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Valued Member
toli77
Posts: 37
Registered: ‎01-20-2013
0

Re: Advise needed...domino effect | I'm left with NO CCs

i can't give you any advise cause i'm not sure if i understand what exactly happened and even if i did understand, i'm also a beginner at this.  

but having said that i wanted to wish you good luck.  credit can be built again.  hope it all works out for you.  

Frequent Contributor
shols44
Posts: 398
Registered: ‎11-03-2012
0

Re: Advise needed...domino effect | I'm left with NO CCs

Did you open 11 GE accounts in a short time frame? Is it possible you've triggered a fraud alert? Creditors are AA your accounts left and right. I think its time to backdoor and explain yourself. 


Starting Score: 501
Current Score: 706 EQ,TU 689,EX 686
Goal Score: 720

Valued Member
SAIDFICOMUSTBEASCAMLOL
Posts: 85
Registered: ‎12-01-2007
0

Re: Advise needed...domino effect | I'm left with NO CCs


toli77 wrote:

i can't give you any advise cause i'm not sure if i understand what exactly happened and even if i did understand, i'm also a beginner at this.  

but having said that i wanted to wish you good luck.  credit can be built again.  hope it all works out for you.  


Thank you. They or the computer panicked. I became an instant risk. Why? I don't know yet. From what  gathered:

 

AMEX

  • inquiries on EX. I haven't used that CR since in about 12 mths. I got 3  (not 2) in the last 30 days.
  • claim on an Apple product $>500. Hey I didn't purchase Apple Care because I used my AMEX at Best Buy. 
  • spending about 3 times my limit every month ( multi payment. I spent 40k on my 5k hard limit Plat card. This year,  I spent 40k in last than 5 months.) They should have FR me again.

GE- I applied and was approved for  5 new accounts between May and now.  No problem. Then AMEX closed my account a few days ago  and I got shut down by GE ( Yeah I know- dumb move getting so much new credit, but I was trying to fix my ratio. It totally backfired!) I lost me $17k in GE credit... over $10k was  2 to 3 years old.

 

 

Valued Member
SAIDFICOMUSTBEASCAMLOL
Posts: 85
Registered: ‎12-01-2007
0

Re: Advise needed...domino effect | I'm left with NO CCs


shols44 wrote:

Did you open 11 GE accounts in a short time frame? Is it possible you've triggered a fraud alert? Creditors are AA your accounts left and right. I think its time to backdoor and explain yourself. 


11? Nope... "only" 5 ( looks down) between May and last Friday. I feel like such a fool typing "5." I knew better, but I still bit the apple.  I used an email I found on myfico to send a letter. Hopefully someone will get back to me. If not, I will try your suggestion and  backdoor. What should I say? I mean..I wrote the truth in my email. Are there some key points these folks look for? I don't want to get suckered into paying all of my accounts off, and then they get closed at $0. 

 

Care credit - open b/c its a joint.  

GE 2 AU accounts - open 

 

Balances under $5k- 1 year old

Paypal $2700

 

Balances under 2k --- 2.5 to 3 years old

Walmart $1300

QVC $132 reporting $800 on that payment crap
Gap $1200

Amazon $1500

 

 

NEW ACCOUNTS

 

Balance under $50

Raymour $30

 

New Zero Balance

AE

JCP

TRU

OldN VIsa

 

I can PIF all of the GE accounts.

 

Other than that I owe 22,000, 5000, 20,000, 9000 340, 500, and 480 on my other cards.

 

I can pay off the GE and  all my accounts under $1k. That was my plan for July.  Oh I forgot $1900 owed on my cancelled personal AMEX.

 

I know my debt sounds crazy, but if the credit analyst looked at my accounts ( including student & personal loans) and did the math, he should question how I'm able to afford to pay my bills every month. If anything, they should call me to verify my income. $5k to $6k per month is a lot of money to be forking out on CC debt.  

Established Contributor
jamie123
Posts: 927
Registered: ‎03-22-2012
0

Re: Advise needed...domino effect | I'm left with NO CCs

You my friend are on the razor's edge.

 

Credit card companies hate when people use personal credit cards to fund their businesses. Read the fine print in their policies and you will see they forbid you to do it and can close your accounts if you try and do it. It has happened to many people on these forums.

 

You need to go to an accountant and formulate a plan to wean yourself from using credit cards as much as you have been to finance your company. You need two or three good credit cards and that is it for business purposes. You are scaring the pants off these CC companies with your heavy use of the cards and then apply for more cards on top of that.

 

The tax returns you supplied to the credit card companies for your business card applications, were they prepared by a CPA or just yourself? They might not trust you.

