DCU CLI denied - Escalating Debt

[pip3man]

@SouthJamaica lol none of those surveys worked for me. My denials were never overturned even after they reached out, I wonder if they still send out those surveys cos I haven't gotten any lately with all the applications I've submitted. Speaking of getting rejected for excessive credit limits, I'm looking at you - Dover FCU. With these guys although all my credit cards had $0 balances except one with an 11% utilization, they said those could even eventually become debt. And there was also the income component where they stripped off my quarterly bonuses which have been very consistent year over year and based my income on the base salary alone. I kicked them to the curb accordingly. These CU are so conservative for no reason.

[AverageJoesCredit]

Many of these smaller CUs like to use the could become debt excuse. But even their own cards could become debt lol. At that logic no bank or Credit Union should lend to anyone

[Anonymous]

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@AverageJoesCredit wrote:

Many of these smaller CUs like to use the could become debt excuse. But even their own cards could become debt lol. At that logic no bank or Credit Union should lend to anyone

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We need to remember that MyFico is in the extreme lala land of credit limits!

Consider someone earning say $50K a year, with total credit limits on her two cards (yes, just two!) of $10K.     Then a credit union catches her attention and she applies for a MaxCash with them.       Assuming her credit report doesn't have lates etc, this isn't a tremendous risk, and she could get another $5K and maybe more.

But the MyFico equivalent, still earning $50K a year, has done some app sprees and made the cards grow, and has a total CL of $400K.

Now the same CU does, to my mind, have some plausible questions:  suppose he charges even a fraction on the other cards, would he be able to repay mine.

So it's a matter of scale, and also deviation from the expected.  ("What sort of person has TCL multiple times their earnings?  Someone up to no good obviously!   They talk about keep utilization low, probably some illegal tax dodge")

[vinathi]

Thanks for all the inputs Folks.

[Jnbmom]

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@SouthJamaica wrote:

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@Murph5065 wrote:

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@OmarGB9 wrote:

Escalating debt means too much available credit (across all lenders/cards) for your current profile.

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I thought it was a good thing to have alot of available credit showing you are not using what you have. 

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It is a good thing.

The only lenders who complain about it are some credit unions. 

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Yup PENFED uses that reason 

[AverageJoesCredit]

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@Anonymous wrote:

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@AverageJoesCredit wrote:

Many of these smaller CUs like to use the could become debt excuse. But even their own cards could become debt lol. At that logic no bank or Credit Union should lend to anyone

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We need to remember that MyFico is in the extreme lala land of credit limits!

Consider someone earning say $50K a year, with total credit limits on her two cards (yes, just two!) of $10K.     Then a credit union catches her attention and she applies for a MaxCash with them.       Assuming her credit report doesn't have lates etc, this isn't a tremendous risk, and she could get another $5K and maybe more.

But the MyFico equivalent, still earning $50K a year, has done some app sprees and made the cards grow, and has a total CL of $400K.

Now the same CU does, to my mind, have some plausible questions:  suppose he charges even a fraction on the other cards, would he be able to repay mine.

So it's a matter of scale, and also deviation from the expected.  ("What sort of person has TCL multiple times their earnings?  Someone up to no good obviously!   They talk about keep utilization low, probably some illegal tax dodge")

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Lol as soon as someone sees my Navy limits they must think Navy done gone lost their mind😆

[GatorGuy]

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@Murph5065 wrote:

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@OmarGB9 wrote:

Escalating debt means too much available credit (across all lenders/cards) for your current profile.

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I thought it was a good thing to have alot of available credit showing you are not using what you have. 

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It depends on how you look at it.

If you're not using what you have then why do you need more?

[OmarGB9]

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@Murph5065 wrote:

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@OmarGB9 wrote:

Escalating debt means too much available credit (across all lenders/cards) for your current profile.

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I thought it was a good thing to have alot of available credit showing you are not using what you have. 

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Not for some lenders. For some, it's "potential debt," which I guess is similar to escalating debt. This mainly applies to Credit Unions, though, and FinTechs. Not so much to large national banks.