topic Re: Rejected for too many revolving accounts in Credit Cards

Rejected for too many revolving accounts

languedoctor — Thu, 10 Dec 2015 16:11:08 GMT

This was a new one for me -- I recently applied and was rejected for the Citi Double Cash card. I was surprised, because I waited until all three bureaus were well into the 700s before I applied.

The stated reason(s) were:

1. Too many revolving accounts

2. Debt:income

Without getting into too much information . . . I don't think #2 by itself was a deciding factor. Most of my debt is in student loans, which are consolidated, with a reasonable monthly payment. My monthly DTI is fine.

This got me to ask the age-old question of how many cards are too many? Even if it temporarily lowers my FICO by lowering available credit, I'm thinking of closing a couple of my lower-limit cards, which will get me down to 4.

Bad idea? Good idea? Thoughts in general?

Re: Rejected for too many revolving accounts

Anonymous — Thu, 10 Dec 2015 16:12:42 GMT

Perhaps it has more to do with how long you have had your cards? I had tons of new cards when they approved me, although my cl is one of my lowest.

Re: Rejected for too many revolving accounts

elim — Thu, 10 Dec 2015 16:16:49 GMT

How many revolving accounts do you have now?

Re: Rejected for too many revolving accounts

Anonymous — Thu, 10 Dec 2015 16:24:01 GMT

How many cards do you have, what are they and their limits, and how old are the accounts?

What are the balances and what is your overall utilization? What is your stated income.

Without that info it is hard for us to get a clear picture.

Do you have a Macy's or Macy's Am Ex card? Once the DW and I got those, within several months letters came in the mail for the DP card. I was approved, they wanted a 4506-T on her so she declined.

The next 2 months I got a prescreened letter for DC and was approved. The DW got a prescreened Home Depot and was approved and had a preapproval on line for the American Airlines card and was approved.

Macy's is Citibank and an Am Ex with them could open the door for Citibank invitations which will be easier to qualify for.

Re: Rejected for too many revolving accounts

Anonymous — Thu, 10 Dec 2015 16:28:36 GMT

@Anonymous wrote:
How many cards do you have, what are they and their limits, and how old are the accounts?
What are the balances and what is your overall utilization? What is your stated income.

Without that info it is hard for us to get a clear picture.

That's a lot of information you are requesting. How would it help you help the OP?

Re: Rejected for too many revolving accounts

tntexans72 — Thu, 10 Dec 2015 16:36:00 GMT

i believe the stated reasons tells me it could be your income. Chances are they may be seeing that you are not paying down your debt quickly enough and you are looking to take on more debt and your reported income is low. I could be wrong but that's what it appears to be.

Adding: consolidation of debt can be frown upon for some banks. As always ymmv.

Re: Rejected for too many revolving accounts

OmarGB9 — Thu, 10 Dec 2015 16:34:39 GMT

Probably just an excuse and they're uncomfortable with something else on your file. I've never seen any lender give that as a denial reason.

Re: Rejected for too many revolving accounts

languedoctor — Thu, 10 Dec 2015 16:55:09 GMT

When I was rejected, I had 8 revolving accts.

1. 2015 Citi Aadvantage* (low limit, aproved earlier this year)

2. 2014 Barclays Aviator** (medium limit)

3. 2014 Bank of America Cash Rewards (medium limit)

4. 2014 Chase Freedom (low limit)

5. 2014 CareCredit (tiny limit)

6. 2014 New credit union MC (highest limit)

7. 2009 Discover It (high limit)

8. 1999 Old credit union MC (low limit) ***

* This Citi approval was within 4 months of applying for Double Cash. Maybe that played into it?

** Yes, I played the USAir/AA merger game, for 100k miles.

**** I thought I had closed this years ago, but I hadn't

I've already canceled CareCredit. It served its purpose, and I don't like seeing an $800 line on my report. I'm planning to cancel the Barclays Aviator before the annual fee hits. I can't justify two American Airlines cards, Barclay hit me with a 25% APR (insulting, even for an airline card), and Citi has no fee for the first year. I can try a CLI later. So, down to 6 cards.

In theory, Chase Freedom would be next. Down to 5.

Then it gets harder. I don't want too many rewards cards, I bank with BoA, and the 10% bonus is nice: 3.3% on gas, 2.2% on groceries. Discover is my 2nd oldest card, with 2nd highest limit -- and I like their ongoing BT promos. Not canceling Discover. Not canceling my new credit union card, which has my highest limit and lowest APR.

