Discover Credit Line Increase DENIED!

[Humble800900]

Hello  I applied for a credit limit increase but got denied for the reasons below. Can someone explain what each reason means? I have paid off my collections already. However, as the banks do not want to do pay for delete and dispute is the only option, they are still on there. 

Serious Declinquency, and public record or collection filed %

% of Balance to credit limit too high on revolving accounts.

Lenght of time revolving accounts have been established. 

[Kforce]

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@Humble800900 wrote:

Hello  I applied for a credit limit increase but got denied for the reasons below. Can someone explain what each reason means? I have paid off my collections already. However, as the banks do not want to do pay for delete and dispute is the only option, they are still on there. 

Serious Declinquency, and public record or collection filed %

% of Balance to credit limit too high on revolving accounts.

Lenght of time revolving accounts have been established. 

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First, you need to know that issuers are required to say something.

However it being even close to the truth is not required.

Think of it as an excuse to not go to work.

You tell the boss you have the flu or Covid but you and a few

friends want to go to the beach.

That said, my take:

Serious Delinquency, and public record or collection filed %

They see your collections and don't like that

% of Balance to credit limit too high on revolving accounts.

Either to many of your credit cards have a balance or

they don't like the utilization on some or all cards.

Example $3000 on a $5000 CL card ,or 5 of 7 cards have a balance

Length of time revolving accounts have been established. 

Your age of having credit cards is short and they want more time to pass.

or 

You time of having the Discover card is to short

or

It is to soon sense your last CL increase

[stonedog23]

Well the first one is that delinquency you said that you can't get off.

The second is they are saying you are using too much of your credit line. Of course, not sure what percentage that is.

Thirdly they claim your accounts haven't aged enough or that your profile is young-ish. 

[coldfusion]

When multiple reasons are listed (there can be anywhere from 1-4) they are listed from the most important to least important factor leading to the denial.

1) The first reason should be self-evident, you still have collections reporting even though they should be reporting as being paid.

2) You have 1 or more accounts that they flag as having high utilization i.e. the exsting balance on 1 or more of your cards when compared to the credit limit on the card(s) is higher than they are comfortable with seeing.

3) You have some fairly recent accounts.

Keep in mind that these reasons are selected from a standardized list of roughly 100 entries, which means that there is often no perfect or exact match to describe exactly why there was a denial. In those cases they pick the responses that are the best match and go from there.

[Jeffster1]

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@Humble800900 wrote:

Hello  I applied for a credit limit increase but got denied for the reasons below. Can someone explain what each reason means? I have paid off my collections already. However, as the banks do not want to do pay for delete and dispute is the only option, they are still on there. 

Serious Declinquency, and public record or collection filed %

% of Balance to credit limit too high on revolving accounts.

Lenght of time revolving accounts have been established. 

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1. Your collection accounts trigger their risk algorithm. Even though paid, issuers might see these as predictive of future problems. I know it's frustrating. I filed a 13 BK in 2017 and paid back 100 percent of the claims. Even though I paid back 100 percent, it still undermines me when seeking credit. I've done OK, and am not complaining, but it is what it is.

2. Your balances are too high as a percentage of available credit on one or more of your cards. Try to ensure that no single card is over 30 percent utilization. Less is even better.
3. The average age of your accounts is too short for their risk model. They want you to have a longer average as they consider that a sign of financial stability. 

[Humble800900]

Thank you!!!

[Humble800900]

Thank you!!!1