Author Topic: Credit Card Denied Due to Low Credit Card Usage  (Read 641 times)

Offline dbw

  • Dansdeals Silver Elite
  • **
  • Join Date: Oct 2013
  • Posts: 52
  • Total likes: 0
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: israel
Credit Card Denied Due to Low Credit Card Usage
« on: July 16, 2019, 07:24:40 AM »
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?

Offline davidrotts63

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: May 2017
  • Posts: 6746
  • Total likes: 709
  • DansDeals.com Hat Tips 25
  • Gender: Male
    • View Profile
  • Programs: Hertz Gold, Hyatt Member, BA Blue, Ebay banned, Amazon Prime
Re: Credit Card Denied Due to Low Credit Card Usage
« Reply #1 on: July 16, 2019, 07:33:00 AM »
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?
"Macht hanachos, un frekt kashios"
(Quit) pulling out the flowers, and watering the weeds. -Peter Lynch

Offline confu

  • Dansdeals Silver Elite
  • **
  • Join Date: Sep 2016
  • Posts: 91
  • Total likes: 4
  • DansDeals.com Hat Tips 0
    • View Profile
Re: Credit Card Denied Due to Low Credit Card Usage
« Reply #2 on: July 16, 2019, 09:17:47 AM »
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?
this was a letter? recon line? Do you have a cc from the bank you applied to?

Offline dbw

  • Dansdeals Silver Elite
  • **
  • Join Date: Oct 2013
  • Posts: 52
  • Total likes: 0
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: israel
Re: Credit Card Denied Due to Low Credit Card Usage
« Reply #3 on: July 17, 2019, 08:48:43 AM »
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.

Offline tzifanya54

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Jan 2012
  • Posts: 5349
  • Total likes: 105
  • DansDeals.com Hat Tips 1
    • View Profile
Re: Credit Card Denied Due to Low Credit Card Usage
« Reply #4 on: July 17, 2019, 08:43:18 PM »
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.
You were denied because of no relationship with them. At least that’s what it sounds like. This is a common reason for denial with WF. Open a bank account then call reconsideration, not guaranteed but a good chance.

Offline dbw

  • Dansdeals Silver Elite
  • **
  • Join Date: Oct 2013
  • Posts: 52
  • Total likes: 0
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: israel
Re: Credit Card Denied Due to Low Credit Card Usage
« Reply #5 on: July 21, 2019, 06:22:16 AM »
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?

Offline TimT

  • Dansdeals Lifetime 10K Presidential Platinum Elite
  • *******
  • Join Date: Dec 2013
  • Posts: 17742
  • Total likes: 827
  • DansDeals.com Hat Tips 3
    • View Profile
Re: Credit Card Denied Due to Low Credit Card Usage
« Reply #6 on: July 21, 2019, 07:15:24 AM »
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.

Offline CountValentine

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Mar 2013
  • Posts: 4488
  • Total likes: 139
  • DansDeals.com Hat Tips 0
  • Gender: Male
    • View Profile
  • Location: Poland
  • Programs: DAOTYA
Re: Credit Card Denied Due to Low Credit Card Usage
« Reply #7 on: July 21, 2019, 07:53:27 AM »
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.
If you want to vote Democrat, you are being very disloyal to Jewish people and very disloyal to Israel, Mr. Trump said.

Offline TimT

  • Dansdeals Lifetime 10K Presidential Platinum Elite
  • *******
  • Join Date: Dec 2013
  • Posts: 17742
  • Total likes: 827
  • DansDeals.com Hat Tips 3
    • View Profile
Re: Credit Card Denied Due to Low Credit Card Usage
« Reply #8 on: July 21, 2019, 08:02:44 AM »
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.

Offline CountValentine

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Mar 2013
  • Posts: 4488
  • Total likes: 139
  • DansDeals.com Hat Tips 0
  • Gender: Male
    • View Profile
  • Location: Poland
  • Programs: DAOTYA
Re: Credit Card Denied Due to Low Credit Card Usage
« Reply #9 on: July 21, 2019, 08:06:42 AM »
Thats what I meant. If he swipes for $1k, is that 50% of his total available credit vs 5% of his total credit.
Got it. 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.
If you want to vote Democrat, you are being very disloyal to Jewish people and very disloyal to Israel, Mr. Trump said.

Offline confu

  • Dansdeals Silver Elite
  • **
  • Join Date: Sep 2016
  • Posts: 91
  • Total likes: 4
  • DansDeals.com Hat Tips 0
    • View Profile
Re: Credit Card Denied Due to Low Credit Card Usage
« Reply #10 on: July 21, 2019, 08:10:12 AM »
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?
what if you just start using each card once a month?

Offline TimT

  • Dansdeals Lifetime 10K Presidential Platinum Elite
  • *******
  • Join Date: Dec 2013
  • Posts: 17742
  • Total likes: 827
  • DansDeals.com Hat Tips 3
    • View Profile
Re: Credit Card Denied Due to Low Credit Card Usage
« Reply #11 on: July 21, 2019, 08:18:47 AM »
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.
If you’re OP it shouldn’t. :)

Offline dbw

  • Dansdeals Silver Elite
  • **
  • Join Date: Oct 2013
  • Posts: 52
  • Total likes: 0
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: israel
Re: Credit Card Denied Due to Low Credit Card Usage
« Reply #12 on: July 24, 2019, 07:43:39 AM »
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?

Offline TimT

  • Dansdeals Lifetime 10K Presidential Platinum Elite
  • *******
  • Join Date: Dec 2013
  • Posts: 17742
  • Total likes: 827
  • DansDeals.com Hat Tips 3
    • View Profile
Re: Credit Card Denied Due to Low Credit Card Usage
« Reply #13 on: July 24, 2019, 07:56:49 AM »
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?
Its good to use all your cards occasionally. Doesn’t have to be large amounts & doesn't have to be every month either. Just enough to keep them active.

Offline CountValentine

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Mar 2013
  • Posts: 4488
  • Total likes: 139
  • DansDeals.com Hat Tips 0
  • Gender: Male
    • View Profile
  • Location: Poland
  • Programs: DAOTYA
Re: Credit Card Denied Due to Low Credit Card Usage
« Reply #14 on: July 24, 2019, 08:12:10 AM »
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?
They all have their own rules. How long is your credit history? Where did you get the 815 score from?
If you want to vote Democrat, you are being very disloyal to Jewish people and very disloyal to Israel, Mr. Trump said.