That leaves the 1999 credit union card. I like the age, but the limit is "college kid" low, and the APR predates super-low interest rates. Maybe I see if they'll match the other CU limit, and close if/when they don't? Down to 4.

I guess I'm trying to get to this situation:

1. Discover It (old acct, high limit nice ongoing BT options)

2. One CU card, with low APR & high limit (for emergencies like dead furnace in rental property)

3. BoA for gas + groceries

4. Citi AAdvantage for free checked bag and boarding early enough to stow carry-on near me.

5. Double-Cash, for all spending other than gas, groceries, airfare

FWIW, aggregate credit limit is $29k across the 7 remaining cards, ranging from $1600 (old CU) to $8000 (new CU).

Overall util up to 40% (blame recent cross-country move).

Earned income = $74k, additional rental income of $11k.

Re: Rejected for too many revolving accounts

Berk — Thu, 10 Dec 2015 16:59:08 GMT

I make a 6 figure salary. I have three cards with limits above 20K each. I have 2 Citi cards and 2 store cards issued by Citi for a total credit limit of 37.9K. Three of the cards have CLs below 10K each. My Home Depot card has a 12K line. I am under 3% util right now across all cards. I recently asked for a CLI on one of my Citi cards and was denied because I have reached the amount of total exposure Citi felt comfortable giving me. All that to say that your issue may only be a Citi thing and not neccessarily indicative of how all lenders will treat you.

Re: Rejected for too many revolving accounts

languedoctor — Thu, 10 Dec 2015 17:02:48 GMT

@Omar

That was my thought. They were troubled by something, and just picked a couple codes that weren't wildly implausible.

Maybe my student loan consolidation did play into it. I *do* have a sizable balance, but payments are capped at a set % of monthly income, which does help with monthly DTI.

I'm guessing it wasn't one thing. Maybe the combination of new accounts, student loan debt, and that Citi had already approved a line earlier in the year.

Oh well, no big deal. Between discover's categories, travel (Citi AA), gas, and groceries (BoA), I might have been overestimating how much spending would go to Double Cash. I was just tempted by that enticing 2% back (assuming no carried balance) and respectable BT promo.

After I call the old CU, I think I'll just freeze the bureaus for 2016 and leave well enough alone until '17 at the earliest...

Re: Rejected for too many revolving accounts

tntexans72 — Thu, 10 Dec 2015 17:03:24 GMT

That 40% util could be the deal breaker. some banks could see that as a desperation. Citi is tough in that category. Have you thought about another bank? Cap1 Venture, quicksilver? I've read here that the best time to look for credit is when you don't need it. Good luck.

Re: Rejected for too many revolving accounts

JSS3 — Thu, 10 Dec 2015 17:04:19 GMT

It's your debt. I have 30 accounts. 4 of them are Citi.

Re: Rejected for too many revolving accounts

NoAnchoviesPlease — Thu, 10 Dec 2015 17:06:13 GMT

@languedoctor wrote:
6. 2014 New credit union MC (highest limit)
8. 1999 Old credit union MC (low limit) ***

**** I thought I had closed this years ago, but I hadn't

That leaves the 1999 credit union card. I like the age, but the limit is "college kid" low, and the APR predates super-low interest rates. Maybe I see if they'll match the other CU limit, and close if/when they don't? Down to 4.

2. One CU card, with low APR & high limit (for emergencies like dead furnace in rental property)

I'd say contact the old CU and see what they can do. I'm a member of three credit unions (one local, one from a former employer, and DCU). DCU was disappointing in their offerings (which is not the majority experience), and the local CU had a card I had closed. Was shocked (almost audibly) when the former employer CU pulled my credit recently (along with a SP auto refi), complimented me on improving my scores in the past two years, and bumped me to 4x my previous limit.

Always worth giving a CU a chance, or even two.

Re: Rejected for too many revolving accounts

languedoctor — Thu, 10 Dec 2015 17:11:09 GMT

@JSS3

Probably right. Debt is a double-edged sword, and it depends on how lenders look at it. I can see how a risk-averse lender would shy away.

On the other hand, that debt = PhD, upcoming tenure (fingers crossed), rental property, and (new for 2016) a consulting business on the side.