 

When they are talking about assets, they mean REAL assets that if your business goes belly up they have something to sell to recoup their investments. You stated you don't have any employees. What happens, God forbid, if something happens to you and you are unable to work for a few months? You look like a very high risk investment to a bank or credit card company.

 

You need to make yourself look less risky to a bank. Go see a CPA and formulate a plan. Ask the CPA what he/she thinks you can do to improve your chances of receiving credit.

 

Good luck!



Starting Score: EQ 658 6/18/12
Current Score: EQ 690 11/17/14 - EX 687 7/21/14 - TU 701 12/8/14
Goal Score: EQ 720+
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Valued Member
SAIDFICOMUSTBEASCAMLOL
Posts: 85
Registered: ‎12-01-2007
0

Re: Advice needed...domino effect | I'm left with NO CCs

All valid points. But...how do the cc companies know that I'm funding my biz using their card? I'm not stupid enough to tell them that. Not trusting my tax returns? You mean a 4506? Or just something I just handed in? What's the problem with bank statements and a transcript from the IRS?

If a CPA was needed, then I would pay one. One was never needed, so I have not. For the new service I had plans of hiring one.

Besides...
My application never gets questioned... It just gets rejected. That makes me believe that these underwriters are looking at more than credit history.Things like my zip and gods knows what else. For crying out loud I just turned 30. ( I recieved a letter stating "not enough mgmt experience.") That alone gets me a lot of pruned faces and meddling. I used to be very naive about how shady folks can be. In fact, after applying for commerical products my personal and business bank accounts got hacked. No monies taken, but they kept viewing the account as me. To top it off, a branch manager would sit and look at my account. She would move money on her own. I was told by other branches and 800 cs that was not "legal" because it got marked as me doing it at a teller. Oh yeah... And that's when I ran into problem with my state. It's as if someone reported me for something. I was cleared, but why after applying for loans????

My point, I never had the opportunity to prove my biz is not a risk. I think exceeding 1Mil in annual sales is a huge accomplishment.

I do not need employees for my corp2 because it was on auto pilot. It use a lot if contractors/freelancers. Yup about 20. This meant that I was always able to meet any request. I never had to worry about my employees quitting or someone having access to my Rolodex. Corp2 can be ran from my cell phone, tablet or laptop. I've set all of my businesses up like this. My goal was to make as much money as I could without investing or a lot of operating cost. Corp 1 made me 100k to 300k per year using a Treo 360. Corp 2 made me up to 1Mil using a netbook and prepaid cell. My new service will run off a MBP and iPhone but I need to have enough money pooled because my clients are millionaires. Theyre celebrities, politicians and tastemakers. If I can pull this off, I will never have to worry about money again.

This biz is so easy to run, my child helps me. .


Btw, When I say I need my credit card...I should be saying I need a biz loan for working capital. At least Amex loans the money for a month. That was perfect. I needed the revolving accounts for my credit score.

Carrying balances on my other cards was out of convenience. I had no reason to rush and pay off my cards. If I cant carry a balance then they are pointless. I learned to not only keep them active, but carry a balance. PIFing get me closed faster than app spees.

I'm in my current situation for 2 reasons. Penfed and Amex. Had Penfed not slashed and closed my accounts, I would be fine. They did this less than 6 months ago. why didn't I pay them? Tax season and they were not a priority. The biggest question. Why did I get slashed and closed? They doubled my CL. After I used it, they slashed me. My account was open for a month or two. They wanted the over the limit amount in full. I continued to pay the min + more and they closed my checking and accounts except for another card , mma, savings and overdraft. I paid my overdraft- then they closed that. Last month, they closed an Amex for no reason. They didn't even send a letter. I had to tell them they failed to notify me about any of my accounts closing.


Btw I do not have a biz credit card in my name. I never have. In my 11 years of being an entrepreneur (diff comps of course) I did everything out of pocket. I paid off 150k in my early 20s and went without a my own cc until 3 years ago. The amount that I'm carrying is about a quarter of what I end up spending on personal/living needs each year. If that's too much for the typical cc comp- then I need a cc for rich folks. I do have a connection to an amex blk card account exec/mgr thru a biz associate, but like I said before I learned to keep folks out of my immediate business. Ppl like to steal contacts, business models, and money. I have yet to meet people I can fully trust even with my business relationships. I had a company include in a clause- using their service ...any one who purchases becomes their customer and I can not contact them. Another situation was two fold- my "host agency" and then ppl working for the actual supplier tried to steal my commission and client. Thank god, I'm very close with that client. He shut it down for me.

