cancel
Showing results for 
Search instead for 
Did you mean: 

Credit limits vs. Credit approvals

tag
Anonymous
Not applicable

Credit limits vs. Credit approvals

When apping for a new credit card, are credit cards with a zero balance included in the debt-to-income considration? Can having too many cards affect approval, even if the balance is zero? 

3 REPLIES 3
Anonymous
Not applicable

Re: Credit limits vs. Credit approvals

Yes and Yes.

 

People have been denied in the past for having too many new credit lines or for being spread too thin in terms of having too much available credit with respect to their income.

Message 2 of 4
SouthJamaica
Mega Contributor

Re: Credit limits vs. Credit approvals


@Anonymous wrote:

When apping for a new credit card, are credit cards with a zero balance included in the debt-to-income considration?

 

No, it is not part of the debt-to-income ratio.

 

Can having too many cards affect approval, even if the balance is zero? 

 

In my personal experience only credit unions have ever indicated that to me

as a reason for not approving an application.

 

Some banks and credit unions will deny credit if there have been, in their judgment, too

many new accounts opened.


 


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 3 of 4
Gmood1
Super Contributor

Re: Credit limits vs. Credit approvals


@SouthJamaica wrote:

@Anonymous wrote:

When apping for a new credit card, are credit cards with a zero balance included in the debt-to-income considration?

 

No, it is not part of the debt-to-income ratio.

 

Can having too many cards affect approval, even if the balance is zero? 

 

In my personal experience only credit unions have ever indicated that to me

as a reason for not approving an application.

 

Some banks and credit unions will deny credit if there have been, in their judgment, too

many new accounts opened.


 


This is my experience as well. I've never been turned down for credit by a major bank for having too much credit. The only major bank to deny me was Wells Fargo. That was for too many new accounts. Credit unions are much more conservative as a whole IME.

Message 4 of 4
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.