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idmd
Posts: 194
Registered: ‎09-18-2009
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PenFed Visa yes, Costco AMEX no, Update: USAA AMEX yes

[ Edited ]

So I was approved for a PenFed Visa with a 20K CL but my Costco AMEX was rejected for the following reasons:

 

High utilization of credit lines or insufficient utilization information (Experian)  

Ratio of the highest account balance to the sum of the balances on all accounts (Experian) 

Proportion of loan balances to loan amount is too high (Experian) 

Ratio of your card account balances to your income is too high, or cannot be determined(Experian) 

 

As some back ground. I currently have a USAA Mastercard with a 21K limit with about $200 on it and an AMEX Platinum with about $800 on it. I've been an AMEX member since 2000. My credit reports have nothing bad on them with scores in the 770 range. Never been late and always paid on time. Personally (and I only bring this up due to the anonymity) I have approximately $200K in education debt, another $75K in auto loans. I gross approximately $25-35K per month. I was initially turned down for the Platinum card (had a gold card already) when I applied online. I ended up calling AMEX, they did another application and immediately told me I was approved with no questions asked. 

 

My question is what should I do next? I really want the Costco card more than the Plat card and if I would likely close the Plat card or have it reduced to a gold card again. I think based on my income most of the reasons listed above are bogus. 

Message Edited by idmd on 10-23-2009 10:13 PM
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haulingthescoreup
Posts: 28,115
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Re: PenFed Visa yes, Costco AMEX no.

[ Edited ]
Sorry to hear this. It's an excellent example of the fact that scores aren't everything. AmEx uses its own scoring logarithm, based on your EX report.

So yes, your revolving util is very low, but I guess you're getting dinged for the installment util. Only the fourth reason given specifically refers to CC's, and the irony is that one of your two cards --the one that can't be determined --is the Plat card. You'd think that they could check their own records, huh.

I'd think that it's worth trying a recon, since you've already "paid" via a hard inquiry on Experian. I have to admit that I'm surprised at the initial decline, since AmEx is usually pretty willing to work with high-income consumers. But at the same time, I'd say that that would help you on recon.

When you recon, I certainly wouldn't tell them that you would close the Plat. They love having that $450 fee coming in. It's certainly the only reason that I've been approved for one (and refused it) for a year and a half now! :smileyvery-happy:


eta: oh, and congrats on joining the PenFed family!
Message Edited by haulingthescoreup on 10-23-2009 04:50 PM
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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idmd
Posts: 194
Registered: ‎09-18-2009
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Re: PenFed Visa yes, Costco AMEX no.

Is there a specific way to go about the recon or just call the application number.

 

It was really weird with the Plat....I applied online and they gave me six reasons why I wasn't approved. When I called a person to inquire and reapply his response was "of course you've been accepted". What's different about the algorithm when you call vs online app?  He didn't ask me any additional details that I didn't answer online.

 

Kind of bizarre!  

 

P.S. That Costco AMEX will be mine! 

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haulingthescoreup
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Re: PenFed Visa yes, Costco AMEX no.

You can do an advanced search here on the forums using the terms amex recon, but the threads I quickly glanced at all mentioned the same thing that you did with your Plat: call and talk to a human. I'd say that you got denied by a computer, and you'll need a human to review your individual situation. Be prepared for what might seem like a pretty invasive process, but I'm guessing that the fact that you're a professional with a high monthly income should do the trick.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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DI
Posts: 5,767
Registered: ‎01-28-2008
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Re: PenFed Visa yes, Costco AMEX no.


idmd wrote:

Is there a specific way to go about the recon or just call the application number.

 

It was really weird with the Plat....I applied online and they gave me six reasons why I wasn't approved. When I called a person to inquire and reapply his response was "of course you've been accepted". What's different about the algorithm when you call vs online app?  He didn't ask me any additional details that I didn't answer online.

 

Kind of bizarre!  

 

P.S. That Costco AMEX will be mine! 


Hehe.  Like the attitude.  I had to call AMEX to get approve after an initial  decline.  I told the CSR I have high FICO scores.  She went on to explain other score model AMEX uses, and later offered to have my application MR'ed.  It was approved a day later.   Sometimes it all depends on who takes your call.  The CSR may override some things to get one approved.  

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idmd
Posts: 194
Registered: ‎09-18-2009
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Re: PenFed Visa yes, Costco AMEX no.

[ Edited ]

Wow...harsh. I called the new accounts department and the guy was rude. He stated it can't be reconsidered, their decision is their decision and that's their final decision.

 

Betchya USAA will give me an AMEX that I can use at Costco and I guess I have no need for any real AMEX products  :smileyvery-happy:

Message Edited by idmd on 10-23-2009 08:35 PM
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DI
Posts: 5,767
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Re: PenFed Visa yes, Costco AMEX no.


idmd wrote:

Wow...harsh. I called the new accounts department and the guy was rude. He stated it can't be reconsidered, their decision is their decision and that's their final decision.

 

Betchya USAA will give me an AMEX that I can use at Costco and I guess I have no need for any real AMEX products  :smileyvery-happy:

Message Edited by idmd on 10-23-2009 08:35 PM

Dang that was harsh.  You probably shouldn't have called the new accounts departments.  That's probably why he was rude.  There should be a recon number to call.

Regular Contributor
idmd
Posts: 194
Registered: ‎09-18-2009
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Re: PenFed Visa yes, Costco AMEX no.


DI wrote:

idmd wrote:

Wow...harsh. I called the new accounts department and the guy was rude. He stated it can't be reconsidered, their decision is their decision and that's their final decision.

 

Betchya USAA will give me an AMEX that I can use at Costco and I guess I have no need for any real AMEX products  :smileyvery-happy:

Message Edited by idmd on 10-23-2009 08:35 PM

Dang that was harsh.  You probably shouldn't have called the new accounts departments.  That's probably why he was rude.  There should be a recon number to call.


No kidding.....I was **bleep** dude doesn't that $450 fee get at least a little kindness? Doesn't get me much else! 

 

Super Contributor
DI
Posts: 5,767
Registered: ‎01-28-2008
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Re: PenFed Visa yes, Costco AMEX no.


idmd wrote:

DI wrote:

idmd wrote:

Wow...harsh. I called the new accounts department and the guy was rude. He stated it can't be reconsidered, their decision is their decision and that's their final decision.

 

Betchya USAA will give me an AMEX that I can use at Costco and I guess I have no need for any real AMEX products  :smileyvery-happy:

Message Edited by idmd on 10-23-2009 08:35 PM

Dang that was harsh.  You probably shouldn't have called the new accounts departments.  That's probably why he was rude.  There should be a recon number to call.


No kidding.....I was **bleep** dude doesn't that $450 fee get at least a little kindness? Doesn't get me much else! 

 


I didn't catch the reason why you want that particular card. I have the AMEX Blue Cash. I don't like AF's. I may have too many cards.  

Regular Contributor
idmd
Posts: 194
Registered: ‎09-18-2009
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Re: PenFed Visa yes, Costco AMEX no.

[ Edited ]

Well my goal is to get my life simplified to the PenFed Visa for gas (we drive a lot), USAA Mastercard because they always have shown us luv, and an AMEX product for use at Costco. I'd prefer to get the Costco AMEX and close or reduce my stupid Plat. 

 

I noticed in the section that has "back door" numbers it says that you need a current credit report with the account number - the account number is always partially blocked out. How do I get that? 

Message Edited by idmd on 10-23-2009 08:55 PM
Message Edited by idmd on 10-23-2009 08:56 PM

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