Still No Apple Love

[ImBack]

Tried again for a CLI with Apple.  Here’s the Dear Jane email I received:

 

Goldman Sachs Bank USA could not approve your request for a credit limit increase because:

• You have not used and paid enough of your Apple Card credit limit since your last credit limit increase

 

Goldman Sachs Bank USA received your credit score from TransUnion Consumer Solutions.

Your credit score is a number that reflects the information in your consumer report. Your credit score can change, depending on how the information in your consumer report changes.

Your credit score (TransUnion FICO® Score 9) as of December 19, 2022:

825

Credit scores range from a low of 300 to a high of 850.

 

‘Have a decent line in excess of 20K, pay down every month before balance posts. It would seem odd if the algorithms think I’m not running anything through the card. Usual monthly spend is $1,200 or so. 
 

As an aside, TU FICO 8 is 817. 
 

Can’t figure out why I keep getting rejected. 

[Burgerwars]

I've had my credit limits decreased (different card) for not utilizing the limits set. The same logic could be for limit increases. 

[MP80]

I see that this is your second decline of CLI by Goldman Sachs, sorry to hear that.

 

A week ago, Goldman Sachs reported that it had lost billions of dollars in earnings.
 
I think the main reason for your rejection is the combination of several factors related to current economic trends, adding to Goldman's severe losses from consumer write-offs and bankruptcies.

 

Of course, no one wants to be turned down for a credit increase with excellent credit, however, some banks target those who have ~300K or more across the entire credit cards portfolio, which makes them skittish to give you more credits, so, the situation has nothing to do with you.

[Burgerwars]

1 hour ago, MP80 said:

I see that this is your second decline of CLI by Goldman Sachs, sorry to hear that.

 

A week ago, Goldman Sachs reported that it had lost billions of dollars in earnings.
 
I think the main reason for your rejection is the combination of several factors related to current economic trends, adding to Goldman's severe losses from consumer write-offs and bankruptcies.

 

Of course, no one wants to be turned down for a credit increase with excellent credit, however, some banks target those who have ~300K or more across the entire credit cards portfolio, which makes them skittish to give you more credits, so, the situation has nothing to do with you.

 

I agree. Banks, maybe more than ever, really need to justify large credit card lines. There are a lot of credit card lines given out which are enough for customers to buy a new car with. What if a customer does just that, and on the way home with their fancy new car decides to push it off a cliff? Maybe the bank could try to claim any insurance, but if there is none, it could be a huge loss.   

[hdporter]

11 hours ago, ImBack said:

Tried again for a CLI with Apple.  Here’s the Dear Jane email I received:

 

Goldman Sachs Bank USA could not approve your request for a credit limit increase because:

- You have not used and paid enough of your Apple Card credit limit since your last credit limit increase

 

‘Have a decent line in excess of 20K, pay down every month before balance posts. It would seem odd if the algorithms think I’m not running anything through the card. Usual monthly spend is $1,200 or so. 

 

The "elephant" in the room are reported GS losses on their card products, as @MP80 detailed. 

 

That said, regularly using 5% or 6% of your line each month and PIF is not a compelling justification for a CLI.  The current line is not constraining you in the least from doubling your monthly purchase volume.

 

Yes, there are some issuers who grant upper 5-digits CL's without blinking too hard.  But there are a good number who scrutinize requests for $15k+.  It shouldn't be a marvel if GS starts falling into the latter category.  (FWIW, I have a couple of issuers, PNC and a CU, who don't pop above $25k, and, of course, Synchrony caps some card products at $10k.)

 

It's obvious you're aware that there's nothing about your credit profile and usage that should hold you back from a CLI.  Sometimes it's just a matter of creditor policy and there's no reason to beat your head against a wall.

 

.

[brainchasm]

I just tried for 💩 and grins.  Original limit was $5500 on successful app many many moons ago.  Did finagle a $500 CLI some many moons ago, but that was it.

 

Same message as OP (which is true, but whatever).  That was a quick and easy way to get a TU FICO though!  (792)

 

[MP80]

12 hours ago, Burgerwars said:

Banks, maybe more than ever, really need to justify large credit card lines.

I think the unbiased way to solve this problem is to apply credit limit exposure to each customer, which is considered a balancing strategy within the guidelines of financial institutions.

 

I give kudos to BOA and NFCU for their maximal lending policies, two of the most discussed exposures in public forums.

 

Assuming that the individual's credit profile is sufficient for such a consensus, then, the bank should be accustomed to the customer's request.

[ImBack]

Great dialogue. Thanks!

[RehabbingANDBlabbing]

Yeah, I agree with the posters above. GS is losing money on the Apple Card. But the economy is also headed in a not so great direction right now with credit losses increasing at many larger institutions. They are also a new issuer and are still getting their house in order to weather accomplices downturns. Once I hit about $13k with them, I haven’t gotten any more increases. For a long time, I had too many inquiries for their liking. But I think their overall policy did shift once I finally did qualify to get it because I got the same things about not using and paying it enough, even though my score was considerably lower. But I’m happy overall with the card and the CL. Shoot, mine started at $1,250, so to get more than 10X the original one shows you can grow it.

[TeeSharice]

[TeeSharice]

1 minute ago, TeeSharice said:

 

[RehabbingANDBlabbing]

On 2/1/2023 at 1:03 PM, TeeSharice said:

 

I can tell you right now, their algorithm automatically denies you if you have more than 6 inquiries on TransUnion in the last 6 months. So it seems that is the case for you. Then they also want to see more utilization. Those are both easy to fix. Wait out the inquiries and use the card more.