Credit card( chase) application denied

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Ponticulus
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Credit card( chase) application denied

Post by Ponticulus »

Hello Bogleheads.

First time poster here. Came across the forum few months ago and have found it very valuable and full of information.


I Recently applied for the chase sapphire CC and got denied immediately. The reason stated was:
Length of time since oldest credit card was opened is too short
Total available credit on credit cards is too low


Background on myself: I am a physician in late 30s. Student loans and condo mortgage all paid off. I have had an amazon cc for past 3 yrs ( no cc before that, just used debit and checks). My amazon card monthly limit is 6k- I receive phone calls here and there to increase the monthly limits which I have not done it the past( honestly haven’t had a need to). I put on average 2-3k a month spending on the CC which gets paid automatically at end of each month. Also, last time I checked my credit score was 830.

I am perplexed as to why the cc request was denied. I called chase and the lady I spoke with, while very nice on the phone, failed to provide me with a reasonable explanation. She kept repeating the two points above until I gave up :).

Any ideas/thoughts? Reason I wanted to get the CC was To take advantage of the 60000 points offer :).
khram
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Re: Credit card( chase) application denied

Post by khram »

They called you about credit increases? My amazon card they just increased without asking me.

But anyway, Amazon card is Chase, so maybe that has something to do with it? Maybe you're right about the bonus, banks are tightening up. There's a long thread on here about Chase cutting limits.

Also 3 years of credit history isn't that high. It's fine for most, but Chase Sapphire is supposed to be a premium card.
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anon_investor
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Re: Credit card( chase) application denied

Post by anon_investor »

OP, Chase gave you the reasons for the denial. Those actually make sense. That CC is considered a premium card and generally will have higher requirements than lesser cards. 3 years of CC history and only a $6k credit is very low, probably the equivalent to someone in their early 20s in the eyes of Chase. Nothing you can do quickly, you just need more time. Maybe try a different card.
Jags4186
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Re: Credit card( chase) application denied

Post by Jags4186 »

Ponticulus wrote: Tue Jul 28, 2020 9:27 pm Any ideas/thoughts?
I would suggest you work on improving the below:
Ponticulus wrote: Tue Jul 28, 2020 9:27 pm Length of time since oldest credit card was opened is too short
Total available credit on credit cards is too low
1) just takes time
2) if you only have 1 CC with a $6000 limit and most of your expenses are going on that card, you likely need to start upping the limit as you'll consistently have a high utilization. Chase will hand out $30k, $40k, $50k limits like candy (at least they used to) so shouldn't be an issue getting your amazon card limit up.

Keep in mind, your credit score changes daily, and depending where you source the info from it may not be accurate. Credit Karma says my credit scores are in the 830s but on my refinance this past month I received copies of my real credit scores and they were all 750-770. If, for example, you applied and happened to have a $3000 balance on a $6000 limit your credit score would likely be +-100 lower than what you think it is, even if you pay off in full every month.

Chase will need to send you a rejection letter which will include your credit scores.
AlohaJoe
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Re: Credit card( chase) application denied

Post by AlohaJoe »

Ponticulus wrote: Tue Jul 28, 2020 9:27 pm I Recently applied for the chase sapphire CC and got denied immediately. The reason stated was:
Length of time since oldest credit card was opened is too short

[...]
I have had an amazon cc for past 3 yrs ( no cc before that, just used debit and checks).
What's the mystery? They told you that 3 years is too short.
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SmileyFace
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Re: Credit card( chase) application denied

Post by SmileyFace »

Why haven't you let your current card increase the limit?
There is zero liability to you (if fraud hits) and this "helps" your credit (and now you know since yours is so low it doesn't make you look good to them?). Call your current card bank and have them increase it. If they ask you how much you want say $30,000 and see what they give you (My highest is $45,000 currently). Then open a second card somewhere else. Then in 6 months to a year you can re-apply for the card of your choice.
tibbitts
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Re: Credit card( chase) application denied

Post by tibbitts »

DaftInvestor wrote: Wed Jul 29, 2020 12:56 pm Why haven't you let your current card increase the limit?
There is zero liability to you (if fraud hits) and this "helps" your credit (and now you know since yours is so low it doesn't make you look good to them?). Call your current card bank and have them increase it. If they ask you how much you want say $30,000 and see what they give you (My highest is $45,000 currently). Then open a second card somewhere else. Then in 6 months to a year you can re-apply for the card of your choice.
I have multiple Chase cards and have never "let" Chase increase my limits because they've never offered to. When I've applied for new cards, they've sometimes contacted me and asked which existing card I want to take credit for the new card from. So, instead of one $6k card I end up with 2 $3k cards.

