BECU Cash Back CC Denial

[rafy023]

So I read a few posts about people getting big approvals for this card so I decided to go for it. I was planning on this being my last card (for a while at least) if I got a big approval. Anyway, I applied for membership (I'm in NJ), and it automatically went into review. The next day the membership was approved and I was welcomed. I automatically went and cold app'd for the Cash Back card and that also went into a pending state. The following day (today) I got a phone call and someone on their end verified my information. About an hour later I checked the website and saw that it denied. I called in and was told it was denied due to high DTI (about 71% according to them). They pulled TU for the application but the membership was NOT a hp. Also, the hp is good for 30 days... not sure if I want to keep this savings account I opened with them now or just close it.

Just for some DP:

TU: 745 w/ 10 inquiries prior to applying

No baddies

I have a mortgage, my car and my sister's car under my name (each paying in the $200s/mo, and cosigning my girlfriend's lease, student loans, etc.) I understand the DTI issue but never really been turned down for a credit card due to that... a personal loan or mortgage is a different thing. Oh well, guess I gotta go in the garden unless I find another credit card that can offer a high CL (trying to close out my paypal credit and smartconnect but want something to offset those CLs).

In summation: DTI is important to BECU for credit cards!

Hope this info helps someone out. 

[Anonymous]

Sorry to hear about your denial! 

[rafy023]

Thanks! On to the next one!

[Anonymous]

DTI is more important to most CUs than it is major banks. Sorry for the denial. I wouldn't give up on BECU though. Many people are very happy with them and you never know what might happen later. 

[rafy023]

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@Anonymous wrote:

DTI is more important to most CUs than it is major banks. Sorry for the denial. I wouldn't give up on BECU though. Many people are very happy with them and you never know what might happen later. 

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I'll keep that in mind. Thanks for the feedback!

[Anonymous]

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@rafy023 wrote:

So I read a few posts about people getting big approvals for this card so I decided to go for it. I was planning on this being my last card (for a while at least) if I got a big approval. Anyway, I applied for membership (I'm in NJ), and it automatically went into review. The next day the membership was approved and I was welcomed. I automatically went and cold app'd for the Cash Back card and that also went into a pending state. The following day (today) I got a phone call and someone on their end verified my information. About an hour later I checked the website and saw that it denied. I called in and was told it was denied due to high DTI (about 71% according to them). They pulled TU for the application but the membership was NOT a hp. Also, the hp is good for 30 days... not sure if I want to keep this savings account I opened with them now or just close it.

Just for some DP:

TU: 745 w/ 10 inquiries prior to applying

No baddies

I have a mortgage, my car and my sister's car under my name (each paying in the $200s/mo, and cosigning my girlfriend's lease, student loans, etc.) I understand the DTI issue but never really been turned down for a credit card due to that... a personal loan or mortgage is a different thing. Oh well, guess I gotta go in the garden unless I find another credit card that can offer a high CL (trying to close out my paypal credit and smartconnect but want something to offset those CLs).

In summation: DTI is important to BECU for credit cards!

Hope this info helps someone out. 

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Thank you for the DPs!  Been looking at BECU for the future myself.  I'm hoping to simply rebuild my credit as well for the first and last time.

Maybe I can give you some food for thought in return, being I've researched this stuff longer than I care to admit, let alone my first card was back during Reagan so I've kind of learned a lot more than I care to know as well. At times the hard way.

DTI is an issue but it's not all, you are going for a CU that is able to be generous because they can sometimes spot issues of caution. I would recommend keeping your membership with them. It costs you nothing and it's one good CU to have in your corner already. After all good ones are kind of hard to come by.  Btw, like most CU's, they probably love direct deposit and will see you in a better light if you have that with them for a few months. I'd just wait at least 30 days before setting that up with them due to stories I've read about them regarding new out of state members.  Before setting up DD with BECU, call them and ask them if they need anything else from you for full membership. Maybe run some money through them first as a test as well.

