Recently, I applied for a new card and the application was denied although I have a high score due to low credit card usage. I basically use 2 cards although I have open multiple no fee cards that I hardly use. Should I start closing them all or will that lower my score?
I called them on the phone to ask the status of my application and this is what the agent told me. If I call reconsideration what should I tell them? I don't have a bank account with them, I only wanted to apply for their credit card. This is a Wells Fargo AE card.
They didn't say no relationship, the agent said I have a lot of open credit cards that I don't use, which is true. My question is, should I start closing them and if I do, will my score go down?
It will go down as you’re losing all that available credit.
Do scores look at available credit? I know it looks at the ratio.
Thats what I meant. If he swipes for $1k, is that 50% of his total available credit vs 5% of his total credit.
Don't want it confused with if I have 200k AC and close 10 cards which lower it to 100k AC that in itself should not affect my score.
Can anyone help me understand this catch 22. My score is 815 which I understand is good. I'm using 2% of credit available which I understand the less you use the higher your scores goes. But I still got rejected for this card because I'm not using a lot of my cards. Is this all across the board or does every credit card company have their own hangups?
Credit history is 18 years, score was from creditwise through Capital One.