Evidently YES!
I recently applied for a new credit card because my current Visa is a Vancity Credit Union Card, which just doesn't seem prudent to have anymore considering I'm living in Calgary.
So I decided that I'd look for a points card of some sort and I opted for a free Visa card offered by RBC. The Visa doubles as a Starbucks card it will give you 1% of what you spend on the Visa back in Starbucks cash. Not too shabby for a free card.
So I applied and earlier this week got a letter in the mail. DECLINED!
I was floored. I have perfect credit and was quite shocked at this letter. I immediately called up RBC to find out what the problem was. They pretty much told me that my debt ratio was too high. I yelled back at them, "I have no debt!". But I began to realize what they were talking about. I have a rather large limit on my current visa (greater than 10k) and I also have a large line of credit (again quite high) through my TD bank out here. I actually did a credit check of myself online to really get to the bottom of this. And yes, simply put, I have enough disposable credit that I could in a matter of seconds/minutes spend more in credit than my current salary! So that's what they were getting at with the debt ratio.
So my next plan of action is to talk to my current Visa and TD bank to get my limits lowered so that I have far less "available credit".
So that's my rant on that subject! After I get it all sorted out I'm going to reapply and they'd better accept!!!
Wednesday, March 23, 2005
Is too much credit a bad thing??
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2 comments:
all that for 1% back at starbucks... woooowww...u devoted coffee drinker....
Well it's the principal of it... I need a new Visa, and I'm going to run into a similar problem no matter where I go, and I've found that this is going to be best return for bonus rewards for me (I go to starbucks enough to make it worth while) plus I use my VISA a lot for work and get reimbursed (for meals and expenses when away from home), so I can take advantage of that as well. 1% cash back for Starbucks with no annual fee is an alright deal for me! And I have now reapplied for the card with RBC after lowering all of my credit limits, we'll see what happens in a few days.
Matt.
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