Reply
Valued Contributor
navigatethis12
Posts: 1,951
Registered: ‎01-24-2012
0

Re: UPDATE


freakyfico wrote:

I recently opened up a new pnc account (in addition to my existing pnc account) and was at old that I was instantly approved for their Cashbuilder rewards card. I was told I had a 654 ex. from the paper they mailed meI was approved for 1,000 dollars. i have 0 inqs on ex. And 8% util . Have Amex, BofA, wells, cap1.   All with much higher limits. 1.75 % return is not all that either


It is higher than most Visa cards, only .25% away from 2%.

 


WallyxD wrote:

Oh trust me, I've looked into BoA and Wells Fargo's student cards, but I owe them both money.. I closed the accounts because there were huge negative balances. (All made of overdraft fees.) That wasn't purposely done, but I still to this day don't know what exactly happened because I kept a really close eye on both accounts.

 

I'm debating on whether or not to try for one more student card, and whether or not I get approved, I'll be done with applications at least until the summer. I'm not too confident I'll be approved for Citi Forward for Students or any of Discover's student cards, so I'm looking at credit unions right now. If there are any other student cards out there, I'm all ears. And I understand this is in the wrong thread, but since the subject was somewhat brought up are there any credit unions out there (PA) that don't hard pull when joining them? And for those who do a hard pull for joining them, will I automatically get preapproved for specific products, if not, after joining and if I apply for a CC, will they count as two separate inquiries?


You should look into the Bank of America and Wells Fargo situation. It could prevent you from opening a deposit account later and they may even report it to the credit bureaus. I am unsure if deposit accounts are sent to collections.

Anyway, it is unfortunate you were unable to be approved for the card. You do have two cards that will help your file so maybe in a year you will have more income, and a longer history is always good.

 

I am unsure about credit unions because I have no use for them.

Valued Contributor
p-
Posts: 2,634
Registered: ‎06-05-2008
0

Re: UPDATE


WallyxD wrote:

Just received the letter of denial from PNC.......The loans are deferred so I really don't know why they counted that against me...my utilization was about 51%....So as far as I'm concerned, the only thing truly wrong with my file is that my accounts are 'young'. And I'm almost positive that's not enough to reject an application...

 


Utilization is based on your statement balance.  Your credit report will show the balance of each card as of the last reported statement.  For example, if last month all of your cards were at 50%, and you paid them all to zero but the statement hasn't posted yet, your CR will still show you at 50% balance on all cards.  Sometimes it takes time after statement posting before the new data gets to the CR, so your recent payments won't really help you for up to two months.  

 

Most people recommend "optimizing" your utilization prior to an app.  That means posting a zero balance on all but one card, and a total utilization around 3%.  This has to be planned for a month or two in advance to make sure the updated data has posted to your report before your credit is pulled.  A smart thing to do is review your report before applying, to make sure all of your updated statement data is in.  Utilization will have a HUGE effect on your score.

 

As far as holding your student loans against you - how could they not?  It's a huge balance that nothing has yet been paid on, legally guaranteed so other debt is presumably subordinate. 

 

Based on your credit file snapshot they saw, you are a person without a lot of experience with credit, who has multiple cards that money is owed to, and several large looming loans in the future.  

 

When they see a lot of new cards with balances, they get nervous.  When they combine that with new installment debt that not a single payment has been made on, they panic.

 

Your best bet is to garden for six months or so, and work on showing a good history of paying on time.  Or become an AU on someone else's good account.

  8-12-14: FICO EXP: 797 - EQU: 734 - TRAN: 739 - AVG: 757 - +207 points from JUN 2008 - MY CREDIT JOURNAL

Valued Contributor
p-
Posts: 2,634
Registered: ‎06-05-2008
0

Re: UPDATE


WallyxD wrote:

Oh trust me, I've looked into BoA and Wells Fargo's student cards, but I owe them both money.. I closed the accounts because there were huge negative balances. (All made of overdraft fees.) That wasn't purposely done, but I still to this day don't know what exactly happened because I kept a really close eye on both accounts.


I would say that it's absolutely important that you run these down.  They can report you to a special system (chex) that will flag you for new accounts and could be hell to untangle in the future.  Go to the branch, talk to the manager, negotiate a payment.  Be honest - tell them you messed up and want to clear it.  They might even waive the fees if you pay the original overdraft amount.  I know B of A did that for me once, after like 5 years.

