Apple Card denied - DPs

[Anonymous]

Hello:

A couple days ago, I applied to the Apple Card and was denied. I was told that it wasn’t exactly my credit that made them deny my application, but rather, my “monthly obligations” being too high, (which is not true).

It sounds as if Goldman Sachs does not have a reconsideration line, but does anyone have any ideas on how I could get approved? I am new to credit, but so far, I have established myself with good credit with two years of account history.

Thank you.

[blindambition]

It sounds like debt to income is too high. There is no recon at the moment. With card so new, it’s hard to know DTI that GS wants.

[Anonymous]

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@Anonymous wrote:
Hello:

A couple days ago, I applied to the Apple Card and was denied. I was told that it wasn’t exactly my credit that made them deny my application, but rather, my “monthly obligations” being too high, (which is not true).

It sounds as if Goldman Sachs does not have a reconsideration line, but does anyone have any ideas on how I could get approved? I am new to credit, but so far, I have established myself with good credit with two years of account history.

Thank you.

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What is your DTI?  Can you post other data points for others such as scores, # inquiries, etc?

[CreditInspired]

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@Anonymous wrote:
Hello:

A couple days ago, I applied to the Apple Card and was denied. I was told that it wasn’t exactly my credit that made them deny my application, but rather, my “monthly obligations” being too high, (which is not true).

It sounds as if Goldman Sachs does not have a reconsideration line, but does anyone have any ideas on how I could get approved? I am new to credit, but so far, I have established myself with good credit with two years of account history.

Thank you.

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Hi and welcome to MyFICO

You say you’re new to credit and have established yourself. So lets try to figure out what GS mean. 

Is the 2 yr history AAOA? (If no, what is average age of accounts?)

What is your income?

Any student loan/auto loan (if yes, monthly payment)

Monthly rent/mortgage

CCs name, limit & UT

TU score

How many new accounts in last 6 months?

Knowing the answers to these questions will help us narrow down GS reason for denial. 

If you don’t want to provide the info, does your monthly expenses exceed your monthly income (30%). Add rent, CCs, and all loan monthly payments, and divide it by your monthly gross payment. That’s your DTI. 

[Anonymous]

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@Meanmchine wrote:

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@audio-disabled wrote:

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@AverageJoesCredit wrote:
Relating a 2 year old bk7 as just, " only baddie" isnt the best way to view it. Thats a pretty significsnt reason , and relatively recent bk that can still have repercussions with apps for years to come. Just remember lenders can put up a variety of reasons for denial when in fact its that bk that they dont like.

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Understandable. At this point, we don't know exactly what Goldman like or don't like. I do feel it's worth it sharing here.

I called the number, 877-255-5923, the line went to Apple support then went through two transfers to discuss my application. I spoke with a superviser and he is in Goldman Sachs. This is NOT a recon line, but he said he can see more details but unable to share with me because he is not a credit analyst. But for my situation where the reason for denial reading "recent past dues" is inaccurate, so the superviser will escalate my request in hopes to provide more explanation.

He tried to pad the reason for rejection when explaining to me the list of contributing factors to my scores like severe delinquent or derogatory (BK), but I argue that this is what contributes to my scores. If we focus on the reason itself on the rejection - past dues - which is inaccurate, it should be reconsidered or looked into.

Also, I was able to confirm that if you apply, it will be soft pull. Upon accepting the approval, it becomes a hard pull. As per the supervisor.

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How could a two year old BK NOT BE VIEWED as a RECENT PAST DUE ????

A BK is the most severe  modifer in the game. You are not going to win this IMO. Sorry

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You can file for BK without ever being past due. Hence the reason there is separate reason code for BK. Goldman and Apple are new to this so pershaps they don’t have their reason codes down properly.

The OP is not trying to “win”. They are trying to understand what happened. As more data points get added it may turn out that they are using a “catch all” reason code. We don’t know yet.

[Anonymous]

“I do show I have 6 late payments and last time was 2 years 1 month - but that's my IIB accounts.”

I suspect this is your issue if their algorithms are just looking for late payments without  distinguishing between IIB and not. It’s one of the reasons I had all my IIB accounts purgured. It killed my AAoA and one report it looks like I came to life a few years ago but it was worth it.

[Anonymous]

Hi, there:

Sorry for the prolonged period of time that I did not respond.

At this time, I currently have 11 hard inquries. This is because then I applied for an auto loan, they pulled my credit about 7 times.

I have one credit card from my CU, a student rewards card. Limit was just increased to $500. Account opened September of 2017. At the moment, I owe $62.00 on the credit card. I usually carry less than $20.00 on the card.

Opened an auto loan in February of 2018. Refinanced the loan in February of 2019 with my CU. At the moment, $6.2k left on the loan at 3.8% APR, required monthly payment is $245.00, but I pay $250.

No monthly rent/mortgage. 

I have around $10,000 in student loans. I am currently in school, so I do not have to pay them at this time.

TU score on my denial app. was 719.

I net around $12,000.

[M_Smart007]

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@Anonymous wrote:

Hi, there:

Sorry for the prolonged period of time that I did not respond.

At this time, I currently have 11 hard inquries. This is because then I applied for an auto loan, they pulled my credit about 7 times.

I have one credit card from my CU, a student rewards card. Limit was just increased to $500. Account opened September of 2017. At the moment, I owe $62.00 on the credit card. I usually carry less than $20.00 on the card.

Opened an auto loan in February of 2018. Refinanced the loan in February of 2019 with my CU. At the moment, $6.2k left on the loan at 3.8% APR, required monthly payment is $245.00, but I pay $250.

No monthly rent/mortgage. 

I have around $10,000 in student loans. I am currently in school, so I do not have to pay them at this time. (it is still debt factored)

TU score on my denial app. was 719.

I net around $12,000.

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I am pretty sure any lender would have a problem with Debt to Income ratio.

Welcome To myFICO Forums!!!

[CreditInspired]

Thanks OP for DPs

So, this is what GS is looking at:

$245(car), $20(CU), $100(my est school) = $365/mo total monthly expenses

Income $13K gross / 12 = $1083 mo income (guessed because you gave net)

$365/$1083 = 33% DTI

Lenders want to see <30%. 

Hope this helps you understand why you were denied. 

[joltdude]

On top of all the debt from the loans, the HPs might be an issue as well.... Some of those Auto Loan HPs should be merged but when auto dealers spray and pray for loan approvals it can still have a detrimental effect on getting new credit.....

Newer/thinner credit profiles, Excessive amounts of HPs can be a deal breaker......

-J