Denied For Citi Double Cash Card - Update: Approved

[Anonymous]

So I finally applied for the Citi Double Cash Card and about a week and a half later after mailing in some information I was denied. I know that they pulled my Ex FICO as I got an alert and am a little stumped as to why I got denied, (haven't gotten the letter in the mail yet.) My EX FICO score is 752 and other than my credit utilization being 50% I have no negative marks. Never had a late payment and haven't had a credit inquiry for almost three years... My oldest account is 8 years old and my newest is 3 years. I was reading about an EO number to call, what is it? Any thoughts on why I would have been denied...

Also new to the forum and you guys have some awesome advice!

Mod note:  I've updated your thread subject to indicate your approval; feel free to edit if you would like.  --UncleB

[Anonymous]

First, welcome to myFICO!!! This would be better in the credit card applications section FYI! 

Sounds to me like they didn't like the 50% utilization. Hopefully the letter will be of help.

Check out the backdoor numbers thread and give them a call! http://ficoforums.myfico.com/t5/Credit-Card-Applications/Backdoor-Numbers/td-p/408066

[Anonymous]

Agreed; although your score could normally be strong enough, I don't think liked the 50% utility

[Jerry45]

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@Anonymous wrote:

First, welcome to myFICO!!! This would be better in the credit card applications section FYI! 

Sounds to me like they didn't like the 50% utilization. Hopefully the letter will be of help.

Check out the backdoor numbers thread and give them a call! http://ficoforums.myfico.com/t5/Credit-Card-Applications/Backdoor-Numbers/td-p/408066

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+1.  Good Luck on the recon

[Anonymous]

Saying "50% utilization" on these boards is a common way for people to avoid speaking any particular facts.  As such, just posting a number isn't helpful for others to help you.

Let's clarify together so we can better help.  Please clarify:

• Is that 50% utilization aggregate across all your cards?
• What is the highest utilization you have on ANY SINGLE card?
• How many cards do you have that carry a balance over 50%?
• What's the highest balance you have in dollars total?

[Anonymous]

Wasn't trying to avoid, sorry!

Here's the breakdown:

• The debt is on one card.
  • $8000 utilized out of $11,600 - Credit Union Visa Card - Open for 12 years
  • $0 utilized out of $4650 - GM Mastercard - Open for 7 years
• $8000 out of $16,250 utilized.

Those are the only two cards I have. 

My plan was to balance transfer the debt to the Citi card since the 3% in fees is about what I would pay in interest on my current card for the rest of the year. Then I was going to use the card for all of my purchases to cash in on the cashback.

I currently use the PayPal Debit Mastercard for the 1% cashback on all of my purchases but wanted to get rid of it since I've been having trouble with it at my local wholesale clubs.

[AverageJoesCredit]

I would say it was the high utilization on the one card that scared Citi, silly perhaps considering your stats but when they want to find a reason to deny and inqs arent around, that'll do it.

[Anonymous]

IMO,  no one should apply for credit with > single-digit utilization.  MAX up to 28.99% utilization, with the understanding that if you dropped to single-digit utilization you'd get a more favorable app result.

If you were at 50%+ utilization, that's the reason you were denied as you present a significant risk to someone that's at single-digit utilization.  Without question, the reason you get in your denial letter will cite your high utilization.  If you fix that, you'll get approved just fine.

Not to be argumentative, but what is your reason for applying for additional credit prior to paying off what you owe already?

[Anonymous]

Yeah, I'm gonna say that's my issue. I was hoping the higher stats and the fact that I have never had a late payment for the entire time I've had all cards. I figured they might want my balance transfer fee haha.

My thought process wasn't to pay off one card with another. The balance transfer fee would have been about what I will pay in interest on my Visa for the rest of the year. I would definitely have the card paid off before the 0% 18 month period is up. Trying to save myself money in interest. 

Also, I wanted to take advantage of the 2% cashback and start using that as my everyday card instead of the PayPal Debit Mastercard I have with only 1%. 

Trying to save myself money all while making more cashback.

Fyi didn't take it as being argumentative. I appreciate the info.

[Anonymous]

FWIW, the 2% CB with the DC card isn't going to matter much in the grand scheme of things.  The $20-$30 more you get in CB isn't going to matter relative to the interest you pay on carrying a significant balance.  I'd suggest simply targeting that balance and destroying it.  By doing that, you'll be in a much better financial place both from a monetary sense but also from a FICO sense.  It really is a win-win.  From there, you can apply (and get) whatever you want.