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DCU CLI denied - Escalating Debt

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vinathi
Valued Member

DCU CLI denied - Escalating Debt

Folks, 

 

Yesterday I requested a CLI on my DCU credit card which is 8 months old. I got a denial with below reasons:

 

Escalating debt.
Limited credit experience.
Sufficient amount of unsecured debt with DCU.

 

I have EQ score of 723. I started building credit 9 months back. Apple gave CLI 2 times, and Discover gave CLI 1 time, what is wrong with DCU here? 

 

The main reason of this post is, I don't understand what is Escalating debt. Can someone please explain me? 

Message 1 of 18
17 REPLIES 17
Elpadrino1
Valued Contributor

Re: DCU CLI denied - Escalating Debt

Understanding your frustration that your CLI was not approved; you have a valid question. Typically when the 'Escalating Debt' reason is provided, is because you have opened and obtained a certain amount of credit in a short period of time. There are also a few others things involved. Give it time, and allow your credit profile age and grow in order for financial institutions and under-writers see that you are capable of managing the available credit. 

Message 2 of 18
NalekSok
Regular Contributor

Re: DCU CLI denied - Escalating Debt

I can't say anything about DCU since I never used their services. But I also recently started building my credit (going on 2 years this summer) and each lender has a different approach (CLI, applications... etc). You're definitively on a great path and are already being pro-active with your Apple and Discover CLIs. Congratulations on those! Finally, the "hardest" part is the waiting game, it just takes time to build credit and of course requires on-time full payment but it will pay off!






Message 3 of 18
SoCalGardener
Valued Contributor

Re: DCU CLI denied - Escalating Debt


@vinathi wrote:

Folks, 

 

Yesterday I requested a CLI on my DCU credit card which is 8 months old. I got a denial with below reasons:

 

Escalating debt.
Limited credit experience.
Sufficient amount of unsecured debt with DCU.

 

I have EQ score of 723. I started building credit 9 months back. Apple gave CLI 2 times, and Discover gave CLI 1 time, what is wrong with DCU here? 

 

The main reason of this post is, I don't understand what is Escalating debt. Can someone please explain me? 


Keeping in mind that the 'reasons' provided can be completely irrelevant and meaningless--but they have to choose something!--my take on 'escalating debt' is just that: you're on a path of increasing (escalating) debt.

 

Have your balances recently gone up? Is your overall utilization higher than normal? What about on individual cards--do any of them have higher utilization percentages than usual? Check those and see if that explains why they believe you have escalating debt. If it doesn't, then who knows?!

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Message 4 of 18
OmarGB9
Community Leader
Super Contributor

Re: DCU CLI denied - Escalating Debt

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


Last App: 1/10/2023
Penfed Gold Visa Card

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:




Current FICO 8 scores:


Message 5 of 18
SouthJamaica
Mega Contributor

Re: DCU CLI denied - Escalating Debt


@vinathi wrote:

Folks, 

 

Yesterday I requested a CLI on my DCU credit card which is 8 months old. I got a denial with below reasons:

 

Escalating debt.
Limited credit experience.
Sufficient amount of unsecured debt with DCU.

 

I have EQ score of 723. I started building credit 9 months back. Apple gave CLI 2 times, and Discover gave CLI 1 time, what is wrong with DCU here? 

 

The main reason of this post is, I don't understand what is Escalating debt. Can someone please explain me? 


DCU is hyperconservative. Don't have high hopes for ever getting any decent limits from them.

 

Sometimes credit unions use the term "escalating debt" to refer to "escalating credit limits" (PenFed was notorious for saying people with a lot of available credit were "pyramiding debt" even when their utilization -- i.e. their actual "debt" -- was minimal, hence the nickname "Egyptian" for those of us who had been turned down Smiley Happy).

