topic Re: how far back is too many accounts recently opened? in Understanding FICO® Scoring

how far back is too many accounts recently opened?

Fico2Go — Thu, 09 Oct 2014 18:11:56 GMT

After receiving an auto CLI I thought I would do a manual request. Discover had done a SP for a CLI and I was denied.

The main reason seems to be the bureau reports too many accounts recently opened.

That seems odd since many on here have reported getting new TLs every 3-6 months.

The last account I opened was in April of of this year. Prior to that it was in December of 2013.

Could use some englightenment on how far back CCCs go to determine if accounts are too recent.

Thanks

Re: how far back is too many accounts recently opened?

Revelate — Thu, 09 Oct 2014 18:58:16 GMT

It's going to be specific to lender in question as that's an underwriting concern rather than a FICO one (though admittedly FICO has some penalties for recent accounts, inquiries, AAOA reduction).

It's unlikely to ever get a truly specific thing back from underwriting (you failed because you had an account opened 5 months ago!) for legal reasons, and this is one of those where really anything is applicable except for the no-file case; even an account opened years ago might theoretically be a no-fly zone for an ultra conservative lender, or more likely during an economic crisis during a lender pullback.

Re: how far back is too many accounts recently opened?

Fico2Go — Thu, 09 Oct 2014 19:15:21 GMT

@Revelate wrote:
It's going to be specific to lender in question as that's an underwriting concern rather than a FICO one (though admittedly FICO has some penalties for recent accounts, inquiries, AAOA reduction).

It's unlikely to ever get a truly specific thing back from underwriting (you failed because you had an account opened 5 months ago!) for legal reasons, and this is one of those where really anything is applicable except for the no-file case; even an account opened years ago might theoretically be a no-fly zone for an ultra conservative lender, or more likely during an economic crisis during a lender pullback.

An interesting data point at least for DISCOVER CLI request is that the reasons given for the denial were related specifically to the account with DISCOVER.

Three reasons were given.

1: Recent increase in balance on YOUR ACCOUNT.

2: High Utilization on YOUR ACCOUNT.

3: Bureau reports too many accounts recently opened.

Discover freely provides reasons for why my FICO score is what it is at: 744. However they also provide specific reasons as to why the CLI was denied. As for reasons #1 and #2 I agree with Discover. For #3 it's too subjective given the approvals we read here.

Re: how far back is too many accounts recently opened?

Fico2Go — Thu, 09 Oct 2014 19:27:10 GMT

btw, I have no idea why this thread was moved to the understanding fico scores forum since the post had nothing to do with fico scores.

Re: how far back is too many accounts recently opened?

CreditDunce — Thu, 09 Oct 2014 19:42:01 GMT

If you have a good credit score, the credit score reasons for not getting a CLI are meaningless. It is not due to your credit score that you were denied a CLI. But they had to give some reason. FICO may still be dinging your score due to the new account, but it is really minor.

Discover just may not think the risk of extending you more credit is worth the potential reward. That could be because you are not utilizing the card enough for their tastes. It could simply be because they don't want to give you a higher credit line than your other cards. Or it could simply be based on your reported income.

Edit: The most likely reason is the higher balance on your account. They may be worried you are in trouble... if so, just PIF a couple of times should put their concerns to rest.

Re: how far back is too many accounts recently opened?

Fico2Go — Thu, 09 Oct 2014 19:52:22 GMT

I've alwaysPIF up until 45 days ago when I shifted my plan to carrying a balance in hopes that discover will see I am using thier card more.

Re: how far back is too many accounts recently opened?

Fico2Go — Thu, 09 Oct 2014 19:54:28 GMT

Btw, they recently upped my cli by 1000$ to match my highest with amex. Was just hoping they could take the lead instead of following amex.

Re: how far back is too many accounts recently opened?

Revelate — Thu, 09 Oct 2014 20:10:12 GMT

@Fico2Go wrote:
btw, I have no idea why this thread was moved to the understanding fico scores forum since the post had nothing to do with fico scores.

I'd have to go look to see who moved it, but when I first read the thread I thought it was a FICO question until I realized it was Discover specific.

We're working on making things better with regards to what goes where (likely tomorrow will be a big change) but this isn't anywhere close to the worst that we've done . Also you did find it heh.

Re: how far back is too many accounts recently opened?

CreditDunce — Thu, 09 Oct 2014 22:58:58 GMT

@Fico2Go wrote:
Btw, they recently upped mycli by 1000$ to match my highest withamex. Was just hoping they could take the lead instead of followingamex.

Ah, I think that is it. Many CCC's will only allow a customer initiated CLI every so often. I am not sure what Discover's policy is. But it wouldn't surprise me if they won't do a CLI for 90 days after the last CLI. It could be more or less, though.

Re: how far back is too many accounts recently opened?

AndySoCal — Fri, 10 Oct 2014 03:18:26 GMT

You opened 5 accounts in 12/2013 plus 1 in April 2014. and your asking for additional credit. Lenders you usual apply the premise the consumer only applies for the credit they need. The question that is could be in the lenders mind is why a consumer needs that much credit. Plus the fact of your high utilzation is raising another possible concern. that a lender might have.