Macy's CLI Denied for this

[Anonymous]

My SO got a denial letter for increasing a CL by $400 on a Macy's card it said this:


• Derogatory public record or collection filed
• Insufficient length of credit history
• Lack of recent installment loan information
• Ratio of revolving balances to credit limits too high

1) There's 2 collections on the CR one showing paid from 2010 and the other is a $200 medical bill which is from a car accident still pending the court case (anything we can do about that in the meantime?)

2) When we look at her oldest account it shows 16 years is that too young?

3) Lack of recent installment loan info what does that even mean???

4) Her ratio is about 24% of total UT how is that too high?

Any advice helps

[Anonymous]

Hi there, I'll chime in because these are all soo look familiar!

1. Deragatory - these will be your collections, if the collection is 7 years old, you can request it to be deleted... it seems that you said it was paid in 2010 do you know when is the 1st day of delinquency since it's deletion will be based off that. If you can get these remove that will be great boost to your score too...

2. 16 years is not too young, but it does says on there that "norm" is 25 years... which is rediculous! but you also have to keep in mind your AAoA, so if you have some new recent accounts then you have to take your average.

3. You need some credit mix in your report (i.e. installment loans (ex. personal loans, student loans), revolving account (your credit card accounts), auto loan and/or mortgage ) so you have a good credit mix.

4.) less than 9% UTI is advisable to have better affect on your credit profile. Try to pay that down and you'll probably see some more boost to your score.

I'm sorry about your denial! I hope this helps some!

[creditguy]

It could just be a generic denial that lists several things that state the reason for denial when, it could be just one of those things or all of those things. 1. could be the main reason, 2 is not a big factor in this case 3. means something like a car loan, personal loan etc, that's probably a bs reason. and 4. 24% is nowhere near terrible, so my money is on the the collections. 

[Anonymous]

I requested one of the collections be removed from TU and they asked me if I wanted to dispute it? We said no we paid it and would like EE because it's due to fall off in 1/2017 they didn't understand I guess.

My SO did have a personal loan this year was supposed to be 6 months but she came into a little extra money and paid it off early is that bad? There was no early pay penalty.

I'd understand if it were requesting a major increase but $400? From a $600 SL that she's had for 2 years seems reasonable.

Btw 9% or less is ideal and would maximize potential but I believe as long as it's under 30% total UT it's gaining points.

[creditguy]

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@Anonymous wrote:
I requested one of the collections be removed from TU and they asked me if I wanted to dispute it? We said no we paid it and would like EE because it's due to fall off in 1/2017 they didn't understand I guess.

My SO did have a personal loan this year was supposed to be 6 months but she came into a little extra money and paid it off early is that bad? There was no early pay penalty.

I'd understand if it were requesting a major increase but $400? From a $600 SL that she's had for 2 years seems reasonable.

Btw 9% or less is ideal and would maximize potential but I believe as long as it's under 30% total UT it's gaining points.

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When contacting any CRA to request EE your going to run into CSR's who do not know what your talking about, you will have to request to speak to someone in a higher position usually a supervisor can handle this. 

The personal loan paid off early should have no bearing in this case, In the long run for scoring purposes it's good to have a mix of credit and that includes an installment loan with a good amount of history. 

The CLI request is not unreasonable but it's their call and they said no at this time, it's their call, no one can say with any certainty why they won't budge. What kind of usage is she running through the card? I was declined a few months back for a CLI on my macy's card, I put some usage on it and paid it off and sure enough an auto CLI wasn't far behind. 

9% utilization is optimal for optimal scoring but for a CLI on a macy's card I sure wouldn't sweat 30%, like I said the reasons stated are sometimes just a BS way of saying we don't want to give you a CLI at this time, don't take them as gospel. 

[Anonymous]

She has almost no usage on maybe 2 purchases over the last 2 years $80 each.

They do auto CLI? A

[creditguy]

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@Anonymous wrote:
She has almost no usage on maybe 2 purchases over the last 2 years $80 each.

They do auto CLI? A

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Yes they do auto CLI's, but you have to show a need for one and the ony way to do that is usage. Keep in mind, whether requested or granted automatically a CLI has to have some justification, if a card is not being used, they see no need to give a CLI. 

[fltireguy]

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@Anonymous wrote:
I requested one of the collections be removed from TU and they asked me if I wanted to dispute it? We said no we paid it and would like EE because it's due to fall off in 1/2017 they didn't understand I guess.

My SO did have a personal loan this year was supposed to be 6 months but she came into a little extra money and paid it off early is that bad? There was no early pay penalty.

I'd understand if it were requesting a major increase but $400? From a $600 SL that she's had for 2 years seems reasonable.

Btw 9% or less is ideal and would maximize potential but I believe as long as it's under 30% total UT it's gaining points.

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If the collection is going to age off in 1/2017 as you said, go ahead and dispute it as too old on TU. 99% chance it will be deleted based on that 

[Anonymous]

There's no dispute option for too old what option should I put?