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PenFed Plat Rewards Visa Signature denied @ EQ 789 (thin file)

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Cookiegrabber
Regular Contributor

PenFed Plat Rewards Visa Signature denied @ EQ 789 (thin file)

Just got denied online for the PenFed Platinum Rewards Visa Signature card. I knew it was a bit of a risk as my file is very new and thin..

 

AoOA: 1 Yr 1 Mo

AAoA: 10 Mo

EQ score pulled by PenFed: 789

FICO 8 scores for reference: EQ 776, TU 775, EX 766 before this app

 

Other cards:

1. Discover it chrome with $0 util out of $2700

2. Amex Cash Magnet with $51 util out of $6000

(running AZEO method)

 

Other loans:

1. PenFed SSL with $24 util out of $300

2. DCU SSL previously closed in good standing

(SSL method valid until 7/7/19 which is when I have to pay off the $24)

 

Inquiries reporting: 1 in each of the 3B in last 12 months, 3-4 in each in the last 24 months

 

No other closed or open accounts, no BK, no late, just really new and thin file

 

Reasons given for denial:

1. Percent of revolving accounts opened recently

2. Percent of accounts opened recently

3. Age of bankcard accounts

4. Bankcard high credit (dunno what this means?)

 

Key factors that adversely affected your credit score:

1. Too many accounts with balances

2. Too many inquiries last 12 months

3. Length of time revolving accounts have been established

4. Length of time accounts have been established

 

I actually wanted to get something with 5% rotating categories, but I chose PenFed as the testbed because it only pulls EQ and I could re-use the pull to try for a lower tier card.

  - Chase is risky because they seem to like to pull twice

  - Nusenda requires $35 donation to a wildlife association to join

  - Langley's rotating card is also a Visa Signature and I don't have an account there

  - Discover doesn't want to prequal me for anything right now

 

Would love to hear of any other 5% category cards that anyone knows about! Meanwhile, I think I'm going to call PenFed in a couple days to try to recon or get a PenFed Gold/PenFed Promise.. can't decide which....

 

AND AND AND -- I'd like to thank all the posters here at the forum. I thought 780 would be unachievable so fast, but the combination of low util, AZEO, SSL trick, and INQs falling off the score did absolute wonders!!!! Before all 4 kicked into gear, 2 months ago when I was just waiting for everything to click, my scores were at EQ 707, TU 717, EX 713 -- that's a 60 point difference in 2 months!!!


Starting Scores: No Scores (03/2018)
Current Scores: 779 - 789 (08/2023)
Goal Scores: 780 across the board

Current Total Credit Limit: $109,900 (08/2023)
Take the myFICO Fitness Challenge
Message 1 of 19
18 REPLIES 18
Gmood1
Super Contributor

Re: PenFed Plat Rewards Visa Signature denied @ EQ 789 (thin file)

Sorry to read of your denial. I would recon your original app with Penfed. Also understand AZEO and reporting small balances will carry you only so far. You have to show that you use and love paying bills with CC's. I've stated this till I was blue in the face, though folks still think AZEO and reporting almost no use will get them approved with lenders.

I can almost guarantee, 99% of the heavy hitters credit wise in this forum don't use AZEO or worry about reporting super small balances.

Message 2 of 19
Anonymous
Not applicable

Re: PenFed Plat Rewards Visa Signature denied @ EQ 789 (thin file)

I don't think AZEO is really doing anything for you because you only have 2 revolving accounts. From what I've learned here, AZEO works when you are reporting less than 50% of your revolving accounts with a balance. Since you only have 2 revolving accounts, you are still reporting at least 50% of them with a balance even when you do AZEO because 1/2 = 50%. I believe that's why they say people need at least 3 revolving accounts. Because in that case, AZEO would yield 33% of revolving accounts with a balance (1/3). That might also explain why you are getting the "too many accounts with balances" hit...

Message 3 of 19
Anonymous
Not applicable

Re: PenFed Plat Rewards Visa Signature denied @ EQ 789 (thin file)

Also, what's the "SSL trick?"

Message 4 of 19
Cookiegrabber
Regular Contributor

Re: PenFed Plat Rewards Visa Signature denied @ EQ 789 (thin file)

Oops, I'm pretty sure I read one of your posts then forgot...

Starting Scores: No Scores (03/2018)
Current Scores: 779 - 789 (08/2023)
Goal Scores: 780 across the board

Current Total Credit Limit: $109,900 (08/2023)
Take the myFICO Fitness Challenge
Message 5 of 19
Anonymous
Not applicable

Re: PenFed Plat Rewards Visa Signature denied @ EQ 789 (thin file)


@Gmood1 wrote:

Sorry to read of your denial. I would recon your original app with Penfed. Also understand AZEO and reporting small balances will carry you only so far. You have to show that you use and love paying bills with CC's. I've stated this till I was blue in the face, though folks still think AZEO and reporting almost no use will get them approved with lenders.

I can almost guarantee, 99% of the heavy hitters credit wise in this forum don't use AZEO or worry about reporting super small balances.


As someone else pointed out in a different thread, AZEO is fine when used strategically... like just before applying for credit. Other than that, it's best to show responsible and managed use. I discovered this myself when I got the score bump from "you have shown recent use of credit cards." It seems some people make the mistake of thinking AZEO all the time is a good credit building strategy, when it really isn't.

Message 6 of 19
Cookiegrabber
Regular Contributor

Re: PenFed Plat Rewards Visa Signature denied @ EQ 789 (thin file)

@felipestrong
Ah, so that's what that meant. Thanks!

The SSL method is 1) having a cheap installment loan to get Credit Mix points for those with no other installment loan, in conjunction with 2) the big score boost you get when that loan is at least 91.1% paid off.

I'm on a phone so it sucks to find the link but if you search for "SSL method" there should be a huge thread.

Starting Scores: No Scores (03/2018)
Current Scores: 779 - 789 (08/2023)
Goal Scores: 780 across the board

Current Total Credit Limit: $109,900 (08/2023)
Take the myFICO Fitness Challenge
Message 7 of 19
CreditCuriosity
Moderator Emeritus

Re: PenFed Plat Rewards Visa Signature denied @ EQ 789 (thin file)

About only time I can really see AZEO being something to do is if you are going for a mortgage and obviously don't want to carry alot of debt on many cards with debt otherwise it is doing more harm than good.  With that said you don't want to say have 7 out of your 10 cards with 30%+ utilization on them if you are applying for new credit.  A bit of common since, but AZEO as a whole is a bad idea; you might be able to squeak out a few more points, but the end results isnt as favorable most likely.  As @Gmood1  stated lenders want to see you utilize credit and pay it off and you can maintain this pattern.  It is certainly worth reconning with penfed as the HP is done and maybe you will end up with the promise or something, but was pushing it for the VS from penfed with as new of a profile as you have imho.  Another year from now it won't be a problem imo.

Message 8 of 19
AverageJoesCredit
Legendary Contributor

Re: PenFed Plat Rewards Visa Signature denied @ EQ 789 (thin file)

You can recon but imo if they denied you a credit card they most likely wont approve another one. The Nusenda card is an option i may try again once a fico buddy finishes up his test runSmiley Wink
Message 9 of 19
Anonymous
Not applicable

Re: PenFed Plat Rewards Visa Signature denied @ EQ 789 (thin file)

From reading they became Tough business to deal
Message 10 of 19
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