topic Re: First Declined Application in Credit Card Applications

First Declined Application

IFtkkdx428 — Thu, 04 Oct 2018 00:57:54 GMT

Hello myFICO members,

I applied for the Lowe’s Advantage Card on 9/23/2018. I thought I’d be a ‘shoo-in’ without a doubt. After submitting the application, I received the following message,

“Thank you for applying for the Lowe’s Advantage Card. You’ll receive a decision on your application within 7-10 days. If you have provided us with a valid email address, you may receive a response by email within 3-4 days.

Your application reference number is: XXXXXX”

This wasn’t quite the response I expected. So I combed through the myFICO forums and found that this message could be for verification purposes, etc.‭ I found a telephone number here on the forums and called (800) 444-0430‬

I spoke to a representative who claimed that I was declined for the Lowe’s Advantage Card. I asked the reason(s) for the decline but I was told that I must wait for a letter via mail that will explain in further detail. I said to the representative, “Are you sure? I have FICOs in the 770’s, I have excellent credit!” The representative could sense frustration and did seem to understand the concern.

After speaking with the representative, I began to worry if I accidentally left out a digit in the income field or something of that nature. I checked the mailbox daily until today, I see a piece of mail from Synchrony Bank. I open it up to find the one and only reason for the decline.

“NUMBER OF RECENT CREDIT REQUESTS”

I don’t understand. Synchrony Bank used only Experian for this decision. I have only 2 ‘hard pulls’ with Experian or “credit requests” as Synchrony Bank phrases it. Those “credit requests” before applying for the Lowe’s Advantage Card were:

Chase - 9/24/2018
Citibank - 9/11/2018

I certainly don’t believe 2 “ recent credit requests” are grounds for declining an application. I have searched the myFICO forums regarding this, but I don’t see if any members have had success in contacting Synchrony Bank after receiving their letter. In fact, I don’t see any members receiving this particular reason at all, with very few “credit requests” of course. Especially since most folks apply for the Lowe’s Advantage Card after obtaining a mortgage with likely several “credit requests” reporting.

I wanted the Lowe’s Advantage Card for 2 reasons. First, a week after applying for the Lowe’s Advantage Card I purchased nearly $6,000 of kitchen appliances and countertops. I was looking forward to the $300 cash back. I offered to purchase this for my mother, who has always paid me back if I offer assistance. I’ve done this multiple times in the past. The $300 would have returned more than it was earning in a high yield savings account over the course of 15 months. I would have paid it off before due date. I ended up using part of it for the Citi Bank Double Cash bonus and part of it for the Chase Sapphire Reserve bonus.

The second reason was that I plan to purchase a home sometime in the next 3-5 years. I see many members here who purchase a home and then apply for the Lowe’s Advantage Card and receive a low starting limit when it’s needed most. I decided it would be best to apply now, allow the Lowe’s Advantage Card to grow and take advantage of the benefits when I purchase a home in the distant future.

Regardless, in the nearly 5 years of credit experience I’ve had. Applying for (what would be) the 10th credit card, I wouldn’t have expected to be declined for the first time. Let alone, by Synchrony Bank.

So, is it possible at this point to be reconsidered for an approval? If not, what does Synchrony Bank favor in regards to “recent credit requests” to be able to receive an approval?

Except for inquiries, below does not include the Citi Bank Double Cash that was approved for $9,200 on 9/11/2018 and the Chase Sapphire Reserve that was approved for $29,900 on 9/24/2018

Age: 26
Annual Household Income: $100,000 Monthly Rent/Mortgage Payment: $0 TU FAKO (Provided by Credit Karma on (9/30/18): 798
TU FAKO (Provided by Capital One on 10/2/18): 798
TU FAKO (Provided by Chase on 10/3/2018): 798
EQ FAKO (Provided by Credit Karma on 9/30/18): 798
TU FICO Score 8 (Provided by Discover on 9/4/18): 769
EQ FICO Bankcard Score 02 (Provided by Huntington on 9/11/18): 776
EX FICO Score 8 (Provided by AMEX on 9/12/18): 776
EQ FICO Score NG 2 (Provided by PenFed on 9/11/18): 789

