Bank denied me a new card for a really dumb reason, please help.

[Mark6226]

I live in Michigan.

I recently applied for a credit card for my new business (business credit card).

They denied my application and sent me a letter saying the reason is because:
"Amount owed on revolving accounts."

However, there is no amount owed at all. For the past two years, I have paid ALL balances in FULL and on time for both of my credit cards (same bank).

I called and asked why they said "amount owed..." and the man on the phone said it also has to do with having large credit limits accross my cards. He said if my limits are real high they could write that reason for the denied app.

I only have two cards, a Visa and MasterCard. The Visa limit is 7500 and the MasterCard is 5000. I didn't think it was that much considering I know many people with 20,000 limits. I have had both cards for two years (i am 20) and all balances have been paid in full and on time.

I'm a bit confused. Do you suggest I lower my limits to $3,000? Or what should I do?

 

[cmorris]

Who is the bank offering the biz card?

I'm assuming the age of the accounts is also a factor. Most 20 yo do not have credit lines like that. Sometimes banks like to see some usage on cards (about 10-20% utilization) to show what your patterns are.

Do not lower your credit lines--that can also be a reason for denial. Visit creditboards.com.

 

[Mark6226]

It's Bank One.

I have had many balances of thousands of dollars for the past two years that have always been paid in full every month, and never late.

It's probably because of my age. Which doesn't make much sense, since my history is perfect and I need it for my second business.

 

[cmorris]

It's not your age; it's the age of your credit. Part of your FICO score is determined by the average age of accounts, which is short. This in turn lowers your score. It is possible that your score has nothing to do with it; just the average age of accounts. You can try planetfeedback.com and ask for a reconsideration. That may or may not get you the card. Otherwise, try for a different card.

I do recommend that you keep your credit lines. Also pull all three of your reports from the credit reporting agencies--just to make sure everything is correct. Visit creditboards.com to learn more about credit and how it works. Start with the Newbie section.