Rejected from last 7 applications [Canada]
 

1. I have 10+ year credit history, 3 year average age

2. 0 late payments ever, 0 collections, 0 bankruptcies; Paid in full every month

3. Currently my total credit is $34000 (I've had $48,000 in the past before)

4. My outstanding credit is $21,000 (typical of using 0% credit arbitrage)

5. Credit score is 646 (possibly due to uti ratio above)

6. 18 inquiries in the last 3 years (so about 6 applications per year)
Nothing too fancy. The dates are spread apart.


Upon glancing my credit file, it is pretty typical of a credit card churner?


Yet Ive been rejected for the last 7 applications over the past year.

CIBC Tim Hortons card
Capital One Travel World
Amazon
BMO
Marriott
Marriott again after 3 months
CIBC


The only credit card i got approved this year was Amex Platinum, which isn't even a credit card. It is a charge card.

The last credit card I got approved was in Aug 2014. After that, it's been rejections all around.

Someone help?

Rejected from last 7 applications....
 

I think the answer is right there in your message. It's not about your profile as a churner or not, it's just the fact you have too low a score. I would start by lowering that uti ratio. An overall >60% ratio is pretty bad.

I would also say that if you kept applying after being rejected 7x you are doing it wrong. Fix your score and try again after its 680+. Start slow.

Finally, if you value your low rate arbitrage more than your signing bonuses, choose that strategy. You may want the cake and eat it too, it seems.

730+ gets the best cards. I wouldn't apply for anything for at least a year as just applying drops your score a few points, those are points you can't afford to lose.

But plenty of people arbitrage 0% credit cards and have 50-60% utilization ratio and their score is still 700+...

Rejected from last 7 applications....
 

For sure, each case is different. What's your highest uti ratio in any particular card ? ( not overall )

90% since I am using that 0% credit card to the limit to invest.

20,000 out of 22,000

Every other card besides that 1 card is near 0 (save the ones I use to pay bills each month)

Rejected from last 7 applications....
 

That could be it. I understand individual uti ratios are factored in the score calculation. Maybe someone in this forum with better understanding in can confirm.

First 3 times I got rejected, people were saying I have too much credit available and I need to cancel some cards.

Hence I canceled some cards and took my $48,000 limit down to $34,000 limit

So I applied a few more times and that did nothing.

Rejected from last 7 applications....
 

People? Who exactly? It might be that your CL is maxed but it depends too who many banks are involved, yearly income, ....

Utilization too high plus now a lot of recent requests > don' t borrow from your cc to invest ( wouldn't do that myself) and let it be for 6 month then check your FICO and ....

Well, with all the stats you posted, you have failed to list the most important one: your annual income.

Your total CL means nothing by itself. It means a lot in relation to your income. If you're pulling down $250,000 a year in documentable income (salary, not trips to Vegas), your CL of $34K-$48K would look great. OTOH, if your annual income is just $20K then every bank is going to run away from you.

Your high utilization is certainly a contributing factor.

Borrowing money from a credit card for "investments"? Hoo-boy, that sounds like a real can of worms...

I was wondering if anybody else caught that.

Yes, but we don't know the investment(s)

I assume you are in Canada. The FICO scores mentioned on Flyertalk are typically USA scores. The scaling and scoring factors may be different in Canada.

We don't need to as "risk free" returns 0.25% ;)

I am surprised that OP will not stop trying to get new credits.

Unless you are doing AOR and you know for sure why you are being denied, you should not submit a new app at least for months.