Digital Credit Union (DCU) Visa Denial

[cem13]

Another DP for DCU.  I have been a member of DCU for over 7 years.  I opened an account with them during my 2 year post BK7 rebuild in hopes of getting a future CC from them.  I opened several CU accounts at this time: NFCU, PenFed, Langley, Lake Michigan, DCU, Allient, State Dept, and NASA.  At that time (2013~2014) NFCU, PenFed, NASA and State Dept all gave me a CC.  Lake Michigan denied me in 2014, so I kept Langley, DCU and Allient on the bench for "later" app spree.

I had $5 a month tranferring to DCU checking to build a "relationship" (whatever that means).  I lost track of time with these CUs and during my DEC19 App Spree, I decided to apply for the DCU Visa.  I was denied.

Reason:  * Too Much Revolving Debt

They used EQ Fico 09 Score (688).

I have about $40K out of $240K (17.5% utilization) revolving debt and ~$150K income.  I have $3000 disposable monthly income.  I did not know DCU was that conservative.  During the recent app spree: NFCU gave me a 3rd card @ $8K; Citi DC @ ~$9K; Apple @ ~$5.5K; FNBO Ducks Unlimited @~$3K; and BECU @ ~$3K.

Needless to say, I took my DCU money and ran.  They can keep the $5 minimum.  I have too many CU accounts anyway.  I still have Langley and Allient on the bench for another app spree later this year.  IMO most CUs have the same benefits although some have a "trick pony" to entice membership with low load rates, BT offer, bonuses etc.

[Gotham-]

Thanks for the DPs

DCU has a personality... for Auto loans they have been very competitive and sometimes best rate so term loans I’m there with them new-refi-etc. but revolving lines they are conservative even with equifax 5 mortgage scoring model I was instantly approved for my Auto loan they use same profile for other products for 45 days I was 760 equifax 5 but wouldn’t approve me for CC my DP was I haven’t applied for anything since 2016...

So 4 months (oct 2019)in new auto loan and now pre-approved for CC and term loan products maybe the underwriter’s profile personality and interpretation plays a part
that’s why we got recons right ARGH 😤

You have more years with them so I’m just telling you what you already know!!

🦇💥🥊 Gotham

[credit_endurance]

DCU is known for coming up with excuses not to grant credit. Don't feel bad I have been denied 3 times!! For the Platinum Visa. Even talked to a loan officer about my reports and at that time had many new accounts and some debt reporting, nothing major but I guess too much for their tastes. LO even mentioned if I got my DTI ratio down they would approve. Waited 6 months and got the ratio down. Reapplied, and still denied!       I only keep them around for the free monthly Fico scores and savings account. I have found very few CU that aren't a bit spooked 😲 of much available credit and DTI. 

[CreditCuriosity]

Thanks for DP... 40k in revolving debt with a BK on file still will get some peoples attention as not really a small amount.  Just my humble opinion

edit: Langley will most likely deny you a CC as well as they are very DTI sensitive.

[AverageJoesCredit]

Yup, i agree, 40k debt though maybe not huge for a 150k earner is still alot by most standards but there are plenty of lenders out there who dont bat an eye. Maybe get a pl to help clean up your report. Thanks for sharing

[M_Smart007]

I guess it's like a horse race, one will always come in last.

I think I am at 10-12 CU's.   .. I have one I am not a fan of

[AllZero]

If anything, at least make use of that 6.17% APY on savings up to $1,000.

[FinStar]

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@CreditCuriosity wrote:

Thanks for DP... 40k in revolving debt with a BK on file still will get some peoples attention as not really a small amount.  Just my humble opinion

edit: Langley will most likely deny you a CC as well as they are very DTI sensitive.

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I would add that Alliant is somewhat conservative as well and would take a similar stance, OP. 

[Anonymous]

Most CUs simply can't afford to take on risky revolving loans. The large ones like NFCU, BECU, and PenFed can but to give a size comparison, DCU's assets aren't even half of BECU's or a tenth of NFCU's and they're the 14th largest CU. 

DCU is also a bit shy about BK. They approved me for their Platinum last February at 13.75% with a $1K limit but even after taking a HP, they declined to give me a CLI. Too much credit seeking combined with my BK for them to give me more. 

[Meanmchine]

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@CreditCuriosity wrote:

Thanks for DP... 40k in revolving debt with a BK on file still will get some peoples attention as not really a small amount.  Just my humble opinion

edit: Langley will most likely deny you a CC as well as they are very DTI sensitive.

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Bingo