topic Re: Citi CC denied - whoops in Credit Card Applications

Citi CC denied - whoops

hyn380 — Fri, 02 Sep 2022 03:46:10 GMT

EDIT: I have now received the actual written letter. Reason ACTUALLY given was I have too much available credit relative to income. Unlike the incompetent guy on the phone, at least the letter gave me the actual reason!

Hello, just wanted to see if anyone could give me any advice on how to proceed from here. I've had my eyes on Citi's custom cash card for a while and finally decided to apply. And of course ... expect letter 7-10 days from now (instant regret hits). I haven't been denied before so I was confused. I called the recon/app status line for more info. The person stated that the reason (only 1) for decline was "debt burden". Which didn't make much sense - I only carry about $300 across all accounts - until I realized I'm on multiple AU accounts from my parents. Which total to over $16k! I'm a student; I live at home, with no student loans, nothing. I could always ask them to remove me, as they really only added me so I run errands easily. But I already applied, so I'm afraid it's already too late. So now I'm stumped. I really wanted to avoid another pointless inquiry. I got plenty of time to waste on the phone (as long as it's a person, not a robot). How should I proceed?

Data as follows:

My accts -

5/2021 Target store card $1500 CL, ($0 bal)

6/2021 Discover it student $2750 CL ($115 bal)

8/2021 Barclays gap visa $1800 CL ($0 bal)

6/2022 PayPal Mastercard $14,750 CL ($200 bal)

AU accts (where it gets bad) -

Amex BCE - 51%

$7,714 out of $15,000

BARCLAYS - 40%

$5,397 out of $13,400

PNC BANK - 15%

$2,688 out of $18,000

Amex Hilton - 1%

$439 out of $30,000

TD Bank - 1%

$0 out of $12,500

Total util 15%, $16k

Inquiries:

3 Ex

2 TU

2 Eq

I never missed a payment, no derog remarks, etc. Nothing negative in that sense.

My income is only $15k, that I can easily prove. Beyond that is difficult... since I have multiple sources of income to different bank accounts.

Scores:

723 Eq

723 TU

755 Ex

759 Discover scorecard (not sure which)

Discover scorecard only reports my accts (4 accts, 2 inq, 1% util). The rest show all my authorized user accts.

Re: Citi CC denied - whoops

Lou-natic — Thu, 25 Aug 2022 04:40:42 GMT

Well, I think it's time you have yourself removed as AU on your parents cards. It's going to take a month or two for them to stop reporting so it won't matter much for this application. On the other hand, wait 6 months and reapply and all should be good. As for running errands or whatever...meh. I let my dad use cards with my name on them all the time. He is the one that actually carries the Citi DC card around and has been for years without issue. Unless your parents are super paranoid about that kind of thing, I don't think it matters at all.

I will say this, the Citi CC is a card worth getting so don't give up on it.

Re: Citi CC denied - whoops

805orbust — Thu, 25 Aug 2022 11:13:22 GMT

Agree with @Lou-natic. That Amex and Barclay's are killing you. Have them remove you, couple months? Your scores will be in the 770/780's across the board.

Re: Citi CC denied - whoops

SouthJamaica — Thu, 25 Aug 2022 12:13:31 GMT

@hyn380 wrote:
Hello, just wanted to see if anyone could give me any advice on how to proceed from here. I've had my eyes on Citi's custom cash card for a while and finally decided to apply. And of course ... expect letter 7-10 days from now (instant regret hits). I haven't been denied before so I was confused. I called the recon/app status line for more info. The person stated that the reason (only 1) for decline was "debt burden". Which didn't make much sense - I only carry about $300 across all accounts - until I realized I'm on multiple AU accounts from my parents. Which total to over $16k! I'm a student; I live at home, with no student loans, nothing. I could always ask them to remove me, as they really only added me so I run errands easily. But I already applied, so I'm afraid it's already too late. So now I'm stumped. I really wanted to avoid another pointless inquiry. I got plenty of time to waste on the phone (as long as it's a person, not a robot). How should I proceed?

