Please help! Denied and don't understand. Amex Blue

[Anonymous]

Hello all-

First, here is a rundown of my credit.  First time posting so i'm not sure all of the necessary stats to show:

16 years longest account

731 Experian score (which I found out later I guess is kind of worthless)

733 Transunion FICO

1 mortgage

1 credit card I actively use (Citibank AAdvantage $16,900 limit)

1 other citi card I have open but don't use

1 30 day late payment in November of 2007 (a classic misplaced $25 amazon card bill...stupid)  The only bad mark on my account

I applied for the Amex Blue Cash and was declined.  They pulled the report from Experian.  It said the overall reason was "too low credit score" from Experian.  Some of the reasons were:

Number of accounts with a deliquency

Ratio of debt to credit

Lack of recent revolving account activity

I was stunned, because i've never been denied anything credit wise.  I called and told them I think it was a mistake, (could barely understand them), and they told me I could fax in my credit report and they will take a look at it.  So I purchased my Experian report and faxed it in.

I just called back and was told that it was reviewed by the appeals team (or something similar), and they were going to uphold their original decision.  They based it the same reasons:  1)  Debt to Credit ratio  2)  Low FICO score

The only things I can rationally think are:

1)  At the time I pulled my report.  My Citibank card had a balance of $9,440.  I pay this card off everymonth, and I was just about to pay it off.  So it showed a high balance.

2)  Since this card has no preset spending limits, it shows $0 as my credit limit on this card with a balance of $9,440.   The AMEX rep thought that might be a contributing factor because it showed I had a high balance and a $0 limit.  I called Citi and they said that is standard protocol because it is a no preset spending limit card.  So, the only card I use...shows $0 for a limit.

One more thing that confuses me, both the letter that AMEX sent and both credit reports (Experion and Transunion) say on the things that negatively affect my score:

Lack of recent activity on your revolving accounts.

Your credit report shows no open revolving accounts or it does not report recent information (such as balance or credit limit) about any of your revolving accounts.  You might want to show new activity on any credit card, etc etc.

On the same report, it shows what is helping my credit score is:

You've limited the use of your available credit.

Your FICO score evaluates your total revolving account balances in relation to your total credit limits on those accounts.  Ratio of your revolving balances to your credit limits:  Unknown.

Is this because Citi doesn't report a credit limit?  What other steps could/should I take or should I just give up on the Blue Cash card and go somewhere else?

Sorry for writing such a narrative!  Much thanks for any help you could provide.

[Scene]

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@Anonymous wrote:

Hello all-

First, here is a rundown of my credit.  First time posting so i'm not sure all of the necessary stats to show:

16 years longest account

731 Experian score (which I found out later I guess is kind of worthless)

733 Transunion FICO

1 mortgage

1 credit card I actively use (Citibank AAdvantage $16,900 limit)

1 other citi card I have open but don't use

1 30 day late payment in November of 2007 (a classic misplaced $25 amazon card bill...stupid)  The only bad mark on my account

I applied for the Amex Blue Cash and was declined.  They pulled the report from Experian.  It said the overall reason was "too low credit score" from Experian.  Some of the reasons were:

Number of accounts with a deliquency

Ratio of debt to credit

Lack of recent revolving account activity

I was stunned, because i've never been denied anything credit wise.  I called and told them I think it was a mistake, (could barely understand them), and they told me I could fax in my credit report and they will take a look at it.  So I purchased my Experian report and faxed it in.

I just called back and was told that it was reviewed by the appeals team (or something similar), and they were going to uphold their original decision.  They based it the same reasons:  1)  Debt to Credit ratio  2)  Low FICO score

The only things I can rationally think are:

1)  At the time I pulled my report.  My Citibank card had a balance of $9,440.  I pay this card off everymonth, and I was just about to pay it off.  So it showed a high balance.

2)  Since this card has no preset spending limits, it shows $0 as my credit limit on this card with a balance of $9,440.   The AMEX rep thought that might be a contributing factor because it showed I had a high balance and a $0 limit.  I called Citi and they said that is standard protocol because it is a no preset spending limit card.  So, the only card I use...shows $0 for a limit.

One more thing that confuses me, both the letter that AMEX sent and both credit reports (Experion and Transunion) say on the things that negatively affect my score:

Lack of recent activity on your revolving accounts.

Your credit report shows no open revolving accounts or it does not report recent information (such as balance or credit limit) about any of your revolving accounts.  You might want to show new activity on any credit card, etc etc.

On the same report, it shows what is helping my credit score is:

You've limited the use of your available credit.

Your FICO score evaluates your total revolving account balances in relation to your total credit limits on those accounts.  Ratio of your revolving balances to your credit limits:  Unknown.

Is this because Citi doesn't report a credit limit?  What other steps could/should I take or should I just give up on the Blue Cash card and go somewhere else?

Sorry for writing such a narrative!  Much thanks for any help you could provide.

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What's the limit (if any) of the "1 other citi card I have open but don't use" card?

You have a long history of credit and a mix of credit types which is good. However this is negated by the high debt to credit ratio. I don't have a Citi AAdvantage card, but by your description it looks like this card has no preset spending limit, is paid in full each month, and reports with a $0 limit and only reports the highest balance. Since this card does not attribute to the amount of credit available, on your reports it looks like you are utilizing a high percentage of your credit limit and generally being an irresponsible high risk consumer.

[Anonymous]

The other card only has a $2,000 limit.  However, its never used.  In fact, I just checked and I never even activated it when I got the new card.  I just did that, so maybe that will start reporting.  I didn't see it on my credit report.