There is not zero liability unless you can prove a charge is not legitimate, so there is a valid reason for not wanting a higher limit. I've had a charge that was clearly not legitimate that I was only able to get out of paying by being lucky. Multiple appeals to Chase all were refused. Ultimately the merchant found an employee who remembered the charge and recognized who had made it. The odds of that were astronomical and it took multiple appeals to the merchant to get them to investigate.
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SmileyFace
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Re: Credit card( chase) application denied

Post by SmileyFace »

tibbitts wrote: Wed Jul 29, 2020 1:14 pm
DaftInvestor wrote: Wed Jul 29, 2020 12:56 pm Why haven't you let your current card increase the limit?
There is zero liability to you (if fraud hits) and this "helps" your credit (and now you know since yours is so low it doesn't make you look good to them?). Call your current card bank and have them increase it. If they ask you how much you want say $30,000 and see what they give you (My highest is $45,000 currently). Then open a second card somewhere else. Then in 6 months to a year you can re-apply for the card of your choice.
I have multiple Chase cards and have never "let" Chase increase my limits because they've never offered to.
OP says he has gotten several calls asking if he wanted his limit increased - this is what I was commenting on. $6K is very low - and now the OP is being denied because he hasn't proven he can handle much credit (short timeframe; and low total revolving credit available). The answer to the OPs question to me is simple here.
egrets
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Re: Credit card( chase) application denied

Post by egrets »

No credit card company has ever called me asking if I wanted my credit limit increased. Are you sure those phone calls are not scams?

I do find occasionally that my credit limit increases.

AmEx denied my request for a credit card recently because they "suspected fraud." I was never able to find out what the heck that was about. I wanted the card for a signup bonus and just as an extra card since I only have two.

I would ask for an increase in the credit limit for your current card. Maybe that would help, also I like to have leeway for unexpected large items.

Try applying for a capital one 1.5% cash back card. They have always treated me well.
inverter
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Re: Credit card( chase) application denied

Post by inverter »

FYI, these large banks are becoming extremely conservative seeming overnight (on corporation timescales). Don't take it personally.

JPMorgan Sets Aside More Than $10 Billion to Cover Coronavirus Loan Losses - The Wall Street Journal
https://www.wsj.com/articles/jpmorgan-p ... 1594725161
tibbitts
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Re: Credit card( chase) application denied

Post by tibbitts »

DaftInvestor wrote: Wed Jul 29, 2020 1:18 pm
tibbitts wrote: Wed Jul 29, 2020 1:14 pm
DaftInvestor wrote: Wed Jul 29, 2020 12:56 pm Why haven't you let your current card increase the limit?
There is zero liability to you (if fraud hits) and this "helps" your credit (and now you know since yours is so low it doesn't make you look good to them?). Call your current card bank and have them increase it. If they ask you how much you want say $30,000 and see what they give you (My highest is $45,000 currently). Then open a second card somewhere else. Then in 6 months to a year you can re-apply for the card of your choice.
I have multiple Chase cards and have never "let" Chase increase my limits because they've never offered to.
OP says he has gotten several calls asking if he wanted his limit increased - this is what I was commenting on. $6K is very low - and now the OP is being denied because he hasn't proven he can handle much credit (short timeframe; and low total revolving credit available). The answer to the OPs question to me is simple here.
My cards probably average around a $6k limit, even after decades, so I'm not sure about "very low", but I was only pointing out that there can be a disadvantage to the higher limit due to potential liability.

Possibly Chase is saying that the Sapphire is a "higher end" product so they don't want to open one with, say, a $3k limit. Some of my cards have started in that range - and never increased. They might open another "lesser" card in that limit range. I am surprise that with what I imagine is a high income and what is apparently a very high credit score, the OP was not able to get a Sapphire card.
bob60014
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Re: Credit card( chase) application denied

Post by bob60014 »

Just a suggestion, Try the Cap One Savor card. $95 annual fee, $300 bonus, 4% back on dining & entertainment, 2% on groceries, 1% on everything else. As Chase has been limiting access to the higher end cards recently, the Cap One card is a fair alternative until you're eligible for the Chase card.
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fizxman
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Re: Credit card( chase) application denied

Post by fizxman »

Just to add a few more points for comparison:

My oldest credit card is 16+ years old and Chase says that my credit age is "Good". My payment history is 100% and Chase says they consider it "Great". So if 16+ years is only considered "Good" by Chase, you can draw your own conclusion for how they grade 3 years.

Credit Karma uses the average credit age and colors to grade. Less than 4 years is red, 5-6 years is yellow, and 7+ years is green. They also say credit age has a medium impact on credit score.

