I had a question about pyramid debt, recently i asked affinity credit Union in NJ for a CLI and was declined and got the letter today saying the reason was for pyramid debt. I understand the term, and why they feel that. It is true I am applying for new credit and have built a Alot of credit cards in the past. My oldest account is 2 years old. I have a Aaoa of 1 year. And about 20 credit credits. I use my credit cards for my business and this is why I have applied for so much personal credit. As earlier it was hard to get business credit cards. I currently charge between 30-40k a month. And in the next few months I will charge between 50-70k a month. I always PIF, and have 2 business credit cards right now.
But I have a Penfed promise I got back in NOV 2011. I was wanted to ask them for a CLI in Oct, I use this card Alot. I have charged over 60k so far and PIF every month. I was wondering can I speak directly to the analyst when asking for a CLI and explain the reason for applying for so much credit and using it is because of my business and not personal. I did this with Chase when they asked me. I was honest and truthful with them. I told them I need credit for the business and since it's harder to obtain business credit versues business credit. This is the reason why I was applying so much. My income is nearly 6 figures. I was thinking If I could explain this to Penfed directly they will understand. Can I speak to them directly ??
Yes you can. But for cu, you will probably need to talk to senior loan officer who will have to take to loan committee. The fact is you are pyramiding debt. You have good explanation for it. Just a matter of whether or not they are okay with it.