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.

I waited 3 months for an application last week and I still got rejected.

I wait in between months now.

I believe the person working for Marriott says I have too much credit.

Thus, I closed some credit and that did nothing.

What I use my credit line should be irrelevant.

Let's say I am using a 0% CC for 2.5% high interest savings account.




For income, I put $90,000 but it is still rejection.

$21,000 unsecured debt on $90,000 income is almost certainly a big part of the problem. You don't see it as a problem because the minimum payment is low, and the money is sitting in an investment account, but that asset is invisible to the issuers and to the FICO formula. You look like a high risk because you have borrowed 23% of your gross income. It would be different if this were in the form of a mortgage or an auto loan, because the issuers know there is security pledged to secure the loan.

1. ok so my income needs to be higher then.

What income amount can support a $21,000 debt then?

$125,000?


2. I have been doing the 0% APR for the last 3 years (and its been going very well). It is only the last year for some reason that they stopped approving me of credit.

Are you really making $125k or even $90K? Or just putting down a number you think you will work?

Take it as an obvious sign, they are not approving you
I'd think CIBC is very easy and if they even decline you...something is up

Just wait 6+ months and try again
Definitely wait 6+ months for Chase

It also comes down to your income too, as others said

This.

Sounds like the OP has little or no actual, documentable income, and he's just pulling "income" numbers out of a warm, moist, dark place. I wonder what other factors are in play here that we're not being told.

Sure, how you "invest" you money is your own business.

And how credit-worthy the banks see you is their business. Literally.

Lots of red flags here in this thread. The banks obviously can see them, too.

I don't quite understand, what are the red flags?

I've had 10 years of credit history, never late on a payment...

I've had $48,000 worth of credit and now im down to $34,000 and I still get denied.

I've done the 0% for the past 3 years with 0 problems getting credit...

As for income, my total income definitely made over $100K this year (employment, business, dividend, and capital gain)


My income is over $100K as per my quote above.

So I am told I don't make enough to support my debt. Alright, so what income do I need to support $21,000 worth of outstanding debt?

The months I mean are about 6-12 months.

Because at the same time, you have to protect yourself from over inquiries.

Rejected from last 7 applications [Canada]
 

Brw Marriott would not tell you that you have too much credit the issuing bank does that
If that would have been the case you should have offered to move credit from one to the new account

One meeeelion dollars! Tell them you're in the 7 figure club and they'll surely approve a new card so you can go on to join the 8 figure club!

assuming you're not suggesting you would possibly lie on a credit card application, which even in the land of the mounties is probably illegal.

Rejected from last 7 applications [Canada]
 

So you invest 21k in a 2.5% CD? Per Year $525

That is what keeps your credit score down. You decide if it is worth it

I'm confused. If your income is > $100k why would you put down $90k in your recent apps?

I have 17K in 0% over last few years too, but no issues with CC with decent income. Score always in 700-750 range

I'd just take a break, wait 6+ months, and hope your score goes to 700+ and then re-apply
You applying 7 CC in 1 month may have triggered some alert

They can smell the fear and desperation.

:rolleyes:

Hey, I had Chase Starbuck Card before.

I don't see a problem with CIBC Tim Horton.

I was in a similar boat once. A credit card offered me a balance transfer option 2.99% for the lifetime of the balance. I took 25k out instantly and paid of my existing 6% student loan. Makes sense, right?

But credit card issuers dont look at this the same way. I was being asked with every card I opened, why did I have a card maxed out. No one ever bothered to see that the darn student loan was paid off.

My score more or less changed 20 points (lowered).

My advise is go to a bank that you usually use, and ask a banker to apply for a card for you. If you get denied, go over it with the person and see if they can appeal it. Get a credit analyst to look over and give you more credit.

I think some loans (mortgage, student, car) are looked at differently than a credit card balance. The former has an asset to back it off usually, except for student loans.

You probably got caught in something like this. Good luck.