Author Topic: Credit Card Denied Due to Low Credit Card Usage  (Read 2290 times)

Offline dbw

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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

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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"
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Offline confu

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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

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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

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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

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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

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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

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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.
Only on DDF does 24/6 mean 24/5/half/half

Offline TimT

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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

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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.
Only on DDF does 24/6 mean 24/5/half/half

Offline confu

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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

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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

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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

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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

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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?
Only on DDF does 24/6 mean 24/5/half/half

Offline dbw

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Re: Credit Card Denied Due to Low Credit Card Usage
« Reply #15 on: July 24, 2019, 08:53:40 AM »
Credit history is 18 years, score was from creditwise through Capital One.

Offline CountValentine

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Re: Credit Card Denied Due to Low Credit Card Usage
« Reply #16 on: July 24, 2019, 09:24:13 AM »
Credit history is 18 years, score was from creditwise through Capital One.
Is Credit Wise a FICO score? If not you want to find out your FICO score.
Only on DDF does 24/6 mean 24/5/half/half