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wrong reason for credit limit denial

emmma
Established Member

wrong reason for credit limit denial

 

Last week, I applied bank of america cash rewards credit limit increase online, 7-10 days in the mail, today, denied.  I know it will be denied because my utilization is about 1%.

 

However, I had a good laugh about the reason listed on the denial letter.  They used Transunion data and said my Transunion score is 798.  Other scores I know is my credit karma is 785, my bank of america online score is 828.

 

You had too many inquiries, my Transunion has 2 inquiries.  2 is too many?

 

You opened too many new accounts, I have 3 new accounts in the past 2 years, 3 is too many?

 

Your balance is too high, I think I never passed 1%.  I made some big purchase during the account opening, I paid off before cycle date, less than 10% anyway.

 

You have too few activities, even though my spending is small, but I average use this card every 2 weeks, about 2 to 3 times a month.  

 

 

I just had a good laugh about all the reasons they listed on my denial letter.  Maybe they will decrease my limit since I only use 1% every month.  I wish they can provide some factual and truthful denial reason next time.

 

Did anyone else ever receive those wrong denial reasons for credit limit increase from bank of america?  I feel funny to read them.    

 

 

 

 

 

 

 

 

 

Message 1 of 21
20 REPLIES 20
GlennvilleGA
Regular Contributor

Re: wrong reason for credit limit denial

I swore I'll never use BOA again after an incident where they put a $300 cashiers check on hold for 14 days. (I purchased it from Wells Fargo and mobile deposited it in BoA because I was traveling in South Dakota and there weren't any BoA branches or deposit taking ATMs near) they wouldn't entertain releasing the funds early. It was a disaster during a time that I wasn't working. 
I wanted to mention that I think when Synchrony Bank mentions that I have a lack of real estate as a reason that it makes me laugh. 

Message 2 of 21
FalconSteve
Frequent Contributor

Re: wrong reason for credit limit denial

A lot of times, those reasons are just random. Citi was giving my wife all kinds of BS reasons for denying CLIs. How can she have unsatisfactory installment accounts with no installment accounts? How can the last delinquency be too recent if she has no delinquencies? It's not that unusual.

REDcard $2500 SL
AmEx Cash Magnet $10k SL, CLI after 36hr to $20k
BB&T $11k SL- impulse application
BB&T $11k SL- AU, not on reports- impulse app (wife's card)
Discover $5800 CL- $1k SL- AU, no longer on reports b/c of error (wife's card)
Citi Double Cash World MC $2900 SL, $4400 CL- AU- (wife's card)
AmEx Cash Magnet- $3100 SL, $9300 CL (wife's card)
BoA Cash Rewards $11k CL- AU (Dad's card)
BoA Premium Rewards $12.3k CL- AU (Dad's card)
PSECU Founder's Card $30k SL- AU (Dad's card)
AmEx Cash Magnet $12.5k SL- AU (Dad's card)
Wells Fargo Propel AmEx- $2500 SL, $3200 CL (AU, wife's card, not on CR b/c I was temporarily removed as an AU)

All PIF, frequently before statement close

Goals: Buy a house & get approved for an AOD VISA Signature card (or other 3% cashback)
Closed accounts (I had a long period of inactivity): AmEx clear, Citi ThankYou (previously Driver's Edge), Chase Freedom, Cap One, Discover IT, Lowes Charge (really stupid, huge limit), my 1st REDcard, Buy.com Visa, Children's Place, Kohl's Charge, Angel Card (AU- wife's), Old Navy card
Message 3 of 21
emmma
Established Member

Re: wrong reason for credit limit denial

@GlennvilleGA 

 

I had several bad experience with bank of america, too.  When I started my first credit card, I applied for bank of america secured credit card.  I was approved and then 2 weeks later, they closed my account saying they never received my deposits.  I went to the branch and speak with a banker, they checked my account number and routing number is correct on my application, I have more than enough in my bank of america checking account, they started an investigation and then I received a letter saying they can not reverse the decision and I have to apply again.

 

I had a problem with an unauthorized charge, request supervisor, then request investigation, then request call back, no response ever.  It took me a whole weekend and keep calling them in order to get my refund.  Ask their name and employee number and they disconnect my call.  No one believes me, but I have much more worse experience with bank of america.  I keep my card mainly because my credit age and credit history.  I do not like them.

 

On the other hand, my boyfriend likes them so much and always have great experience with them.  It is a case by case I think. 

 

 

 

 

 

Message 4 of 21
emmma
Established Member

Re: wrong reason for credit limit denial

@FalconSteve 

 

That is even funnier than my story.  I am not alone.  Maybe it is automated response, everyone gets the same message if they do not want to approve you.  The world is much better if everyone can speak with facts.   

 

 

 

 

Message 5 of 21
FalconSteve
Frequent Contributor

Re: wrong reason for credit limit denial


@emmma wrote:

The world is much better if everyone can speak with facts.   