Credit Card Utilization Rate: 1% Percent of On Time Payments: 100%
On Time Payments: 334
Total Payments: 334
AAoA: 3 YR 11 MOS
Oldest Open Trade Line: 5 YRS 8 MOS
Newest Open Trade Line: 2 YRS 5 MOS
Total Accounts: 8
Total Credit Limit: $79,550
TU Inquiries: 1
Chase - 9/22/2018
EQ Inquiries: 1
PenFed - 3/12/2017
EX Inquiries: 3
Synchrony Bank - 9/24/2018
Chase - 9/24/2018
Citibank - 9/11/2018
Derogatory Marks: 0

Current Credit Cards

Capital One Quicksilver Mastercard
APR: 26.65%
Credit Limit: $6,250
Card issued: Jan/2013 Credit Card Utilization Rate: 16%

Chase Freedom Visa
APR: 20.74%
Credit Limit: $4,500
Card Issued: Jan/2014
Credit Card Utilization Rate: 0%

Barclaycard Rewards Mastercard
APR: 22.74%
Credit Limit: $7,100
Card Issued: July/2014
Credit Card Utilization Rate: 0%

American Express Blue Cash Everyday
APR: 17.74%
Credit Limit: $22,200
Card Issued: Nov/2014
Credit Card Utilization Rate: 0%

Huntington Voice World Mastercard
APR: 19.74%
Credit Limit: $3,500
Card Issued: Nov/2014
Credit Card Utilization Rate: 3%

Discover It
APR: 16.74%
Credit Limit: $28,500
Card Issued: May/2015
Credit Card Utilization Rate: 0%

PenFed Promise Visa
APR: 15.74%
Credit Limit: $7,500
Card Issued: June/2015
Credit Card Utilization Rate: 1%

Honda Financial
Lease
Opened: 4/30/2016
Term: 36 Months

Re: First Declined Application

Anonymous — Thu, 04 Oct 2018 01:04:08 GMT

Those apps were very new. They have considered it a spree.

Re: First Declined Application

Anonymous — Thu, 04 Oct 2018 01:08:57 GMT

Synchrony is a strange beast. They denied my SO for the exact same reason for the Marvel card, and she only had ONE inquiry on her report at the time. Go figure! Unfortunately, they do not recon, so the computer decision is final.

Re: First Declined Application

IFtkkdx428 — Thu, 04 Oct 2018 01:34:13 GMT

@Anonymous wrote:
Those apps were very new. They have considered it a spree.

Synchrony Bank may consider it a spree, but I certainly don't. The Lowe's Advantage Card was the product I applied for since June of 2015. Sure, they were all recent. Though I would expect Synchrony Bank's algorithm, software, underwriting standards, etc. to take notice that this isn't an 'spree' based on most recent opened account (credit card) was over 3 years ago (excluding lease from April 2016). I know you didn't set the standards of course. I'm only venting, that's what this sub forum is for, right?

@Anonymous wrote:
Synchrony is a strange beast. They denied my SO for the exact same reason for the Marvel card, and she only had ONE inquiry on her report at the time. Go figure! Unfortunately, they do not recon, so the computer decision is final.

"Strange beast" is a nice description for Synchrony Bank. Though likely the most appropriate description for this public forum. I could think of worse. Sorry they denied your loved one. I wasn't aware that Synchrony Bank does not permit reconsideration. Thank you for this information. Unfortunately, I have a plan currently underway. I will not allow Synchrony Bank to ruin this plan and Synchrony Bank will be likely 'left in the dust' for the time being. In fact, it may be a couple years before I decide to attempt this once more. Synchrony Bank's loss, but I understand it's not personal of course. I feel like I took a decline for the first time fairly well.

Nevertheless, hopefully others here can benefit from this thread. Which will allow them to understand Synchrony Bank's requirements to avoid their own decline in the future.

Re: First Declined Application

FinStar — Thu, 04 Oct 2018 02:14:31 GMT

The beauty about things in the credit world is you can try again. Their UW policies, their decision. Not the end of the world of course.

There may be other factors with your profile where their UW algorithms didn't score as well for an approval. Some individuals get approved, some do not.

Moreover, Synchrony doesn't reconsider system-declined applications, unfortunately.

