747 Ducks Unlimited DECLINE??

[Anonymous]

Hello all,

Got instant declined for Ducks Unlimited...called in and they said that it was declined for lack of credit bureau information.

EX: 721

EQ: 754

TU: 766

AAoA: 2.5yr

CL: $19,400

Utilization: always under 20%

I'm 20 years old, opened 3 cards as soon as I turned 18, financed a motorcycle at 18 and paid off in 3 months, always pay every balance in full and have never missed a payment.

Decided after 2.5 years of no INQ, I wanted 3 more cards to help AAoA...applied for Chase Freedom Unlimited - instant approve $6K, Amex GOLD instant approve...

What gives? Sophomore in college and income is like $30k from allowance from parents..no verifiable income but parents reimburse me for pretty much everything to pay my bills. In 2018 I charged $28K to CCs and paid in full every month.

Will trying reconsideration help? I've read that they are INQ picky but I only have 2 in the last 2 years. I probably spend $4-500/mo in gas driving between three homes in a Cayenne Turbo that eats gas, so the 5% will really help.

Thank you so much for your help! 

Charles

[CreditInspired]

Hi and welcome OP

I’m surprised a CSR told you via phone the reason for denial. They’re not suppose to do that. I suggest waiting for the letter to find out the real reason(s) for denial because it’s obvious you have CB info.

Also, opening 3 cards at 20 should make your AAOA around 9-10 mos, not 2.5 years unless my calculation is off. And, every time you open a new account, the AAOA is reduced. So now with the addition of AmX and Chase, your AAOA is somewhere around 6 mos. This may be the reason for Duck denial.

Yep, wait and see what the letter says.

[Anonymous]

Thank you for your reply!

Hmm, strange how theyre not supposed to do that. I also asked her if it had anything to do with income and she said no because it would have told her it was income related.

I opened 3 cc's at 18 and I'm 20.5 now. Even with the addition of Amex and Chase, shouldn't my AAoA be 1.5 years? (2.5+2.5+2.5+0+0)/5? 

I'll wait for the letter for sure, but do you think its worth a shot to call reconsideration?

Thank you,

Charles

[Caardvark]

AAoA is 1.5 years based on the numbers you provided? Calculations should be based on months (30+30+30+0+0)/5

[CreditInspired]

Thanks @caardvark for the formula.

[Anonymous]

So AAoA for me after two recent cards IS 1.5

Will reconsideration help or not??

Thanks,

Charles

[Anonymous]

Regulation Z, which provides the regulatory interpretation of the CARD Act (2009) and the Truth in Lending Act, has specific rules for "young consumers" i.e. credit card applicants under the age of 21.  One of those requirements is that the "young consumer" must demonstrate an "independent ability" to make at least the minimum payments on the debt.   For credit applicants under 21, income is considered to be from a job, scholarships, and grants. An allowance provided to a "young consumer" is not considered income for the purpose of credit card lending. Sounds like FNBO is on the ball in this case. 

Also, if I were driving a Porshe Cayenne between 3 homes the last thing I'd be thinking about is the price of gas. 

[Anonymous]

Thanks for the reply!

Thanks good to know...perhaps I will wait a few years before applying for anything else. I gather you don't think reconsideration will be effective.

The Cayenne is great but so is 5% back when you get 14MPG lol. I want to maximize my return on spend just like the next guy!

Thanks,

Charles

[rbentley]

More cards will NOT help your AAoA at all.  Every additional card you get will only signficantly reduce your already very young AAoA.

[Anonymous]

I'm thinking about the future. 10 years from now I'd like to have a solid base.

Best,

Charles