Are all applications at the mercy of algorithms??

[Anonymous]

I get rejected for many loan/credit card offers even though I have good scores. The reasons are often due to having a short credit history, too many hard inquiries, or recently opened accounts.

I understand the reasoning behind these rejections but on a case by case basis they make no sense at times. I make 130k a year, as a software engineer for one of the world' top tech companies. Career-wise I'm set in an industry that continues to explode in growth and opportunities, my income will only go up and up unless I get burned alive. I have a history of perfect on time payments. I have ONE collection on my Experian report from 2012 before my career got started. How does it make sense to deny a person with a high income and a over  1y9mos history of on-time payment and low credit utilization because they are looking for credit?? OF COURSE I'm looking for credit, because I used to have bad credit. Now I have good credit and would like to use non-subprime credit products. I want to earn rewards points by using high-quality credit cards. 

Sorry for the rant, my question is basically, when applying for these products, is it not possible to speak with a human who can take these factors into consideration and reverse denials? I've tried but gotten NOWHERE.

[Anonymous]

One collection account from 2012 does not equal perfect on time payment history. That’s probably part of the difficulties you’re seeing. Also, having, what seems to be, a young/thin credit profile is the other part.

Be selective on the cards you’re attempting to get. Try some bank/credit unions that you have a relationship with already. If you can get those approved, sit tight for a while and build some history.

On a positive note, that 2012 collection will drop probably drop off your reports soon.

[wasCB14]

Some smaller and/or old-fashioned lenders do have a person or committee look at each application. However, that does not mean the credit standards are more relaxed or that you can easily speak to the credit analyst(s) who makes the decision.

Also, manual underwriting can mean a bank is low-tech in other respects that can be an inconvenience as a consumer.

[VanderSnoot]

@CreditSweeper is spot on. You have bad credit because of choices you made. High income and loads of career opportunities doesn't equal good with credit. End of tough love rant.

But you can start over. Your collection will fall off soon. You can start now by picking quality cards that are suited for your history. And you can build relationships with lenders that will lead to better credit and more opportunities. You'll be in a very different position in 1 year, if you ask for help when making your next choices, and follow the advice here. Don't rush it, you'll be fine.

[FinStar]

OP, to answer your question, yes the majority of any lending decisions are algorithm-driven, especially those that have adaptive AI as part of the process.

It mostly depends on the FI/CU as mentioned above and whether any manual UW or secondary, judgemental review is involved.

[Anonymous]

Income doesn't = credit

Just because you make 6 figures today doesn't mean you will tomorrow

They smell desperation on your apps and they shut you down

You get credit when you don't  NEED it in most cases. 

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Evidence of your activities comes back to your Amex $500 CL that was just approved the other day. 

https://ficoforums.myfico.com/t5/Credit-Card-Approvals/AMEX-Blue-Cash-Everyday-CL-500-718-score-130k...

While not credit related it doesn't look good with the previous Chase issue you mentioned either.  

https://ficoforums.myfico.com/t5/Credit-Card-Applications/I-had-a-delinquent-chase-bank-account-Am-I...

"I should have included my income. It's 117k a year. I only pay $1000 in rent. I usually put my income as $130k a year because that includes my bonus which is always guaranteed at this point. "

https://ficoforums.myfico.com/t5/Credit-Cards/Should-I-go-for-Amex-Gold-or-Platinum/m-p/5637021

My Credit Scores:
Equifax: 724

Transunion: 729

Experian 665 (one collection falling off in September 2019)

Average age of accounts: 9 months

Oldest account: 1 year and 4 months old.

https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Good-Equifax-Transunion-scores-bad-Experian-...

So, now we're all caught up.... 

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Sorry for the rant, my question is basically, when applying for these products, is it not possible to speak with a human who can take these factors into consideration and reverse denials? I've tried but gotten NOWHERE.

I'm sure there are lenders that can talk to you but, looking at your overall picture right now as stated above by you yourself it wouldn't appear that talking to someone is going to overturn your decisions. 

Right now your best option is to NOT apply for anything new until your CR is spotless.  If you want a project Call EX and ask for an early exclusion to get rid of the collection so your scores and everything align with each other.  And take care of that Chase issue before you're over 5/24 so you can pick up a card you WANT.  

[VanderSnoot]

You may also consider working with a Credit Union. They tend to be more relationship driven than other lenders.

[Anonymous]

OP, my feel is that you must be applying a lot and the excessive inquiries are what is shutting you down. How many do you have, and with what banks? Your scores are easily high enough to get some decent cards, as your Amex approval shows. You should be well into Discover territory as well as Chase and probably USBank, BoA, and Citi...except for those inquiries.

Your easier path would be to use prequal tools on the various lenders’ sites to help avoid outright blind denials.

Also, EX will grant early exclusion 3 months ahead of time, and you’re now in that window. Simply call them up and request it. They’ll move you to the dispute department (that’s their process), delete the derog, and you’ll have three clear reports. Do that, let your EX report update, then check prequals and see where you stand. You’ll be in much better shape.

[Meanmchine]

Tomorrow morning, call Experian and ask to speak to a supervisor.  Tell them that you would like to see if your collection account is eligable for Early Elimination fom your report. If yes, they will delete the item immediately.  If not, ask them when you can call back and try again.

Sorry for the slight diversion

[Anonymous]

Any income can be outspent. Since you had an issue in the past and you’ve only been perfect for a little under 2 years, they aren’t too confident you won’t yet. All your issues will be resolved in time. Keep doing what you’re doing and hold off on the apps for a while. Get some HI’s and that collection to drop off, increase you age of accounts, and you’ll be fine in no time. But add a bunch of HI’s and denials in the next few months and it’ll just make it worse.