An issue I see that they may have an issue with, is that your DTI is partly due to cosigning for someone (yes, that debt can be seen as your debt), as well as taking on 2 car loans (you and your sisters). With 10+ inqs showing, you may come close to appearing to be desperately seeking credit.  I don't think Paypal  Smartconnect has annual fees, so I wouldn't really close them it much as SD it.  It'll help with your utilization later in life, as well as report as good if you keep them up. People sometimes regret closing a card like that but never seem to regret leaving one open. Only a thorough manual review will show you closed it and NOT the creditor btw.  You'd be best off paying down your highest interest card, hopefully your lowest balance, first, paying that 600 to 0 would help. Then throw more at the next card (highest interest). Over this time you will have been gardening for some time, inqs will drop off, your 6 year old deliquency (read about that elsewhere) may drop off, and the "system" might not throw you directly to manual review. That's what happened here and will no doubt happen again the next time you apply for the time being. 

Others might be able to point you in the direction of a good balance transfer card offer that is more easily acquired, your DTI and old deliquency may still make that difficult even with great scores.  After all, you already have over 70k in unsecured credit available along with 2 car loans and another loan you cosigned.  I suggest checking prequalify sites before any actual applying. You don't need to add any wasted hard inquires.

If your sister is paying that 200 a month for that car loan you have for her, you might want to include that as income if you haven't, being it technically is. In effect, if the car's in your name, she's buying the car from you.  You're obviously a generous person or you wouldn't have done this for your sister nor cosigned for someone (which I don't recommend, been there) so you deserve any help we can offer here. 

[CreditInspired]

I think 71% DTI will impact any lending decision regardless whether it's from a CU or a bank. 

You may not have been aware DTI was this high but now that you know, it's a good time to take a step back and reevaluate your financial portfolio. It may be time to take a 1-2 yr break from applying for new credit. And depending on the size of the student loan, that could have been a large impact on your debtload. 

Just food for thought here. Financial Advisors tell retirees not to cosign student loans because it wreaks havoc on their finances. I'm saying this because before you co-sign for another student loan that is not for a child of yours, think about the consequences it can have on your overall credit profile and especially if you want to get another mortgage or a HELOC. 

You are a generous person to take on other's financial responsibilities, but it's time to look out for #1 first--YOU. 

[CreditInspired]

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@Anonymous wrote:

DTI is more important to most CUs than it is major banks. Sorry for the denial. I wouldn't give up on BECU though. Many people are very happy with them and you never know what might happen later. 

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Yep, I agree, they might come in handy one day. 

[rafy023]

Thanks all for the advice! Just to clarify, I co-signed my girlfriend's car lease. However, the student loans are mine. Also, my sister's car was mine until I bought a new one so it's still under my name even though she pays it. I will keep BECU and put a little something in the savings account to keep it active. I was told the hard pull was good for 30 days and I am expecting a higher paying job offer in the next couple of weeks so I may give them a call back to reuse the pull with the new income... I figure there's nothing to lose in trying. 

Also, I was just approved for the Citi DC for $14,400 and PenFed Platinum Rewards for $7,500 about a week ago. I was just trying to get all applications out of the way now and then go into the garden (for a long time). By the way, my utilization is sitting at about 24%. I will hold off on any non-prequalified offers though. 

Thanks again!

[CreditInspired]

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@rafy023 wrote:

Thanks all for the advice! Just to clarify, I co-signed my girlfriend's car lease. However, the student loans are mine. Also, my sister's car was mine until I bought a new one so it's still under my name even though she pays it. I will keep BECU and put a little something in the savings account to keep it active. I was told the hard pull was good for 30 days and I am expecting a higher paying job offer in the next couple of weeks so I may give them a call back to reuse the pull with the new income... I figure there's nothing to lose in trying. 

Also, I was just approved for the Citi DC for $14,400 and PenFed Platinum Rewards for $7,500 about a week ago. I was just trying to get all applications out of the way now and then go into the garden (for a long time). By the way, my utilization is sitting at about 24%. I will hold off on any non-prequalified offers though. 

Thanks again!

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Whew. Wiping the sweat from my brow that it's your SL. Thumbs-up. 

Glad you're deciding to keep BECU. 

IMHO, I suggest waiting until DC and PenFed age to 12 mos before applying for any more credit. The last thing you want is another denial and/or HP. But definitely go after SP CLIs.