No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
I have an excellent (800+) FICO score, and many credit cards I no longer use. I also have quite a few mortgages (almost all are for investment properties) plus a HELOC (almost maxed out), and find myself frequently being turned for new credit cards, even though I have a good salary (in addition to the rental income) and don't miss payments. I have no trouble paying my balances off every month - I never use revolving credit. When I am given a reason for refusal, it's usually because of my debt to income ratio.
Would closing some of the cards I no longer use be beneficial in any way? They are all no-fee cards; most are disused because I now have cards with better benefits.
Thanks!
@Anonymous wrote:I have an excellent (800+) FICO score, and many credit cards I no longer use. I also have quite a few mortgages (almost all are for investment properties) plus a HELOC (almost maxed out), and find myself frequently being turned for new credit cards, even though I have a good salary (in addition to the rental income) and don't miss payments. I have no trouble paying my balances off every month - I never use revolving credit. When I am given a reason for refusal, it's usually because of my debt to income ratio.
Would closing some of the cards I no longer use be beneficial in any way? They are all no-fee cards; most are disused because I now have cards with better benefits.
Thanks!
Thats your answer
Thats your answer
Not really. Is it the debt of my mortgages or the unused debt of the credit cards?
@Anonymous wrote:Thats your answer
Not really. Is it the debt of my mortgages or the unused debt of the credit cards?
Unused credit is not a debt for DTI purposes.
"Unused debt" by definiton cannot be used in a DTI ratio calculation so that's not the answer. A credit line is not a debt, the actual debt occurs when there's a balance on the credit card. Your credit application denials are most likely due to your current mortgage obligations and your maxed out HELOC.
OK, that's exactly the sort of answer I was looking for. Unfortunately it's not the one I wanted to hear... :-(
@Anonymous wrote:I have an excellent (800+) FICO score, and many credit cards I no longer use. I also have quite a few mortgages (almost all are for investment properties) plus a HELOC (almost maxed out), and find myself frequently being turned for new credit cards, even though I have a good salary (in addition to the rental income) and don't miss payments. I have no trouble paying my balances off every month - I never use revolving credit. When I am given a reason for refusal, it's usually because of my debt to income ratio.
Would closing some of the cards I no longer use be beneficial in any way? They are all no-fee cards; most are disused because I now have cards with better benefits.
Thanks!
You've been turned down for credit cards because of "debt to income ratio"? It's funny, I've been turned down many times but never saw that given as a reason. Are you sure those are the words?
DTI denials tend to be CU based.
Big banks just say No you have too much credit already when you hit a percent of income like 50%-75% with that particular lender.
OP... who are you applying with?
If you have credit cards that you don't use, there's no harm in closing them down. The only exception would be if they are non-AF cards that are either your oldest or one of your oldest accounts, as allowing it to continue to age would be a good thing for your file 10+ years from now relative to closing it/them today. Anything else though, I'd just close it.
Per AJC