PenFed approved for LOC but denied Visa rewards credit card

[durham]

I applied for the LOC as part of my PenFed membership and was approved for $15,000 after submitted a couple of paystubs.  When I called to apply for the Visa rewards CC, the CSR put in $12,000.  A few hours later, I checked my status and it said "turned down" due to "pyramiding debts".  I wrote them a recon email and requested if they can approve a smaller limit, if not they can split my LOC limit and move 1/2 (or $7500) to the CC.  What are the chances that PenFed will approve the CC by moving the limit from LOC?  What is the maximum credit they would extend to a new member?

My FICO they gave me in the denial letter is 712.  Other FAKO: TU 733, Exp 722.  

In the past year, I applied for several cards and were approved including: CSP for $15.6K, Chase United MP $16K, Chase Marriott $24K, AMEX: $15K and $22K, etc.  Util = 1-2% when they pulled.  

Thanks for your inputs.

[Guyatthebeach]

When you opened your accounts and membership did you go into a branch or over the phone? If they approved you for a loc, you may just want to wait 6 months and then apply again for a credit card with them.

[durham]

I applied online. They requested To fax over my POI to approve the LOC.

[Guyatthebeach]

I am thinking of joining their credit union. They seem like a decent credit union.

[durham]

I'm still in recon process. No news from them yet.

[nicholasyud]

Join membership should be a HP.

Is it another HP for their credit card product ????

What change of 650 Fico score ???

[durham]

I don't think another's HP for the CC app. The CSR said one pull is good for 60 days. That's why I applied.

Not sure about 650. Mine when pulled was 714 EQ.

[Sevenfeet]

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@durham wrote:

In the past year, I applied for several cards and were approved including: CSP for $15.6K, Chase United MP $16K, Chase Marriott $24K, AMEX: $15K and $22K, etc.  Util = 1-2% when they pulled.  

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I'd say this is your problem.  Keep in mind that Penfed is known to be quite conservative.  Am I right to say that you're new to Penfed and asked for two large lines of credit after six months of getting five large credit card offers?  You're fortunate that they wrote you up for the first one, despite your good credit and utilization.  Don't press your luck with them, especially so early.  Ii wouldn't mind a LOC with them either, but I'm probably going to wait another year to ask.

[durham]

After a few calls to the CSRs in the past few days suggesting that they take 1/2 of my LOC and put to the CC, they finally approved my Visa Platinum Rewards card for $7,500.  Yay!!!! 

Even though the limit is much lower than the recent CCs that I just got including the $25K from NFCU, but this is what I want and I'm very happy with this.  I think I will be in the garden for awhile.