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Frequent Contributor
andyaycw
Posts: 298
Registered: ‎07-25-2007
0

Finally Denied for Credit

Well it wasn't much of a surprise, but this is the first time I have been denied credit in quite some time. It's amusing and interesting to say the least.

 

I had applied for the Fidelity Amex and US Bank Cash+ over the weekend (instant approvals for both), and decided to apply for a CLI on my Penfed Platinum Rewards card since my EQ was clean and I was curious to see how far a high FICO would take me. Existing limit was $32.7k, and I applied for a CLI for a 787 EQ FICO (0 inquiries in prior two years, youngest account 20 months old, 6.5 year history, and 4.5 year AAoA. 1 auto loan 50% paid off, and 7 open revolving credit cards limits totaling $95k. All individual accounts, no AUs or joint accounts).

 

Website indicated application was "turned down..." with no reasons listed.I called customer service and they told me they could not figure out why, just that "it did not meet their program requirements". I'm a bit puzzled. Obviously a letter is on the way to me in the mail, but I'm surprised I couldn't get a straight answer out of the CSR. Thoughts?

 

I didn't really need or want a higher limit, I was really just wondering how far a high FICO and clean report could get me with a limited amount of income.


Starting Score: EQ 773, TU 766
Current Score: EX 794, EQ 787, TU 776
Goal Score: 800


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Valued Contributor
bs6054
Posts: 1,673
Registered: ‎11-11-2012
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Re: Finally Denied for Credit

I assume it can't be this simple (as the CSRs should know!) , but when is the last time you had a CLI on the Penfed? Is it is too recent I assume you would get an automated denial.

 

I hope the letter doesn't refer to the dreaded "pyramiding debt"  ("After two years of not applying, you suddenly apply for two extra cards AND a CLI.  Must be up to no good!")

Valued Contributor
lg8302ch
Posts: 2,659
Registered: ‎11-13-2012
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Re: Finally Denied for Credit

maybe total credit available compared to income?
FICO® EQ 784 (as of today) - TU 771 (07/25) * Fako EX 799 (07/02 - CS) * last app 06/01/14 * INQ last 2 yrs TU: 5, EX: 7, EQ: 7


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Frequent Contributor
andyaycw
Posts: 298
Registered: ‎07-25-2007
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Re: Finally Denied for Credit

The more I think about this, the more anxious I get to see the reason for denial from the letter in the mail.

 

My last CLI was in April or May of last year (to the best of my memory). It was a CLI from $23k up to my current $32.7k limit via a pre-approval. My income has since increased by 40%, so I can't imagine I've hit any exposure limits with Penfed. 

 

I'm also not too sure about pyramiding debt. I thought this meant just adding debt but simultaneously increasing your limits so that one's util stays the same (or lower) but your debt continuously grows? If that's correct, then I don't seehow Penfed could play that card on me. I PIF my cards every month and I think the most I have ever charged on my cards in any single month is maybe $1k-$2k total. At time of app, EQ showed a total balance of <$500 in credit card balances.

 

Fidelity and US Bank both pulled EX, so there'sno way Penfed would have even known I was applying for anything else.


Starting Score: EQ 773, TU 766
Current Score: EX 794, EQ 787, TU 776
Goal Score: 800


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mikka1
Posts: 269
Registered: ‎12-28-2011
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Re: Finally Denied for Credit


andyaycw wrote:
(...)I PIF my cards every month and I think the most I have ever charged on my cards in any single month is maybe $1k-$2k total. At time of app, EQ showed a total balance of <$500 in credit card balances.(...)

Sorry for stupid hypothesis, but trying to put myself in a position of bank analyst I would've probably declined CLI as well with such inputs for the very simple reason - "Customer does not need even his existing limit as his util never even reaches 10%, let alone he does not need any increases". Of course formulated in some nice language like "not enough experience with existing CL".

 

Hope I'm wrong though and good luck!

In my wallet now: Amex PRG NPSL, Amex BCE $15k $17k (thanks to recent CLI), Chase Freedom 11k, CSP $6k, Chase United ME $5k, Citi Dividend $5.6k, Discover It $4.5k and a handful of other cards...
TU Dec 2013 - 752Sep 2013 - 764 - new all time maximum
Frequent Contributor
andyaycw
Posts: 298
Registered: ‎07-25-2007
0

Re: Finally Denied for Credit

mikka1 you are absolutely correct and I 100% agree with you. On the other hand, my situation was no different last year when they gave me a CLI via pre-approval from my then-$23.5k limit to my current $32.7k limit. I thought the exact same thing...I use(d) the card almost exclusively for gas, my maximum balance has probably never even exceeded $500, and yet they want to give  me more credit from $23.5k up to $32.7k. 

 

In any case, I finally did receive the letter via my online account (I guess it takes a day or two a fter the official turn down"?).  Reason for denial was "Presently have maximum open-end credit". I guess that means that despite the fact my income has increased by 40% since they last gave me a CLI, that it is the most they're willing to risk on me.

 

letter also referenced a credit score, looks like it might be Penfed's internal scoring system? Said I had an 838 on a scale of 150-950.


Starting Score: EQ 773, TU 766
Current Score: EX 794, EQ 787, TU 776
Goal Score: 800


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Valued Contributor
bs6054
Posts: 1,673
Registered: ‎11-11-2012
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Re: Finally Denied for Credit


andyaycw wrote:

mikka1 you are absolutely correct and I 100% agree with you. On the other hand, my situation was no different last year when they gave me a CLI via pre-approval from my then-$23.5k limit to my current $32.7k limit. I thought the exact same thing...I use(d) the card almost exclusively for gas, my maximum balance has probably never even exceeded $500, and yet they want to give  me more credit from $23.5k up to $32.7k. 

 

In any case, I finally did receive the letter via my online account (I guess it takes a day or two a fter the official turn down"?).  Reason for denial was "Presently have maximum open-end credit". I guess that means that despite the fact my income has increased by 40% since they last gave me a CLI, that it is the most they're willing to risk on me.

 

letter also referenced a credit score, looks like it might be Penfed's internal scoring system? Said I had an 838 on a scale of 150-950.


The 150-950 is the range of Fico NextGen, so they may be using one of those.

 

Is this the only Penfed card you have?  I had heard that there was a fixed limit (absolute, for all) that they would allow as combined credit card CL.  But 32.7K is too low for that I think (as well as being rather precise!)


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