cancel
Showing results for 
Search instead for 
Did you mean: 

Chase Freedom Application Response..."30 day wait"

tag
yfan
Valued Contributor

Re: Chase Freedom Application Response..."30 day wait"


@Anonymous wrote:

Yfan,

 

I am not worried about my score income, I am more worried about the utilization...I have student loans at 16k, chase auto finance for 12k, hyundai financial lease for 15k, and I have $6,700 in available credit on all of my cards combined and only carrying about $300-$400 balance on each. I am hoping that Chase will overlook it and see that I pay on time with balance relatively low, plus I make multiple payments per month of each card. Only time will tell, but the wait just kills me. I am almost feel like calling today or tomorrow, but I don't want to call and blow it for myself...I think it might be best to let itself work itself out and call if I get declined.

 

Thanks.


This is where I have serious doubts about Chase approving you. For a total credit line of $6700 across six cards and to be carrying a balance of roughly $2000 total would be considered highly problematic for Chase. But even more importantly, you are probably paying an average of 20% interest on that balance! At a 20% annual rate, the monthly interest on a $2000 balance is $33, which would take $670 spending at 5% cashback to make up (which you shouldn't be doing if you can't PIF anyway). You are MUCH better off BT-ing to a 0% card and saving that $33 a month, IMO. Use it instead to pay down your balance(s) first.

 

Unless you absolutely have to (which would indicate that income is insufficient), you should never put anything on a credit card that you cannot pay in full by the due date, rewards or no rewards.

Message 21 of 48
Anonymous
Not applicable

Re: Chase Freedom Application Response..."30 day wait"


@yfan wrote:

@Anonymous wrote:

Yfan,

 

I am not worried about my score income, I am more worried about the utilization...I have student loans at 16k, chase auto finance for 12k, hyundai financial lease for 15k, and I have $6,700 in available credit on all of my cards combined and only carrying about $300-$400 balance on each. I am hoping that Chase will overlook it and see that I pay on time with balance relatively low, plus I make multiple payments per month of each card. Only time will tell, but the wait just kills me. I am almost feel like calling today or tomorrow, but I don't want to call and blow it for myself...I think it might be best to let itself work itself out and call if I get declined.

 

Thanks.


This is where I have serious doubts about Chase approving you. For a total credit line of $6700 across six cards and to be carrying a balance of roughly $2000 total would be considered highly problematic for Chase. But even more importantly, you are probably paying an average of 20% interest on that balance! At a 20% annual rate, the monthly interest on a $2000 balance is $33, which would take $670 spending at 5% cashback to make up (which you shouldn't be doing if you can't PIF anyway). You are MUCH better off BT-ing to a 0% card and saving that $33 a month, IMO. Use it instead to pay down your balance(s) first.

 

Unless you absolutely have to (which would indicate that income is insufficient), you should never put anything on a credit card that you cannot pay in full by the due date, rewards or no rewards.


Agreed. I didnt see the above messages before now Smiley Surprised Still keeping my fingers crossed for you but this might be an issue.

Message 22 of 48
Anonymous
Not applicable

Re: Chase Freedom Application Response..."30 day wait"

She did give me the recon number, was tempted to call it, but then something told me not to push it and wait for the mail response and if needed it, call it then when I receive a denial letter or an approval with a crapy limit. I am thinking positive and keeping my fingers crossed.


@Anonymous wrote:

I'm going to cross my fingers for you. My initial limit for the Freedom was $500, a month later I applied for Sapphire and that limit was 5k Smiley Happy Not saying you will get a small starting limit but if thats the case then there's still hope. Think positive!


@Anonymous Card @ $1,300 limit.

@Anonymous One Quick Silver @ $1,000 limit.

@Merrick Bank @ $1,400.00 limit.

@Dosciver It Card @ $1,000 limit.

@Old Navy Card @ $1,100 limit.

@Care Credit Card @ $1,500 limit.

 

Chase Freedom PENDING!!!

Message 23 of 48
Anonymous
Not applicable

Re: Chase Freedom Application Response..."30 day wait"

I have been charging to my cards but not paying in full on the cards, I just went on vacation and used them a lot. I do however pay the statement balances in full wether they are $200, $400, $600 etc. When the bill is due on each card and it says minimum due or statement balance. I always pays the statement balance. When I posted earlier I was incurrate on the balances, I just checked and they are as follows...