You are correct, the Aadvantage card has no preset limit.  It does have a credit limit of $16,900.  However, as Citi told me, they don't report a credit limit to the bureus because of the no preset limit.  She assured me that it doesn't negatively effect my score, but I'm not 100% about that.  If they don't know what the credit limit is, how can they calculate my debt to credit ratio?  I think that is why it says "Unknown" on my debt to credit ratio.

I think you are right, no matter my FICO score, to them it looks like I have a large balance on a card with little limit.  I just wish I could speak to an actual person that has the authority, so I could explain all of this to them.  However, the people on the front lines of the New Accounts are 1) hard to understand and 2) won't tell me anything more than what the standard letter says and just tells me to contact Experian.

Thanks for the help!

[vish1]

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@Anonymous wrote:

The other card only has a $2,000 limit.  However, its never used.  In fact, I just checked and I never even activated it when I got the new card.  I just did that, so maybe that will start reporting.  I didn't see it on my credit report.

You are correct, the Aadvantage card has no preset limit.  It does have a credit limit of $16,900.  However, as Citi told me, they don't report a credit limit to the bureus because of the no preset limit.  She assured me that it doesn't negatively effect my score, but I'm not 100% about that.  If they don't know what the credit limit is, how can they calculate my debt to credit ratio?  I think that is why it says "Unknown" on my debt to credit ratio.

I think you are right, no matter my FICO score, to them it looks like I have a large balance on a card with little limit.  I just wish I could speak to an actual person that has the authority, so I could explain all of this to them.  However, the people on the front lines of the New Accounts are 1) hard to understand and 2) won't tell me anything more than what the standard letter says and just tells me to contact Experian.

Thanks for the help!

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Newer FICO algorithms ignore no preset limit cards. However lenders may or may not use the latest FICO algorithms. So they may (with old algo) see your total CL as 2k and 9.5 k usage which is a disaster. In a newer algorithm, its no better for you as it will say you have not used your only credit account for ages and your available CL is only 2k and you have only 1 revolving TL.

If I was you, I will start using my other card a bit and also add a few easier to get cards first.

[android01]

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@Anonymous wrote:

The other card only has a $2,000 limit.  However, its never used.  In fact, I just checked and I never even activated it when I got the new card.  I just did that, so maybe that will start reporting.  I didn't see it on my credit report.

You are correct, the Aadvantage card has no preset limit.  It does have a credit limit of $16,900.  However, as Citi told me, they don't report a credit limit to the bureus because of the no preset limit.  She assured me that it doesn't negatively effect my score, but I'm not 100% about that.  If they don't know what the credit limit is, how can they calculate my debt to credit ratio?  I think that is why it says "Unknown" on my debt to credit ratio.

I think you are right, no matter my FICO score, to them it looks like I have a large balance on a card with little limit.  I just wish I could speak to an actual person that has the authority, so I could explain all of this to them.  However, the people on the front lines of the New Accounts are 1) hard to understand and 2) won't tell me anything more than what the standard letter says and just tells me to contact Experian.

Thanks for the help!

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You might try this from the "backdoor numbers" thread.

American Express Credit Bureau Unit:  800-874-2717.  Must have a current credit report before calling.  They will ask for the account number from the credit report, which is different from your card number.

[Anonymous]

Thanks for the replies so far.

I thought I would charge something on this other card, just to show I use it.  Also, my other plan of action, Citi told me that they report their information to the bureaus once a month at the beginning of each month.  So, I thought whatever my balance is at the end of this month, I will pay it down to zero.  Then try to apply again sometime in the first or second week or March so hopefully my balance will show low at that time.

Yeah Android, I tried the backdoor number last week and whoever I spoke to, she asked me for my account number.  I couldn't find anything, and then once I told her I wanted to speak to someone about my denied CC app, she transferred me to new accounts (the same place i've been talking to).  So maybe I approached it the wrong way, but the backdoor number didn't get me anywhere.

[Red1Blue]

apply for amex charge card. It is much easier to get approved and after 6 months you can apply for their credit card or after 12 months convert your charge card to one of their credit cards.

[jason10]

Are AMEX's revolvers more difficult to obtain than other prime CCs from Chase, Citi, BoA etc.?  Also, what makes it more difficult? Are they looking just for a higher FICO score, or are they more interested in your "relationship" with AMEX?  I have had an AMEX Blue for four years, and was just approved for a TrueEarnings card. My EQ FICO isn't that high, but I've never had a late payment, and have a good history with AMEX. I'm just curious why others think AMEX's revolvers are difficult to obtain.

[Red1Blue]

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@jason10 wrote:

Are AMEX's revolvers more difficult to obtain than other prime CCs from Chase, Citi, BoA etc.?  Also, what makes it more difficult? Are they looking just for a higher FICO score, or are they more interested in your "relationship" with AMEX?  I have had an AMEX Blue for four years, and was just approved for a TrueEarnings card. My EQ FICO isn't that high, but I've never had a late payment, and have a good history with AMEX. I'm just curious why others think AMEX's revolvers are difficult to obtain.

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Amex looks for relatiohship and longevity of accounts with them. For Amex charge cards are lucrative and profitable since they are paid every month in full and less risk than the credit cards. If you remember for several years Amex used to have only charge cards. It is only recently they introduced credit cards.

[Anonymous]

I don't think AMEX allow PC from a charge to a credit. But I could be wrong.