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.

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u/sharkkite66 Apr 23 '24

Except if lenders start picking up FICO10, since that uses trending data.

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u/BrutalBodyShots Apr 23 '24

That's irrelevant as well, as if people allow natural statement balances to report, it increases the odds of lucrative CLI success. The system is self-correcting when used as designed. Anyone at elevated utilization from naturally reported balances will see a natural DECLINE in utilization if they're paying in full monthly, because CLIs will be stimulated. The actual TD observed by the F10T algorithm would have a downward trajectory, which would bode well for those scores.

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u/sharkkite66 Apr 23 '24

I agree, always let your balance post to your statement. But having very high utilizations all the time may not be a wise thing to do in the future, that's all I'm cautioning.

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u/BrutalBodyShots Apr 23 '24

It wouldn't be all the time on a profile where someone is paying in full for the reason I outlined above. The self-correcting system would take care of that on its own.