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Alliant ridiculous response to their CC app

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Applied last year for their 3% unlimited cash back rewards cc, got declined. Kind of did not wanted to bother with answers too much. Last year they sent me letter with too many INQ's. At tat time I had 7 INQ's. Exactly one year later I had no applications within last 12 months, only 1 INQ on my report, decided to try same card again. Applied - Declined. Reason today - insufficient income for a desired limit. My income 105k/year. credit score for the last 5 years always  800+ (thanks CB), have mortgage, cc utilization under 1%. most limits on my cards are $10k+, some reaching $40k. 
Should I bother to write a letter to someone or complain? This is really ridiculous when you have exceptional score and under 1% util, with no INQ's on the report and average account age 7,5 years you are being turn down for some nonsense reasons. That's an insult to me. Any thoughts?

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I think iT was the "max" optIon. I did not entered any amounts for sure. So they had a chance to approve me even for a 1,000 dollars. 

 

Edited by vezhiux

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It seems appropriate for you to call and review your application.  Clarify the limit that they think you requested and ask if they can consider an alternate request.

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46 minutes ago, MarvBear said:

How would the Original Poster lay out their case for consideration to the analyst?

 

The heart of my suggested call lies in the fact that the stated decline reason is ambiguous, at best.  It's not entirely clear what "desired limit" was specified, if any.  It's not clear why the creditor didn't consider a lower counter offer

 

To directly answer your question, I'd suggest that the call is more about seeking an alternate offer (lower credit line) than actually seeking reconsideration for the line requested (or, in any case, what the creditor deemed to be requested).

 

As "vezihux" stresses, there doesn't appear to be any other impediment to opening an account other than the stated income consideration.  If true, then there may be no need to make a "case"; just simply state he/she would be satisfied with a more modest line than originally considered.

 

All of this is stated with a specific caveat:  It's possible that the reason for the decline was that there's a minimum CL threshold (say $20k) for the card and vezihux didn't report sufficient income by which to qualify for that threshold.  Checking out the card (I was unfamiliar with it), they specifically state they target "high spenders".  (Their cashback estimator begins with a $42k annual spend.) That makes this possibility a likely one, although a quick call should put that question to bed.

 

vezihux:  If you make the call, I suggest that you start from a softer stance than "insult/nonsense" ... just sayin' ;)

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:D Thanks hdporter, 

I did call today, and I did ask why in this world my application was turned down. Their explanation: income not sufficient/too much available credit.

I then asked "are you asking me to close down some of my old aged 10+ year accounts with high limits just to have a chance that you will approve me next time, and is there a really guarantee that you will anyway even if I do so?" - lady start loosing her speech and did not had a clear answer, she was only able to tell me that "she can not guarantee anything, and she can not suggest anything". And I said "Oh, incredible! Thank you for a clear and strong answer". She also asked me if maybe I have a co-signer to this application, that may help as well". I replied "thank you, but my utilization is only under 1% ($2,500) at this time and that I really have no financial issues and my credit score is 830 and this would be really crazy if I had to get a co-signer on the table in order to get a credit card from you. I also asked if there is anybody to reconsider a lower limit and I can start maybe lets say with 5k limit, she said "unfortunately this application was already closed and you can re-apply and there are no guarantees that someone can approve me even for a lower amount. 
Welcome to Alliant Credit Union where the magic happens! 
Sorry i did not mean to insult anyone who has accounts there and maybe they do some magic for ya. :D 

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2 hours ago, hegemony said:

That stinks. Remember to do business with companies that want you but maintain business with those that appreciate you.

100% Agree. 
I do have though one conspiracy theory why this application did not go through. My wife has their 3% card already for few years. Nice limit, heavy heavy use. Just in the first year alone we collected almost $8k cash back. Always Paid in Full every month, so never allowed them to make any money on the interest charges. So maybe they think its just a waste of money to issue another card, and simply its not worth it to them. Im pretty sure they see that other card when manually reviewing app. Same last name, same address... maybe I'm wrong, but that's what came up to my head after that phone call as well....

I really have no issue using chase or BofA, they are my highest limit cards, and i use them a lot, but I guess 3% unlimited cash back is the only card that I know at the moment. My wife's card is already second year, now cash back is down to 2,5% and I was thinking to switch these purchase's on my card for next 12 moths so we can continue with 3%. Maybe next time I guess

Edited by vezhiux

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6 hours ago, vezhiux said:

:D Thanks hdporter, 

I did call today, and I did ask why in this world my application was turned down. Their explanation: income not sufficient/too much available credit.

