topic Re: USAA Rewards CC Denial in Credit Card Applications

USAA Rewards CC Denial

RJCE — Sat, 05 Aug 2017 00:20:34 GMT

I applied for the USAA Rewards credit card this morning. I received the 7-10 days letter thing meaning I was denied. My EQ FICO score is 775. I know they pull EQ. The only thing I can think of why they denied me is that I have 5 inquires. Of the 5, four are from over a year ago (2 in Feb 2016) & (2 in Aug 2016). Maybe short credit credit history. My AAOA is 2 1/2 years. Oddly enough I was just approved for the Veture Card two weeks ago.

Re: USAA Rewards CC Denial

Anonymous — Sat, 05 Aug 2017 01:40:40 GMT

Sorry to hear about the denial. I suggest you wait for the denial letter and see what the reason is, plan a course of action and then give them a call to see if they will rescind the decision. Should you do that, update the thread...

Re: USAA Rewards CC Denial

Gmood1 — Sat, 05 Aug 2017 02:11:18 GMT

Sorry for your denial. None of those should have been a factor. I've had 18 or 19 inqs on average when apping for a card or CLI with USAA. My AAoA is less than yours and my EQ FICO 8 score is lower than yours. I've never been denied by them. Something doesn't seem right. As suggested wait for letter and find out what's going on. Hopefully it's a mistake on their part.

Re: USAA Rewards CC Denial

AverageJoesCredit — Sat, 05 Aug 2017 12:57:20 GMT

Sounds to me like a good profile. Like stated wait for the letter to see why they denied. Itll be interesting the reason for dure.

Re: USAA Rewards CC Denial

RJCE — Thu, 10 Aug 2017 12:22:50 GMT

Received my denial letter. I was right about AAOA and too many inquiries. But I guess the big deal is there's a $30 paid collection from 2013 (didn't even know about it until it showed up on credit reports). Also, Equifax uses FICO score 5 model instead of the 8 model. My FICO 5 score is only 701. Guess I'll have to wait for the paid collection to fall off. USAA seems to be the only bank holding this against me.

Re: USAA Rewards CC Denial

Gmood1 — Thu, 10 Aug 2017 13:03:10 GMT

@RJCE wrote:
Received my denial letter. I was right about AAOA and too many inquiries. But I guess the big deal is there's a $30 paid collection from 2013 (didn't even know about it until it showed up on credit reports). Also, Equifax uses FICO score 5 model instead of the 8 model. My FICO 5 score is only 701. Guess I'll have to wait for the paid collection to fall off. USAA seems to be the only bank holding this against me.

Yup the $30 paid collection is the culprit. Your Inqs and AAoA were never the issue. They always list those reasons on the denials or approvals. It's just standard wording on most lenders adverse notices. I knew they were picky. Didn't realize they were that picky.

Re: USAA Rewards CC Denial

Anonymous — Fri, 11 Aug 2017 00:19:25 GMT

@Gmood1 wrote:
@RJCE wrote:
Received my denial letter. I was right about AAOA and too many inquiries. But I guess the big deal is there's a $30 paid collection from 2013 (didn't even know about it until it showed up on credit reports). Also, Equifax uses FICO score 5 model instead of the 8 model. My FICO 5 score is only 701. Guess I'll have to wait for the paid collection to fall off. USAA seems to be the only bank holding this against me.
Yup the $30 paid collection is the culprit. Your Inqs and AAoA were never the issue. They always list those reasons on the denials or approvals. It's just standard wording on most lenders adverse notices. I knew they were picky. Didn't realize they were that picky.

I highly doubt a 4 year old 30 dollar paid collection is the reason for the denial.

Re: USAA Rewards CC Denial

Gmood1 — Fri, 11 Aug 2017 00:59:10 GMT

@Anonymous wrote:
@Gmood1 wrote:
@RJCE wrote:
Received my denial letter. I was right about AAOA and too many inquiries. But I guess the big deal is there's a $30 paid collection from 2013 (didn't even know about it until it showed up on credit reports). Also, Equifax uses FICO score 5 model instead of the 8 model. My FICO 5 score is only 701. Guess I'll have to wait for the paid collection to fall off. USAA seems to be the only bank holding this against me.
Yup the $30 paid collection is the culprit. Your Inqs and AAoA were never the issue. They always list those reasons on the denials or approvals. It's just standard wording on most lenders adverse notices. I knew they were picky. Didn't realize they were that picky.
I highly doubt a 4 year old 30 dollar paid collection is the reason for the denial.