I have 5 credit cards (one being a CSR card) with a total of $84,000 worth of credit and credit scores between 810-820 depending on where I look. Comparing OP to me, I'm not surprised the OP was denied, especially for a Chase Sapphire card.
JackoC
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Re: Credit card( chase) application denied

Post by JackoC »

inverter wrote: Wed Jul 29, 2020 3:13 pm FYI, these large banks are becoming extremely conservative seeming overnight (on corporation timescales). Don't take it personally.
I was surprised applications for cards for my LLC were turned down online by both Chase and US bank. I've never gotten turned down personally. The LLC has shorter history, and right they are probably under specific new pressure not to open lines of credit to entities or people who might be stuck in suddenly bad financial situations by COVID that haven't shown up yet on credit reports. It was just to harvest bonuses, no real need for the cards otherwise (and BOA approved one no problem).

As to taking personally not exactly but I'll factor it into my concept of who is a reliable 'partner', points to BOA there and subtracted from Chase (with whom I have a couple of cards personally).

Surprised OP's score is so high if providers are viewing the short history as such an issue. My scores are high 700's typically, maybe 785 average, 760's to a little over 800 low and high depending time and source. OP said 832 IIRC. Or alternatively I don't know why mine is so low (zero black marks, longest CC around 17 yrs, $150k+ of total CC lines, total utilization as they count it a few $k at a time, but no mortgage or any other debt in 25+ yrs).
andypanda
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Re: Credit card( chase) application denied

Post by andypanda »

"no mortgage debt or any other debt in 25 years"

That what Suntrust hits me with on the Fico score page. My last car loan was '86 and my mortgage was paid off in '97. My Suntrust Platinum Visa says Member since 1975 (Suntrust acquired Crestar which had acquired United Virginia Bank which is where I got the card originally) and I pay it off every month. I pay every bill off every month. But month after month, year after year, my score stays the same. I know they don't care how much money I have and that I can easily pay my bills.

I look at the Suntrust site and my Fico is always between 810 and 819.

"Key Factor(s) affecting your FICO® Score:
- Lack of recent installment loan information
- Too many accounts with balances"

Last week I applied for an Amazon Prime card and was approved in no time. They gave me the 14% rate and a $4k limit. I only did it to get $100 off a $165 spool of Seaguar Tatsu fluorocarbon fishing line. Regularly $220 for 1000 yards at Tacklewarehouse.
dollarsansense
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Re: Credit card( chase) application denied

Post by dollarsansense »

Are you 5/24?
Mudpuppy
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Re: Credit card( chase) application denied

Post by Mudpuppy »

As others have said, you need to beef up your credit history. Try aiming for something a little more entry-level, rather than a premium card. Companies aren't going to issue a premium card to someone with brief credit history, particularly not in the current economic situation. You need to have a more comprehensive credit card history for another couple of years before you'll qualify for a premium card.

My recommendations would be to try one of the following:
  • A non-rewards, no-fee card offered by your current bank or credit union - If you have a long banking history with a bank or credit union, you might qualify for one of their credit cards even with little credit history. The odds are better with a credit union than with a bank.
  • Discover It which has multiple options for a variety of credit scores - Here is WalletHub's overview of credit needed to get each It card: https://wallethub.com/answers/cc/credit ... 140658738/
  • American Express Blue Cash Everyday - Requires a good score or higher, so might be a bit of a stretch. Here's WalletHub's overview: https://wallethub.com/answers/cc/blue-c ... 140665588/
Normally I would also recommend the Chase Freedom card, but since you've been denied for a Chase card recently, you might not be able to get anything in their lineup for a while. Chase is notoriously strict in this respects.
Mudpuppy
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Re: Credit card( chase) application denied

Post by Mudpuppy »

JackoC wrote: Fri Jul 31, 2020 10:12 am
inverter wrote: Wed Jul 29, 2020 3:13 pm FYI, these large banks are becoming extremely conservative seeming overnight (on corporation timescales). Don't take it personally.
I was surprised applications for cards for my LLC were turned down online by both Chase and US bank. I've never gotten turned down personally. The LLC has shorter history, and right they are probably under specific new pressure not to open lines of credit to entities or people who might be stuck in suddenly bad financial situations by COVID that haven't shown up yet on credit reports. It was just to harvest bonuses, no real need for the cards otherwise (and BOA approved one no problem).
Citibank recently denied me for an account because Equifax didn't return the credit report in a timely fashion. There was no consideration on Citibank's side of trying to access the report again the next day or of still offering me the same sign-up bonus when I finally got through to a phone representative who was helpful. Just a flat denial, try again in a few months.
egrets
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Re: Credit card( chase) application denied

Post by egrets »

Mudpuppy wrote: Fri Jul 31, 2020 1:10 pm
[*] American Express Blue Cash Everyday - Requires a good score or higher, so might be a bit of a stretch. Here's WalletHub's overview: https://wallethub.com/answers/cc/blue-c ... 140665588/
[/list]
This is the one that I was denied because they "suspected fraud." According to my credit union, my score is 805 or higher.
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midareff
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Re: Credit card( chase) application denied

Post by midareff »

About 5 or 6 years ago I was making a decent size purchase at TJ Maxx so I applied for a card to get the 10% off. Credit score in the 830 range. They turned me down for being under age. I sent them a copy of my driver's license showing later 60's at the time and never heard back. I guess I can get another 10% off next time I buy a bunch and apply... LOL...
amucaze
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Re: Credit card( chase) application denied

Post by amucaze »

Call them back! Google the chase reconsideration line and just keep calling until they give it to you. Try different approaches till you get something that works.

