Reply
New Member
Posts: 4
Registered: ‎05-07-2008
0

Pyrimiding Account??? Penfed...

Hey guys...just got declined for a CC with Pen Fed due to "Pyrimiding Debt". I only have 3 cars, no other payments and 750 EQ score and make $175k on taxs...WTF???? Are all the major CU:
 
Navy
USAA
NASA
JFCU
 
...the same way??? 2 Inquiries in the past month, this one made 3?? 2/3 cars were in the past 4-5 months....Please help me understand. THANKS!
Regular Contributor
Posts: 221
Registered: ‎09-18-2007
0

Re: Pyrimiding Account??? Penfed...

[ Edited ]
How many CCs do you currently have and what are the balances reporting (it doesn't matter if you PIF everymonth, they will still show a balance if you use them regularly)? 
 
What are the car payments?  And yes, many banks do not like to see new debt (especially debt from the last 6 months) when applying for things.  So, it you opened those 2 new car loans in that period, they may be nervous until they can see how you handle them.  Try again in 6 months.
 
You could try calling them and asking them to reconsider pointing out your payments verses your income ratio.
 


Message Edited by Miner on 09-29-2008 04:26 PM
Oct 2008 FICO: EQ:706 ,EX:708, TU:720
Sept 2007 FICO: EQ:673, EX:683, TU:676
July 2006 FICO: EQ:627, EX:609, TU:645
New Member
Posts: 4
Registered: ‎05-07-2008
0

Re: Pyrimiding Account??? Penfed...

Two Dinker CC, and a Macys Cards all with $0 balances, they are PIFd everymonth. Car payments are:
 
$1400
$691
$675
 
I know the revolvs show $0, I just checked. I just dont get it. Should I just call in and ask to speak to anyone to reconsider??? Thanks for your reply!
Established Contributor
Posts: 570
Registered: ‎03-29-2008
0

Re: Pyrimiding Account??? Penfed...

Sorry about the decline. You should call in and recon, it's worth a try to tell why you should be approved. Good score and income are a great intro.

Are the 2/3 auto loans for new cars ?? Depending on the total borrowed for the autos that might factor into their 'pyramid'. That could be a large amount of credit extended in a short time span.

Call and recon.

The other lenders don't 'pyramid' as much , but will decline for the same types of reason. JFCU might be the easiest of the three but is very quirky. They could approve with no problem or put you through the wringer with a verification process and multiple inquiries.

If denied by PenFed still definately try USAA if you're a member and NASA. NASA will pull all three and probably want doc's or paystubs.

Jax
Jax

*************************************************************************************
Then you are a fool. Be thankful that when God gave you a face, he gave you a fool's face
Established Contributor
Posts: 570
Registered: ‎03-29-2008
0

Re: Pyrimiding Account??? Penfed...

Just saw your next post. Those car payments are going to be a hard fix for PenFed, especially the amounts (no disrespect, but they are some high dollar monthly payments) and the fact that they are that recent definitely fits the P-Fed 'pyramid' profile.

Jax
Jax

*************************************************************************************
Then you are a fool. Be thankful that when God gave you a face, he gave you a fool's face
Established Contributor
Posts: 683
Registered: ‎04-05-2008
0

Re: Pyrimiding Account??? Penfed...

Penfed does not go solely on your FICO score (most lenders don't). This is obvious as you were declined with a high score like that. Penfed only does recons by fax. You can fax over a letter for reconsideration, but don't hold your breath. Once you are denied, that's it. There are not many people who got a CC through Penfed on a recon. In my opinion, squash Penfed all together and try another CU.

Starting Score: TU 723, EQ 708
Current Score: TU 796, EQ 743
Goal Score: TU 800, EQ 800


Take the FICO Fitness Challenge


Starting Score: 708
Current Score: 743
Goal Score: 800


Take the FICO Fitness Challenge
Established Contributor
Posts: 511
Registered: ‎10-18-2007
0

Re: Pyrimiding Account??? Penfed...

What does "Pyrimiding" mean?
10/08 - EX 795 / EQ 816 / TU 806
6/09 - EQ 763 / TU 770

Starting Score (2/2010): TU-767, EQ-745
Current Score (2/2010): TU-767, EQ-745
Goal Score (12/2010): TU-780, EQ-790


Take the FICO Fitness Challenge
Contributor
Posts: 92
Registered: ‎01-24-2008
0

Re: Pyrimiding Account??? Penfed...

______________________________________________________________________________________
MidnightVoice wrote: pyramiding debt - pyramiding debt can mean one of two things: having too much available credit already or accumulating too many new credit cards
______________________________________________________________________________________


You look desperate to credit issuer when you open to many new account in a short period of time. I would saw to wait 6 months and re-app, as long as you credit history remains clean.
Senior Contributor
Posts: 4,831
Registered: ‎04-20-2007
0

Re: Pyrimiding Account??? Penfed...



chadblack wrote:
Hey guys...just got declined for a CC with Pen Fed due to "Pyrimiding Debt". I only have 3 cars, no other payments and 750 EQ score and make $175k on taxs...WTF???? Are all the major CU:
 
Navy
USAA
NASA
JFCU
 
...the same way??? 2 Inquiries in the past month, this one made 3?? 2/3 cars were in the past 4-5 months....Please help me understand. THANKS!



175K is a nice income but that is a lot of car payment monthly ya got there. New too so that doesn't help much. You might be better off had you gotten called out for pyramiding CC debt. At least that way you could wait 6 months and let the cards age a bit before applying again. Looks uphill to me especially in this climate.
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.