Recently applied to USAA and was denied a credit card due to a high balance percentage of 50% on my present credit card account. I did not expect this to be a factor since the amount of money is relatively small, $2500. Evidently, this is important so I paid down the balance to $1500 or 30% of the total credit line of $5000. My question: What is the optimal % utilization for applying for a different credit card and/or requesting that USAA reconsider their decision? FYI: USAA pulled from EQ. My EQ score was 621 before and 617 after the inquiry. I live in Texas.
usually the CC companies use a scoring system, even if you don't meet their score requirements say if they wanted a 850 score, and you had 849 you'd get reason codes. If its a bank specific rule it usually states so on the turn down letter versus the EFX/EXP/TU reason codes. Did it say that? 0-20%(max) would be a good target range if that was the case. You can have one card with 10K out of a 50K limit but if you take that 10K and BT it to 4 cards with 2500 limits you'll look really bad to everyone, even though those 4 cards might be a 0% BT offer, which is good for you. odd huh
