What does this mean on my credit report?
I just recently applied for a credit card. My reasons for rejection were as follows:
-AGE OF OLDEST ACCOUNT
-TOO FEW ACCOUNTS CURRENTLY PAID AS AGREED
-RATIO OF REVOLVING ACCOUNT BALANCES TO REVOLVING CREDIT LINES
Can anyone expand on these reasons and tell me what they mean? Thanks.
1. means that you have all new accounts probably less than 1yr
2. the accounts that you do have are either late or you have very few accounts to show history
3. you're max out with your credit lines.....anything over 50% is bad! Age of oldest account - you probably don't have accounts that are older than 5 or 7+ years.
Too few accts currently paid as agreed - you either have late payments or you don't have a very long payment history.
Ratio of rev. acct balances to rev. credit lines - you have large balances on your cards, probably more than 50% of your credit limits
Does that sound like your credit history? If so, work on paying down your balances and try to keep them down below 40% of your credit limit (ideally "below" 20% to 30%).
Call the credit company and ask for reconsideration on your application. Maybe you haven't established enough credit yet. As for the
ratio of revolving account balances to revolving credit lines...could be you're to close to your credit limits. Example: If you have $1000 credit and you owe $900, that is a negative and will lower your fico score. You should keep your balance at around 1/3 of your credit limit. Doing so will raise your fico. Balances at around 1/2 will do nothing and anything higher, like I said will be a neg. on your fico. -AGE OF OLDEST ACCOUNT
You need to have at least one account that you have been paying on time for at least some number of year (I do not know how many). You do not have this because none of your accounts are at least that many years old.
-TOO FEW ACCOUNTS CURRENTLY PAID AS AGREED
They require that you already have at least a certain number of accounts that have always been paid on time. You do not, either because you have paid late, you have not paid the minimum due, or you have fewer accounts than the minimum that this creditor requires.
-RATIO OF REVOLVING ACCOUNT BALANCES TO REVOLVING CREDIT LINES
What you owe is too large a percentage of your credit limits. You need to either pay off some of the balances or have your credit limits raised. Pretty standard language on most credit reports, except for the part about accounts paid on time. You must be late or have a history of being late on your payments.