U.S Bank Cash+ Denial

[greendeh]

So I applied for the last card on my list on Aug 11th.
The US Bank Cash+ card for my utilities and cell phones.

 

Denied.

 

Truth is I expected the denial. I have opened 5 new cards since April.
I figured I would need to wait at least 6 months before apping the Cash+
IMHO it was worth the try. If I was approved I would have it, if not I would wait 6 months minimum.

The denial letter arrived today Aug 21st.

Reasons:

1. Length of time accounts have been established
2. Too many accounts with balances
3. Too many inquiries last 12 months
4. Lack of recent installment loan information

 

Thoughts:

1.  Ok, I get it, but maybe A Human would/could look past that.
2.  Meaningless. I literally had let all 8 account statements close at $5 each. So a $40 total balance.
3.  I had 5 recents in the last 12 months on TU when they pulled it. Now 6.
4.  I have seen this line posted here and there on the internet. I see this as a pointless reason and just means GFY.

So I called the reconsideration line. No reason not to try.

 

First Rep transfers me to the underwriters extension.
I sit on hold with crappy hold music for 38 minutes until a guy answers who has wet gauze in his mouth.
Tell him why I was calling, he asks for the Ref number from the denial.
Then tells me he didn't know why they transferred me to him, I needed someone else instead.
No idea at all what his function is supposed to be, but he transfers me to a different extension where I wait for another 15 minutes.

 

Next Rep answers and I 98.54% figured there would be no reconsideration when she said her name was my ex-wife's and even sounded a bit like her.
I knew it wasn't my Ex about 10 seconds into the call because she was being at the least civil with the hostility veiled, and I still 95.68% figured there would be no reconsideration.

 

She takes my Ref number and says that looking at it she can see that none of those 4 reasons actually matter, but the actual reason is "To many recently opened accounts", and there is nothing she can do to bypass that in the system.

 

I said ok and how long would she think I should wait to reapply, and she said after next year May. We ended the call.

 

So, in short, the 4 reasons on my denial letter are as nearly as meaningless as I sort of thought they were and could all be bypassed with human intervention, but the actual reason for the denial that wasn't on the letter can't be bypassed.

 

 

[MP80]

Sorry for the denial, it happens to a lot of us.

 

People got an email from USBank that said, earn up to 5% cash back with a SUB. Enjoy purchases and balance transfers within 15 billing cycles and 0% introductory APR. Afterward, a variable APR applies, currently at 19.99%.  NO ANNUAL FEES! 

 

Many decided to apply and received a reply that their application is under review, then, received a letter saying, "We regret that we are unable to approve your application at this time due to too many credit accounts opened in the past 12 months." 

 

I don't appreciate them pushing folks to apply and then rejecting them. I know of BOA's 3/12 and Chase's 5/24 rule, and it seems like US Bank has a similar rule.

 

Even if your application is approved, they offer you a starting credit line of $500-$2000, which is stingier than any other mid-sized bank.

Edited August 22 by MP80

[TeeSharice]

US BANK APPROVED ME-   for a whopping $100

 

Id much rather had gotten the denial  

[shifter]

17 hours ago, greendeh said:

the 4 reasons on my denial letter are completely meaningless and always are and always will be

FIFY

Edited August 22 by shifter

[greendeh]

On 8/22/2023 at 4:16 AM, MP80 said:

People got an email from USBank that said "come get me"..  ..Many decided to apply and received a reply that their application is under review, then, received a letter saying, "GFY"

 

I don't appreciate them pushing folks to apply and then rejecting them

 

"I don't appreciate" is such a polite way of putting it.

 

21 hours ago, TeeSharice said:

US BANK APPROVED ME-   for a whopping $100

 

I would have been (and will be) fine with even $500 CL on this card, but yea $100 is meaningless.

 

15 hours ago, shifter said:

On 8/21/2023 at 9:23 PM, greendeh said:

the 4 reasons on my denial letter are completely meaningless and always are and always will be

FIFY

 

Thank you for the fix. Always good with the correct wording.

[StarkRaven$]

I have read so many posts here at CB's about how US Bank is so stingy, conservative, strick about approvals and limits. This /\ /\ though, is simply ridiculous. I received a measly $200 CLI with Cap1 a while back. Seems to me since Moody's indicated they may downgrade the credit rating of these two issuers, US Bank has taken scant approvals to an all new asinine level

[CreditSucksNot]

On 8/22/2023 at 1:16 AM, MP80 said:

I don't appreciate them pushing folks to apply and then rejecting them.

