Tuerned down for car loan with great credit but bad debt to income ratio.

Hello, Bo!

I was recently turned down for an auto loan because the Bank said I had too many open accounts, and my debt to income ratio was too high. Being that I have always had excellent credit and have never been denied before in my life, I immediately ordered my credit report.

My credit report states that I have 21 open lines of credit, some with lines as high as $18,000. My Fico score from Experian is 733. I have no negative marks on my report, no judgements, no delinquincies. I have an 81 month history showing, with not even 1 past due mark anywhere, ever. On all of my accounts, the highest reported balances have never been over 40% of my limits. I didn't get to the comfortable financial situation I enjoy now by being irresponsible with my bills, or my credit.

I'm concerned because I noticed several things on my report that I don't understand. For example, the same Macy's charge card account is listed 4 times, all with the same account number, but all with different opening dates, last activity reported dates, and 2 with higher credit limits than the other two. I have only ever had 1 card with Macy's. I only applied for the card one time, and I cannot understand why it appears 4 times, as 4 separate open accounts (all with the same account number, mind you). All are reported favorably, paid as agreed. However, the combined line of credit for all 4 comes to almost $10,000. They are listed as separate open accounts.


There are several other cards, including a JC Penney Charge card, and a Chase credit card that appear more than once, with different account numbers and opening dates, even credit limits. I have only ever applied for 1 Penney's card. I have only applied for 1 Macy's card. I have only applied for 1 Chase card...etc. Other than our mortgage, my husband and I kept everything pretty separate, and I closed all of his accounts when he passed away 5 years ago.

Can I have the "phantom" accounts removed from my report? By my calculation, I have 8 "Ghost" accounts appearing on my report. They are all favorable accounts with excellent history, so I am not questioning identity theft or anything like that. I'm just concered about all the open credit lines.

Also, Can I close credit accounts that I have not used in over 5 years without a negative impact on my score? They are all in good standing, and all have $0 balances (for years).

Needless to say, I was very upset to be denied a $20,000 car loan when I have 2 million dollars sitting in the bank, and I make over $60,000 a year in interest that I live on. I thought I did everything right, and now I'm not so sure. I am 54 years old and have NEVER paid a bill late in my life. Why is my score so low?

I would appreciate your help...your website has been very informative.

Thank you for your time,
Rea Live Person
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"majors@oskie.com" / to Real Live Person / show details / Jun 8
dispute the macys as duplicate. use the form n my site
dispute the others as duplicates also

Debt ratio has to do with income versis debt not bad accounts or owe too much to amount allowed to owe

733 is great. i assume they turned you down because you have more than 40% debt against you monthly income
If you can pay your debts down less than 60000 x .40 / 12 equals 2000 per month allowed for debt agianst income.

No bank can loan someone more than they can reasonably pay so they set it at .40 - .45 of monthly obligations.
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On 6/8/07, James Higgins <vernon47@ptd.net> wrote:

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"majors@oskie.com" To Real Live Person / show details / Jun 8
my answer looks king of jumble so I am gonna try again

income = 60000 / 12 = 5000 per month
debt can be no more than 5000 x .40 = 2000 per month