Re: First Declined Application

NaaryalHead — Thu, 04 Oct 2018 02:24:23 GMT

I think 3 apps within a months time might have triggered the denial condition.

Computers can be pretty cold. I got booted off of discover just for checking the prequal page every few days until last week. Now i see a permanent "oops something went wrong with prequal really request" everytime.

I would just wait for about 3 months and then try applying again perhaps!

Re: First Declined Application

Medic981 — Thu, 04 Oct 2018 02:46:57 GMT

Wow! Last September I apped for three Synchrony cards within 2 weeks and was approved for all of them. Amazon Prime, Car Care, and Conoco. Synchrony is an odd duck!

Re: First Declined Application

aircobra — Thu, 04 Oct 2018 05:22:41 GMT

@Medic981 wrote:
Wow! Last September I apped for three Synchrony cards within 2 weeks and was approved for all of them. Amazon Prime, Car Care, and Conoco. Synchrony is an odd duck!

They are! I apped for Care Credit and Walmart on the same day and was approved for both.

Re: First Declined Application

SBR249 — Thu, 04 Oct 2018 11:49:20 GMT

OP:

While I agree that Sync has generally been considered a liberal lender on here and it may seem odd that you were declined with an excellent score and clean file have you checked your EX recently? I noticed that the most recent EX score you provided was the one from AmEx on 09/12/18. I'm not sure when in the monthly cycle AmEx updates their scores or how recent the data underlying that score is but it could be out of date by the time you applied for the Lowes card. Your Citi and Chase inquiries were 9/11 and 9/24 were around or after the AmEx score update. For a profile that hasn't had any inqs for several years, 2 inqs in quick succession can instantly drop your scores by a few points (I'm not sure how many but possibly 10-20pts). While 750 is still a very good score, I think the sudden buck in the trend there may have been a big factor in the denial.

Look at it this way. You are an automated UW algorithm. You get a profile. Nice and smooth for several years, no inqs, no new accounts, no derogs. Then all of a sudden, inqs 9/11, 9/24, and your app 9/24. If I was a programmer, that's just the sort of exception trigger that I would program into the system vs. someone who's added a new card or account every so often on a regular basis. I know you have no nefarious intentions, but the computer algorithm doesn't know that.

PS: if you want to check your updated EX scores, freecreditscore.com is a site that EX runs that gives you your FICO and report free along with free time alerts.

Re: First Declined Application

Brian_Earl_Spilner — Thu, 04 Oct 2018 12:02:53 GMT

@NaaryalHead wrote:
I think 3 apps within a months time might have triggered the denial condition.

Computers can be pretty cold. I got booted off of discover just for checking the prequal page every few days until last week. Now i see a permanent "oops something went wrong with prequal really request" everytime.

I would just wait for about 3 months and then try applying again perhaps!

You got booted because you have to wait 8 days from the last attempt. They won't check again. If you were able to go through it, it just the same info over and over until that 8 days passes.

Re: First Declined Application

IFtkkdx428 — Fri, 05 Oct 2018 00:39:40 GMT

@NaaryalHead wrote:
I think 3 apps within a months time might have triggered the denial condition.

Computers can be pretty cold. I got booted off of discover just for checking the prequal page every few days until last week. Now i see a permanent "oops something went wrong with prequal really request" everytime.

I would just wait for about 3 months and then try applying again perhaps!

In 3 months I may be in the same situation I'm in now. I began building credit 5 years and 8 months ago. Recently, I’m in the process of re-evaluating the current trade lines I have. There are a few reasons, being re-bucketing, better rewards, becoming more streamlined and re-organized in terms of the credit card aspect. Or simply “pruning” as another member called it. So I may or may not apply for more products in the not so distant future. I however won't halt any other products I want while waiting around for Synchrony Bank to approve me. When the time is right, I'll evaluate it with scrutiny. Though I'm not in a rush to reapply for the Lowe's Advantage Card. I'd be content with waiting another year.

@Medic981 wrote:
Wow! Last September I apped for three Synchrony cards within 2 weeks and was approved for all of them. Amazon Prime, Car Care, and Conoco. Synchrony is an odd duck!

