Application response confusion

Rockysocks · ‎03-09-2020

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.

Remedios · ‎03-09-2020

Hi

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

Anonymous · ‎03-09-2020

@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.

Rockysocks · ‎03-09-2020

*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%

Remedios · ‎03-09-2020

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?

AllZero · ‎03-09-2020

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?

AllZero · ‎03-09-2020

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

Bankrupt2019 · ‎03-09-2020

@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.

AllZero · ‎03-09-2020

@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...

Rockysocks · ‎03-09-2020

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.