So true

REDcard $2500 SL
AmEx Cash Magnet $10k SL, CLI after 36hr to $20k
BB&T $11k SL- impulse application
BB&T $11k SL- AU, not on reports- impulse app (wife's card)
Discover $5800 CL- $1k SL- AU, no longer on reports b/c of error (wife's card)
Citi Double Cash World MC $2900 SL, $4400 CL- AU- (wife's card)
AmEx Cash Magnet- $3100 SL, $9300 CL (wife's card)
BoA Cash Rewards $11k CL- AU (Dad's card)
BoA Premium Rewards $12.3k CL- AU (Dad's card)
PSECU Founder's Card $30k SL- AU (Dad's card)
AmEx Cash Magnet $12.5k SL- AU (Dad's card)
Wells Fargo Propel AmEx- $2500 SL, $3200 CL (AU, wife's card, not on CR b/c I was temporarily removed as an AU)

All PIF, frequently before statement close

Goals: Buy a house & get approved for an AOD VISA Signature card (or other 3% cashback)
Closed accounts (I had a long period of inactivity): AmEx clear, Citi ThankYou (previously Driver's Edge), Chase Freedom, Cap One, Discover IT, Lowes Charge (really stupid, huge limit), my 1st REDcard, Buy.com Visa, Children's Place, Kohl's Charge, Angel Card (AU- wife's), Old Navy card
Message 6 of 21
Wile
Regular Contributor

Re: wrong reason for credit limit denial


@emmma  I strongly believe this kind of denial letter is just an automated response to CLI these days because of covid when they don't wanna approve you. One of my friends got exactly the same reasons which do not even exist. She also doesn't have any installment account nor any derogatory. She has the account for 5 yrs with BOA with good activities, yet still she gets denial for reasons those don't even exist. She got the similar experience lately on her CLI with Discover, Bank of America, Citi, Capital one, and HSBC. We all know how Capital one is and never expected any CLI with them, but all these other banks denied her CLI on reasons that do not even exist. It's definitely has to do with Covid situation and I do not think these banks going to change their such practice or tight UW any time soon...maybe by the end of this year....A few got lucky, but those cases are not norm in the given situation....
Message 7 of 21
emmma
Established Member

Re: wrong reason for credit limit denial

@Wile 

 

True.

 

The only thing I will say is I had success with discover, small increase, but success.  Based on my experience, citi and capital one is the hardest to get increase, either I got 100 or nothing at all.  So far, discover, american express, wells fargo, synchrony have been nice to me and give me one or two increase per year, maybe three, regardless big or small.

 

 

 

 

 

 

   

 

 

Message 8 of 21
Wile
Regular Contributor

Re: wrong reason for credit limit denial

@emmma 

 

I am glad that you have success with Discover, Citi, Amex Wells Fargo and other cards on CLI. That's very nice. My Discover card just got closed down in late September 2020 due to inactivity. I have had that card for 7 years and the credit line was $53k. That's why it hurts when it closed down. I worked so hard my way up to raise up to that limit in all these years. My initial credit line was $14,500 but every 4 months I used to ask them for a credit line increase and they always used to increase it without any pull...a good increase each time but I used to show big and enough actions all the time....I tried very hard to get my that card to be re-instated, but Discover has a policy of not reinstating an account once its closed down. I am told that I can immediately apply to open a new account...I was so hurt or pissed off which made me not to have applied a new one....I believe if I would have applied at that time (especially) then I might have gotten the same limit because they could see my limit and everything...still not late though...Its not even 4 months yet since they closed that one...What pissed me off is that they didn't even give me a warning before closing down due of inactivity. I know that they are not obligated to give you any warning. Prior to this I did not even know that lenders can close your account due to inactivity...

 

And the strange thing is- 3 or 4 yrs ago I did not use their card for more than a year but they didn't close at that time...I think Covid has changed all the games lately. But I now learn that you must show some activity on the account in every 3 months even if its for .50 cents...So long there is something going on then they will not close it down. Each lender has different policy on it...some close it down after 4 months of inactivity, while others do it after one and half year of inactivity. I have a credit card with First Bank of Omaha, BP and HSBC and they always notify me in 2-3 weeks in advance that there is no activity for a year and when account will shut down...so that I could make any transaction but Discover did not even think twice for shutting down for an account with such a high limit and maintaining that one for so many years.

 

I have two accounts with Wells Fargo....They were opened many years back...I never asked for CLI on them as they already have a big credit limit to start with and I do not use them much anyway...a few bucks here and there in every 2-3 months, which is why I didn't bother to ask for CLI. I have Propel (Amex) and CashWise with them. Propel was my first highest credit limit card ...with huge limit which surprised me a lot but they never let me use the card and asked me to first take certain documents to any of their branches for certain verification.

 

Well Fargo pulled SP or HP on your CLI request? 

Message 9 of 21
emmma
Established Member

Re: wrong reason for credit limit denial

@Wile 

 

Wells fargo soft pulled me, except once.  By law, they have to ask you for your consent if have to hard pull you.  That one time accident is a foreign lady never asked me anything and proceed with my request, approved but hard pulled me experian.  I tried to dispute this accident, but three investigations from wells fargo find that everything is correct.  If someone can listen to the call, then I believe everything should be solved.  However, wells fargo never want to gave me justice on that accident.  Other than that, all soft pull, when they ask me for my consent, I cancel the request.

 

I do not have success with citi, I said citi and capital one are the hardest to get increase for me.  Many denials from these two.

 

Capital one closed my college journey card without any warning.  I completely forgot I even have a super small capital one card.  But, I am not sad, because I want to get rid of those super small limit card and build my credit with big limit card.  I lost some points, but right now, I am back to 750+.

 

I asked the discover, they told me one transaction every 12 months is the minimum activity to maintain account open.  I tried to use it once a month.  53,000 limit is huge, and I do not believe I will ever have that with discover.  7 years with a huge limit, that is really a loss.  I have another chase small limit card, I want to close it but I do not want to lose the credit history, maybe I will close that if I am 10+ years old credit history, not right now.  One thing I like about discover is I never have to deal with language issues, I feel good speak with someone who can speak fluent English, especially I am an English learner.

 

Can you explain "Propel was my first highest credit limit card with huge limit which surprised me a lot but they never let me use the card."  I do not understand that part "they never let me use the card."

 

 

 

 

 

 

 

  

 

  

Message 10 of 21
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