What else could it be? 1 inq within a year? That doesn't make any sense. The collection is the only thing reporting negative on the file. 2 years AAoA definetly isn't it. Step daughter got a USAA card with 6 months of AU history reporting. She had zero of her own credit history when she applied.

Re: USAA Rewards CC Denial

Anonymous — Fri, 11 Aug 2017 02:26:44 GMT

@Gmood1 wrote:
@Anonymous wrote:
@Gmood1 wrote:
@RJCE wrote:
Received my denial letter. I was right about AAOA and too many inquiries. But I guess the big deal is there's a $30 paid collection from 2013 (didn't even know about it until it showed up on credit reports). Also, Equifax uses FICO score 5 model instead of the 8 model. My FICO 5 score is only 701. Guess I'll have to wait for the paid collection to fall off. USAA seems to be the only bank holding this against me.
Yup the $30 paid collection is the culprit. Your Inqs and AAoA were never the issue. They always list those reasons on the denials or approvals. It's just standard wording on most lenders adverse notices. I knew they were picky. Didn't realize they were that picky.
I highly doubt a 4 year old 30 dollar paid collection is the reason for the denial.

What else could it be? 1 inq within a year? That doesn't make any sense. The collection is the only thing reporting negative on the file. 2 years AAoA definetly isn't it. Step daughter got a USAA card with 6 months of AU history reporting. She had zero of her own credit history when she applied.

Could be low income. High Utilization. High debt to income. Renter with short history at current location. Who knows it could be tons of things.. Back before my downfall l I had a 100 dollar unsettled collection on my credit report for years. It affected me 0 percent. USAA gave me auto loan after auto loan at their lowest rate, motorcycle loan, second mortgage. Credit card with 16k limit at very low interest.

Re: USAA Rewards CC Denial

Gmood1 — Fri, 11 Aug 2017 03:01:13 GMT

@Anonymous wrote:
@Gmood1 wrote:
@Anonymous wrote:
@Gmood1 wrote:
@RJCE wrote:
Received my denial letter. I was right about AAOA and too many inquiries. But I guess the big deal is there's a $30 paid collection from 2013 (didn't even know about it until it showed up on credit reports). Also, Equifax uses FICO score 5 model instead of the 8 model. My FICO 5 score is only 701. Guess I'll have to wait for the paid collection to fall off. USAA seems to be the only bank holding this against me.
Yup the $30 paid collection is the culprit. Your Inqs and AAoA were never the issue. They always list those reasons on the denials or approvals. It's just standard wording on most lenders adverse notices. I knew they were picky. Didn't realize they were that picky.
I highly doubt a 4 year old 30 dollar paid collection is the reason for the denial.

What else could it be? 1 inq within a year? That doesn't make any sense. The collection is the only thing reporting negative on the file. 2 years AAoA definetly isn't it. Step daughter got a USAA card with 6 months of AU history reporting. She had zero of her own credit history when she applied.
Could be low income. High Utilization. High debt to income. Renter with short history at current location. Who knows it could be tons of things.. Back before my downfall l I had a 100 dollar unsettled collection on my credit report for years. It affected me 0 percent. USAA gave me auto loan after auto loan at their lowest rate, motorcycle loan, second mortgage. Credit card with 16k limit at very low interest.

This is the second member I've seen post recently they were denied by USAA with a collection reporting. USAA may be tightening up a bit.

Yeah, I had a $100,000 plus default reporting on my EQ and TU when I got my first card with USAA two years ago. That's why I'm scratching my head at some of these denials. The default was with Citi and they even gave me a CC around the same time. Lol

I don't get it.

Re: USAA Rewards CC Denial

Credit-hoarder — Fri, 11 Aug 2017 04:52:05 GMT

I had 5 paid judgements showing when they gave me my first card with them and my highest limit at the time back in 2013.

Re: USAA Rewards CC Denial

Anonymous — Fri, 11 Aug 2017 20:03:09 GMT

@Gmood1 wrote:
@Anonymous wrote:
@Gmood1 wrote:
@Anonymous wrote:
@Gmood1 wrote:
@RJCE wrote:
Received my denial letter. I was right about AAOA and too many inquiries. But I guess the big deal is there's a $30 paid collection from 2013 (didn't even know about it until it showed up on credit reports). Also, Equifax uses FICO score 5 model instead of the 8 model. My FICO 5 score is only 701. Guess I'll have to wait for the paid collection to fall off. USAA seems to be the only bank holding this against me.
Yup the $30 paid collection is the culprit. Your Inqs and AAoA were never the issue. They always list those reasons on the denials or approvals. It's just standard wording on most lenders adverse notices. I knew they were picky. Didn't realize they were that picky.
I highly doubt a 4 year old 30 dollar paid collection is the reason for the denial.