 

Close eye or not, what happened was you overdrafted.  Sometimes one large transaction can post and put you into overdraft, then a bunch of small ones go right behind it racking up a fee for each.  Chase and Wells both recently lost and/or settled class action in which they admitted to purposly reordering posted transactions to make this happen every time.  There was actually a company selling software to banks that would manipulate post order to achieve maximum fees and penalties. (See Link)

 

The new law requires you to opt in before overdraft transactions can be approved.  I recommend you do not opt in for that.  It reduces the chances of a Gotcha.  

 

Also, if you keep an extra hundred in your checking that you never spend, and it will never happen.  It might be painful to give up that hundred bucks, but at 35 bucks for an overdraft, the payback is quick.

 

Big banks will always be out to get your money, but it's up to you whether you let them.

 

 

  8-12-14: FICO EXP: 797 - EQU: 734 - TRAN: 739 - AVG: 757 - +207 points from JUN 2008 - MY CREDIT JOURNAL

Frequent Contributor
WallyxD
Posts: 273
Registered: ‎10-02-2012
0

Re: UPDATE


p- wrote:

WallyxD wrote:

Just received the letter of denial from PNC.......The loans are deferred so I really don't know why they counted that against me...my utilization was about 51%....So as far as I'm concerned, the only thing truly wrong with my file is that my accounts are 'young'. And I'm almost positive that's not enough to reject an application...

 


Utilization is based on your statement balance.  Your credit report will show the balance of each card as of the last reported statement.  For example, if last month all of your cards were at 50%, and you paid them all to zero but the statement hasn't posted yet, your CR will still show you at 50% balance on all cards.  Sometimes it takes time after statement posting before the new data gets to the CR, so your recent payments won't really help you for up to two months.  

 

Most people recommend "optimizing" your utilization prior to an app.  That means posting a zero balance on all but one card, and a total utilization around 3%.  This has to be planned for a month or two in advance to make sure the updated data has posted to your report before your credit is pulled.  A smart thing to do is review your report before applying, to make sure all of your updated statement data is in.  Utilization will have a HUGE effect on your score.

 

As far as holding your student loans against you - how could they not?  It's a huge balance that nothing has yet been paid on, legally guaranteed so other debt is presumably subordinate. 

 

Based on your credit file snapshot they saw, you are a person without a lot of experience with credit, who has multiple cards that money is owed to, and several large looming loans in the future.  

 

When they see a lot of new cards with balances, they get nervous.  When they combine that with new installment debt that not a single payment has been made on, they panic.

 

Your best bet is to garden for six months or so, and work on showing a good history of paying on time.  Or become an AU on someone else's good account.


About the student loan comment, I figured they'd see that they were deferred, because chances are a student doesn't have the money to pay off the loans while they're in school, otherwise, they would've have had to take out the loans.

 

My utilization was 26%.. I don't know why I said 51% lol.

 

But right now I'm debating on whether or not to join a CU and apply for a card. Chances are I won't, but regardless, I won't apply for credit again until my summer, because my TU will only have 4 inq, and then EX and EQ will have two. I'll also be eligible for another CLI on my store card so that'll help my utilization. So I should be set in July. 

 

 

AE Store CC: $850 | AEO Visa: $2,300 | CapOne Quicksilver: $1,700 | Citi Forward for Students $1,500 | Walmart CC $1,350 | Chase Amazon: $500 | PayPal Smart Connect: $500 | Discover iT for Students: $500 | Chase Freedom: $500

Gardening until util 30%
TU Fico: 652 (3/11/14)
Valued Contributor
p-
Posts: 2,634
Registered: ‎06-05-2008
0

Re: UPDATE


WallyxD wrote:About the student loan comment, I figured they'd see that they were deferred, because chances are a student doesn't have the money to pay off the loans while they're in school, otherwise, they would've have had to take out the loans.

 

My utilization was 26%.. I don't know why I said 51% lol.

 

But right now I'm debating on whether or not to join a CU and apply for a card. Chances are I won't, but regardless, I won't apply for credit again until my summer, because my TU will only have 4 inq, and then EX and EQ will have two. I'll also be eligible for another CLI on my store card so that'll help my utilization. So I should be set in July. 


From the bank's point of view, if you dropped out or graduated tomorrow you would have to begin paying on that student loan balance, so they have to figure it in.  With regard to the CU, I agree that you should wait a bit.  When your cards hit benchmarks at 6 months, 1yr,  2yr, etc, they help you more and more.  Put that together with inquiries falling off and a low utilization, and your chances are a lot better.

 

Good luck!

  8-12-14: FICO EXP: 797 - EQU: 734 - TRAN: 739 - AVG: 757 - +207 points from JUN 2008 - MY CREDIT JOURNAL


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}