topic Re: Cards that will approve with high utilization showing in Credit Cards

Cards that will approve with high utilization showing

Klesko — Mon, 06 Jun 2016 21:22:21 GMT

My wife has 5 cards that are all pretty high ,90%+ utilization, her overall is around 60% with many store scores at 0 balance. Her scores are high 600s with clean reports across the board.

I know its not ideal but are there any cards which will approve her with that high of utilization? Not looking for any small limit cards, need 5k+. I thought about doing a lendingclub personal loan but her income is really low so that wont work.

I know I could balance transfer those cards to my cards but I am trying to avoid that for now if possible.

Just looking for some other ideas.

Re: Cards that will approve with high utilization showing

RonM21 — Mon, 06 Jun 2016 21:58:58 GMT

With all of the cards kind of maxed out, I'm not sure there would be one that would not only approve but give a higher limit also. YMMV though. It is possible it can happen.

Re: Cards that will approve with high utilization showing

Anonymous — Tue, 07 Jun 2016 00:01:23 GMT

I wouldn't waste any more inquiries trying to get a Signature card while she has high util and low income. If she does get approved, her SL will be much lower than 5k with her current profile.

Does she have any 5k card reporting?

As an alternative don't do the BT to your cards, instead, add her as an AU to 2-3 of your ZERO balance cards to help lower her util %. Do the calucations first and decide which cards to add her. Her scores should jump once the reports update, then app. You can always go back at a later date and remove her as an AU from your cards.

Good luck.

Re: Cards that will approve with high utilization showing

creditguy — Tue, 07 Jun 2016 00:42:45 GMT

Cards that will approve you with high utilization are cards that aren't worth having or apping for.. And expecting a $5k SL is off the table I'd be willing to bet.

Re: Cards that will approve with high utilization showing

Klesko — Tue, 07 Jun 2016 00:53:50 GMT

@Anonymous wrote:
I wouldn't waste any more inquiries trying to get a Signature card while she has high util and low income. If she does get approved, her SL will be much lower than 5k with her current profile.

Does she have any 5k card reporting?

As an alternative don't do the BT to your cards, instead, add her as an AU to 2-3 of your ZERO balance cards to help lower her util %. Do the calucations first and decide which cards to add her. Her scores should jump once the reports update, then app. You can always go back at a later date and remove her as an AU from your cards.

Good luck.

That was my feeling pretty much but wanted to see if there was some cards I wasnt thinking about.

I am going to add her as a AU on some of my older 0 balance cards which will lower her overall utilization but any single card over 90% is going to prevent her from getting new decent cards.

Right now her big cards are CapOne Venture 18.5k and Discover 13k.

Re: Cards that will approve with high utilization showing

Creditplz — Tue, 07 Jun 2016 00:58:53 GMT

If she has those 2 (venture, Discover) at 90% ($28,350) and a low income I don't think she would be able to get a 5k+ card without income inflating.. But who knows.

Re: Cards that will approve with high utilization showing

Nova5041 — Tue, 07 Jun 2016 06:09:15 GMT

I'm alittle confused on why your trying to reduce her uti, by getting another card, you even said you were thinking about taking a personal loan out. Why is it important to reduce your uti by doing these actions, Instead of just paying off the debt. I mean her score will shoot up once the debt is greatly reduce. I'm not trying to be being mean or anything just sincerely intrigued, as to why your trying to add lines of credit, when your already at 90% uti.

Re: Cards that will approve with high utilization showing

Klesko — Tue, 07 Jun 2016 13:01:58 GMT

Any thoughts on what percent I need to get these cards under to allow for new approvals? I know the best would be 30% but if I could not do that then what percent would be acceptable you think?

Re: Cards that will approve with high utilization showing

kdm31091 — Tue, 07 Jun 2016 13:10:56 GMT

I think you need to stop thinking that new cards are the solution here. With that high of utilization, no major bank is likely to approve a new card, much less with a 5k+ limit. If you're already in that much debt, no bank is going to say "sure, here's a 5k limit that you can max out". I'm not saying that to be rude, just providing the banks perspective.

