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i can't give you any advise cause i'm not sure if i understand what exactly happened and even if i did understand, i'm also a beginner at this.
but having said that i wanted to wish you good luck. credit can be built again. hope it all works out for you.
Did you open 11 GE accounts in a short time frame? Is it possible you've triggered a fraud alert? Creditors are AA your accounts left and right. I think its time to backdoor and explain yourself.
@toli77 wrote:i can't give you any advise cause i'm not sure if i understand what exactly happened and even if i did understand, i'm also a beginner at this.
but having said that i wanted to wish you good luck. credit can be built again. hope it all works out for you.
Thank you. They or the computer panicked. I became an instant risk. Why? I don't know yet. From what gathered:
AMEX
GE- I applied and was approved for 5 new accounts between May and now. No problem. Then AMEX closed my account a few days ago and I got shut down by GE ( Yeah I know- dumb move getting so much new credit, but I was trying to fix my ratio. It totally backfired!) I lost me $17k in GE credit... over $10k was 2 to 3 years old.
@shols44 wrote:Did you open 11 GE accounts in a short time frame? Is it possible you've triggered a fraud alert? Creditors are AA your accounts left and right. I think its time to backdoor and explain yourself.
11? Nope... "only" 5 ( looks down) between May and last Friday. I feel like such a fool typing "5." I knew better, but I still bit the apple. I used an email I found on myfico to send a letter. Hopefully someone will get back to me. If not, I will try your suggestion and backdoor. What should I say? I mean..I wrote the truth in my email. Are there some key points these folks look for? I don't want to get suckered into paying all of my accounts off, and then they get closed at $0.
Care credit - open b/c its a joint.
GE 2 AU accounts - open
Balances under $5k- 1 year old
Paypal $2700
Balances under 2k --- 2.5 to 3 years old
Walmart $1300
QVC $132 reporting $800 on that payment crap
Gap $1200
Amazon $1500
NEW ACCOUNTS
Balance under $50
Raymour $30
New Zero Balance
AE
JCP
TRU
OldN VIsa
I can PIF all of the GE accounts.
Other than that I owe 22,000, 5000, 20,000, 9000 340, 500, and 480 on my other cards.
I can pay off the GE and all my accounts under $1k. That was my plan for July. Oh I forgot $1900 owed on my cancelled personal AMEX.
I know my debt sounds crazy, but if the credit analyst looked at my accounts ( including student & personal loans) and did the math, he should question how I'm able to afford to pay my bills every month. If anything, they should call me to verify my income. $5k to $6k per month is a lot of money to be forking out on CC debt.
You my friend are on the razor's edge.
Credit card companies hate when people use personal credit cards to fund their businesses. Read the fine print in their policies and you will see they forbid you to do it and can close your accounts if you try and do it. It has happened to many people on these forums.
You need to go to an accountant and formulate a plan to wean yourself from using credit cards as much as you have been to finance your company. You need two or three good credit cards and that is it for business purposes. You are scaring the pants off these CC companies with your heavy use of the cards and then apply for more cards on top of that.
The tax returns you supplied to the credit card companies for your business card applications, were they prepared by a CPA or just yourself? They might not trust you.
When they are talking about assets, they mean REAL assets that if your business goes belly up they have something to sell to recoup their investments. You stated you don't have any employees. What happens, God forbid, if something happens to you and you are unable to work for a few months? You look like a very high risk investment to a bank or credit card company.
You need to make yourself look less risky to a bank. Go see a CPA and formulate a plan. Ask the CPA what he/she thinks you can do to improve your chances of receiving credit.
Good luck!
It's not about whether or not they know you are funding your business with the credit they have extended you. It's that you already are carrying considerable balances on multiple cards and continue to apply for new cards.
The CC companies are scared of you "pyramiding debt", that is increasing your debt, but trying to spread it out over multiple new accounts so that you make it appear as if everything is alright. They've seen a pattern of debt increase and they panicked and closed your accounts in order to try and cut their losses.
I wish you luck, and hope you stay positive, but it's not going to be an easy journey for you.
@SAIDFICOMUSTBEASCAMLOL wrote:
Thanks for replying...
I get it... but the accounts I applied for were store cards. How can one pyramid those? The most I could do is buy junk and sell it on EBay.
What about payments history? Can't they see how much I'm paying per month? If that's the case they should be able to see that I've paid 15k to 20k on one card or I've been PIFing for the last 3 years on most of my accts. It is only recently that I've had high balances. Ref: Penfed. After that nonsense I had to use my PSECU, Amex and bank accounts as a loc.
I know I can get new ccs. Put I'm just upset about what keeps happening because I don't have a hidden TL for biz.
Thanks again for the comment.
Have you looked into PayPal's BillMeLater?
It's a hidden TL.
If you read about Penfed and "pyramiding debt", you would see they don't care in the slightess what type of card you have. They pull that excuse whenever they feel like you become a risk to them(or just don't want you to have their cards). Given what you are saying, it's no surprise Penfed acted the way they did. An extremely risk adverse lender reacting like that can cause some chain reactions, but I don't think that would be the only thing that set Amex off.
Likewise, I don't think Amex was the only thing that set GE off. I think 5 cards in about a month is a high number and GE is known to close ALL accounts for doing that. Sometimes this is instant but other times GE puts you on a leash and watches for awhile. Assuming Amex closed you, reported AND GE softed you in that short of time frame, yeah that may of push you over the edge with GE. Really though, you are at fault there for grabbing so many GE cards so quickly because, in my opinion, that is really the catalyst for the GE AA.
Basically, I can see why Penfed and GE took action on you. Amex can make sense as well. Even if you don't tell them you are doing business on personal cards, they can likely figure it out and may have been monitoring your account due to their odd internal risk score. This is the one card I can see as a waterfall effect from the Penfed closing. This is an unfortunate situation you are put in and I hope you the best in getting this sorted out.