Chase IHG Denial - Recon denial

[Anonymous]

Just adding a data point . . .

Denied for having too many revolving accts with a balance on them.

Overall cc utilization 28%, EQ FICO8 = 737, Income >100k, DTI <30%, 100% payment history. Have direct deposit checking acct with Chase and I have a $0 balance Freedom. Not sure if they're being really strict right now, or if I'm just a bad match for their underwriting . . . but if this is what happens applying for a co-branded card, I think I can probably write Chase off. They have some interesting products, but I hate wasting inquiries, and it'll be a while before I forget this one. On the plus side, I can probably still get a sign-up bonus out of this when I take my checking account somewhere else. :-/

(edit: switched to HSBC premier, $450 bonus)

As always, YMMV.

[blindambition]

Sorry about the denial! What percentage of cards are reporting? That could be a red flag if a majority are reporting? What does utilization look like individually on cards?

[FinStar]

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@Anonymous wrote:

Just adding a data point . . .

Denied for having too many revolving accts with a balance on them.

Overall cc utilization 28%, EQ FICO8 = 737, Income >100k, DTI <30%, 100% payment history. Have direct deposit checking acct with Chase and I have a $0 balance Freedom. Not sure if they're being really strict right now, or if I'm just a bad match for their underwriting . . . but if this is what happens applying for a co-branded card, I think I can probably write Chase off. They have some interesting products, but I hate wasting inquiries, and it'll be a while before I forget this one. On the plus side, I can probably still get a sign-up bonus out of this when I take my checking account somewhere else. :-/

As always, YMMV.

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As you stated (YMMV).  By and large, a variety of lenders can afford to be selective these days.

You mentioned 28% utilization across the board, but how many CCs (or other tradelines) are you carrying balances and how many of those are >20%?

[Anonymous]

For reference, 11 lines reporting

2 lines at 0%
2 lines between 2-8%
4 lines between 10-20%
1 line at 28%
1 line at 60%
1 line at 79%

I had been paying off low balances first, since APRs are all about the same . . . but maybe I'll focus on getting those last 2 lines under 40% before zeroing out other lines. I don't want to "spree," so I'm probably going to hold tight until December or so unless some offer really jumps out.

edit: I do remember the recon rep mentioning specifically "number of cards reporting a balance," so I'll probably use a mixed strategy . . . still getting the two with higher usage down, but zeroing out some smaller cards, also.

[FinStar]

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@Anonymous wrote:

For reference, 11 lines reporting

2 lines at 0%
2 lines between 2-8%
4 lines between 10-20%
1 line at 28%
1 line at 60%
1 line at 79%

I had been paying off low balances first, since APRs are all about the same . . . but maybe I'll focus on getting those last 2 lines under 40% before zeroing out other lines. I don't want to "spree," so I'm probably going to hold tight until December or so unless some offer really jumps out.

edit: I do remember the recon rep mentioning specifically "number of cards reporting a balance," so I'll probably use a mixed strategy . . . still getting the two with higher usage down, but zeroing out some smaller cards, also.

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Thanks for the DPs.

I'm assuming no derogs, correct?

Looking at the utilization spread, I would venture to guess the 3 lines >20% and a combination of the 4 others into the 20% territory was what the algorithms picked up, all things considered of course.

On the upside, since utilization has no memory with the current FICO scoring models, once those balances/ratios improve, you'd likely get approved.

[Anonymous]

Correct, no derogs. 

I was just caught off-guard by the denial. I figured that in addition to my credit history, Chase's recon folks could also verify stable avg daily balances in deposit accounts, over several months. Combined with safe DTI, I expected they would approve, at worst with a modest limit below those avg deposit acct balances.

I'm confident that the long-term outlook is good. I'll be better off in 6/9/12 months. But unexpected rejections do make me gun-shy. I'm not going to get rejected for another Chase product, so I'll probably put Chase out of mind unless/until I see my FICO8 approaching 800. $.02

[FinStar]

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@Anonymous wrote:

Correct, no derogs. 

