topic Re: Application response confusion in Credit Card Applications

Application response confusion

Rockysocks — Mon, 09 Mar 2020 19:50:13 GMT

I just applied for a card that pulled Experian (EX2), and the response I received was that I have "escalated unsecure debt". What exactly does this mean? Is this something that AZEO would help with? My Experian Fico 8 Is 767 and Fico 9 is about 10 points higher. Besides the one I just got, Experian shows 1 hard inquiry in the last 12 months. My credit card utilization is less than 5% and my cards are paid in full monthly. Experian has 15 credit card accounts reported, although only 6 have balances. I have two car loans, although my car is nearly paid off. The one I'm cosigned on is about 20% paid off. I have a mortgage that's about 10% paid off (not including the down payment). I have student loans, but Experian's website has them reported as paid. I'm not sure what I could improve.

Re: Application response confusion

Remedios — Mon, 09 Mar 2020 19:47:02 GMT

While I see you pay them off every month, what were their balances and limits at the time of application

Re: Application response confusion

Anonymous — Mon, 09 Mar 2020 19:49:53 GMT

@Rockysocks wrote:
... the response I received was that I have "escalated unsecure debt" ...

I'd interpret "escalated" to mean "increasing." Has your unsecured debt increased or decreased the last 3, 6, 12 months?

Sorry about the decline -- there's a lot of lender fish in the sea.

Re: Application response confusion

Rockysocks — Mon, 09 Mar 2020 21:26:14 GMT

*I added more info in my initial post that might help.*

To answer your replies, over the last 6 months, my debt has overall reported as declined. A credit card of about $2,000 was paid off and reported as $0, my car loan has been paid monthly as well as a $3,000 principal reduction payment. I've acquired around $5,000 in student loans, but Experian's website has them listed as paid, closed with exceptional payment history.

Regarding my six cards with reported balances, they are as follows with the format of:

Reported balance-card limit-utilization%

$3-$1500-<1%

$7-$2500-<1%

$15-$3500-<1%

$74-$7600-<1%

$139-$2500-5%

$521-$6000-8%

Re: Application response confusion

Remedios — Mon, 09 Mar 2020 21:55:26 GMT

That's crazy.

I wonder if they got fussy because all cards are reporting balances, albeit small ones.

May I ask which card did you apply for?

Re: Application response confusion

AllZero — Mon, 09 Mar 2020 22:02:10 GMT

Was it a Credit Union application?

They may be sensitive to income, DTI ratio.

Your individual and aggregate utilization is not egregious.

Have you tried reconsideration?

Re: Application response confusion

AllZero — Mon, 09 Mar 2020 22:08:54 GMT

In addition, reads like they don't like pyramiding debt.e.g. PenFed.

Re: Application response confusion

Bankrupt2019 — Mon, 09 Mar 2020 22:12:57 GMT

@AllZero wrote:
In addition, reads like they don't like pyramiding debt.e.g. PenFed.

🤣😂🤣😂 not even $1000 in revolving debt, c'mon that's just an insane denial.

Re: Application response confusion

AllZero — Mon, 09 Mar 2020 22:25:14 GMT

@Bankrupt2019 wrote:

@AllZero wrote:
In addition, reads like they don't like pyramiding debt.e.g. PenFed.
🤣😂🤣😂 not even $1000 in revolving debt, c'mon that's just an insane denial.

I agree. Their computer algorithm is sensitive.

https://ficoforums.myfico.com/t5/General-Credit-Topics/What-is-pyramiding-debt-or-credit/m-p/1659468/highlight/true#M167253

Re: Application response confusion

Rockysocks — Tue, 10 Mar 2020 00:06:36 GMT

Only 6 of my 15 cards reported by Experian are showing use, not all of them. It was an application for a rewards card from USAlliance, a credit union's card that recently got some buzz in the main credit card forum. I asked to speak to underwriting, but the rep didn't transfer me as if it wasn't an option and just said "escalated debt". I'm not sure how they would have thought I'm pyramiding my debt. I don't have much card debt at all lol. The only thing I guess I have going against me is that my income is $35,000, but all of my debt is within my limits. I'm lost.

Re: Application response confusion

AllZero — Mon, 09 Mar 2020 23:17:56 GMT

@Rockysocks wrote:
Only 6 of my 15 cards reported by Experian are reporting use, not all of them. It was an application for a rewards card from USAlliance, a credit union's card that recently got some buzz in the main credit card forum. I asked to speak to underwriting, but the rep didn't and just said "escalated debt". I'm not sure how they would have thought I'm pyramiding my debt. I don't have much card debt at all lol. The only thing I guess I have going against me is that my income is $35,000, but all of my debt is within my limits. I'm lost.

Has your total credit lines exceeded your income? Maybe they are sensitive to that?

Re: Application response confusion

Rockysocks — Tue, 10 Mar 2020 00:18:01 GMT

Yes, my total available credit reported on Experian is about $65,000. Would that be the reason they said no? Does that fall under "escalated unsecure debt"?

Re: Application response confusion

seattletravels — Tue, 10 Mar 2020 00:20:58 GMT

What's your income?

Re: Application response confusion

AllZero — Tue, 10 Mar 2020 00:36:39 GMT

@Rockysocks wrote:
Yes, my total available credit reported on Experian is about $65,000. Would that be the reason they said no? Does that fall under "escalated unsecure debt"?

Yes, that would be a logical guess.

If reconsideration unsuccessful, best to move onto another lender that may not be quite as sensitive.

Re: Application response confusion

Rockysocks — Tue, 10 Mar 2020 01:27:10 GMT

$35,000

Does anyone have any reconsideration tips? I tried asking for underwriting department, but that didn't get me anywhere. Should I ask something else?

Re: Application response confusion

seattletravels — Tue, 10 Mar 2020 01:26:47 GMT

Yeah, so you're basically 200% credit to income.

Re: Application response confusion

Jnbmom — Tue, 10 Mar 2020 01:31:25 GMT

@Rockysocks wrote:
$35,000
Does anyone have any reconsideration tips? I tried asking for underwriting department, but that didn't get me anywhere. Should I ask something else?

@Rockysocks Your income is why you are getting that reason and they won't recon for that unfortunately. Your lines are 23600 on a 35000 income.

have you mentioned what lender this is? I would guess a CU

Re: Application response confusion

Rockysocks — Tue, 10 Mar 2020 01:34:51 GMT

So, is this something closing unused cards would fix? Or is my available limit just from the cards I DO USE hurting me?

It was USAlliance CU.

Re: Application response confusion

AllZero — Tue, 10 Mar 2020 02:22:02 GMT

@Rockysocks wrote:
So, is this something closing unused cards would fix? Or is my available limit just from the cards I DO USE hurting me?
It was USAlliance CU.

If you really want this card, it's best to direct your question to the under writer. They may or may not give you instructions with best course of action, if closing other cards, reducing available credit line, would help in obtaining one of their cards.

Re: Application response confusion

Rockysocks — Tue, 10 Mar 2020 03:36:31 GMT

What is the best way to get in touch with an underwriter? I asked for one today with my avail.