Citi Costco denial - why?

[diane11]

I was just rejected for the Costco Citi card and I am totally perplexed and can't understand why.

Here are my stats:

• Scores: Equifax 711, Transunion 716, Experian 704
• Derogatory: Only derogatory are two student loan lates from 2015 and 2016. Nothing else.
• Utilization: Approx. 15% overall - one card is 2% ($5k limit) the other is about 40% ($3500 limit)
• Income: $131k
• My length of credit history is excellent, my last hard pull was 12 months ago, and I have something from all three categories (auto loan, credit card, student loan)
• Mortgage/ housing expense: $0 (this was a question on the application)

I can't understand why I was denied? And if you can see what my problem was - how long should I wait before re-applying?

I'm so disappointed by this. I've been wanting this card for years and after spending the last 18 months raising my scores, I thought I was in a good position to apply. Bummed.

UPDATE! GOT MY LETTER:

We used a credit scoring system in our review, which assigns a numerical value to
different items on your credit report. The resulting score wasn't high enough to approve
an account. The reasons for your resulting score are:
Ÿ Your credit report shows a serious delinquency.
Ÿ Your credit report shows proportion of loan balance to loan amounts is too high.
...
The consumer reporting agencies listed above also provided us with your credit score of
699, as of May 23, 2020, which we used in making our decision. Your credit report was impacted by the following:
Ÿ Your credit report shows a serious delinquency.
Ÿ Your credit report shows proportion of loan balance to loan amounts is too high.
Ÿ Your credit report shows too few accounts rated current.
Ÿ Length of time accounts have been established on your credit report.

[snickerpedia]

What were the reasons for denial?

Are those your fico scores?

In times like this the 40%util on one card and late student loans (even though they are old) could scare off many lenders.

What is the balance on your auto loan or the util?

[diane11]

The car loan is 12 months old and has $13k balance.

I have a paid myfico membership, so those are real scores.

As I was typing up my post, I realized that I should have paid down the 40% until card before applying. Oh well, live and learn, I suppose.

[Guyatthebeach]

Diane11,

Sorry about your decline. I would wait until you get the letter and then do a recon. You can make a strong case given that it's been more than 2 years since those last payments.  The 40% utilization should be a nonissue.  

Keep us informed on what happens.

Guyatthebeach

[CreditCuriosity]

My guess are the lates.. Citi really doesnt like dirty files at all.

[AverageJoesCredit]

2 derogs are 2 derogs. Sorry.

[Anonymous]

Just a DP I also applied for this card in January similar profile less income and had some hps, got very nondescript denial reasons.

Called EO for recon was told straight up by EO that serious delinquency, and stagnant student loans are two big no nos for the legacy side of Citi, the retail side is more forgiving but they don't like to see any open collections or significant lates 

Sorry

[thornback]

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@Anonymous wrote:

Just a DP I also applied for this card in January similar profile less income and had some hps, got very nondescript denial reasons.

Called EO for recon was told straight up by EO that serious delinquency, and stagnant student loans are two big no nos for the legacy side of Citi, the retail side is more forgiving but they don't like to see any open collections or significant lates 

Sorry

---

Interesting @Anonymous.   Curious though - any idea what was meant by "stagnant student loans"?  Is that a reference to balances that are not steadily decreasing? 

Also - sorry for your denial in January & thanks for sharing this info.

And @diane11 I am very sorry for your denial as well -- it's worse when it's a card you've been really wanting for a long while.   Hopefully, you'll be able to acquire it in the future (either through a recon of this app or a future re-app).    I hope you recon though - and good luck if you decide to do so! 

[Anonymous]

Right loans that have high utilization that have not been decreasing 

[TekkenQQ7]

Sorry about your decline. Any of your reports are locked EX, or EQ?