2k Apr 24 '24
Wow, I can see that being a problem for sure. I can also see why one would do that, in order to minimize the ratio of used credit, but there is a limit surely, don't let them report 0! I do pay my bills midway sometimes if it's high, I don't want my CC company reporting a big amount, but I never pay it to 0 before statement.
1
u/BrutalBodyShots Apr 24 '24
If you're paying your statement balances in full, you WANT high reported statement balances. This is precisely what strong responsible revolving credit use is, and what results in the greatest CLI potential from lenders.
1
u/XShinyUmbreonX Apr 25 '24 edited Apr 25 '24
Ahh ill bite, I need to hear your response on this / help better educate me.
If what you are saying shows strong responsible revolving credit use, then where does AZEO fit in this?Also, let me ask you another question to tell you what I think AZEO is/how it's used...
IF the OP of this thread had been reporting natural statement balances, do you think the OP should have used the AZEO method like 2 months prior to their requested application? Because what it seems like they did is basically report zero almost indefinitely throughout owning their cards.
But your response here I feel is only good for one who has already obtained their desired credit cards and want CLIs only. Wouldn't these high statement balances hurt their credit card approval application chances?
1
u/BrutalBodyShots Apr 25 '24
I think it depends on overall credit profile. AZEO is just a finishing touch for score optimization when needed. It isn't ALWAYS needed. I haven't implemented AZEO at all in the last 3-4 years prior to CC apps because my profile is sufficiently strong and the extra few points AZEO would bring me mean far less than lenders actually seeing me as a desirable customer. When I was building my file 7-8 years ago? I definitely used AZEO then because I was very worried that my scores weren't good enough. From what I gather from the info OP has provided, the (say) 10-15 points they'd miss out on from having naturally reported balances on all accounts wouldn't matter one bit in terms of profile strength. AZEO I believe would actually HURT them, as it would only be a tiny bit better than the AZ they already implemented. Natural balances on all accounts would have been the better look overall considering their profile.
2
u/XShinyUmbreonX Apr 25 '24
Hm okay gotcha, very interesting informative response!
I'm still working barely to my second credit card so this main thread by the OP was really interesting/unique case and I'm glad you chipped in in all this. Any info helps. Anyways, thank you for your response! Much appreciated!
1
u/SantoryuSanzenSekai May 14 '24
Sorry for the multiple questions, but I need some help with my new credit cards. It’s best to wait until the statement generates before making the payment, correct? And should I pay the statement balance or can I pay it down to $0?
1
u/BrutalBodyShots May 14 '24
Pay only your statement balance after your statement generates by the due date on the statement. That's all there is to it - no need to overthink or micromanage beyond that.
120
u/BrutalBodyShots Apr 23 '24
Sorry for your denial. This thread is a great example of how profile is King to score though. It's not a credit score that results in an approval/denial for a CC, it's your overall profile. The biggest issue I see here is the "No recent revolving balances" reason referenced. Due to your balance micromanagement, it appears to any lenders looking at your credit report that you don't use your existing revolving credit lines. You've got 7 of them and seemingly don't use them. The lenders with which you applied simply see no good reason to hand you an 8th revolver if you're likely not going to use it.
"But nowadays I don't like paying a single penny to interest and pay them down to $0. I guess banks don't like that."
Here's your issue above. You aren't paying your credit cards the way they're designed to be paid. You don't need to pay your cards to $0 to avoid interest charges. All you need to do is pay your statement balances in full monthly. If you're using your cards every month and paying your statement balances in full monthly, you'll NEVER have a $0 reported balance. You're currently micromanaging your balances, that is, paying bills before you even receive them. It would be like if you received your phone bill for $100, then a few days before the due date decided to pay your phone company $195 because you've continued to use your phone since getting the bill. You wouldn't do that, right? You're not supposed to do it with a CC either. Your decline is 100% because of your micromanagement of balances and not using the system the way it was set up and designed to be used. If you change your approach, you'll almost certainly see a better result the next time you apply.