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DCU Credit Card Denied

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JMCB
Regular Contributor

DCU Credit Card Denied

Well, I applied for a car loan through them today. I asked if they could use the same hard pull to apply for a credit card too. After about 10 minutes on hold, the rep came back and declined me. He said I had too many new accounts, 21 new accounts in 18 months. But I've been gardening almost a year now. This was during a card spree from October 2015 to Jan 2016. He told me I need to wait at least 18 months before applying again for a DCU Credit card and specifically said it was because of too many new accounts, no other reason . He didnt mention my inquires but I have 11 showing. My util is at 15%. All well, it was worth a try!

Message 1 of 8
7 REPLIES 7
pipeguy
Senior Contributor

Re: DCU Credit Card Denied

Based on your signature line you have 23 revolving cards and $75k in credit limits - a lot are AU status which is helpful but not "direct credit", most non-AU are low limits which is typical of starting out or rebuilding. Also based on your post you've opened almost all of them "recently". DCU approve you for a car loan, I assume at a good rate so that's a positive, but I think you have graduated to where you need to consider quality over quantity as far as open accounts. 

 

DCU turned me down for a credit card the first time I applied, with scores similar to your current scores. 6-8 months later they approved me for a $5k SL and a year after that it went to $10,500. During that time I've been approved for 2 car loans, one (slightly used car) at 1.49% and another (new) at 1.74%. I don't think you need to wait 18 months, maybe 12 to let current inquiries age, but I'd also consider condensing your card profolio. Besides in a year your scores will be higher and you'll get a better APR and starting SL. 

 

In my experience DCU really opens the doors when your scores are all over 700, especially over 720+.  IMO DCU is a great credit union and lender worth waiting for and you have your foot in the door with the car loan.

Message 2 of 8
JMCB
Regular Contributor

Re: DCU Credit Card Denied

Well, my signature ran out of room! lol. I couldn't add more cards without them half way disappearing. Haha! But thats the jiff of the cards, there is about 5 more. And some of those cards are old, date back all the way to 2003. My oldest account is 17 years with an AAoA of 4 years. But I do have about 6 closed personal accounts on my reports, upwards of $20,000 for each loan. And a couple car loans at $30,000 each paid off. Not one missed payment on anything! But I did default on over $100,000 on student loans. Most has been deleted but there are a couple loans that still show that were late but everythng is current. But basically I have tried to "thicken" my credit profile with multiple accounts trying to take less of a hit from the student loans. Mostly because a year ago, everything was paid off and I had closed the majority of my cards. My scores were in the 500s because of the student loans, so by adding all these accounts, my scores have jumped upwards of 100 points in the last year. 

 

And yea, they approved me for a car loan for $30,000 at 2.74%. **bleep**, you got a great rate! Well, if you got turned down and then applied 8 months later, I probably should do the same. In 12 months basically all my inquires fall off. I just cant seem to get past that 700 mark with my student loans. I've done everything from Disputes to Goodwill and nothing. Its hard on your credit profile to see a 24 month default on 14 loans over $100,000. Just kills it!

Message 3 of 8
pipeguy
Senior Contributor

Re: DCU Credit Card Denied

Good news is if the new car loan is your only installment type loan (you said the others were paid off) you should get a score pop up because Fico scoring likes revolving+installment as a credit mix and only active installment loans count.  Obviously I didn't have all the information when I made my post, but the core of what I suggested is still correct IMO - give it some time, get rid of toy store cards and sub-prime cards. I don't find inquiries to be much of a factor, but I have a very thick file and I suppose with no inquiries I'd be up a few points but my scores are high enough that it makes no difference. Given the addition of an installment loan, I wouldn't be surprised to see you hit 700.

 

Congrats on the new car and getting in with DCU - note that most DCU car loans come with a kicker - make 6 ontime payments and they'll drop your interest rate a little .25 or .50 (I don't remember the exact number).  

Message 4 of 8
Anonymous
Not applicable

Re: DCU Credit Card Denied


@pipeguy wrote:

Good news is if the new car loan is your only installment type loan (you said the others were paid off) you should get a score pop up because Fico scoring likes revolving+installment as a credit mix and only active installment loans count.  Obviously I didn't have all the information when I made my post, but the core of what I suggested is still correct IMO - give it some time, get rid of toy store cards and sub-prime cards. I don't find inquiries to be much of a factor, but I have a very thick file and I suppose with no inquiries I'd be up a few points but my scores are high enough that it makes no difference. Given the addition of an installment loan, I wouldn't be surprised to see you hit 700.

 

Congrats on the new car and getting in with DCU - note that most DCU car loans come with a kicker - make 6 ontime payments and they'll drop your interest rate a little .25 or .50 (I don't remember the exact number).  


They told me they discontinued the kicker. It was .25% but they stopped doing it on new loans. I asked them in chat and they confirmed they no longer do it. I have it on mine but I got mine in 2015. 

Message 5 of 8
masscredit
Valued Contributor

Re: DCU Credit Card Denied

My main checking account is with DCU and I've had 3 auto loans with them at their best rate but I can't get one of their credit cards because I have 3 tax liens.  They are the only bank to deny my cc app but they are the only credit union that I've apped for a card so I think their requirements are tighter. 

Pre-Credit Rebuild Scores Pre-DC (3/24/22) - EQ - 524 / TU - 519 / EX - 495

Current Scores - EQ - 687 / TU - 663/ EX - 677

SDFCU Secured - $5000 / TD Bank - $5000 / Mercury - $5000 / Capital One Savor One- $5000 / Capital One QuickSiver - $4500 / Ally Master Card - $2800/ Walmart Mastercard - $2250

Andrews FCU SSL $1500
Message 6 of 8
someg33k
Established Contributor

Re: DCU Credit Card Denied

They do have nice auto loans. However there are much better credit cards with more generous limits at other credit unions. 

Message 7 of 8
pipeguy
Senior Contributor

Re: DCU Credit Card Denied


@someg33k wrote:

They do have nice auto loans. However there are much better credit cards with more generous limits at other credit unions. 


Perhaps, but I have a $14,500 CL at 8.75% with DCU (SL $5k cli $10,500, CLI $14500), $15k (SL $10k cli $15k) rewards card with Congressional FCU at a higher APR, $12,500 Blarclay RING at 8.25% and a low limit useless Amex at 7.99% so DCU is right there in the mix as far as usable limits and APR. Granted I always PIF unless I'm taking advantage of a 00% promotion on a card, but to me the real value of the s Credit Union card is the no cost - "payday loan" aka no fee, no penalty short term cash advance. From what I understand the RING offers this too with a simple $3 fee, but I'm not sure I want to push my luck with Barclays and I just got the RING last week. 

 

DCU's rates and limit for me at least rank right up there - not my lowest rate, not my highest CL, but right up there.

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