As you can see, I'm dealing with a lot behind the scenes. No one knows this but "you." When I call the back door they never ask the right questions. I've read scripts from other blogs. I know what to say and what not to say. I volunteer only the information needed and I'm told 24 hrs or 30 days.

Anywho, I appreciate your input and I will use all of the advice provided. I'm giving my self a six months deadline.



Contributor
ElCamino
Posts: 208
Registered: ‎03-20-2013
0

Re: Advice needed...domino effect | I'm left with NO CCs

It's not about whether or not they know you are funding your business with the credit they have extended you. It's that you already are carrying considerable balances on multiple cards and continue to apply for new cards.

 

The CC companies are scared of you "pyramiding debt", that is increasing your debt, but trying to spread it out over multiple new accounts so that you make it appear as if everything is alright. They've seen a pattern of debt increase and they panicked and closed your accounts in order to try and cut their losses.

 

I wish you luck, and hope you stay positive, but it's not going to be an easy journey for you.



Amex BCE: $16.5k, Discover It: $5k, Chase Freedom Visa: $10k, Fidelity Amex: $7.5k, PenFed Cash Rewards Visa: $3.5k, CapOne Union Plus MC: $4.5k, Barclays Upromise MC: $5k, BoA Cash Rewards 123 MC: $1.5k
Valued Member
SAIDFICOMUSTBEASCAMLOL
Posts: 85
Registered: ‎12-01-2007
0

Re: Advice needed...domino effect | I'm left with NO CCs

Thanks for replying...

I get it... but the accounts I applied for were store cards. How can one pyramid those? The most I could do is buy junk and sell it on EBay.

What about payments history? Can't they see how much I'm paying per month? If that's the case they should be able to see that I've paid 15k to 20k on one card or I've been PIFing for the last 3 years on most of my accts. It is only recently that I've had high balances. Ref: Penfed. After that nonsense I had to use my PSECU, Amex and bank accounts as a loc.

I know I can get new ccs. Put I'm just upset about what keeps happening because I don't have a hidden TL for biz.

Thanks again for the comment.
Contributor
ElCamino
Posts: 208
Registered: ‎03-20-2013
0

Re: Advice needed...domino effect | I'm left with NO CCs


SAIDFICOMUSTBEASCAMLOL wrote:
Thanks for replying...

I get it... but the accounts I applied for were store cards. How can one pyramid those? The most I could do is buy junk and sell it on EBay.

What about payments history? Can't they see how much I'm paying per month? If that's the case they should be able to see that I've paid 15k to 20k on one card or I've been PIFing for the last 3 years on most of my accts. It is only recently that I've had high balances. Ref: Penfed. After that nonsense I had to use my PSECU, Amex and bank accounts as a loc.

I know I can get new ccs. Put I'm just upset about what keeps happening because I don't have a hidden TL for biz.

Thanks again for the comment.

Have you looked into PayPal's BillMeLater?

 

It's a hidden TL.



Amex BCE: $16.5k, Discover It: $5k, Chase Freedom Visa: $10k, Fidelity Amex: $7.5k, PenFed Cash Rewards Visa: $3.5k, CapOne Union Plus MC: $4.5k, Barclays Upromise MC: $5k, BoA Cash Rewards 123 MC: $1.5k
Frequent Contributor
b_seeker
Posts: 390
Registered: ‎03-24-2013
0

Re: Advice needed...domino effect | I'm left with NO CCs

If you read about Penfed and "pyramiding debt", you would see they don't care in the slightess what type of card you have. They pull that excuse whenever they feel like you become a risk to them(or just don't want you to have their cards). Given what you are saying, it's no surprise Penfed acted the way they did. An extremely risk adverse lender reacting like that can cause some chain reactions, but I don't think that would be the only thing that set Amex off. 

 

Likewise, I don't think Amex was the only thing that set GE off. I think 5 cards in about a month is a high number and GE is known to close ALL accounts for doing that. Sometimes this is instant but other times GE puts you on a leash and watches for awhile. Assuming Amex closed you, reported AND GE softed you in that short of time frame, yeah that may of push you over the edge with GE. Really though, you are at fault there for grabbing so many GE cards so quickly because, in my opinion, that is really the catalyst for the GE AA.

 

Basically, I can see why Penfed and GE took action on you. Amex can make sense as well. Even if you don't tell them you are doing business on personal cards, they can likely figure it out and may have been monitoring your account due to their odd internal risk score. This is the one card I can see as a waterfall effect from the Penfed closing. This is an unfortunate situation you are put in and I hope you the best in getting this sorted out.



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