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NFCU CLOC Denied due to DTI

Regular Contributor

NFCU CLOC Denied due to DTI

Hello! 

   I have been with NFCU for a month or so and now that my EQ scores have improved, I decided to app for the CLOC. I first asked for the full $15k and was denied. I then asked them to reconsider at $5k and asked for a counter if possible. It then came back denied due to DTI. With only my income included, I make $2.8k per month and the only monthly obligation shown on my credit report, due to all of my cards currently reporting at $0, is my Nissan lease which is $409 per month. I asked them to again reconsider but I am not understanding why I am being denied due to DTI and not my score, etc. Has anyone else had a similar denial that can possibly shed some light? 

 

 

Thanks! 

Message 1 of 19
18 REPLIES
Regular Contributor

Re: NFCU CLOC Denied due to DTI

Do you have closed accounts with balances, chargeoffs, or rent that you anwsered on your application?  All this is calculated in DTI.

FICO 8 Scores 02/21/2017 EQ 593, TU 584 EX 602 -- 06/21/2017 - EQ 632, TU 652, EX 656
Message 2 of 19
Regular Contributor

Re: NFCU CLOC Denied due to DTI

I apologize, I do have rent included at $745 per month. There is also one unpaid charge off at $425. 

Message 3 of 19
Regular Contributor

Re: NFCU CLOC Denied due to DTI

So lets do the math.

$2800 of income

Debt: $409 Auto, $745 Rent, CO $425 = $1579

DTI = 56.3%

This is high, you should work on paying down the charge off until it is 0. This will at least get you down to 41%, but not too sure how to get it lower. You will need to analyze your income and spending and figure that out. You can also keep rebuilding till your scores are higher then your DTI may have less of an effect.

FICO 8 Scores 02/21/2017 EQ 593, TU 584 EX 602 -- 06/21/2017 - EQ 632, TU 652, EX 656
Message 4 of 19
Established Contributor

Re: NFCU CLOC Denied due to DTI

Are COs really counted in DTI? That seems unfair since that $425 is not a monthly amount.



EX 759, TU 764, EQ 743
|| NFCU CashRewards $16.5K || Discover IT $7.5K || NFCU Platinum $7.5K || Macy's $7.5K || CitiCostco $5.5K || Chase $5K || CitiDC $4.8K ||
Message 5 of 19
Regular Contributor

Re: NFCU CLOC Denied due to DTI

Sorry to hear this and i have no reason why your being denied, I have a car judgement from 2012 for 6400, and 1 collection, dti out of this roof, and I went from 500, 5000, and just recently to 10000, I make about 2800 a month, but the only thing I put 400 for rent since my gf is responsible for the other 400, multiple multiple accounts and high utilization, I know this don't help you but at least you can get a feel for what i have. Do you have any other things with them, I have a auto loan and a secured card ?

Message 6 of 19
Regular Contributor

Re: NFCU CLOC Denied due to DTI

I have a gorewards card that I have heavily used and paid right off. It's only been open a month though. I did submit an appeal stating my monthly obligations seem to be showing to them more than they are showing to me so we'll see how that goes. I asked for a counter and I feel that the CSR didn't even advise that I wanted a counter. Also, they wouldn't let me put half of the rent because I am in the lease so therefore if my wife stops paying I have to pay.
Message 7 of 19
Super Contributor

Re: NFCU CLOC Denied due to DTI

This Dti is exactly why i dont think ill ever get anything from the 2 big CU's. I make less with no car payment or house, thankfully but everyday expenses and bills will probably keep me high. No Cloc for me. I hope one day they reconsider for you. This is why i would like more people to stress this part of their approvals becsuse when you see someone getting a 15k cloc or 24k cc, what you dont see is that person usually has a high income and low dti, scores are secondary to Navy. How else to explain people with 500 scores getting good approvsls while people with good credit getting basically nothing. Maybe in time OP theyll reconsiderSmiley Happy
Message 8 of 19
Frequent Contributor

Re: NFCU CLOC Denied due to DTI

skighler1 wrote:

Hello! 

   I have been with NFCU for a month or so and now that my EQ scores have improved, I decided to app for the CLOC. I first asked for the full $15k and was denied. I then asked them to reconsider at $5k and asked for a counter if possible. It then came back denied due to DTI. With only my income included, I make $2.8k per month and the only monthly obligation shown on my credit report, due to all of my cards currently reporting at $0, is my Nissan lease which is $409 per month. I asked them to again reconsider but I am not understanding why I am being denied due to DTI and not my score, etc. Has anyone else had a similar denial that can possibly shed some light? 

 

 

Thanks! 


Sorry skighler...   i know how you feel i was denied a CLOC from them as well.  I still have a low score and income, but my DTI is 22%.   not sure what they are looking for in that respect to a CLOC seeing as how they gave me an instant app for a cash rewards card (albeit low SL)


Starting Score: TU 504 EQ 525 EX 535 (4-4-17)
Current Score: TU 628 EQ 632 EX 640 & EQ9 695
Goal: 680 then 800 club across the board
Inquiries: over character limit
Cap1 I Disc I NFCU l Amex I Penfed
Message 9 of 19
Frequent Contributor

Re: NFCU CLOC Denied due to DTI


AverageJoesCredit wrote:
This Dti is exactly why i dont think ill ever get anything from the 2 big CU's. I make less with no car payment or house, thankfully but everyday expenses and bills will probably keep me high. No Cloc for me. I hope one day they reconsider for you. This is why i would like more people to stress this part of their approvals becsuse when you see someone getting a 15k cloc or 24k cc, what you dont see is that person usually has a high income and low dti, scores are secondary to Navy. How else to explain people with 500 scores getting good approvals while people with good credit getting basically nothing. Maybe in time OP theyll reconsiderSmiley Happy

I am patient zero for that one.. Smiley Happy  low score but good DTI and i got a cash rewards card no problem.


Starting Score: TU 504 EQ 525 EX 535 (4-4-17)
Current Score: TU 628 EQ 632 EX 640 & EQ9 695
Goal: 680 then 800 club across the board
Inquiries: over character limit
Cap1 I Disc I NFCU l Amex I Penfed
Message 10 of 19