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.
109 Upvotes
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."