Data as follows:

My accts -
5/2021 Target store card $1500 CL
6/2021 Discover it student $2750 CL
8/2021 Barclays gap visa $1800 CL
6/2022 PayPal MC $14,750 CL

AU accts (where it gets bad) -

Amex BCE - 51%
$7,714 out of $15,000

BARCLAYS - 40%
$5,397 out of $13,400

PNC BANK - 15%
$2,688 out of $18,000

Amex Hilton - 1%
$439 out of $30,000

TD Bank - 1%
$0 out of $12,500

Total util 15%, $16k

Inquiries:
3 Ex
2 TU
2 Eq

I never missed a payment, no derog remarks, etc. Nothing negative in that sense.

My income is only $15k, that I can prove. Beyond that is difficult (and complicated) d/t the fact I have "side hustles" as an IC, dividends, scholarship/tuition refunds, and regular student job.

Scores:
723 Eq
723 TU
755 Ex
759 Discover scorecard (not sure which falls under)

Discover scorecard only reports my accts (4 accts, 2 inq, 1% util). The rest show all my authorized user accts.

I agree with @805orbust and @Lou-natic Drop the AU cards and after your new profile has reported apply again for the Custom Cash.

Re: Citi CC denied - whoops

OmarGB9 — Thu, 25 Aug 2022 12:28:56 GMT

Agree with the consensus.

Re: Citi CC denied - whoops

Hoben02 — Thu, 25 Aug 2022 17:49:31 GMT

I would call the recon on line and explain the situation. It's not going to be another inquiry on your credit report.

Re: Citi CC denied - whoops

hyn380 — Thu, 25 Aug 2022 22:31:06 GMT

Thanks everyone for the advice. I had a little talk with my family after this, with no hard feelings thankfully. I'm being removed from everything, now that I know it could cause denials like this...

I'm planning on calling tomorrow most likely, hopefully a different agent than the one I spoke to already. I'll keep this post updated if anything changes.

On the bright side, thankfully Citi only pulled from TransUnion so it looks like this won't be too hard of a hit. Worst case, I'll wait another 6mo after the AU accounts disappear and try again. I don't wanna give up on this card!

Re: Citi CC denied - whoops

AndySoCal — Fri, 26 Aug 2022 02:05:59 GMT

@hyn380 An authorized user account you are not financially responible for. The lender knows that so that most likely is not the reason for "debt burden" denial. Make sure that on the credit report those authorized user accounts are reporting as such. If you want remove the two accounts as others have suggested to help your credit utilization go ahead.

Re: Citi CC denied - whoops

SouthJamaica — Fri, 26 Aug 2022 02:09:59 GMT

@hyn380 wrote:
Thanks everyone for the advice. I had a little talk with my family after this, with no hard feelings thankfully. I'm being removed from everything, now that I know it could cause denials like this...

I'm planning on calling tomorrow most likely, hopefully a different agent than the one I spoke to already. I'll keep this post updated if anything changes.

On the bright side, thankfully Citi only pulled from TransUnion so it looks like this won't be too hard of a hit. Worst case, I'll wait another 6mo after the AU accounts disappear and try again. I don't wanna give up on this card!

Don't call tomorrow, that's too soon. Wait until your profile has readjusted in the credit reports.

Re: Citi CC denied - whoops

xenon3030 — Fri, 26 Aug 2022 05:59:22 GMT

Calling too soon possibly would not go anywhere, because nothing has changed in your profile (anyway, you may try). I suggest to wait and let your credit profile gets updated, after removing yourself from AU. It should take up to 1-2 months. After cleaning your credit profile from derog and having a reasonable Fico8 score, submit a new application.

Re: Citi CC denied - whoops

hyn380 — Fri, 26 Aug 2022 16:09:40 GMT

Guy on the phone (when I originally called to get denial reason) said I needed to get a "hard copy" of Eq because there may be an issue with the way it's reporting. I got a complete copy of my Equifax report - may have found the issue?

Under each account, the "Owner" is listed as "undesignated". Is it supposed to say "authorized user" instead?

Re: Citi CC denied - whoops

AndySoCal — Sat, 27 Aug 2022 20:39:37 GMT

@hyn380 You found the problem ! I would dsipute it

Re: Citi CC denied - whoops

teekay629 — Sun, 28 Aug 2022 00:42:20 GMT

I definitely feel you on this. I had/have the same situation. I am an authorized user on two of my dad's accounts from when he was paying for my wedding. It was easier for him to add me and I pay as needed over having to ask him every time, waiting for a check, and cashing, and then paying.

