Will I get denied for a card for having too many accounts?

[folks19]

Is having too many accounts a reason banks use to deny someone for a credit card or other loan? I don't mean recent accounts, but just having a lot of accounts on my report. Are there specific banks that would not approve one who has a lot of accounts on their report regardless of when they were opened?

[Anonymous]

Penfed used to give the denial reason of pyramiding debt but I am not sure if they still do it. 

[red259]

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@folks19 wrote:

Is having too many accounts a reason banks use to deny someone for a credit card or other loan? I don't mean recent accounts, but just having a lot of accounts on my report. Are there specific banks that would not approve one who has a lot of accounts on their report regardless of when they were opened?

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The amount of open accounts itself isn't really the issue if they are old. The amount of  total available credit across all cards though is something some lenders will look at though.  

[tcbofade]

It's happened to me exactly twice.

Mainstreet credit union and Digital credit union.

The big banks don't seem to care.  The smaller CUs do.

YMMV.

Good luck!

[kdm31091]

In general CUs tend to be more sensitive to your overall available credit than the big banks, but it can come up with any lender. It is not super common but it's something to keep in mind.

[folks19]

@red259 and @kdm31091 

When you say that issuers care or don't care about available credit, do you mean that look at available credit as a positive thing or a negative thing?

[Jnbmom]

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@folks19 wrote:

@red259 and @kdm31091 

When you say that issuers care or don't care about available credit, do you mean that look at available credit as a positive thing or a negative thing?

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It's actually both. Some of the more conservative lenders don't like alot of availiable credit such as mentioned DCU and PENFED also BECU and USAA in my experiences.

[FinStar]

They don't view it as favorable.  Meaning the potential risks of being overextended are not a good sign for some lenders, especially those who tend to lean more conservative in UW.  We'll use UNFCU, NASA, First Tech FCU, Abound (formerly Fort Knox CU) as some examples.

[Demented1]

As stated by @tcbofade YMMV…with that said, I have found that if you have a “thick file” with good scores, depending on how recently you have opened new credit lines you may be subject to more scrutiny. If you’ve had more than 90-120days from last inquiry, then pull the trigger if your scores are warranting a new account.

If all your accounts are in good standing, on time, low debit to available credit then you should, (in theory) have no problem. If there’s merit to your request and you have been a customer, you can preface the request with a call to CS to better evaluate your odds. You are a valued consumer, and they want your business if you have existing accounts with them. If you are a new customer then as @red259 stated “The amount of open accounts itself isn't really the issue if they are old. The amount of total available credit across all cards though is something some lenders will look at though.”  I personally do not know of any banks, (US) that will kick you to the curb for excess accounts, (@rgninja - PenFed exception) but as @kdm31091 states: “In general CUs tend to be more sensitive to your overall available credit than the big banks, but it can come up with any lender. It is not super common but it's something to keep in mind.”

Best of luck @folks19, I hope your request gets resolved to your satisfaction!