I'm definitely biased, but I see it as good debt - not frivolous. Maybe I'll justr be a better fit for other lenders than Citi? $.02

Re: Rejected for too many revolving accounts

yfan — Thu, 10 Dec 2015 17:36:30 GMT

@languedoctor wrote:
When I was rejected, I had 8 revolving accts. ...[snip]

I've already canceled CareCredit. It served its purpose, and I don't like seeing an $800 line on my report. I'm planning to cancel the Barclays Aviator before the annual fee hits. I can't justify two American Airlines cards, Barclay hit me with a 25% APR (insulting, even for an airline card), and Citi has no fee for the first year. I can try a CLI later. So, down to 6 cards.

In theory, Chase Freedom would be next. Down to 5.

Then it gets harder. I don't want too many rewards cards, I bank with BoA, and the 10% bonus is nice: 3.3% on gas, 2.2% on groceries. Discover is my 2nd oldest card, with 2nd highest limit -- and I like their ongoing BT promos. Not canceling Discover. Not canceling my new credit union card, which has my highest limit and lowest APR.

That leaves the 1999 credit union card. I like the age, but the limit is "college kid" low, and the APR predates super-low interest rates. Maybe I see if they'll match the other CU limit, and close if/when they don't? Down to 4.

One thing I want to say is if you are going to close a bunch of existing cards - especially no AF ones including your oldest tradeline - I hope you do it because of reasons other than just to get the Citi DC. It's entirely possible that Citi denied your application because of too many revolving accounts (stated reason), and if so, that may be because Citi thinks you have spend spread across too many cards that the DC won't see enough spend.

Re: Rejected for too many revolving accounts

UncleB — Thu, 10 Dec 2015 20:23:54 GMT

@Anonymous wrote:
@Anonymous wrote:
How many cards do you have, what are they and their limits, and how old are the accounts?
What are the balances and what is your overall utilization? What is your stated income.

Without that info it is hard for us to get a clear picture.

That's a lot of information you are requesting. How would it help you help the OP?

I agree, that's a whole lot of info... what's left? That's pretty much everything but this...

Re: Rejected for too many revolving accounts

Anonymous — Thu, 10 Dec 2015 20:26:08 GMT

Could be how soon it has been since you opened your last card. I heard Citi is strict on how close togather two cards are opened.

Re: Rejected for too many revolving accounts

taxi818 — Thu, 10 Dec 2015 20:57:30 GMT

@languedoctor wrote:
This was a new one for me -- I recently applied and was rejected for the Citi Double Cash card. I was surprised, because I waited until all three bureaus were well into the 700s before I applied.

The stated reason(s) were:
1. Too many revolving accounts
2. Debt:income

Without getting into too much information . . . I don't think #2 by itself was a deciding factor. Most of my debt is in student loans, which are consolidated, with a reasonable monthly payment. My monthly DTI is fine.

This got me to ask the age-old question of how many cards are too many? Even if it temporarily lowers my FICO by lowering available credit, I'm thinking of closing a couple of my lower-limit cards, which will get me down to 4.

Bad idea? Good idea? Thoughts in general?

You focused on 1 but more than likely real culprit is there. If you have a lots of balances and everything and other obligations. That would do it. You did not provide that info so purely speculation at this point.

Re: Rejected for too many revolving accounts

taxi818 — Thu, 10 Dec 2015 20:59:43 GMT

@UncleB wrote:
@Anonymous wrote:
@Anonymous wrote:
How many cards do you have, what are they and their limits, and how old are the accounts?
What are the balances and what is your overall utilization? What is your stated income.

Without that info it is hard for us to get a clear picture.

That's a lot of information you are requesting. How would it help you help the OP?
I agree, that's a whole lot of info... what's left? That's pretty much everything but this...

Lmao. Too funny

Re: Rejected for too many revolving accounts

Anonymous — Thu, 10 Dec 2015 23:12:46 GMT

@Anonymous wrote:
@Anonymous wrote:
How many cards do you have, what are they and their limits, and how old are the accounts?
What are the balances and what is your overall utilization? What is your stated income.

Without that info it is hard for us to get a clear picture.

That's a lot of information you are requesting. How would it help you help the OP?

Think about it. How can someone tell why this person was declined for credit if they don't know what the profile looks like, some specifics? People do that all the time on here, ask questions about credit without providing specifics.

If I can see a synopsis of the profile, I can answer his question. Something on the profile generated a decline. If we can see it, we can help answer his/her concerns.