topic Re: BCU approved - Low limit in Credit Card Approvals

BCU approved - Low limit

RootDet — Fri, 23 Jun 2023 03:09:34 GMT

Howdy,

I thought i would try my luck with BCU. I got approved for $5,000, which is very low. TU score was 810. UTIL 1% ($7k), 2/12 inq, 3/12 new accounts using days method, 6/12 new accounts by month method. .

I emailed and asked for a review; otherwise, I don't know if I will accept the $5k. It would not fit my spending at all. Probaly should have done it by phone where one gets much better luck it seems.

Re: BCU approved - Low limit

CreditCuriosity — Fri, 23 Jun 2023 03:25:24 GMT

Least an approval although appears they might be reigning in applications through that organization now by a bit more conservative credit lines. As mentioned they have plenty of money and give out monster CL's well above 100k for people that need them as no real set limit what they will give, but obviously many factors in that. I think talking was the right way to go although a few did get 25k from online applications, but appears most people such as myself that got the 35k limit was over the phone as asked only for 25k, but given 35k when got done with POI without asking. Tempted to go for travel rewards card to see if could land another 35k, but need that like I need a hole in my head as nearing 800k in personal credit currently.

Good luck on your reconsideration.

Re: BCU approved - Low limit

RootDet — Fri, 23 Jun 2023 03:33:00 GMT

Yea i need the card like a hole in the head too. I was just rounding off from what I lost with blockfi/aspiration closings.

Seems like I am always late to the party. happened at AOD too.

Re: BCU approved - Low limit

FireMedic1 — Fri, 23 Jun 2023 10:42:38 GMT

Congrats and welcome to the $5000 club.

Re: BCU approved - Low limit

Creditwiser — Fri, 23 Jun 2023 12:24:46 GMT

Congrats on your BCU approval !

Re: BCU approved - Low limit

BigBS — Fri, 23 Jun 2023 12:44:36 GMT

Congrats!

Re: BCU approved - Low limit

Janneman — Fri, 23 Jun 2023 13:12:02 GMT

@RootDet wrote:
Howdy,

I thought i would try my luck with BCU. I got approved for $5,000, which is very low. TU score was 810. UTIL 1% ($7k), 2/12 inq, 3/12 new accounts using days method, 6/12 new accounts by month method. .

I emailed and asked for a review; otherwise, I don't know if I will accept the $5k. It would not fit my spending at all. Probaly should have done it by phone where one gets much better luck it seems.

Read one of my postings on Credit Application section wherein I mentioned exactly same situation of my friend who got the same limit you got despite of having more higher score and she has not applied or obtained any card in one and half year...This is the lowest limit she got in 23 years...She did contact her DR and requested underwriter to review her application for a higher CL but they refused. I think FOTM took over on them now....

Re: BCU approved - Low limit

Janneman — Fri, 23 Jun 2023 13:16:50 GMT

@RootDet wrote:
Yea i need the card like a hole in the head too. I was just rounding off from what I lost with blockfi/aspiration closings.

Seems like I am always late to the party. happened at AOD too.

That's why I am not applying for this card now because I am late to the party, and now they have lowered CL in most cases like PSCU did from $50k to now $20k max on credit card and $10 on PLOC.

Re: BCU approved - Low limit

bigpoppa09 — Fri, 23 Jun 2023 14:23:07 GMT

Congrats OP

Re: BCU approved - Low limit

Jccflat — Fri, 23 Jun 2023 19:34:19 GMT

i was planing to app also.

did the memebership a few days ago and i was approved instenly ,

was planing go for the visa soon but don't wanna the 5k all my cards are above 25k

am i late to the party ? if i do give a try better is on the phone

Re: BCU approved - Low limit

CreditCuriosity — Fri, 23 Jun 2023 21:31:51 GMT

@Jccflat wrote:
i was planing to app also.
did the memebership a few days ago and i was approved instenly ,
was planing go for the visa soon but don't wanna the 5k all my cards are above 25k
am i late to the party ? if i do give a try better is on the phone

Do some reading as there are many DP's on the forum now, do some lifting yourself.. Yes most people fair better on the phone. You can always deny card if you don't get the 25k like any CU I believe

Re: BCU approved - Low limit

RootDet — Fri, 23 Jun 2023 21:40:29 GMT

They tried calling me while driving. Said 5k was the max due to "exposure". Sounds like a card that will never grow with that kind of wording.

Re: BCU approved - Low limit

alextercero — Sat, 24 Jun 2023 14:29:41 GMT

Congrats on the approval

Re: BCU approved - Low limit

Aim_High — Sat, 24 Jun 2023 21:03:57 GMT

@RootDet wrote:
They tried calling me while driving. Said 5k was the max due to "exposure". Sounds like a card that will never grow with that kind of wording.

Congrats on your approval, @RootDet, although it was disappointing. Just curious about the "exposure" comment but would you be willing to share anything about reported income ratio relative to current Total Credit Limits or Debt-to-Income? I'm just reading some posts about BCU and trying to see any trends relative to their underwriting. Thanks!

Re: BCU approved - Low limit

RootDet — Sat, 24 Jun 2023 21:30:11 GMT

My exposure is about 7.5x my income, around $1 million

Re: BCU approved - Low limit

Catbird_Seat — Sun, 25 Jun 2023 01:00:40 GMT

@RootDet wrote:
My exposure is about 7.5x my income, around $1 million

Interesting DP, it appears that to BCU, if someone already has a certain level of available CLs, they will mitigate their risk to further exposure.