 

They don't "push" anyone to apply.  Any consumer with  half a brain knows those letters and emails are marketing material and there is NO guarantee of approval until you actually apply and authorize the hard pull.  YOU as a consumer have to decide if the card and it's benefits are worth it.  I currently receive emails from Disney for their VISA card.  I just hit delete because I know CHASE is the underwriter and I have ZERO chance getting approved with a BK still reporting even though the rest of my reports are pristine now.  They aren't pushing me to apply for anything.  

On 8/22/2023 at 1:16 AM, MP80 said:

Even if your application is approved, they offer you a starting credit line of $500-$2000, which is stingier than any other mid-sized bank.

 

Maybe for you.  I applied a couple months ago and was instantly approved and got a starting line of $7500.  I am very happy with my card and the benefits.

[MP80]

17 hours ago, CreditSucksNot said:

They don't "push" anyone to apply.  Any consumer with  half a brain knows those letters and emails are marketing material and there is NO guarantee of approval until you actually apply and authorize the hard pull. 

We can agree to disagree on the content of the email provided by USBank. Of course, people like me will see the upfront details of the meticulous information about a single established APR and that's a consensus as a legitimate offer even though we know it's a skant starting line of credit and 90% often doing so.

 

 

17 hours ago, CreditSucksNot said:

Maybe for you.  I applied a couple months ago and was instantly approved and got a starting line of $7500. 

No, I have never been treated badly by USBank, I have a $5K PLOC with them, an $8K Visa Platinum, and a checking account. These accounts were opened many years ago. 

 

As a credit card issuer, USBank is not a popular lender that people like to go to apply for a credit account. I've seen people get $500 to start a relationship of some sort, and build the relationship from there. It's a unicorn that enables a person to get a nice starting limit like your $7,500 at the start. They are far stingier than their subsidiary, Elan Financial.

[StarkRaven$]

4 hours ago, MP80 said:

We can agree to disagree on the content of the email provided by USBank. Of course, people like me will see the upfront details of the meticulous information about a single established APR and that's a consensus as a legitimate offer even though we know it's a skant starting line of credit and 90% often doing so.

 

 

No, I have never been treated badly by USBank, I have a $5K PLOC with them, an $8K Visa Platinum, and a checking account. These accounts were opened many years ago. 

 

As a credit card issuer, USBank is not a popular lender that people like to go to apply for a credit account. I've seen people get $500 to start a relationship of some sort, and build the relationship from there. It's a unicorn that enables a person to get a nice starting limit like your $7,500 at the start. They are far stingier than their subsidiary, Elan Financial.

I too was approved for 8K two years ago but it wasn't instant. 

[swimmingwithsharks]

US Bank is still more conservative than any of the other "big" national banks (although it isn't nationwide - watch out for the geographical fencing around the "branch footprint"!) - and honestly I can't recommend that people should bother. They change the terms of the rewards so often - remember Flexpoints? Remember when fast food and restaurants were the same category on the Cash+ (now one can be 5% but the other is only 2%)?? Remember when they automatically converted people into Cash+ cards and we couldn't get a sign-up bonus? I have a US Bank credit card that was opened almost 25 years ago at a bank that US Bank eventually acquired, and which was just a few years ago unilaterally converted into a Cash+, so yes, I do use it for bonus categories and I can understand why you'd want it. But it just seems like getting in with US Bank today is such a headache!  

 

If you are interested in bank bonuses, they generally offer a $300 or $400 new checking bonus every so often. From discussions with the credit card reps, the credit card side can see if you have a checking account with US Bank or not, and it is considered a positive if you do. However, the credit card reps at US Bank can ALSO see if a branch employee (teller, manager, etc) has entered notes in your profile (such as "no more fee waivers, already given" etc.), so it's not always a positive. 

[MP80]

I use a fee-free PenFed credit card account for PLOC instead of the US Bank PLOC.

 

Those credit accounts that are no longer used or rarely used will be ditched away so I can keep track of the herd.

 

There's an urging tendency for massive card account closures. Soon!

[greendeh]

4 hours ago, swimmingwithsharks said:

I do use it for bonus categories and I can understand why you'd want it. But it just seems like getting in with US Bank today is such a headache!

