PenFed Pyramid Explanation ??

[joey1]

Hello:

Can anyone explain what exactly you do to get past this denial?

Last year Penfed told me too many inquiries.

This year says Pyramiding debt.

 

Navy approved me for $30k and $20k cards last year.

So- whats the MAGIC cc in with penfed??

 

I am only showing $8k debt on $188k credit avail.

steady job, over 20 yrs. income high.

btw-

my scores:

eq: 730--4 inq, incl penfed

exp: 741-1 inq

tu: 710- 8 inq

 

Thanks!

[InfamousNY]

Pyramiding debt is opening too many accounts to compensate for debt. Meaning you open up more accounts to bring down util but don't get rid of your debt. It is a common denial answer for PenFed.

[joey1]

SO-- FOR THE PENFED EXPERTS OUT THERE...

 

if i pay off the 8k in card debt i got, then apply-- pen fed like that?

or will still be a denial for 16 new accts in last 12 months?

[InfamousNY]

SO-- FOR THE PENFED EXPERTS OUT THERE...

 

if i pay off the 8k in card debt i got, then apply-- pen fed like that?

or will still be a denial for 16 new accts in last 12 months?

 

16 new accounts is what is causing the issue. I would wait a year for them to age again.

[GEORGE]

DON'T TELL THEM YOU LIVE IN EGYPT IN A HOUSE SHAPPED LIKE A PYRAMID

[GEORGE]

SO-- FOR THE PENFED EXPERTS OUT THERE...

 

if i pay off the 8k in card debt i got, then apply-- pen fed like that?

or will still be a denial for 16 new accts in last 12 months?

16 NEW ACCOUNTS IN 12 MONTHS

 

I have not even applied for 16 new accounts in the past 5 years

[CIO]

I think PenFed has an internal "NO-NO's" list they compare your credit report against. You're forgiven and approved if you have none or one of the no-no's listed, but probably denied if you have two or more. That list probably includes:

 

Bankruptcy, lates, PRs, COs showing

Multiple inquiries showing

Multiple new accounts under 1 year

Credit utilization above a given % or $$$ amount

Lower than avg income

Short credit history

Borderline (high) overall debt to income ratio

 

Mind you, this is neither a commentary or critique of anyone who possesses any of the above. It's merely a musing that, after reading about so many PenFed denials over 2+ years, these and other factors seem to frequently trigger a denial from them. I've noticed some approvals with one of the above, but very few, if any, with two or more of the above factors. And some denials, based on what the denied have mentioned as their situation, just make no sense at all.

 

I do like PenFed though. So yeah, it's worth getting in if you can. Good luck!

[BobWang]

I think PenFed has an internal "NO-NO's" list they compare your credit report against. You're forgiven and approved if you have none or one of the no-no's listed, but probably denied if you have two or more. That list probably includes:

 

Bankruptcy, lates, PRs, COs showing

Multiple inquiries showing

Multiple new accounts under 1 year

Credit utilization above a given % or $ amount

Lower than avg income

Short credit history

Borderline (high) overall debt to income ratio

 

Mind you, this is neither a commentary or critique of anyone who possesses any of the above. It's merely a musing that, after reading about so many PenFed denials over 2+ years, these and other factors seem to frequently trigger a denial from them. I've noticed some approvals with one of the above, but very few, if any, with two or more of the above factors. And some denials, based on what the denied have mentioned as their situation, just make no sense at all.

 

I do like PenFed though. So yeah, it's worth getting in if you can. Good luck!

I THINK I'm GOLDEN!

[CIO]

I think PenFed has an internal "NO-NO's" list they compare your credit report against. You're forgiven and approved if you have none or one of the no-no's listed, but probably denied if you have two or more. That list probably includes:

 

Bankruptcy, lates, PRs, COs showing

Multiple inquiries showing

Multiple new accounts under 1 year

Credit utilization above a given % or $ amount

Lower than avg income

Short credit history

Borderline (high) overall debt to income ratio

 

Mind you, this is neither a commentary or critique of anyone who possesses any of the above. It's merely a musing that, after reading about so many PenFed denials over 2+ years, these and other factors seem to frequently trigger a denial from them. I've noticed some approvals with one of the above, but very few, if any, with two or more of the above factors. And some denials, based on what the denied have mentioned as their situation, just make no sense at all.

