AMEX CLI DENIED (Again)

[Anonymous]

90 Days ago I requested a CLI and got denied.  Tried again today, denied again.

I requested an increase to $4000 from $2000.

Dear ptr2593,

Thank you for your recent request for a line of credit increase on your American Express? Card Account.

We were unable to approve the amount you requested.

Reason(s) for Our Decision

Your overall debt with other creditors listed in your credit bureau report and the credit limits on your American Express Cards in relation to your reported income.

Our scoring of your credit and other relevant information   (See below)

We evaluated your application using a credit scoring system that considers various pieces of information including your credit report.  The following key factors contributed to our evaluation:

The length of time you have been a customer with American Express is too short.

Information About Your FICO? Score

We obtained your FICO score from Experian and used it in making our credit decision.  Your FICO score is a number that reflects the information in your credit report.  Your FICO score can change, depending on how the information in your credit report changes.  On November 09, 2011, your FICO score was 738.  The FICO score ranges from 300 to 850.  The following are the key factors that contributed to your FICO score:

Length of time accounts have been established. Proportion of loan balances to loan amount is too high. Proportion of revolving balances to revolving credit limits is too high. Too many inquiries in the last 12 months

FICO is a registered trademark of Fair Isaac Corporation in the United States and in other countries.

My AMEX util is 0%.  Total util across all cards is 7%

I have 2 inquiries in the last 12 months. 

Edit:  3 inquiries in the last 12 months assuming the leasing company I just put in an application with has already pulled my report.

Bleh.

[Walt_K]

Sounds like they think you have enough unsecured credit with them and others for your reported income, and that you need more history with them.  Some of the answers that automatically get kicked out, like inquiries and utilization, I wouldn't put too much emphasis on.  How long have you been a cardholder? 

[Anonymous]

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@Walt_K wrote:

Sounds like they think you have enough unsecured credit with them and others for your reported income, and that you need more history with them.  Some of the answers that automatically get kicked out, like inquiries and utilization, I wouldn't put too much emphasis on.  How long have you been a cardholder? 

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Not long at all, I applied in June of this year.  I think you're right about income and total unsecured credit.  I know you're also right about the generic denial reasons (and I'm always the first one to point that out when other people post them on this board), but I wanted to save anyone who replied the hassle of asking me "what's your util?"

Anyway, I'm still a student and I currently have a total unsecured limit of about 70% of my total income.

[LS2982]

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@Walt_K wrote:

Sounds like they think you have enough unsecured credit with them and others for your reported income, and that you need more history with them.  Some of the answers that automatically get kicked out, like inquiries and utilization, I wouldn't put too much emphasis on.  How long have you been a cardholder? 

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+1

Has the account been open for at least 6 months?

[score_building]

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@Anonymous wrote:

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@Walt_K wrote:

Sounds like they think you have enough unsecured credit with them and others for your reported income, and that you need more history with them.  Some of the answers that automatically get kicked out, like inquiries and utilization, I wouldn't put too much emphasis on.  How long have you been a cardholder? 

---

Not long at all, I applied in June of this year.  I think you're right about income and total unsecured credit.  I know you're also right about the generic denial reasons (and I'm always the first one to point that out when other people post them on this board), but I wanted to save anyone who replied the hassle of asking me "what's your util?"

Anyway, I'm still a student and I currently have a total unsecured limit of about 70% of my total income.

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Each situation is somewhat different but generally a newbie Amex account holder and student with limited overall account history is not in the best position to be gunning for CLI (less than six months as a card holder.)  All in due time just keep building good account history and give them some more time to get to know you.

[Anonymous]

Agreed. Give it time. Let your account age before you ask for more money.

[Anonymous]

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@score_building wrote:

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@Anonymous wrote:

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@Walt_K wrote:

Sounds like they think you have enough unsecured credit with them and others for your reported income, and that you need more history with them.  Some of the answers that automatically get kicked out, like inquiries and utilization, I wouldn't put too much emphasis on.  How long have you been a cardholder? 

---

Not long at all, I applied in June of this year.  I think you're right about income and total unsecured credit.  I know you're also right about the generic denial reasons (and I'm always the first one to point that out when other people post them on this board), but I wanted to save anyone who replied the hassle of asking me "what's your util?"

Anyway, I'm still a student and I currently have a total unsecured limit of about 70% of my total income.

---

Each situation is somewhat different but generally a newbie Amex account holder and student with limited overall account history is not in the best position to be gunning for CLI (less than six months as a card holder.)  All in due time just keep building good account history and give them some more time to get to know you.

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I think these are the key reasons for denial (and the income) but once you're in with them, they can be very generous with CLI's.

Best of Luck!!

[Anonymous]

Ok, thanks for all the positive replies everyone! 

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@LS2982 wrote:

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@Walt_K wrote:

Sounds like they think you have enough unsecured credit with them and others for your reported income, and that you need more history with them.  Some of the answers that automatically get kicked out, like inquiries and utilization, I wouldn't put too much emphasis on.  How long have you been a cardholder? 

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+1

Has the account been open for at least 6 months?

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Just hit 5 months.

[Anonymous]

I'd suggest waiting another 6 months, build a nice relationship with AmEx and try again, if at all possible try to have the least amount of CC's possible reporting balances, best case scenario, try to have only one card reporting a small balance.

This has always worked for me. YMMV tho

[andyaycw]

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@Anonymous wrote:

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@Walt_K wrote:

Sounds like they think you have enough unsecured credit with them and others for your reported income, and that you need more history with them.  Some of the answers that automatically get kicked out, like inquiries and utilization, I wouldn't put too much emphasis on.  How long have you been a cardholder? 

---

Not long at all, I applied in June of this year.  I think you're right about income and total unsecured credit.  I know you're also right about the generic denial reasons (and I'm always the first one to point that out when other people post them on this board), but I wanted to save anyone who replied the hassle of asking me "what's your util?"

Anyway, I'm still a student and I currently have a total unsecured limit of about 70% of my total income.

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Sorry to bring back an older thread here, but 70% credit to income ratio is not that much. I'd like to think it's not as big of a factor as we may be thinking here.

When I was a student making less than $10k income and more than $50k in unsecured credit, PenFed gave me a pre-approval for their Gas Rewards Card. That pre-approval was offered to me when I had only a Share Savings account with the $5 minimum balance in it. There was no overdraft LOC or anything else.Considering PenFed is a conservative lender and typically likes to see proof of income, and that they gave a card to me via pre-approval when I had 5x in credit to income, I'd venture a guess that the 70% credit to income ratio you stated would be less of an issue with Amex.