Well it wasn't much of a surprise, but this is the first time I have been denied credit in quite some time. It's amusing and interesting to say the least.
I had applied for the Fidelity Amex and US Bank Cash+ over the weekend (instant approvals for both), and decided to apply for a CLI on my Penfed Platinum Rewards card since my EQ was clean and I was curious to see how far a high FICO would take me. Existing limit was $32.7k, and I applied for a CLI for a 787 EQ FICO (0 inquiries in prior two years, youngest account 20 months old, 6.5 year history, and 4.5 year AAoA. 1 auto loan 50% paid off, and 7 open revolving credit cards limits totaling $95k. All individual accounts, no AUs or joint accounts).
Website indicated application was "turned down..." with no reasons listed.I called customer service and they told me they could not figure out why, just that "it did not meet their program requirements". I'm a bit puzzled. Obviously a letter is on the way to me in the mail, but I'm surprised I couldn't get a straight answer out of the CSR. Thoughts?
I didn't really need or want a higher limit, I was really just wondering how far a high FICO and clean report could get me with a limited amount of income.
Starting Score: EQ 773, TU 766
The more I think about this, the more anxious I get to see the reason for denial from the letter in the mail.
My last CLI was in April or May of last year (to the best of my memory). It was a CLI from $23k up to my current $32.7k limit via a pre-approval. My income has since increased by 40%, so I can't imagine I've hit any exposure limits with Penfed.
I'm also not too sure about pyramiding debt. I thought this meant just adding debt but simultaneously increasing your limits so that one's util stays the same (or lower) but your debt continuously grows? If that's correct, then I don't seehow Penfed could play that card on me. I PIF my cards every month and I think the most I have ever charged on my cards in any single month is maybe $1k-$2k total. At time of app, EQ showed a total balance of <$500 in credit card balances.
Fidelity and US Bank both pulled EX, so there'sno way Penfed would have even known I was applying for anything else.
mikka1 you are absolutely correct and I 100% agree with you. On the other hand, my situation was no different last year when they gave me a CLI via pre-approval from my then-$23.5k limit to my current $32.7k limit. I thought the exact same thing...I use(d) the card almost exclusively for gas, my maximum balance has probably never even exceeded $500, and yet they want to give me more credit from $23.5k up to $32.7k.
In any case, I finally did receive the letter via my online account (I guess it takes a day or two a fter the official turn down"?). Reason for denial was "Presently have maximum open-end credit". I guess that means that despite the fact my income has increased by 40% since they last gave me a CLI, that it is the most they're willing to risk on me.
letter also referenced a credit score, looks like it might be Penfed's internal scoring system? Said I had an 838 on a scale of 150-950.