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Recently denied for the Chase Slate and not sure what to do...
Chase gave the following reasons:
1. Max available credit already given
2. Utilization too high.
My total util is definitely very high (around 50%), but all but about $4000 of my oustanding credit card debt is at promotional rates so I don't see a reason to pay those off now when my investments return more than the interest charged.
I called the number and asked what would happen if I paid off one or more of the outstanding balances immediately, but the representative could not answer. I mentioned charging about $140,000 on the CSP last year and paying in full but the rep didn't budge.
FICO scores are all around 700.
Current cards util / limit / interest rate
Amex: 0/25000
BoA cash rewards $19000/25000 @4%
Discover $10000/14000 @0%
Chase Freedom $16000/25000 with 4000@13% plus an additional 13000@0% -I plan to pay the $4000 this month on the Freedom.
Sapphire $18000/26000 @17% -this is paid in full every month so would not carry a balance here.
Should I even bother paying off the promo rate cards if the rate is this low? Or wait until the rate expires and then pay and apply for another card? I really want the Slate or another similar card, but not sure what to do now, or if I should call the number again (I was denied about a week ago so not sure what the time frame is for reconsideration.).
I still get preapproval letters in the mail, so not sure if I could get a different card with a great 0% or transfer offer.
I prefer not to spend my money when I could borrow for free.
The 0% would also be good for purchases, which would free up more money to invest all while keeping the interest at 0% for the duration of the introductory offer.
Also, the current promo rates on my cards won't last forever so I would have to pay those off if there's no option to balance transfer. Most of my cash is tied up in investments so I would need to sell to pay off the debt or get hit with the regular high interest rates.
@voukephalas wrote:I prefer not to spend my money when I could borrow for free.
I'd be shocked if you get much more in the way of credit with that utilization. But then again, you must be making bank. I wouldn't be surprised if you don't get some of your CLs slashed soon.
But one question really bothers me, if you pay the Sapphire in full every month, why would you apply while holding an additional $17k in utilization?
Regardless whether you have your cash tied up in investments somewhere else, your current utilization ratio is way too high for their underwriting standards (even if you're floating balances with 0% for a determined period). What also appears to be the case (based on the reasons provided), you may have already hit their internal ceiling for granting you any additional credit. IMO, it's going to be a wasted effort if you try to reconsider, but you're welcome to try again.
i dont see the need for a chase slate with what you have right now. How did you get the boa to be 4% thats really good. IMO if you want to save interest on new purchases maybe do discover it so atleast you can get some rewards out of the deal along with zero % interest. Meanwhile pay down your chase cards, and if you have a balance left when the discover intro apr is over then do a BT on the slate. You could always move some of the line over from one of your other chase cards.
My Discover card is now getting offers for 0% BT's all the time now. To bad with $1,500 i am not going to be doing any Balance transfers lol
Probably would've made more sense to at least pay off the CSP before you apped, since you PIF that every month.
keithB wrote: I wouldn't be surprised if you don't get some of your CLs slashed soon. But one question really bothers me, if you pay the Sapphire in full every month, why would you apply while holding an additional $17k in utilization?
I was actually concerned that Amex was going to slash the limit so paid that off despite a promo rate. Discover actually just increased the CL a few hundred so not sure how they review. The utilization on the Freedom is mostly at 0%, and I was going to pay whatever was left at the higher rate. As for why apply, I thought I might be able to finance new purchases at 0% but the consensus seems to be I'm maxed out on credit. Thanks for the reply!
@FinStar wrote:your current utilization ratio is way too high for their underwriting standards. What also appears to be the case, you may have already hit their internal ceiling for granting you any additional credit. IMO, it's going to be a wasted effort if you try to reconsider
Thanks for the info and I believe you may be right. Guess I'll just pay down the debt and maybe (in the future) see if a different company may extend additional credit if I hit the ceiling with Chase. Really appreciate the reply!