 

I feel every issuer is a headache waiting to happen. Either immediately or "wait for it." I do want this card though because it is worth a minimum of $175 cash back a year for me for as long the rewards stay the same.

 

I don't feel any of them owe us anything, besides honesty. I am not bothered about credit car denials. Unless it is a scenario like "you are pre-approved or pre-qualified!" and then "Nope, you can't have it". I find that very annoying.

 

I am bothered though by vague or incorrect reasoning for a denial. Tell it like it is.

I would even be good with "Because we think you are an unwashed heathen" to which I could laugh and say "And your mother looks like a goat, but I can shower and go to church tomorrow"

 

[StarkRaven$]

10 hours ago, swimmingwithsharks said:

US Bank is still more conservative than any of the other "big" national banks (although it isn't nationwide - watch out for the geographical fencing around the "branch footprint"!) - and honestly I can't recommend that people should bother. They change the terms of the rewards so often - remember Flexpoints? Remember when fast food and restaurants were the same category on the Cash+ (now one can be 5% but the other is only 2%)?? Remember when they automatically converted people into Cash+ cards and we couldn't get a sign-up bonus? I have a US Bank credit card that was opened almost 25 years ago at a bank that US Bank eventually acquired, and which was just a few years ago unilaterally converted into a Cash+, so yes, I do use it for bonus categories and I can understand why you'd want it. But it just seems like getting in with US Bank today is such a headache!  

 

If you are interested in bank bonuses, they generally offer a $300 or $400 new checking bonus every so often. From discussions with the credit card reps, the credit card side can see if you have a checking account with US Bank or not, and it is considered a positive if you do. However, the credit card reps at US Bank can ALSO see if a branch employee (teller, manager, etc) has entered notes in your profile (such as "no more fee waivers, already given" etc.), so it's not always a positive. 

@swimmingwithsharks what is geographical fencing around the "branch footprint" mean?

[hdporter]

On 8/22/2023 at 4:16 AM, MP80 said:

I don't appreciate them pushing folks to apply and then rejecting them. I know of BOA's 3/12 and Chase's 5/24 rule, and it seems like US Bank has a similar rule.

 

Even if your application is approved, they offer you a starting credit line of $500-$2000, which is stingier than any other mid-sized bank.

 

I'm not disputing anyone's reported experience with US Bank; just citing my own ...

 

I opened my US Bank Cash+ 4 years ago with a CL of $10k.  Increased that to $25k CL in something like 18-24 mo, without being too aggressive about requests.  Haven't pushed for a higher limit than that since monthly spend is typically capped at around $500-$1000.  I generally max out the $2000 eligible category spend each quarter for $100 cashback.

 

Experience with a separate card for Bev largely paralleled my experience, pushing her to a $20k CL.  Cardholder for both accounts experience has been uniformly positive.

[MP80]

12 hours ago, hdporter said:

I'm not disputing anyone's reported experience with US Bank; just citing my own ...

Like I said in my post, I have never been mistreated by USBank! So, actually, I have nothing against the bank. Interesting to see people get approved along a small starting line of credit regardless of the applicant's good score or low utilization can leave you scratching your head and asking why you would land in Toy Limit Credit Hell.

 

Now, it could be that a former client came back without repaying its debt to USBank, the bank the applicant had previously defaulted on or charged off was acquired, or the applicant its reputation was damaged by a criminal act, etc.

 

We just don't know the exact reason people get the $500 starting limit, coincidence or not, there must be some unknown reason.

 

BTW - Currently, US Bank is not in a good, situated position financially.

[greendeh]

15 minutes ago, MP80 said:

BTW - Currently, US Bank is not in a good, situated position financially.

 

Now that would be another valid reason for non-approval.

 

Reason:

"We see you pay in full every month, never carry a balance, and only want to use our credit card as a discount coupon. So we see no reason to give you $373 the first year and at least $173 subsequent years, and let you rack up your bill and pay the minimum each month for the 15 month 0% APR promo while you let your money sit in your account currently making 5.27% on it."

 

And I would be like

"Damn, it's like I wrote that." And "Well, you got my number."

[swimmingwithsharks]

On 8/27/2023 at 5:13 AM, StarkRaven$ said:

@swimmingwithsharks what is geographical fencing around the "branch footprint" mean?

