NFCU Credit Card Denial

[shojus]

So, I recently applied for the Cash Rewards card because I have been with NFCU for about 8 months and have several accounts with them.  I was instantly denied and I tried reconsideration and was told my DTI was too high.  I did just receive my denial letter today, and the main cause for denial was "Excessive credit obligations in relation to income".  My internal score is a 348, so I must be doing something right.  My question is... I bring home about $4200/month and $3775 of that is direct deposited in my NFCU account.  Is my DTI really that high or is something else the problem??  My debts are listed below:

$444/month auto loan that was just opened

$894/month mortgage that I only pay half of (and I stated that on the application).

I have (4) credit cards that are all without a balance because I pay them to zero every month.

I do have (1) $4500 charge-off from an auto loan form 6 years ago but it shows as a $0 monthly payment.

By my calculations I'm about 25% DTI, sonks that too much for NFCU or are they just concerned because my balances in relation to when my accounts were open are too high?  I've always read that 35-50% is a high DTI.  I wish they would have just given me a low limit, but I guess it wasn't meant to be.  Thanks for any insight!

[GZG]

I wonder if they're counting the full amount of your CO as part of your DTI for one month

I would give reconsideration one more go, citing the letter and providing your own DTI calcs as a defense against the letter's claim of excessive credit obligations

I wonder if your report had high balances when you applied that could have spooked them?

regardless, I think you'll have a better chance of being approved when your CO falls off, so I would just let that happen for now imo

[shojus]

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@GZG wrote:

I wonder if they're counting the full amount of your CO as part of your DTI for one month

I would give reconsideration one more go, citing the letter and providing your own DTI calcs as a defense against the letter's claim of excessive credit obligations

I wonder if your report had high balances when you applied that could have spooked them?

regardless, I think you'll have a better chance of being approved when your CO falls off, so I would just let that happen for now imo

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I actually had them reconsider me twice and I was surprised they even did it the 2nd time.  I explained my debt and they didn't seem to care, so I guess it is what it is.  Like you said, I think because I just got my auto loan and it didn't even show one payment it may have raised flags.  The loan amount is $19k so it wouldn't seem like that would be a huge deal.  They could have threw me a $1000 limit but just a denial...  Unless they are counting that $4500 charge-off as a monthly debt than I can't figure it out.  

[SPChaser]

@shojus would getting a secured card be a possibility for you? Yes, it's definitely not the card you wanted but maybe building that cc relationship would help in long run, or is that not an option, when Navy denies approval. I thought a secured card is offered if they are not ready to approval one of their card products. 

[shojus]

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@SPChaser wrote:

@shojus would getting a secured card be a possibility for you? Yes, it's definitely not the card you wanted but maybe building that cc relationship would help in long run, or is that not an option, when Navy denies approval. I thought a secured card is offered if they are not ready to approval one of their card products. 

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I would have went that route if they offered it.  Maybe I'll reach out and ask.  It doesn't seem to be my score that's the problem though, they stated that my DTI is too high.  Again, I only have a mortgage and an auto loan that is less than 25% DTI and I don't have balances reported on any of my 4 credit/store cards so I guess that's too much for them at the moment.  

[risingup2day]

Sounds like they are calculating your mortgage. Which makes sense because if the mortgage is reporting to your CB then if your partner up and left, you would be responsible for the entirety of the mortgage. 

[shojus]

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@risingup2day wrote:

Sounds like they are calculating your mortgage. Which makes sense because if the mortgage is reporting to your CB then if your partner up and left, you would be responsible for the entirety of the mortgage. 

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I figured they would do that, and it definitely makes sense.  

[SweetRevenge117]

Was Navy Federal who lended you the money that was charged off?

[shojus]

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@SweetRevenge117 wrote:

Was Navy Federal who lended you the money that was charged off?

No, the charge off is from a 6+ year old auto loan from Flagship Credit Acceptance.  

[spiritcraft1]

If they are counting your full mortgage payment, you should be reporting houshold income.