I was originally declined by PenFed for a CLI and submitted a letter of reconsideration. I was approved for a $2,000 CLI bringing it to a total CL of $5,000! Plus, I got an APR decrease without asking. The APR was decreased 6.50%, from 13.99% to 7.49%!
Last Wednesday, Nov. 27th I was approved for a CLI from both Capital One and Discover. While I was on my 'high horse' I decided to ask PenFed for a CLI. Immediately after submitting the request, I was instantly declined. I wasn't surprised initially, because the reasons they gave me seemed mostly valid. However, the next day I received a 'formal' denial letter via PenFed "messages." I imagine the first denial and denial reasons were generated by a computer system. The 'formal' letter seems like it could have been a manual follow up in response to the decline.
The 'inital' denial reasons were; Amount owed on accounts, Lack of recently established accounts, Length of time accounts have been established. The 'formal' denial reasons were; Amount owed on bank/national revolving accounts, Lack of recent retail account information, Too many inquiries last 12 months. Fair enough, these 'new' denial reasons seemed more easy to argue against. I didn't know that PenFed would HP a CB for a CR, so I asked for the CLI. I should have asked the myFICO community first but when I was approved for two other CLIs in one day, it honestly didn't cross my mind.
So I was in a pickle. I had never been declined for anything that has required a HP. There were a few myFICO members who suggested I submit a letter of reconsideration. I figured I already had wasted the HP, so I might as well. I Googled, "Credit Card Reconsideration Letter" (I'll post the link to this below). I basically copied the majority of it word for word, minus some missing words and horrible grammar (Long day of work and school made me extremely tired when writing it). I added some things to make it my own and prove that PenFed's reasoning for the decline was invalid (I'll also post the link to the "Promise CLI Decline" thread below, which also includes the letter I sent to Penfed).
I actually thought the reconsideration letter was very well worded. I believe I did a excellent job with stating why I like PenFed and the why PenFed should reconsider for each denial reason. I expected a great outcome, but it wasn't as good as I had hoped. Considering the CLI was only $2,000, I expected $3,000 - $6,000 CLI. Then again, maybe I was still on my 'high horse' and had forgotten that PenFed is an very conservative lender. However, $2,000 is better than nothing. Was it worth a HP? Well, I've never used a HP for a CLI and would have rather used the HP for one of the few cards I have on the 'wish list' or. I would also have rather used that HP for a CLI with Huntington which is the lowest CL I have among the cards I have ($1,500). So, I would say no. It wasn't worth the HP as I value a HP more than a $2,000 CLI. But, they seemed to have added something to make the deal a little sweeter.
I looked at the "Application Status" via PenFed's mobile app. for iPhone and noticed something interesting. Under "Loan Details" with the approval it shows a "Rate" of 7.49%. Strangely enough, it doesn't show this on the desktop version of the website. So I might call and ask about this, as I have been meaning to change the due date for this card closer to all of my other credit card due dates (It keeps me from forgetting having all due dates on or near the same day). If this is true (which I believe it is) then it makes things a little bit better. Like I mentioned above, it was originally 13.99% APR, quite higher than what I expected from a CU. After being approved for the Promise originally, I started to wonder if I should have gotten the Barclay Ring if I wanted a low APR card. But just like most things, it takes time. I'm extremely happy about the APR decrease, after all. It is what I got the Promise for.
Link to "The Credit Card Reconsideration Letter" (Example I used): http://milestomemories.boardingarea.com/credit-card-reconsideration-letter/
Link to "Promise CLI Decline" (Which includes the reconsideration letter I sent to PenFed): http://ficoforums.myfico.com/t5/Credit-Card-Applications/PenFed-Promise-CLI-Decline/td-p/4348667
Age: 23
Annual Income: $30,000.00
Monthly Rent/Mortgage Payment: $0
TU FAKO (Provided by Credit Karma on 11/29/15): 758
EQ FAKO (Provided by Credit Karma on 11/29/15): 753
TU FICO (Provided by Barclay on 10/14/15): 755
TU FICO Score 8 (Provided by Discover on 11/4/15): 755
EQ FICO Bankcard Score 02 (Provided by Huntington on 10/13/15): 727
EX FICO Score 8 (Provided by AMEX on 9/26/15): 759
EQ FICO Score NG 2 (Provided by PenFed on 9/1/15): 690
Credit Card Utilization Rate: 11%
Percent of On Time Payments: 100%
On Time Payments: 99
Total Payments: 99
AAoA: 1 YR 3 MOS
Oldest Open Credit Line: 2 YRS 10 MOS
Newest Open Credit Line: 5 MOS
Total Accounts: 7
Total Credit Limit: $32,350
Hard Credit Inquiries: 7
Derogatory Marks: 0
Current Credit Cards
Capital One
Quicksilver One Mastercard (AF waived for lifetime)
APR: 24.90%
Credit Limit: $4,250
Card issued: Jan/2013
Credit Card Utilization Rate: 2%
Chase Freedom Visa
APR: 18.99%
Credit Limit: $3,000
Card Issued: Jan/2014
Credit Card Utilization Rate: 0%
Sallie Mae Barclaycard Mastercard
APR: 22.99%
Credit Limit: $2,000
Card Issued: July/2014
Credit Card Utilization Rate: 0%
American Express Blue Cash Everyday
APR: 0% (Promotion ends 4/11/2016, after that 15.99%)
Credit Limit: $11,600
Card Issued: Nov/2014
Credit Card Utilization Rate: 30%
Huntington Voice World Mastercard
APR: 17.99%
Credit Limit: $1,500
Card Issued: Nov/2014
Credit Card Utilization Rate: 3%
Discover It
APR: 14.99%
Credit Limit: $5,000
Card Issued: May/2015
Credit Card Utilization Rate: 1%
PenFed Promise Visa
APR: 7.49%
Credit Limit: $5,000
Card Issued: June/2015
Credit Card Utilization Rate: 0%
... Might need to do a bit of penfed recon myself about the rewards card denial. Heck mise well recon the PLOC while I am at it, nothing to lose but a bit of time