I give on this one! :)

The minute that "too much available credit" comes out of a lender's mouth, it's definitely a sign that it's time to walk. 

 

I'll note that any lender has the right to set their credit standards as they see fit.  If they don't "fit" you, you move on.  Credit Unions are the original "oddball" lenders.  I think they're great because, on occasion, they can extend a personal touch that you may not find with traditional lenders.  On the other hand, they can be feistier than my former Siamese was when she was close to dropping a litter.

 

The first CU I joined in 1982 turned me down for a car loan, citing insufficient credit experience.  I went out and sheepishly applied with PNC and they made me feel like a long lost cousin.  I stuck with the CU and enjoyed a largely positive experience.  But when I applied for a VISA card in 2017, I got the "too much available credit" crap.

 

6 mo later, they merged into a larger credit union with a similar membership field.  I immediately applied for VISA and got $20k right out of the box with very favorable terms (8.9% APR, no fee transfers to checking).  You keep yourself open to reap that which is good and kick the rest to the curb.

 

I've been on a rant here lately about DCU.  Recently, my experience with DCU has been stronger than that with any other lender I've been with (and that involves quite a history).  On the other hand, DCU has been a notably poor fit for several here.  I chalk it up to "different strokes for different folks".

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11 hours ago, vezhiux said:

:D Thanks hdporter, 

I did call today, and I did ask why in this world my application was turned down. Their explanation: income not sufficient/too much available credit.

I then asked "are you asking me to close down some of my old aged 10+ year accounts with high limits just to have a chance that you will approve me next time, and is there a really guarantee that you will anyway even if I do so?" - lady start loosing her speech and did not had a clear answer, she was only able to tell me that "she can not guarantee anything, and she can not suggest anything". And I said "Oh, incredible! Thank you for a clear and strong answer". She also asked me if maybe I have a co-signer to this application, that may help as well". I replied "thank you, but my utilization is only under 1% ($2,500) at this time and that I really have no financial issues and my credit score is 830 and this would be really crazy if I had to get a co-signer on the table in order to get a credit card from you. I also asked if there is anybody to reconsider a lower limit and I can start maybe lets say with 5k limit, she said "unfortunately this application was already closed and you can re-apply and there are no guarantees that someone can approve me even for a lower amount. 
Welcome to Alliant Credit Union where the magic happens! 
Sorry i did not mean to insult anyone who has accounts there and maybe they do some magic for ya. :D 

 

Sounds like the possible reason could be that they think you have enough available credit already.  This is a common line of thinking for credit unions.  

 

What is the total of all your credit limits?

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Alliant is very conservative and too much available credit / pyramiding debt is a typical decline reason for them. Your income isn't high enough in their eyes to support all the available credit you already have if you were to go on a spending spree and they aren't interested in risking a bust out scheme. Just move on to lenders who appreciate you. 

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I trust we're all in agreement that "too much available credit" is a s-ussy rationale for credit denial.  One only needs a couple of feet of rope (or a necktie) to hang oneself from a door.  No hardware store would refuse to sell 10' because of the risk for self-harm. 

 

Similarly, most can get sufficient credit that would be impossible to service if maxed out.  Unwillingness to extend above that point suggests that buying 10' of rope makes you more likely to hang yourself when 2' can do the job just fine.

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41 minutes ago, hdporter said:

I trust we're all in agreement that "too much available credit" is a s-ussy rationale for credit denial.  One only needs a couple of feet of rope (or a necktie) to hang oneself from a door.  No hardware store would refuse to sell 10' because of the risk for self-harm. 

 

Similarly, most can get sufficient credit that would be impossible to service if maxed out.  Unwillingness to extend above that point suggests that buying 10' of rope makes you more likely to hang yourself when 2' can do the job just fine.


Unfortunately, many credit unions wouldn't sell you 8' of rope if they see you already own 2'.  My theory is that credit unions are like that because they hire unqualified, shetty and re ... -- Oops, can't use that word here -- credit analysts.  Fortunately, Navy isn't like that.  

 

I have found a way to get a CU to approve your even though they ordinarily wouldn't because of your already "excessive" available credit. ;)
 

 

Edited by PotO

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48 minutes ago, hdporter said:

< need to try again ... this one ran afoul of tos >

Fixed that.  😂

 

More than one way to skin a cat. ;)    Gotta keep Marv on his toes.  

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