Discover CLI Declined

[Zosimus]

AAoA 2y1m. Applied for CLI with Discover and was declined (SP). I received a letter stating:

Unfortunately, at this time we are not able to approve your request for a credit line increase due to the following:

RATIO OF MONTHLY PAYMENTS TO INCOME (DEBT BURDEN).

TUC: 742

Length of time revolving accounts have been established

Time since most recent account opening is too short

% of balance to credit limit too high on revolving accounts

Too many accounts with balances

Number of inquiries on credit bureau.

Here's the question:

I own a business, which I purchased in January 2021. I don't know how much the business grosses in a year, but I got about $12k last month and about $13k this month (less deductions). I pay myself $4,000 a month, and that is the income I declared for the CLI. I purchased the business with two loans, one of which has a payment of $587 a month and the other has a payment of $1,733 a month. These payments are automatically deducted from my business income before it gets deposited into my credit union (Lender's requirements).

Presumably, Discover's computer looked at $4,000 a month, those two loans, the rest of my payments and the numbers were out of guidelines.

Possible solutions:

1. Wait until next year when, armed with a tax return showing my income, I can state a higher amount with a clear conscience.

2. Just start stating $150k based on my most recent two months' gross income from the business. But then, what to state for rent? Do I include the business rent? How would that work?

3. Just state $90k a year, a number that Experian's website has indicated would put me compliant with most lenders DTI requirements.

4. Actually try to pay myself $90k a year (difficult).

5. Try to demonstrate to a human that the loans are business related.

6. Something else?

[Anonymous]

What does your revolving utilization look like?  My take is that is more of an issue than your income.  I've known plenty of part time college students making $10k-$15k per year that have received Discover CLIs just fine.  2 of your negative reason statements point to your balances, so I would look at those.  Keep in mind that for CLI denials you must be provided with a reason, which doesn't have to be all of the reasons.  I'd focus less on your income and more on improving your credit report. 

[Zosimus]

[Anonymous]

Credit Karma summary pages aren't accurate and often don't tell the whole story.  For example, if you missed a payment 3 years ago, that summary page would still say "100%" for payment history since their front end only looks at the last 2 years.

[Zosimus]

Even if that's true, wouldn't one of the reasons I didn't score higher be something like late payments? I just assume that if Discover says the problem is debt-to-income then it's probably debt-to-income.