I would just focus on getting the utilization way down before applying for anything else. Under 30% is the generally suggested maximum but lower is better. It can never hurt to have it be lower when applying for things.

Re: Cards that will approve with high utilization showing

Klesko — Tue, 07 Jun 2016 13:16:43 GMT

@kdm31091 wrote:
I think you need to stop thinking that new cards are the solution here. With that high of utilization, no major bank is likely to approve a new card, much less with a 5k+ limit. If you're already in that much debt, no bank is going to say "sure, here's a 5k limit that you can max out". I'm not saying that to be rude, just providing the banks perspective.

I would just focus on getting the utilization way down before applying for anything else. Under 30% is the generally suggested maximum but lower is better. It can never hurt to have it be lower when applying for things.

All the current cards are in 0% balance transfer. They are all coming off the 0% within 3-5 months. I am just looking to roll it over into another 0% if possible. I could roll it over to my cards which are almost empty which is what I will most likley end up doing.

Re: Cards that will approve with high utilization showing

kdm31091 — Tue, 07 Jun 2016 13:18:14 GMT

@Klesko wrote:
@kdm31091 wrote:
I think you need to stop thinking that new cards are the solution here. With that high of utilization, no major bank is likely to approve a new card, much less with a 5k+ limit. If you're already in that much debt, no bank is going to say "sure, here's a 5k limit that you can max out". I'm not saying that to be rude, just providing the banks perspective.

I would just focus on getting the utilization way down before applying for anything else. Under 30% is the generally suggested maximum but lower is better. It can never hurt to have it be lower when applying for things.
All the current cards are in 0% balance transfer. They are all coming off the 0% within 3-5 months. I am just looking to roll it over into another 0% if possible. I could roll it over to my cards which are almost empty which is what I will most likley end up doing.

Whether you are paying interest or not is irrelevant to the banks. The utilization is high and that's what matters. I understand what you want to do, but IMO, people should focus more on getting rid of their debt and less on shuffling it around.

Re: Cards that will approve with high utilization showing

takeshi74 — Tue, 07 Jun 2016 13:31:02 GMT

Don't consider just approval. That said, revolving utilization has a significant impact and will affect one's ability to get approvals. Not only that, but high revolving utilization will constrict the limit that one qualifies for.

If you want to be approved and you want high limits, low APR's etc then get your revolving utilization down. Don't just assume that all your problems will be solved by finding the "right" creditor and product. One's credit profile determines what one is approved for and what one qualifies for.

I've posted this many times so the regulars are probably tired of hearing it but I'll post it again as it is an example relevant to this discussion. Granted, it's only anecdotal but it is illustrative of the impact of revolving utilization. Back before I educated myself I had a bit of credit card debt and I figured that getting a card with a 0% offer would help so I applied for the Chase Slate. I was approved but for only $2,000. I had much more credit card debt than that so the $2,000 limit was useless and I closed that card. About 6 months later I was able to drop my revolving utilization from over 60% to under 10%. I forget how much exactly -- it might have been around 6%. Anyway, I apped for a CSP and was instantly approved for $25K. I apped the next day for the UMPE and was also instantl approved for $25K.

I'm not saying that your wife will qualify for such limits when she gets her revolving utilization down. In my case my profile was strong and clean enough aside from revolving utilization that I qualified for those limits. It was the extremely high revolving utilization that led to only getting a $2K limit.

Get her revolving utilization down. Do not rely on quick fixes with credit.

@Klesko wrote:
Any thoughts on what percent I need to get these cards under to allow for new approvals? I know the best would be 30% but if I could not do that then what percent would be acceptable you think?

Approval is a low bar. The lower the better. That's why the advice about optimizing revolving utilization and number of balances exists: only 1 balance reporting as low as possible -- definitely well under 10% -- if trying to eke out points when applying for credit, CLI's etc.

Creditors are not all identical so there isn't a magic % for all creditors where she will sudenly be approved. Get the revovling utilization down first. Get all that revovling debt paid off first. Then worry about applying for new credit. New accounts are the least of your concerns at this point. With revolving utilization that high your priority is avoiding adverse action and paying down those balances as quickly as possible.

