Credit Cards

[caliking]

I joined Penfed Credit Union early this month because of their rewards Visa. They turned me down and I can't figure out why. Should I send them a RECONN letter, asking them to reconsider? Or should I call them? They said that I had too many obligations, which was weird because I only have my mortgage pymt of $3100/mo, income of $7500/mo and an Equifax score of 689, which is what they pulled. My Debt to Income ratio is good, I also have a good mix of credit. I applied for that card with confidence I'd get approved so I took a hit on my credit inquiry and got NO card in return. This has me pissed off. Could you guys give me my next step in this situation.

[Kris1228]

Hello!

Sorry to hear about your denial... I think i  heard somewhere that your mortgage/ rent should be about 30% or so of your income.. im just putting some ideas out there. Maybe i heard wrong but could be what they mean by too many credit obligations blah blah.... GL

[desifink]

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caliking wrote:
I joined Penfed Credit Union early this month because of their rewards Visa. They turned me down and I can't figure out why. Should I send them a RECONN letter, asking them to reconsider? Or should I call them? They said that I had too many obligations, which was weird because I only have my mortgage pymt of $3100/mo, income of $7500/mo and an Equifax score of 689, which is what they pulled. My Debt to Income ratio is good, I also have a good mix of credit. I applied for that card with confidence I'd get approved so I took a hit on my credit inquiry and got NO card in return. This has me pissed off. Could you guys give me my next step in this situation.

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I'm confused - you say you have only your mtg pmt of $3100/mo (which they might think is a bit high for your income - over 40%) but you have a good mix of credit. Do you have CCs you didn't mention? If so, and if you have healthy CLs on those CCs (even with 0 balance), Penfed might be declining you b/c they think you have sufficient CLs for your income. I'm not 100% certain but I think 689 may be a little on the low side for them - I think they like to see higher scores. Also they don't like seeing a lot of recent inqs so if you'd applied other places that might be hurting your chances with them.

In your shoes I'd probably give them a friendly call. Their customer service is extremely professional, so you may be able to at least get a better explanation than what you got even if they don't change their mind. Good luck!

edited for splellign

Message Edited by desifink on 07-15-2008 12:34 PM

[caliking]

hmmm, I hope that's not the case. I didn't include my wife's income because I didn't want the card joint. I want that card!!!!!!! They give 5% back on gas purchases Yes I have 4 other major cc's their balances are 0, I have 3 dept. cards, whose balances are 0, and I have student loans which are in deferrment. I make decent money so, I think my income is ok. Maybe you're right, just cause I think 689 is good, penfed might think it's alittle low. Goodness it's taken all my 37 yrs to get to 689!!! I'll keep trying

Message Edited by caliking on 07-15-2008 12:38 PM

[Kris1228]

Heck i think 689 is great! But im working my way up still....lol..... I think what the other poster meant is 689 is low for penfed...I think they are more "Prime" of Credit Union and want to see scores above. 700.... Not that your score is too low.. But i would call for sure...I would also search penfed and read through some threads to see who got approved for what and with what scores.....

Message Edited by Kris1228 on 07-15-2008 12:43 PM

[desifink]

I wasn't dissing your 689 - it's a pretty decent score. But some CCs are pickier than others and from what I've heard Penfed can be among the picky. Like I said though their CS is wonderful so a phone call might help you a lot.

[smallfry]

689 is not the problem. Recon and get a better idea.

[jmbfl]

689 is fine with PenFed. I received a $10K CC from them with a similar score. Check your CR's for problems. Also, PenFed does not like recent inquiries or new credit. Your high mortgage payment may well be what is putting them off. It is not the score that sets them off - it is something else that we don't have completely figured out. If they think you have enough credit you will not get from them.

PenFed does not do joint applications or consider HH income. Only the applicant's and they may ask for proof of some people. Their CSR's are very nice. Give them a call and see what you can find out.

[gary4872]

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jmbfl wrote:

PenFed does not do joint applications or consider HH income. Only the applicant's and they may ask for proof of some people. Their CSR's are very nice. Give them a call and see what you can find out.

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That is incorrect. They do joint CC applications if the share account is joint or if both people have a share account.

Message Edited by gary4872 on 07-16-2008 10:39 AM

[Geordi]

Penfed is known to be very picky concerning DTI. I suggest that you call them, but I am almost certain that they are concerned with the amount of your mortgage payment.

Just my 2 cents. GL