Well, let's think about this here for a moment. If Synchrony Bank declined me due to "recent credit requests" then it's becoming more possible that it's because Synchrony Bank didn't know what came out of the Citi Bank and Chase Bank "credit requests." Unlike your situation, Synchrony Bank approved those because Synchrony Bank could likely 'conntect the dots' and recognize that you were approved or declined. Furthermore, if you were approved, what the starting credit limit was. I didn't have that luxury with Synchrony Bank. Hope that makes sense for you.

@SBR249 wrote:
OP:

While I agree that Sync has generally been considered a liberal lender on here and it may seem odd that you were declined with an excellent score and clean file have you checked your EX recently? I noticed that the most recent EX score you provided was the one from AmEx on 09/12/18. I'm not sure when in the monthly cycle AmEx updates their scores or how recent the data underlying that score is but it could be out of date by the time you applied for the Lowes card. Your Citi and Chase inquiries were 9/11 and 9/24 were around or after the AmEx score update. For a profile that hasn't had any inqs for several years, 2 inqs in quick succession can instantly drop your scores by a few points (I'm not sure how many but possibly 10-20pts). While 750 is still a very good score, I think the sudden buck in the trend there may have been a big factor in the denial.

Look at it this way. You are an automated UW algorithm. You get a profile. Nice and smooth for several years, no inqs, no new accounts, no derogs. Then all of a sudden, inqs 9/11, 9/24, and your app 9/24. If I was a programmer, that's just the sort of exception trigger that I would program into the system vs. someone who's added a new card or account every so often on a regular basis. I know you have no nefarious intentions, but the computer algorithm doesn't know that.

PS: if you want to check your updated EX scores, freecreditscore.com is a site that EX runs that gives you your FICO and report free along with free time alerts.

I have checked Experian recently. I'm also unsure of how often American Express updates the Experian FICO. I believe the thought that 2 inquires lower a FICO 10-20 points is a little extreme. I'd estimate 2 inquires would lower a FICO 6-10 points. I took your advice and created an account with freecreditscore.com On 10/4/2018, it provided a 775 FICO. freecreditscore.com does show 3 inquires that are reporting. Which means Experian FICO lowered 1 point since 9/12/2018. This could be due to any number of factors, like utilization. So I certainly went into the Lowe's Advantage Card with a "Very Good" (according to freecreditscore.com) Experian FICO. I will add, I appreciate the this resource. I will be using this regularly now.

I understand your logic regarding your "UW algorithm" there's no doubt about this. I still do believe that the the tool they use is a bit stringent. Though I feel as if Synchrony Bank should require a proof of the outcome of those inquiries to seek approval. This is very common for mortgages and other lending for large amounts. It's often called, "explanation of credit" or something similar. Who knows, maybe Synchrony Bank has considered this and the extra effort isn't worth it for them. Regardless, I likely should have completed research before applying. I do this with all products before I apply. Though I figured, it's a store card. Not necessary. I was wrong about that.

Re: First Declined Application

SBR249 — Fri, 05 Oct 2018 00:59:21 GMT

FICO is a strange beast. When I go a month without any balance reporting on any of my cards (because I'm bad at the AZEO) my scores drop 16pts. It's like clockwork. Has happened multiple times. Hard to predict how things can impact scores sometimes.

Re: First Declined Application

IFtkkdx428 — Fri, 05 Oct 2018 02:46:00 GMT

@SBR249 wrote:
FICO is a strange beast. When I go a month without any balance reporting on any of my cards (because I'm bad at the AZEO) my scores drop 16pts. It's like clockwork. Has happened multiple times. Hard to predict how things can impact scores sometimes.

Yes, too many 'gears' in the FICO moving at once. By the way, here's the proof from freecreditscore.com

Re: First Declined Application

Lemark — Thu, 08 Nov 2018 23:52:30 GMT

They were probably pulling a more indepth report than the stats shown since those are more up-to-date. On the freecreditscore experian site it somestimes gives $0 trial which pulls the latest report decision makers look at. Sometimes calling again and again could get you someone who understands or someone who gets tired of the calls and approves you like what happened for my BOA TR. I called probably 4 times a week till someone put note in system that when I call again to approve within the 30 days. All the best!