 

Barclay $1,300 limit ($200 balance)

Quicksilver $1,000 limit ($200 balance)

Merrick Bank $1,400 limi ($150 balance)

Old Navy $1,100 limit ($179 balance)

Discover it $1,000 limit ($250 balance)

Car Credit $ 1,500 limit ($300 balance)

 

I was also incorrect about my credit line totals it is $7,400 not $6,700.

 

I carry a balance but not exceeding 30% of my credit line, I also pay the statement balances in full. 

I also have a chase auto finance for 15k and a hyundai lease for 15k.

 

Since I applied for the chase freedom, I have paid $1,000 on all my cards in the past week to make the balances even lower.

 

 

Message 24 of 48
yfan
Valued Contributor

Re: Chase Freedom Application Response..."30 day wait"

I am confused now. How do you pay the "statement balance" without paying in full? The statement balance for any given period is everything you owe up until the point in time at which the statement cuts. If you pay that by your due date, then you are paying in full, not carrying a balance. PIF does NOT mean that you pay it off before your statement cuts. On the other hand, if you are only paying the minimum, then you are NOT paying the statement balance.

 

With your numbers, your DTL ratio is 17%, which is not bad. However, what matters is the balances reported on your credit report, which is reported when your statements cut (i.e. at different times). Balances are not reported to CRAs continuously, they are reported once a month, when your statement cuts. That means that if between now and then you use the card, your balances will go up and report that.

Message 25 of 48
Anonymous
Not applicable

Re: Chase Freedom Application Response..."30 day wait"

On my cards, after using them all month...by the time the bill is generated, I am given the option to pay in full, pay minimum balance due, or pay the statement balnce. For example, let say I have a credit line of $1,300.00, I start with a $0 debta balance but I charge $500.00 within that month. At the end of the billing cycle, the card company gives me the option to pay a $35 minimum payment, pay the $500 in full, or they average it out and give me a monthly statement balance which is a fraction of the $500 that they want. I was under the impression that you could only pay minimum or PIF but this is how my credit cards are billed monthly. I don'nt know why, but I can argue because they are satisfied with the payment and I am comfortable with it as well. I have never been late on any payments, I make multiple payments a month on each card, Even when I carry a balance, within a months time I pay it down to $0. Chase is either preparing to say no or factoring in all my other accounts such as my auto finance and lease and my student lons plus my debt to credit ratio. I am sorry I have confused you, but I am new to all this credit line information and I am just trying to build better credit for better rates! I really appreciate your help. Let me know if you need anymore clarification on my part

 

Your right about the credit reports being delayed. If anything if I get declined, and my credit reports state otherwise at that point, I will just call the recon number.

 

Thanks again.

Message 26 of 48
yfan
Valued Contributor

Re: Chase Freedom Application Response..."30 day wait"


@Anonymous wrote:

On my cards, after using them all month...by the time the bill is generated, I am given the option to pay in full, pay minimum balance due, or pay the statement balnce. For example, let say I have a credit line of $1,300.00, I start with a $0 debta balance but I charge $500.00 within that month. At the end of the billing cycle, the card company gives me the option to pay a $35 minimum payment, pay the $500 in full, or they average it out and give me a monthly statement balance which is a fraction of the $500 that they want.


That's odd. None of my cards have ever worked that way. They start with the balance at the end of the last statement period, then subtract any payments made (the net of these two should always be zero if one pays in full), then add any transactions in the new statement period. So if you start with zero balance and add $500 then the statement balance should be $500. The only way I see your scenario playing out is if you say, started with a zero balance, then added $300 in spends during the billing period, and then $200 more after the billing period (this is a later billing period that hasn't closed yet). In that case, it would show your "pay-in-full" (though that's not what they should be calling it) of $500, and a "statement balance" of $300 at the time you go to pay. In that case, paying the statement balance IS PIF. The point of PIF is to avoid interest, which this allows you to do.

Message 27 of 48
Anonymous
Not applicable

Re: Chase Freedom Application Response..."30 day wait"

I totally get what you saying but that's how they go about charging me. I called chase they told me app 2 as processed and is currently in the lending dept. Should have a response in 5 days.
Message 28 of 48
Anonymous
Not applicable

Re: Chase Freedom Application Response..."30 day wait"

*is processed
Message 29 of 48
Anonymous
Not applicable

Re: Chase Freedom Application Response..."30 day wait"

Now I'm wondering if I should call the lending dept to give them a nudge to move things along or just wait the 5 days for the denial letter and then call in for recon
Message 30 of 48
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.