My FICO scores are in the low 700's. My % percent utilization is 60% on $5000 of total credit availability. Much has been discussed on this board concerning the benefits of a low utilization and its effects on scores. My question: Can a high utilization (like mine) cause for a decline of a credit card application despite a FICO score of 700+ ?
Many thanks for the info, George.. Do you think applying with a 60% utilization w/ a 700+ FICO is worth a shot ?
It's a crapshoot..... As was noted, scores (usually) are not approval/decline. Truth be told, 60% utilization regardless of score will raise some eyebrows at BofA, Citi, Chase, and AMEX......I would go for it see what happens, 60% is not really bad so you have a good shot at reconsideration........and quickly bring that utilzation down to <30%
like others say, its a toss. Im assuming your credit history is long (5-10+ years) to have high utilization and above 700 score? Plenty of lenders will code the "amount utilized" as a denial code. Also, are you receiving any preapprovals via mail. I think a lot of the time, recieving preapprovals is an indication that whatever company is interested, (which does not mean approval) but they see you as a potential cardholder. However, just applying cold with high utilization, and high FICO score in my opinion does not mean much because i know people that have BK7 and 700+ score still get denied. Score, utlization, history, amount of accounts, etc is looked at, along with other variables.
