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angelmrc

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creditor say that my credit is to low. want to know why?

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A lot of reasons...

1.   How long have you had credit?   Oldest credit card for example?   It takes years to build up a credit card portfolio.  American Express and Discover are particularily harder to obtain.

2.  What is the Average Age of Accounts?   Even if you have more than a few credit cards, if you keep signing up for new ones, this will lower that overall average.

3.  Do you have other types of credit (auto, mortgage)?   Creditors prefer their customers to have all these types of credit as it shows overall credit "health".

4.  What is your credit utilization?  Do you MAX out your cards?   Ideally, you only use 20% or less of all available credit.

5.  Do you have any missed payments?   Any collections?   Any charge-offs?  Any judgments?

6.  If NONE of this applies to you, you have what is called a "thin" file.  Where NO credit is just as bad as BAD credit.  If this is the case, start with a Secured Credit Card.

I hope this helps...

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