laeott asked:
I recently had 6 credit cards last year 08. I cancelled all 5 except one last September. I went to apply for one last night and it was denied. They said i’m using too much available credit. Also it said I may have had too many credit inquiries recently. My credit scores from all 3 credit bureus are above 750. What can I do?
http://1mortgagecalculator.info
I recently had 6 credit cards last year 08. I cancelled all 5 except one last September. I went to apply for one last night and it was denied. They said i’m using too much available credit. Also it said I may have had too many credit inquiries recently. My credit scores from all 3 credit bureus are above 750. What can I do?
http://1mortgagecalculator.info
Because you canceled 5 credit cards, the credit bureau sees that as a red flag. You should have applied for the card you wanted first then once you got it, cancel the 5 you didn’t want. It would still show up on your credit report but at least you got the card you wanted.
Nooooooo don’t you know that by you cancelling credit cards that’s hurts your credit really badly!!!! Never ever cancel a credit card!! A financial advisor adviced me never use more than half of your available credit on the credit card.
It is possible that even though you canceled those cards they still show up on your credit report. One answerer says to “never cancel a card” and that is baloney. Having too many cards is also a red flag to creditors since they assume you could max out all of them the same day and not pay any of them. Call each card company you canceled to verify that they are actually “canceled” on your rating. I suggest you reapply.
Your credit score and the risk models are based off of several factors. The Fair and Accurate Credit Transactions Act (FACTA, an addition to Fair Credit Reporting Act FCRA) requires that the factors used to create your scores be given to you. (Also Equal Credit Opportunity Act, ECOA)
Anyway, there will always be 4 reasons presented as to why your score was not the perfect 850, etc.
What your percentage used is compared to your available balance?
This is a big factor. If you use more than 50% of any one credit card, your score comes down. If you use more than 50% of the available balance of all your cards combined, your score comes down.
It sounds like since you closed out your cards, you now have a MUCH higher usage percentage than you did before, even if it’s not at the 50% mark.
For a balance of $1200, you may have gone from 12% of 10,000 to 40% of 3,000. That’s a much higher ratio.
Hope that helps.