He is usually has them both at $0 or very low and paid off shortly. Earlier this year, he charged to them and he has not paid them off. That is unlike him since I know he is not the type to pay interest. I have gone back and forth on whether to ask him to remove me. But I thought I would wait for him to pay them. He still has not and I do not want to ask since he did me a favor after the wedding and kept me on so that it added to my credit - but in a good way. 😂

It also stunk that I was on the Path to Apple Card and I had one more month of on-time payments to complete but then these balances hit and skyrocketed the balance threshold they wanted to see.

Re: Citi CC denied - whoops

Anonymalous — Thu, 01 Sep 2022 10:20:15 GMT

@hyn380 wrote:
Guy on the phone (when I originally called to get denial reason) said I needed to get a "hard copy" of Eq because there may be an issue with the way it's reporting. I got a complete copy of my Equifax report - may have found the issue?

Under each account, the "Owner" is listed as "undesignated". Is it supposed to say "authorized user" instead?

That's interesting. I just checked my Equifax report, and it shows "undesignated" for my AU card as well. It's not a problem in my case because the card always reports $0, but I'm wondering how common this is.

Re: Citi CC denied - whoops

hyn380 — Fri, 02 Sep 2022 03:35:19 GMT

@Anonymalous wrote:
@hyn380 wrote:
Guy on the phone (when I originally called to get denial reason) said I needed to get a "hard copy" of Eq because there may be an issue with the way it's reporting. I got a complete copy of my Equifax report - may have found the issue?

Under each account, the "Owner" is listed as "undesignated". Is it supposed to say "authorized user" instead?
That's interesting. I just checked my Equifax report, and it shows "undesignated" for my AU card as well. It's not a problem in my case because the card always reports $0, but I'm wondering how common this is.

I'm curious how common it is too. I can't imagine it's very high on their priority list to correct.

Re: Citi CC denied - whoops

hyn380 — Fri, 02 Sep 2022 04:00:24 GMT

I got my rejection letter today (I updated the top of the post as well). It states, "total credit obligations, which include outstanding credit lines, are too high, relative to income". If I read that correctly, it sounds like that means too much available credit. Based off what I've read here/online, that's the case. If so, I'm won't waste my time applying again. Or at least not until I have a much higher income.

Re: Citi CC denied - whoops

AndySoCal — Fri, 02 Sep 2022 23:24:29 GMT

@hyn380 The reason for that rejection the cards that should be reported as an authorized user is not. Because of that the balances on those cards is being counted as a debt you are responible for and should not be. You can fix it by disputing those accounts or having them removed from your credit profile. Your choice

Edited to remove typos and poor grammer

Re: Citi CC denied - whoops

NoMoreE46 — Sat, 03 Sep 2022 01:33:46 GMT

Hey @hyn380 .

Glad you got a solid closure reason on the application. Keep in mind that most front line CSRs may not have the higher level access to see / provide applicants with the denial reason. They can only see that one was denied and say a letter will be sent to you.

Re: Citi CC denied - whoops

Lou-natic — Sat, 03 Sep 2022 04:57:06 GMT

@hyn380 wrote:
I got my rejection letter today (I updated the top of the post as well). It states, "total credit obligations, which include outstanding credit lines, are too high, relative to income". If I read that correctly, it sounds like that means too much available credit. Based off what I've read here/online, that's the case. If so, I'm won't waste my time applying again. Or at least not until I have a much higher income.

Yeah, I'm thinking this is still related to your AU accounts. Unless you do actually have a ridiculous amount of available credit to income...

Even then you should be able to get something like 1.5x your annual income fairly easily. I'm just a little over 1.5x my annual income now and things seem to still be going pretty well as far as credit limits and CLIs just as an example.

Re: Citi CC denied - whoops

hyn380 — Sat, 03 Sep 2022 06:02:30 GMT

@Lou-natic:

That's a good point. I have $20,800 total CL in my own accounts, so not totally ridiculous. But including AU it's over 100k, which is ridiculous, lol. But I already filed a dispute with Equifax. My rejection letter says I have 60 days for them to reconsider the application, if something changes on my report from the dispute. Maybe Equifax will get their act together soon enough. Now it's just a waiting game!