Ok, started rebuilding last November with a secured BOA card of 300.00 and a creditit builder loan from a local CU. Things were looking great. Scores were going up, and EQ and EXP were around 615, while my TU took a big jump with a baddie falling off and went to 712 last week. I needed another building card and got a Barclay's rewards MC with 500.00 limit, and a Walmart store card 600.00 limit. At the same time my father put me on as a AU on his CAP1 Quicksiver with a 15,000 limit 12 year history never late. Pretty exited and making progress here. All 3 posted today and my TU stayed the same, EXP the same, but EQ Drops 50 points!!! Reason given was
I have too many revolving accounts and too high a limit. They suggest closing an account and/or asking for a credit limit decrease??!! Whaaat??? I have 3 credit cards with a combined limit of 1400.00?? Can anyone shed some light on this??? Please. Even if the 15,000 AU account came into play ,I make 58,000 a year and my current DTI is around 9%. I have no mortgage or car loan. How the heck would they know what I make annually anyhow?
Ok, first off they don't know how much you make. It doesn't matter anyway because your earnings aren't figured into scores. Util, or how much of your credit limit you use does. So how much of your CL are you using? Also do you have a balance across all those cards?
Balance is only on 1 card. The secured. I haven't even received the Barclay's or the Walmart yet. I always make sure the balance on the secured is 18.00, or 6% UTIL when the cycle closes, then PIF. The AU is not showing on EQ yet, so thats not a factor. This means it brought my AAoA down pretty good, from 6.8 years to maybe 2 or so. Maybe thats the deal, and it's just worded wrong about too much credit. If they think 1400.00 CL is too much, wait till the AU card hits. That will get the AAoA back into perspective, and maybe the hit will be less. Total inq for the past 2 years is 4, so I'm ok there. Thanks for the reply, and way to go on your scores from starting at a 500. Thats awesome!