 

I do like PenFed though. So yeah, it's worth getting in if you can. Good luck!

I THINK I'm GOLDEN!

 

Agreed. I think you should go for it and apply tomorrow!

[BobWang]

I think PenFed has an internal "NO-NO's" list they compare your credit report against. You're forgiven and approved if you have none or one of the no-no's listed, but probably denied if you have two or more. That list probably includes:

 

Bankruptcy, lates, PRs, COs showing

Multiple inquiries showing

Multiple new accounts under 1 year

Credit utilization above a given % or $ amount

Lower than avg income

Short credit history

Borderline (high) overall debt to income ratio

 

Mind you, this is neither a commentary or critique of anyone who possesses any of the above. It's merely a musing that, after reading about so many PenFed denials over 2+ years, these and other factors seem to frequently trigger a denial from them. I've noticed some approvals with one of the above, but very few, if any, with two or more of the above factors. And some denials, based on what the denied have mentioned as their situation, just make no sense at all.

 

I do like PenFed though. So yeah, it's worth getting in if you can. Good luck!

I THINK I'm GOLDEN!

 

Agreed. I think you should go for it and apply tomorrow!

Has to be next week.

July 17th is the anniversary.

[Porkerlou]

I think PenFed has an internal "NO-NO's" list they compare your credit report against. You're forgiven and approved if you have none or one of the no-no's listed, but probably denied if you have two or more. That list probably includes:

 

Bankruptcy, lates, PRs, COs showing

Multiple inquiries showing

Multiple new accounts under 1 year

Credit utilization above a given % or $$$ amount

Lower than avg income

Short credit history

Borderline (high) overall debt to income ratio

 

Mind you, this is neither a commentary or critique of anyone who possesses any of the above. It's merely a musing that, after reading about so many PenFed denials over 2+ years, these and other factors seem to frequently trigger a denial from them. I've noticed some approvals with one of the above, but very few, if any, with two or more of the above factors. And some denials, based on what the denied have mentioned as their situation, just make no sense at all.

 

I do like PenFed though. So yeah, it's worth getting in if you can. Good luck!

Although valuable info for Penfed, also pretty standard practice for many lenders. Covers just about every derogatory out there.

[CIO]

I think PenFed has an internal "NO-NO's" list they compare your credit report against. You're forgiven and approved if you have none or one of the no-no's listed, but probably denied if you have two or more. That list probably includes:

 

Bankruptcy, lates, PRs, COs showing

Multiple inquiries showing

Multiple new accounts under 1 year

Credit utilization above a given % or $ amount

Lower than avg income

Short credit history

Borderline (high) overall debt to income ratio

 

Mind you, this is neither a commentary or critique of anyone who possesses any of the above. It's merely a musing that, after reading about so many PenFed denials over 2+ years, these and other factors seem to frequently trigger a denial from them. I've noticed some approvals with one of the above, but very few, if any, with two or more of the above factors. And some denials, based on what the denied have mentioned as their situation, just make no sense at all.

 

I do like PenFed though. So yeah, it's worth getting in if you can. Good luck!

I THINK I'm GOLDEN!

 

Agreed. I think you should go for it and apply tomorrow!

Has to be next week.

July 17th is the anniversary.

 

Then Friday is the anniversary, so you get dialin' on Friday, mister....no procrastinating. Why, if you do this, I might talk to Amex about getting that little charge card to get all that age back on my CRs.

[BobWang]

Then Friday is the anniversary, so you get dialin' on Friday, mister....no procrastinating. Why, if you do this, I might talk to Amex about getting that little charge card to get all that age back on my CRs.

Tang:

July 17th was last account opened.

July 18th is next Quarterly TU myFICO update.

Want to make sure new accounta in last 12 months reseta.

There *IS* a method to my badness.

Bob

P.S. Advanta will NOT be among new accounta.

[CIO]

Then Friday is the anniversary, so you get dialin' on Friday, mister....no procrastinating. Why, if you do this, I might talk to Amex about getting that little charge card to get all that age back on my CRs.

Tang:

July 17th was last account opened.

July 18th is next Quarterly TU myFICO update.

Want to make sure new accounta in last 12 months reseta.

There *IS* a method to my badness.