Re: BCU approved - Low limit

Aim_High — Sun, 25 Jun 2023 01:14:08 GMT

@Catbird_Seat wrote:
@RootDet wrote:
My exposure is about 7.5x my income, around $1 million
Interesting DP, it appears that to BCU, if someone already has a certain level of available CLs, they will mitigate their risk to further exposure.

Exactly. That's a pretty high ratio and (some) credit unions are known to be more sensitive to TCL exposure. That specific data point is good to know.

Re: BCU approved - Low limit

Janneman — Sun, 25 Jun 2023 01:47:45 GMT

@Catbird_Seat wrote:
@RootDet wrote:
My exposure is about 7.5x my income, around $1 million

Interesting DP, it appears that to BCU, if someone already has a certain level of available CLs, they will mitigate their risk to further exposure.

Actually, there is no any concrete, solid or valid datapoint to suggest that those who have total available CL very high would not gonna get more than $5k unless BCU lately changed to this, otherwise there are many members on here who have tons of accounts and too much total available credit and they got $35k or even more...but it could be possible that BCU might have changed their criteria lately like a week or so ago....Until something concrete data is established, I would tend to believe that -(1) BCU most probably would extend only $5k at most; (2) you might have some better odd to get a higher CL if you would submit the application with the DR over the phone (no 100% guarantee, though). This CU is changed now like most do once they get bombardment of applications....I am also late to the party....

Re: BCU approved - Low limit

Aim_High — Sun, 25 Jun 2023 02:43:28 GMT

@Janneman wrote:

Actually, there is no any concrete, solid or valid datapoint to suggest that those who have total available CL very high would not gonna get more than $5k unless BCU lately changed to this, otherwise there are many members on here who have tons of accounts and too much total available credit and they got $35k or even more

...but it could be possible that BCU might have changed their criteria lately like a week or so ago....Until something concrete data is established, I would tend to believe that -(1) BCU most probably would extend only $5k at most; (2) you might have some better odd to get a higher CL if you would submit the application with the DR over the phone (no 100% guarantee, though). This CU is changed now like most do once they get bombardment of applications....I am also late to the party....

Two points and issues at play here, @Janneman.

Your second point may be correct in that BCU (might) have changed underwriting criteria if they were getting a flood of applicants due to My FICO "FOTM." Still, I think this is unlikely since we are such a small population and this isn't anything akin to what we've seen with other FOTM cards that led to dozens (if not more) applications per week via the forum, such as happened with AOD FCU.

The first point invokes a common misperception on My FICO and makes this a great time to revisit. From a psychological standpoint, it's human nature to assume others are like us and to be more cognizant of similarities. On My FICO, we get to see only a glimpse of each other's credit profile factors (but never as much as a lender will see and evaluate), so it's difficult if not dangerous to make a generous comparison of ourselves to others. We have a LOT of variations in profile that aren't obvious on the surface. So to say that someone else has a lot of credit available without knowing those other factors misses important data that a lender will consider. Someone might say, well MEMBER A has TCL of $500K and I've got $500K; why did HE get a $35K approval and I got $5K? Perhaps MEMBER A has income of $1.5 Million per year and I've got $100K, so my ratio is 5x income while his is 0.5x income. Or perhaps my debts are high since I just purchased a house and two cars and have student loan debt while he is debt-free? Or perhaps my credit file is five years old while his is thirty years old?

The data point that brought up this discussion was Rootdet's disclosure that the CU rep said $5K was the maximum available due to "exposure" - which means available credit exposure they were comfortable extending based on *his* overall credit factors at the time of application. So it could have been that nothing has changed in underwriting at-this-time, but Rootdet's exposure was the only thing holding back a higher limit. On the other hand, if we continue to see a pattern over time of lowering BCU approvals, it's possible that their underwriters lowered the "exposure" bar to lower overall SLs and approvals.

Re: BCU approved - Low limit

RootDet — Wed, 28 Jun 2023 02:14:32 GMT

They called me back today (played tag on friday) from the loan department. In this discussion they cited that my credit score was high enough (over 800), I had low DTI, low balances, low DTI, and sufficient income.

They reviewed my credit request with 2 underwriters and the manager to see if they would nudge above the $5k.

At the end of the day they were skittch for two reasons

1) being a new member

2) having high available credit exposure.

It does not sound like they are afraid of the exposure, and actualy basicly hinted that more would be available in 12 months. It litterly sounded as-if they being a new member was more or less the problemas he kept saying to "build history" with BCU.

Remember with Navy FCU, the max credit limits available tend to mvoe based on time wiht the credit union. nobody starts out with $80k it seems, it is a slow train ride there. I think they are going down this road, more or less after the surge of applications. See who sticks around and uses them kind of thing. It is unknown if they will factor depository actiivty in "history" or not, he was pretty vague.

The gentlemen also informed me that in Q4/Q1 they auto review for credit line increases, usually $500-$5k.

In terms of @Aim_High suspicious he is indeed right. However I do think we have been getting enough reports in the past 1-2 weeks indicating $5-8k is liking the new approval amount at this time. But that is subjective as well. Time will indeed tell.