The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Yanisimo on July 02, 2019, 08:19:02 AM
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I recently started credit card hacking. I opened 4 credit card accounts last fall, and just tried to open a credit card from U.S Bank, but was denied. It has been 7 months since I opened an account. They said it was because I have had too many accounts opened within the past year. I have a good credit score (>740), and my credit history goes back to 2013 (from 2013 -Fall 2018, my total available credit was $375 because it was a secured CC). I closed my oldest CC last fall. I have always paid my cards on time. What am I doing wrong?
Local Credit Union - opened in Fall 2018
WF CashWise - opened September 2018
Capital 1 Savor (authorized user)- opened in September 2018
Capital 1 Savor - opened in December 2018
Total available credit from 2013 to Fall 2018 - $375
Total available credit today - $20,000
Current CC debt - $2,000 (I never go above this amount)
Credit Score - >740
Years of working - 1.5 years. I am 24 yrs old if that makes a difference.
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I recently started credit card hacking. I opened 4 credit card accounts last fall, and just tried to open a credit card from U.S Bank, but was denied. It has been 7 months since I opened an account. They said it was because I have had too many accounts opened within the past year. I have a good credit score (>740), and my credit history goes back to 2013 (from 2013 -Fall 2018, my total available credit was $375 because it was a secured CC). I closed my oldest CC last fall. I have always paid my cards on time. What am I doing wrong?
Local Credit Union - opened in Fall 2018
WF CashWise - opened September 2018
Capital 1 Savor (authorized user)- opened in September 2018
Capital 1 Savor - opened in December 2018
Total available credit from 2013 to Fall 2018 - $375
Total available credit today - $20,000
Current CC debt - $2,000 (I never go above this amount)
Credit Score - >740
Years of working - 1.5 years. I am 24 yrs old if that makes a difference.
You are doing nothing wrong, companies are getting stricter. Five card in 12 month is too many.
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You can directly appeal to the CC if you get denied, and that often is enough to get you approved.
As for why you were denied -like Gin1984 said, companies are getting stricter. Also, you didn't mention your income but it's possible you've tipped over a threshold where your avaiable credit exceeds a percentage of your income (which might not even be your income now, but what you declared on your taxes in 2018). Companies don't like to see young people with very high available credit-to-income, particularly with a short work history like yours.
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I seem to recall that US Bank is one of the stricter ones to begin with. The doctorofcredit.com blog does a great job of dissecting each offer. The comments on each card offer are well worth a read, so you know what is going on. You are not the only one being rejected.
You've no reason to be concerned, banks are getting stricter overall. Let 12 mo go by instead of only 7 mo before you try again would be one tactic.
Although plenty of people have stated they just turned around and applied for another offer at a different bank and were approved just fine.
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Thanks for the help. I am going to wait until next year to try again.