Wrong reasoning to deny credit by BOA…

[Janneman]

I have 3 accounts with BOA- (1) personal cashback credit card for the last 2 yrs, cli DENIED...not even one cli in last two years despite good usage of card; (2) business rewards credit card recently opened a month or two ago, DENIED cli as I didnt like the SL given and I am told I can ask for cli at any time;  (3) applied for another business cc as Im told that BOA dont do another HP if whatever products will be applied within 30 days of last HP, DENIED.

Score is 815, not any negatives...debt is only $10...have checking account as well with them...All these denial have same reasons-

(1) balance on one of their accounts or other lenders accounts, but I dont have any balance nor I owe any lender more than $10 as AZEO...and its been for a very very long time. 

(2) They said- "Current economic and loss trends"

Honestly, if a lender doesn't extend a credit to you then there is absolutely nothing you could. Nothing. They can give you bs reasons...and would throw a book of denial reasonings at you even though those reasoning might not be true nor make any sense. Not worth of my time and energy to spend on reconsideration. I am at least grateful that they have approved me for a business card but at the same time denied for my wife who has much better profile than mine... she was never denied for any credit and she has good number of good business cards, while I did not have nothing until 2-3 months ago which dont even appear yet on my business credit reports but she has well-established thick profile and much longer personal credit card with BOA for many years but they denied her but approved for me. Strange...strange..strange...We might never know how all these works....

[FireMedic1]

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@Janneman wrote:

I have 3 accounts with BOA- (1) personal cashback credit card for the last 2 yrs, cli DENIED...not even one cli in last two years despite good usage of card; (2) business rewards credit card recently opened a month or two ago, DENIED cli as I didnt like the SL given and I am told I can ask for cli at any time;  (3) applied for another business cc as Im told that BOA dont do another HP if whatever products will be applied within 30 days of last HP, DENIED.

Score is 815, not any negatives...debt is only $10...have checking account as well with them...All these denial have same reasons-

(1) balance on one of their accounts or other lenders accounts, but I dont have any balance nor I owe any lender more than $10 as AZEO...and its been for a very very long time. 

(2) They said- "Current economic and loss trends"

Honestly, if a lender doesn't extend a credit to you then there is absolutely nothing you could. Nothing. They can give you bs reasons...and would throw a book of denial reasonings at you even though those reasoning might not be true nor make any sense. Not worth of my time and energy to spend on reconsideration. I am at least grateful that they have approved me for a business card but at the same time denied for my wife who has much better profile than mine... she was never denied for any credit and she has good number of good business cards, while I did not have nothing until 2-3 months ago which dont even appear yet on my business credit reports but she has well-established thick profile and much longer personal credit card with BOA for many years but they denied her but approved for me. Strange...strange..strange...We might never know how all these works....

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Looks like you need to establish a longer relationship. And they're right. Foreclosures up, repos up, CC Debt up,ect. They're trying to cover their losses so far. Its business, nothing personal. Like a Drivers License. Its a privilage. Not a right. Sorry about your denials. Time will tell.

[SDMarik]

Sorry about the denials bud, but I think the big one there is the economic reasons. A lot of issuers are getting ready for damage control with the level of uncertainty out there right now. It also might be as simple as the fact that they looked at your personal card and thought you were ok with the limit you had, as you spend within in it and don't appear to need more. Combine that with everything going on in the world, and it sounds like a decision based on risk aversion.

[pizzadude]

I disagree with your assessment that it is either wrong or incorrect.  Credit is a service that businesses can choose to extend ( or not ) based on their own underwriting criteria.    No one is entitled to it. 

[OmarGB9]

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@pizzadude wrote:

I disagree with your assessment that it is either wrong or incorrect.  Credit is a service that businesses can choose to extend ( or not ) based on their own underwriting criteria.    No one is entitled to it. 

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Agreed.

[CrSter]

Yes once I had a bank where I already have a couple of cards with them deny me a new credit card based (at least as said on the phone) with my having too many balances on other cards, when the total of said balances across a half dozen cards was maybe $50.

But who knows, the real reason might have been that they felt I already had enough credit with them.

And the only reason that $50. was there was due to my charging a few bucks each on the cards I rarely use every six months so that they aren't closed for disuse.

Keep in mind too that these denial letters (and often as well, requests for more information or documents) are boilerplate letters that might not express exactly what the writer is trying to say.  Copy/Paste, pull down menu from list of available choices, galore!

[coldfusion]

a) The creditor has to give 1-4 reasons for a denial.  If there are multiple reasons that contribute toward the decision they are listed in reverse order with the most impactful reason at the top. 

b) There is a list of approx. 100 sentences and phrases that in the US all creditors by law must select from when providing the official reason(s) for a denial.     That pretty much guarantees that in many cases there is no exact match in the list that fully explains a/the actual reason but a reason still has to be given. 

c) Whether the denial was generated by a manual or an automated process there is an attempt to determine the best/most accurate reason(s) from the allowable options  and yes they don't always get it quite right.

As for the denial itself,  they can choose to deny for any reason they want as long as they abide by regulatory or legal requirements such as anti-discrimination laws. 

[Lou-natic]

It's always wise to remeber that when a lender isn't meeting your needs, you can ditch them. They obviously don't want to reward you for your business so go somewhere that will. Sometimes it's time to move on. I have done it, it's not so bad and it was definitely worth the time and effort.

[Janneman]

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@Lou-natic wrote:

It's always wise to remeber that when a lender isn't meeting your needs, you can ditch them. They obviously don't want to reward you for your business so go somewhere that will. Sometimes it's time to move on. I have done it, it's not so bad and it was definitely worth the time and effort.

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I completely agree with you. I will start showing them door too or to show them how right I could be.....If a lender treats you this way, they are not worthy of your business....too many wonderful lenders out there to deal with...They are not the only one could have upper hand, we do too...after all, we give them our business and because of our business they are in the business.