 

 


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 6 of 18
Murph5065
Contributor

Re: DCU CLI denied - Escalating Debt


@OmarGB9 wrote:

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


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

Message 7 of 18
SouthJamaica
Mega Contributor

Re: DCU CLI denied - Escalating Debt


@Murph5065 wrote:

@OmarGB9 wrote:

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


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


It is a good thing.

 

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

 

 


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 8 of 18
pip3man
Valued Contributor

Re: DCU CLI denied - Escalating Debt


@SouthJamaica wrote:

@vinathi wrote:

Folks, 

 

Yesterday I requested a CLI on my DCU credit card which is 8 months old. I got a denial with below reasons:

 

Escalating debt.
Limited credit experience.
Sufficient amount of unsecured debt with DCU.

 

I have EQ score of 723. I started building credit 9 months back. Apple gave CLI 2 times, and Discover gave CLI 1 time, what is wrong with DCU here? 

 

The main reason of this post is, I don't understand what is Escalating debt. Can someone please explain me? 


DCU is hyperconservative. Don't have high hopes for ever getting any decent limits from them.

 

Sometimes credit unions use the term "escalating debt" to refer to "escalating credit limits" (PenFed was notorious for saying people with a lot of available credit were "pyramiding debt" even when their utilization -- i.e. their actual "debt" -- was minimal, hence the nickname "Egyptian" for those of us who had been turned down Smiley Happy).

 

 


lmaooo I remember back in the days when that was the most common reason they declined CC applications. I was one of those Egyptians lol. I wonder if they still use that term nowadays. It's crazy how they went from being ultra-conservative to now somewhat liberal with their underwriting guidelines. Back then I couldn't even get approved for a $1 with high 700s score and minimal debt but now they have the flood gates open for me even with a fresh BK7. Gotta love them!

Message 9 of 18
SouthJamaica
Mega Contributor

Re: DCU CLI denied - Escalating Debt


@pip3man wrote:

@SouthJamaica wrote:

@vinathi wrote:

Folks, 

 

Yesterday I requested a CLI on my DCU credit card which is 8 months old. I got a denial with below reasons:

 

Escalating debt.
Limited credit experience.
Sufficient amount of unsecured debt with DCU.

 

I have EQ score of 723. I started building credit 9 months back. Apple gave CLI 2 times, and Discover gave CLI 1 time, what is wrong with DCU here? 

 

The main reason of this post is, I don't understand what is Escalating debt. Can someone please explain me? 


DCU is hyperconservative. Don't have high hopes for ever getting any decent limits from them.

 

Sometimes credit unions use the term "escalating debt" to refer to "escalating credit limits" (PenFed was notorious for saying people with a lot of available credit were "pyramiding debt" even when their utilization -- i.e. their actual "debt" -- was minimal, hence the nickname "Egyptian" for those of us who had been turned down Smiley Happy).

 

 


lmaooo I remember back in the days when that was the most common reason they declined CC applications. I was one of those Egyptians lol. I wonder if they still use that term nowadays. It's crazy how they went from being ultra-conservative to now somewhat liberal with their underwriting guidelines. Back then I couldn't even get approved for a $1 with high 700s score and minimal debt but now they have the flood gates open for me even with a fresh BK7. Gotta love them!


I believe @AverageJoesCredit was one of us Egyptians.

 

I was thinking the same thing you're saying about PenFed in the context of comparing DCU.  My first PenFed application was denied on the ground of my being an 'Egyptian'. Then, on recon, they denied it again.  Then when I responded to their customer service feedback survey, they finally relented, and gave me a $7k credit line.  Today I have 63k in unsecured credit lines with them. 

 

DCU preapproved me for a credit card then denied my application, then on my 2nd application put me at something like 2k.  I got it increased to 10k but have been stuck at 10k for 3 or 4 years now.

 

Right now my utilization is way up, so if a credit union denies me for having balances too big, I take it in stride because I consider that a fair reason.

 

But if a credit union denies me for having excessive credit limits, I just close my accounts with them and say good bye, because I don't intend to ever voluntarily reduce my available credit.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 10 of 18
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