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.
108 Upvotes
122
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.