@Janneman wrote:
@coldfusion wrote:Escalation of debt is what it sounds like - they are saying that they see a recent pattern where the amount of debt you are carrying has been generally trending upward, and they see that trend along with your application of credit as potentially signaling that you may be seeking additional credit in response to coming under increased financial duress.
If you were to reverse the trend and over time demonstrated a new pattern that demonstrated no signs of financial instability it's quite possible that they would eventually loosen the purse strings.
So, its just for recent pattern?? If so, then I didn't apply any credit in 2 years...what pattern they are then talking about? Do they think $135k total cl is too much??
Lol not sure but I will relay this to you. I was dead sure Penfed would never lend to my poor profile. At the beginning they gave me a $1k sl and i had to fight to get a $500 increase after a year. Always rejected even with good payment record and thought my time with them would never bear fruit. Closed my card and membership. Decided to give them another try. Now 5 plus years later, I have received 45k in credit card limits with 3 ccs, go figure
. One never knows. Before my current life situation, I had built up good history amongst my other lenders which I feel may have helped open the coffers with PF. Maybe not , but moral of the story is things can change if òne is patient enough.
Backs are different and sometimes make no sense (to us).
I have a $20k PNC and got a preapproval for another. I got $2,500.
I then got a $14k card from Citizens.
Then I got 3 CLI increases from Navy after being previously denied with HIGHER scores.
Huh?
Hang in there, make good decisions, keep the faith.
GL!
@Janneman wrote:I hv been a member with SECU for more than a year...a month ago I received a preapproved offer from you on my online a/c..i applied...got denial for the reason- 'escalation of debt'. I had only one inquiry on my EQ and I didn't obtain any personal card at that time..last card was obtained 2 years ago.. I wondering if I go by this reason then does it mean I will never be able to get any credit with credit union?? I dont have much total credit...only $135k...but they might be thinking this to be too much?? What exactly this "escalation of debt" means? Anyone has ever denied based on this reason, by any lender especially by SECU, and then got approved later on in the future?? I wanna hear your opinion plz..I feel I wasted 3 different inquiries on this stupid CU...2 inquiries on ChexSystem and one on EQ...thankyou
Some credit union underwriters will deny a credit application because they feel you have too much available credit. Sometimes when denying it for that reason, they use the term "escalating debt", even though it's got nothing to do with actual debt. I figure that any underwriter who does that is pretty dumb, as evidenced by his or her application of the term "escalating debt" to something which has nothing to do with debt or with escalation.
I've come to the realization that if I've joined a credit union, and they turn me down for that specific reason, I'm probably just going to put them in my rearview mirror and be done with them, because I don't intend to ever intentionally reduce my available credit just to satisfy some foolish underwriter.