@Klesko wrote:
All the current cards are in 0% balance transfer.

Does not matter. Look at reports. Note where 0% offers are indicated? It's all about revovling utilization. Get it down first. This is why we say don't count on a new card for BT's if you have high revolving utilization. Even if approved one will get low limits and high APR's which make the new card useless for BT's. Revolving utilization matters regardless of 0% offers. It's not just a matter of scoring. It's a matter of how creditors perceive risk and revolving utilization like that is seen as a major risk. Don't rely on new credit to solve this probem.

Re: Cards that will approve with high utilization showing

Anonymous — Wed, 08 Jun 2016 12:34:56 GMT

@Klesko wrote:
Any thoughts on what percent I need to get these cards under to allow for new approvals? I know the best would be 30% but if I could not do that then what percent would be acceptable you think?

Why do you want a new card for her? She can't even handle the cards she has now. I can suggest synchrony but it isn't guaranteed. However, it doesn't seem like she needs new cards unless she is dying from interest. That is when I can see you trying to get a BT offer from another card, which you didn't mention at all. I assume it is a spending problem. Anyway, I should keep my assumptions to myself because everyone is free to do what they want. You suggest you can pay them off to 30%, so I see the issue is not paying them but gaining more credit to go back to that 90% area you feel comfortable at. GL and I hope you learn more from this forum on how to manage credit because you are not there yet. Well, none of is really, that is why we are here or boredom. I just hope someone can say it straight and wake some people up before they head in the wrong direction.

Edit* Also, this could cause AA from other lenders if they see you seeking credit to cover your utilization and not actually paying down the debt. Cash flow problems as others have mentioned and trigger FR, CLD, Balance chasing, etc.

Re: Cards that will approve with high utilization showing

Anonymous — Tue, 07 Jun 2016 14:21:02 GMT

Doesn't help with util, but HER low income has been mentioned more than once. Most card apps state the income question in terms of income you reasonably have access to. If it says that, I put household income. (But I make a bit more than DH anyway.. )

Re: Cards that will approve with high utilization showing

aussiesareforever — Tue, 07 Jun 2016 14:29:46 GMT

I agree with some of the other posters here.

While this is a CC forum, it sounds like she needs to work on getting her debt down. I don't recommend getting another credit card. Instead, I think she would benefit from YNAB

www.YNAB.com

Changed my life!

Re: Cards that will approve with high utilization showing

Anonymous — Tue, 07 Jun 2016 20:38:36 GMT

If she has high limit cards that are maxed out, lenders may think she's having cash flow problems and decline her apps.

Re: Cards that will approve with high utilization showing

Anonymous — Tue, 07 Jun 2016 20:47:24 GMT

I would wait until ut is down to at least 30%, if not 10-15%. CC's look at those and wonder. She has some good cl's now. I'm sure she doesn't want to take bottom line ones. I did on the last store I app'd for since it was a foot in the door for me and I really didn't care since I have more than I need.

Re: Cards that will approve with high utilization showing

Anonymous — Wed, 08 Jun 2016 06:30:21 GMT

I think it's time to focus on paying down/off debt. There's no quick fix, but it will feel good once the balances start to decrease. Best of luck!

Re: Cards that will approve with high utilization showing

Anonymous — Wed, 08 Jun 2016 12:24:12 GMT

I agree with what everyone above has stated. The only move to make at the moment for the person in question is to lower overall utilization. Applying for another card with 60-90% utilization IMO is about the worst possible move this person could make.

Re: Cards that will approve with high utilization showing

Anonymous — Wed, 08 Jun 2016 13:45:04 GMT

@Anonymous wrote:
I would wait until ut is down to at least 30%, if not 10-15%. CC's look at those and wonder. She has some good cl's now. I'm sure she doesn't want to take bottom line ones. I did on the last store I app'd for since it was a foot in the door for me and I really didn't care since I have more than I need.

I agree!