Credit Scores Are Meaningless…Apparently

There are thousands, if not millions, of articles on the web explaining the importance of credit scores. Lenders use them. Insurance agencies use them. Even employers are beginning to view them. My question to these authors is – if credit scores are important – then why does my near-perfect score appear to be meaningless?

A few weeks ago I called my bank in an effort to increase my current Credit Card limit. When the rewards programs on debit cards were restricted, I made the move to spend entirely on credit. When I first applied for the card, I was granted an embarrassing $500 limit. How can I spend entirely on credit with a limit of $500? I suppose I can pay it off weekly but that seems like a hassle to me.

I have other credit cards I occasionally use; however, none of which have the rewards my bank is offering. I also like the ability to redeem rewards points directly into my savings account. The savings redemption seems to be more beneficial than redeeming for the usual gift cards or airline miles.

There may be better programs out there – actually I’m sure there are – but I don’t have them in my wallet. Right now I’m sporting 4 credit cards, ranging in availability from $500-10,000.

My Rant

I just received a letter from my bank regarding my credit line increase request.

They, like 90% of attractive girls at my middle school dance, turned me down.

We were unable to approve the full line amount you requested for the following reasons:

Credit References/Bureau Are Insufficient

Sufficient Credit Extended

Number of Credit Inquiries

We obtained your credit score from this consumer reporting agency and used it in making our credit decision. Your credit score is a number that reflects the information in your credit report. Your credit score can range from a low of 300 to a high of 850.

Your Credit Score: 802

My income is sufficient and my credit score is considered excellent so why, oh why would I be limited to a $500 limit?