I had the same problem, with a short credit history, after 5 back to back calls the last one bit, but with a small credit limit. Still better than nothing!
Mudpuppy
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Re: Credit card( chase) application denied

Post by Mudpuppy »

egrets wrote: Fri Jul 31, 2020 1:21 pm
Mudpuppy wrote: Fri Jul 31, 2020 1:10 pm
This is the one that I was denied because they "suspected fraud." According to my credit union, my score is 805 or higher.
Which score though? There are so many credit score formulas out there that you have to be careful to see if it's a FICO score, a VantageScore, or some other scoring family. Even within the same scoring family, there are different subscores which are used in specific lending purposes.

This also explains why Jags4186 had such different scores between Credit Karma and refinancing in the below post:
Jags4186 wrote: Tue Jul 28, 2020 10:00 pm Keep in mind, your credit score changes daily, and depending where you source the info from it may not be accurate. Credit Karma says my credit scores are in the 830s but on my refinance this past month I received copies of my real credit scores and they were all 750-770. If, for example, you applied and happened to have a $3000 balance on a $6000 limit your credit score would likely be +-100 lower than what you think it is, even if you pay off in full every month.
Credit Karma provides the VantageScore family, which is usually a bit higher than the FICO family since it has a higher maximum value and uses a different formula to calculate the score. But even if you get your free FICO score from Discover, that is your general / consumer FICO score using the current FICO formula and it won't be the same score used for refinancing. Home lenders use an older, mortgage-specific FICO subscore formula.
fourwheelcycle
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Re: Credit card( chase) application denied

Post by fourwheelcycle »

Ponticulus,

Maybe if you had a well-established banking relationship with Chase someone on the banking side would go to bat for you. When I took over my elderly father's finances I closed-out his BoA credit card and tried to open a credit card at his long-established local bank.

His finances were: after-tax income $75K, rent $54K - in an assisted living facility that only issues one monthly bill for apartment rent, three meals a day, and limited nursing assistance. His bank turned him down immediately, with the reason that his rent was too high in proportion too his income.

I called a bank rep and explained he had been their customer for over 60 years and his rent was not like a regular person's rent, since it included virtually all of his non-tax living expenses. Also, I was seeking only a $1K credit limit to protect him from telephone scams. They said they would circle back to the bank's credit card department and see what they could do. He was approved for the card within a few days.
theplayer11
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Re: Credit card( chase) application denied

Post by theplayer11 »

this is why I put my kids as authorized users on a few of my cards at a fairly young age to establish their credit. Seemed to work as planned. Gave them a fairly high credit limit and length of use before they even applied for their own cards.
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Gray
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Re: Credit card( chase) application denied

Post by Gray »

theplayer11 wrote: Fri Jul 31, 2020 4:00 pm this is why I put my kids as authorized users on a few of my cards at a fairly young age to establish their credit. Seemed to work as planned. Gave them a fairly high credit limit and length of use before they even applied for their own cards.
I did this for my daughter. Put her on three of my cards when she was 17. When she was 18, she applied for three: USAA, Navy Federal, and Chase Freedom Unlimited (regular cards, not student). She’s got $16K credit between them. After this, I removed her as authorized user and we worked to add security freezes on her credit bureau files. We’re running recurring bills through them with autopay to generate a history for her over the next several years. She is learning to manage her money using cash and debit cards—these credit cards are in the sock drawer until she’s financially ready to manage them. The great thing is, when she is ready, she’s got them already.

When I was in college, I had a co-signed $500 credit card with a local bank. Later, when I had an internship, I got two more credit lines with USAA and Citi that I have to this day.

As for Chase Sapphire Reserve, I applied last September was approved, called them back, and said I wanted a higher limit and they gave it to me. We’re in a different world now. I’m coming up on that one year mark and I want to get the Chase Freedom Unlimited, but I think the financial climate is still so uncertain that I may just wait until mid-late 2021 when the financial fallout is behind us or better understood for bank risk management. It’s easier to get a higher limit with your initial app than to ask for it later.

My wife recently was denied an insignificant credit line increase for her Chase Freedom Unlimited, and she’s got an 820-825 FICO score, our household income is nothing to sneeze at, no credit card debt load, mortgage, no car loans (she has a paid off car loan). I really do think there is gender discrimination, because we applied to Chase at the same time and she got 30% of my credit limit.
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