I was just caught off-guard by the denial. I figured that in addition to my credit history, Chase's recon folks could also verify stable avg daily balances in deposit accounts, over several months. Combined with safe DTI, I expected they would approve, at worst with a modest limit below those avg deposit acct balances.

I'm confident that the long-term outlook is good. I'll be better off in 6/9/12 months. But unexpected rejections do make me gun-shy. I'm not going to get rejected for another Chase product, so I'll probably put Chase out of mind unless/until I see my FICO8 approaching 800. $.02

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Understood.  But, don't let that discourage you from obtaining it, especially if a higher SUB comes along, since this is only a temporary setback and the HP will fade over time.  Once your ratios normalize, and as long nothing else changes, definitely consider it.

I would say, without the guidance of Miss Cleo , if you had applied before the pandemic it's likely you would have been approved, IMO.  A variety of lenders tightened their UW algorithms shortly afterwards due to the economic landscape, so what you're seeing now are those stricter effects being applied.

[4sallypat]

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@FinStar wrote:

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@Anonymous wrote:

Correct, no derogs. 

I was just caught off-guard by the denial. I figured that in addition to my credit history, Chase's recon folks could also verify stable avg daily balances in deposit accounts, over several months. Combined with safe DTI, I expected they would approve, at worst with a modest limit below those avg deposit acct balances.

I'm confident that the long-term outlook is good. I'll be better off in 6/9/12 months. But unexpected rejections do make me gun-shy. I'm not going to get rejected for another Chase product, so I'll probably put Chase out of mind unless/until I see my FICO8 approaching 800. $.02

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Understood.  But, don't let that discourage you from obtaining it, especially if a higher SUB comes along, since this is only a temporary setback and the HP will fade over time.  Once your ratios normalize, and as long nothing else changes, definitely consider it.

I would say, without the guidance of Miss Cleo , if you had applied before the pandemic it's likely you would have been approved, IMO.  A variety of lenders tightened their UW algorithms shortly afterwards due to the economic landscape, so what you're seeing now are those stricter effects being applied.

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@FinStar is correct on the tightening UW during the pandemic when layoffs, forbearances, and moratoriums were ongoing....

I too am gun shy with Chase after I was denied even after recon for their short lived but popular 250K SUB Marriott Signature VISA app during the pandemic ( have 3 other Chase co branded cards).

Reason: Too many tradelines with 25% overall utilization - otherwise clean and 720+ scores.

I have paid off the IHG, British Airways, Amazon Prime accounts and put the Chase cards away in my sock drawer for now as I don't like their reason for denial....

At that same exact time, I apped for Barclay's Wyndham VISA and got approved for $5000 SL and they have more strict UW rules than Chase - go figure...

[Brian_Earl_Spilner]

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@Anonymous wrote:

Correct, no derogs. 

I was just caught off-guard by the denial. I figured that in addition to my credit history, Chase's recon folks could also verify stable avg daily balances in deposit accounts, over several months. Combined with safe DTI, I expected they would approve, at worst with a modest limit below those avg deposit acct balances.

I'm confident that the long-term outlook is good. I'll be better off in 6/9/12 months. But unexpected rejections do make me gun-shy. I'm not going to get rejected for another Chase product, so I'll probably put Chase out of mind unless/until I see my FICO8 approaching 800. $.02

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Chase doesn't cross-reference data from other departments. Your DDA status won't have any effect on lending decisions.

[Anonymous]

You carry those balances month to month? Any of them 0% apr?

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@Anonymous wrote:

For reference, 11 lines reporting

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@Anonymous wrote:

For reference, 11 lines reporting

2 lines at 0%
2 lines between 2-8%
4 lines between 10-20%
1 line at 28%
1 line at 60%
1 line at 79%

I had been paying off low balances first, since APRs are all about the same . . . but maybe I'll focus on getting those last 2 lines under 40% before zeroing out other lines