What else could it be? 1 inq within a year? That doesn't make any sense. The collection is the only thing reporting negative on the file. 2 years AAoA definetly isn't it. Step daughter got a USAA card with 6 months of AU history reporting. She had zero of her own credit history when she applied.
Could be low income. High Utilization. High debt to income. Renter with short history at current location. Who knows it could be tons of things.. Back before my downfall l I had a 100 dollar unsettled collection on my credit report for years. It affected me 0 percent. USAA gave me auto loan after auto loan at their lowest rate, motorcycle loan, second mortgage. Credit card with 16k limit at very low interest.
This is the second member I've seen post recently they were denied by USAA with a collection reporting. USAA may be tightening up a bit.

Yeah, I had a $100,000 plus default reporting on my EQ and TU when I got my first card with USAA two years ago. That's why I'm scratching my head at some of these denials. The default was with Citi and they even gave me a CC around the same time. Lol
I don't get it.

I think if you have high income, own your home, and very low debts they don't seemed too concerned about baddies when deciding to approve you. It is hard to go bankrupt if you don't have debt and have a high income.

Re: USAA Rewards CC Denial

RJCE — Fri, 11 Aug 2017 20:30:52 GMT

I make over $42K per year. My utilization is 8%. I've live in my home for 10 years. My mortgage payment is only $548 per month. I've been banking with USAA for over 5 years with checking and savings accounts. Not sure what else it could be. Don't they have to list the denial reasons on the denial letter? Shouldn't the denial letter include whatever else the issue is in addition to those three things listed in the letter?

Re: USAA Rewards CC Denial

Anonymous — Sun, 13 Aug 2017 05:38:27 GMT

Maybe the real reason for the denial is your income.

Re: USAA Rewards CC Denial

Gmood1 — Sun, 13 Aug 2017 10:13:50 GMT

@Anonymous wrote:
Maybe the real reason for the denial is your income.

Unlikely, if scores are good and DTI is good. I've seen members denied with income of $400k plus from places like Navy Federal or receive $500 starting limits with 700 scores. The income part isn't as important as having a strong/diverse/active file IME or opinion.

Re: USAA Rewards CC Denial

Anonymous — Sun, 13 Aug 2017 23:22:16 GMT

@Gmood1 wrote:
@Anonymous wrote:
Maybe the real reason for the denial is your income.
Unlikely, if scores are good and DTI is good. I've seen members denied with income of $400k plus from places like Navy Federal or receive $500 starting limits with 700 scores. The income part isn't as important as having a strong/diverse/active file IME or opinion.

If you make 42k and have mortgage, auto loan and credit card balances how much money are they going to make off of you? I am sure income has a big influence on whether you get approved for rewards cards. Also with high income you can't declare chapter 7.

Re: USAA Rewards CC Denial

Gmood1 — Mon, 14 Aug 2017 15:16:54 GMT

@Anonymous wrote:
@Gmood1 wrote:
@Anonymous wrote:
Maybe the real reason for the denial is your income.
Unlikely, if scores are good and DTI is good. I've seen members denied with income of $400k plus from places like Navy Federal or receive $500 starting limits with 700 scores. The income part isn't as important as having a strong/diverse/active file IME or opinion.
If you make 42k and have mortgage, auto loan and credit card balances how much money are they going to make off of you? I am sure income has a big influence on whether you get approved for rewards cards. Also with high income you can't declare chapter 7.

You clearly haven't been paying attention to those in this forum with rewards cards out the wazoo. Lol

Not everyone here including myself earn six figures a year. Like I said before, there's more to it than what you believe. Having a high income doesn't automatically anoint you an expert at managing money or credit. OP shouldn't have issues getting the majority of the cards he/she wants. If a person doesn't use their cards regardless of income. The banks aren't earning anything off of them.. which in turn makes them less desirable. Here we use our cards for everything! My CRs get lit up on a monthly bases with sometimes up to 15 accounts reporting balances. They know this household uses the heck out of CCs. Lol