I can't say if it is still happening, but on other credit websites, there have been reports of people being denied for a US Bank credit card because they were outside the branch footprint, that is, US Bank does not have branches in their states of residence. Even though US Bank is big, there are no US Bank branches in New York or Florida, for example. According to the US Bank website, US Bank has branches in only 26 states. I don't know why this would be a denial reason; as far as I know, no other big bank does this kind of restriction on their credit card offerings.

 

I've always lived in a state with US Bank branches, so I've never had an issue. A friend of mine who now lives in a state without a US Bank branch still has her US Bank-issued credit card, after she moved (the card was obtained in a state with branches).

[hdporter]

7 minutes ago, swimmingwithsharks said:

I can't say if it is still happening, but on other credit websites, there have been reports of people being denied for a US Bank credit card because they were outside the branch footprint, that is, US Bank does not have branches in their states of residence.

 

If this were the reason, it would have been stated point blank.l  4 new accounts in the last 5 months is sufficient reason for a lender to decide to sit back and see how that account history pans out for the next 6 mo and decline the current app.  (New accounts over the last 12 mo and 24 mo could have a bearing as well.)

 

Generally, I would advise opening no more than 4 accounts in a given 6 mo period, and no more than 6 in a given 12 mo period.   From a practical perspective, it's difficult to properly "season" new accounts at numbers beyond that (a critical aspect of improving one's credit scores, and positioning an account for successful CLI requests).

[swimmingwithsharks]

20 minutes ago, hdporter said:

 

If this were the reason, it would have been stated point blank.l  4 new accounts in the last 5 months is sufficient reason for a lender to decide to sit back and see how that account history pans out for the next 6 mo and decline the current app.  (New accounts over the last 12 mo and 24 mo could have a bearing as well.)

 

Generally, I would advise opening no more than 4 accounts in a given 6 mo period, and no more than 6 in a given 12 mo period.   From a practical perspective, it's difficult to properly "season" new accounts at numbers beyond that (a critical aspect of improving one's credit scores, and positioning an account for successful CLI requests).

Oh, I'm not saying this is the reason for THIS denial. I was replying to @StarkRaven$ asking me what I was talking about in my earlier post when I mentioned the phrase 'geographical fencing around the branch footprint.'

 

 

Sorry to clutter up the thread!

[hdporter]

4 minutes ago, swimmingwithsharks said:

Oh, I'm not saying this is the reason for THIS denial. I was replying to @StarkRaven$ asking me what I was talking about in my earlier post when I mentioned the phrase 'geographical fencing around the branch footprint.'

 

 

Sorry to clutter up the thread!

 

 

No, my bad; I'm scanning posts a little too quickly.  You clipped enough of Stark's post to make the context of your comment clear.

[StarkRaven$]

12 hours ago, swimmingwithsharks said:

I can't say if it is still happening, but on other credit websites, there have been reports of people being denied for a US Bank credit card because they were outside the branch footprint, that is, US Bank does not have branches in their states of residence. Even though US Bank is big, there are no US Bank branches in New York or Florida, for example. According to the US Bank website, US Bank has branches in only 26 states. I don't know why this would be a denial reason; as far as I know, no other big bank does this kind of restriction on their credit card offerings.

 

I've always lived in a state with US Bank branches, so I've never had an issue. A friend of mine who now lives in a state without a US Bank branch still has her US Bank-issued credit card, after she moved (the card was obtained in a state with branches).

Very interesting and not surprising.

[RehabbingANDBlabbing]

So that denial sucks, but I have seen US Bank giving out denials left and right over the past couple of years.

 

Last year, I got the Cash+ secured card with a $500 CL. It just graduated this month to the unsecured version, after about 13 months. Anyway, I’ve used the crap out of this card for my utilities and internet bills. I don’t think I have maxed out the 5% categories, but it has been well worth my while, even without getting the signup bonus. 
 

Since mine just graduated, I opened one for my husband. He was approved and we just put in $500 again. We are going to use his for 5% on cell phone bills and sporting good stores. It’s gonna be a second moneymaker.

 

Personally, I knew they would never approve either of us for an unsecured card because we are rebuilding, so that’s reason number one. But even if our credit was completely clean, we would still both be denied for new accounts and inquiries. So rather than waiting 1-2 years, I just decided to go the secured route. Now I have an extra $200 in cash back from that first year, with more coming this year. Not mad at it for a no annual fee card.