Bob

P.S. Advanta will NOT be among new accounta.

 

Ok, not really, I'm just bored this morning. I anxiously await your results with PenFed. They'll either instantly approve you, or the approval system will choke and crash reviewing your extremely long credit report. Surely they won't say you walk like an Egyptian.

[BobWang]

Then Friday is the anniversary, so you get dialin' on Friday, mister....no procrastinating. Why, if you do this, I might talk to Amex about getting that little charge card to get all that age back on my CRs.

Tang:

July 17th was last account opened.

July 18th is next Quarterly TU myFICO update.

Want to make sure new accounta in last 12 months reseta.

There *IS* a method to my badness.

Bob

P.S. Advanta will NOT be among new accounta.

 

Ok, not really, I'm just bored this morning. I anxiously await your results with PenFed. They'll either instantly approve you, or the approval system will choke and crash reviewing your extremely long credit report. Surely they won't say you walk like an Egyptian.

I'm really thinking I'll break down and do it next week.

Either that, or just sit out all of 2009.

[jlp58]

I think PenFed has an internal "NO-NO's" list they compare your credit report against. You're forgiven and approved if you have none or one of the no-no's listed, but probably denied if you have two or more. That list probably includes:

 

Bankruptcy, lates, PRs, COs showing

Multiple inquiries showing

Multiple new accounts under 1 year

Credit utilization above a given % or $$$ amount

Lower than avg income

Short credit history

Borderline (high) overall debt to income ratio

 

Mind you, this is neither a commentary or critique of anyone who possesses any of the above. It's merely a musing that, after reading about so many PenFed denials over 2+ years, these and other factors seem to frequently trigger a denial from them. I've noticed some approvals with one of the above, but very few, if any, with two or more of the above factors. And some denials, based on what the denied have mentioned as their situation, just make no sense at all.

 

I do like PenFed though. So yeah, it's worth getting in if you can. Good luck!

 

Here is my own Penfed experience:

 

 

Applied and was DENIED for a $10K CL Platinum Rewards VISA in July 2008 with the following from the above list:

 

Bankruptcy, lates, PRs, COs showing (9 30-day lates over 4 accounts, from 1 to 4 years old)

Multiple inquiries showing (2 fresh ones on EQ -- both less than a month old)

Credit utilization above a given % or $$$ amount (90+%, $60,000 owed)

Borderline (high) overall debt to income ratio (35% DTI for revolving only! 64% w/mortgage)

 

Also, EQ FICO was ~615. Hmmm .. wonder why I was denied? The official reason given was DTI, util and derogs -- which I totally believe. In my defense, I was a total CB newb and didn't know any better.

 

 

4 months later, I applied and was APPROVED for a $10K CL Platinum Rewards VISA (and added a $10K CLI 2 weeks later using the same pull), with the following from the above list:

 

Bankruptcy, lates, PRs, COs showing (4 30-day lates on 1 account, from 1 to 2 years old -- did some goodwill letters to knock the others off)

Multiple inquiries showing (None -- "HELLO *B*" )

Multiple new accounts under 1 year (5 under 6 months old that had begun to report since my first app)

Credit utilization above a given % or $$$ amount (<15%, $15,000 owed -- paid some, BT'd some to biz cards, plus doubled available credit w/new accounts)

Borderline (high) overall debt to income ratio (dropped to 5% revolving and <20% w/mortgage -- lower rates, less debt reporting PLUS an 20% raise)

 

EQ FICO was up to ~750 at this point. In hindsight, I can't imagine how I missed the pyramiding denial with all of those new accounts reporting. I guess the higher FICO, reduced derogs and dramatically lower DTI must have put me over the top.

[BobWang]

Thanks for the details, jlp58.

I'm thinking if I'll be shot down for anything, it might be for having numerous cards already.

[jlp58]

Thanks for the details, jlp58.

I'm thinking if I'll be shot down for anything, it might be for having numerous cards already.

 

Bob, I would be STUNNED if you are not approved. Of course, don't let me influence you or anything.

[BobWang]

Thanks for the details, jlp58.

I'm thinking if I'll be shot down for anything, it might be for having numerous cards already.

 

Bob, I would be STUNNED if you are not approved. Of course, don't let me influence you or anything.

YOU guys are just TERRIBLE!