Bank of america CL decline? But Why?

[Bharath]

I have only one credit card and it is BOA student platinum visa Credit card with CL $1000 for almost 8 months and I have been paying installments on time every month. My balance on card was $945 for August and I paid off $870 for september and now my balance is $575. I used $425. Since the card was above 6 months I asked for a credit line increase on Sept 30th but I was declined because my balance was 945 then.. I applied on October 12th again. First When I called the CUSTOMER SERVICE, she told me like I was approved. Later after sometime I thought of calling for someother reason and another lady told me I was decline.. I was shocked to hear that.. I don't now understand what to do now. Well, I have to reconfirm whether I was approved or not but all I want to find out is DOES THIS HURT MY CREDIT SCORE IN ANYWAY? WHAT DO I NEED TO DO TO GET A CREDIT LIMIT RAISE?

I donno how much scores I had before but now I have

Equifax -- 709

Experian -- 717

TransUnion -- I dont know..

FICO shows my score is 709.. How can I get a Credit Limit Raise..Help me please..

I dont have any other credit cards..

[andyaycw]

They are declining your request for a CLI because they see you as a high risk customer. Why? You are constantly maxing out your credit limit and sometimes carrying a balance.

Pay your balance down to less than 10% of the credit limit and try again for a CLI.

It is generally not advisable to use more than 30% of your total credit limit. It would also help if you paid off your balance in full every month instead of carrying a balance (if at all possible).

Also, in this credit climate, 6 months might be too soon to ask for a CLI. You may have better luck at the 12 month mark.

Message Edited by andyaycw on 10-12-2009 11:22 PM

[MarineVietVet]

Pay your balance down to less than 10% of the credit limit and try again for a CLI.

I agree with this and also suggest you keep the utilization low for about a year before asking again. Show the CC issuer you are capable of managing your account wisely. Let it all settle out.

(myfico)
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

CC interest free as of 8/09
Time can heal all wounds and a low FICO.
"Hello my name is Sandy and I'm a recovering crediholic".

[Tons_of_Debt]

Be careful. I asked for a CLI, was declined, and ended up getting an unwanted CLD. :-(

[Creditaddict]

if this is really your ONLY credit, I would apply for another visa and a store card, then BofA would have other factors to make CLI decisions on (you being able to handle other credit too)

[haulingthescoreup]

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Creditaddict wrote:
if this is really your ONLY credit, I would apply for another visa and a store card, then BofA would have other factors to make CLI decisions on (you being able to handle other credit too)

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...but pay your balance on the BofA card down to $0 first. You'll get a better deal from the other two companies.

And in terms of scores, the FICO scoring formula rewards having three open lines of revolving credit.

But if you're afraid that you might load up two more cards in the same manner, I wouldn't do it. Just let time and low util do its magic.

Also, to show low util, you need to make your payments before the statement posts. Otherwise, the balances get reported, and you don't get score credit for paying them off.

If you haven't already, please read Understanding Your FICO ® Score and Credit Scoring 101 (at least the first post.)

These will give you the background knowledge you need to understand what you read here on the forums.

[Jazzzy]

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@Bharath wrote:

I have only one credit card and it is BOA student platinum visa Credit card with CL $1000 for almost 8 months and I have been paying installments on time every month. My balance on card was $945 for August and I paid off $870 for september and now my balance is $575. I used $425. Since the card was above 6 months I asked for a credit line increase on Sept 30th but I was declined because my balance was 945 then.. I applied on October 12th again. First When I called the CUSTOMER SERVICE, she told me like I was approved. Later after sometime I thought of calling for someother reason and another lady told me I was decline.. I was shocked to hear that.. I don't now understand what to do now. Well, I have to reconfirm whether I was approved or not but all I want to find out is DOES THIS HURT MY CREDIT SCORE IN ANYWAY? WHAT DO I NEED TO DO TO GET A CREDIT LIMIT RAISE?

I donno how much scores I had before but now I have

Equifax -- 709

Experian -- 717

TransUnion -- I dont know..

FICO shows my score is 709.. How can I get a Credit Limit Raise..Help me please..

I dont have any other credit cards..

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Where are you getting your scores? You can't buy an Experian FICO score any more...did you get a different score from them (like a Plus score?). If you got a score directly from Experian, it isn't a FICO score. I just don't want you to be misled by scores that aren't truly FICO scores. Did you pull the Equifax score from the myFICO site? If so, that is a true FICO score.

Also, you said that your card is a student card. Are you a student? What is your income? If you are a student and are not fully working, that will have an impact on how much credit they will grant you. They grant credit based on a lot of things, income being an important one.

I agree with the advice given to you by the posters above. You really need to watch your utilization (balances) on your card before you ask for a CLI or apply for a new card elsewhere. I recently asked AmEx for an increase, and they can be tough. I was a relatively new cardholder, but I made sure I paid off a couple of months in a row to zero before the statement cut. In other words, to get more credit, I felt I had to prove that I really didn't need it.

[Bharath]

Yes, I got the experian as a PLUS score and it is directly from the Experian website. Is EXPERIAN PLUS score different from FICO score..?? Is 709 from Equifax( I got this from MY FICO) is a good score to apply for a new credit card..?

[haulingthescoreup]

Your Equifax (EQ) and TransUnion (TU) scores from here are FICO scores. Experian stopped allowing consumers to purchase their own EX FICO last February.

They're now doing a nice little business in selling their FAKO scores to those who don't realize this.

FAKO scores (there are lots of different varieties) don't reliably correspond to FICO scores. Some are higher, some are lower, and they often move in opposite directions with changes on credit reports.

[Jazzzy]

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@Bharath wrote:
Yes, I got the experian as a PLUS score and it is directly from the Experian website. Is EXPERIAN PLUS score different from FICO score..?? Is 709 from Equifax( I got this from MY FICO) is a good score to apply for a new credit card..?

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Hi again...yes, a PLUS score is different than a FICO score. Most banks and credit card companies use FICO scores.

The 709 Equifax FICO you got from this site is a true FICO score. That is a good score to apply for a new credit card, but...again...your FICO score is only one part of what they will look at. If you have what is called a "thin" credit file (not much activity, few credit lines, etc.), then it is pretty easy to have a score of over 700 if you haven't messed up by making late payments, etc. They will look at your score. They will also look at your job status, income, other debts, etc.

Give a few more details of your situation, and the posters here may be able to tell you what another good starter card might be. You want that information before you apply for a new card because you don't want to waste inquiries by applying for cards you likely won't get.