pyramiding debts...how do I handle this one?

[DINOSAUR JOCKEY]

I just applied for a Pen Fed credit card. I have 0 inquiries on EQ. I do have balances on some of my cards, however, I've never done balance transfers to hide the balances. I opened quite a few new cards back in April. I opened: Union plus, corvette, amex green, and compusa. I have some balances on these cards, but nothing over 30%. I was declined for PenFed due to "pyramiding debts". If I close some of these cards, will that make it look better to people? Do I just sit there and let them age for an unknown period of time? What's the best way to go about this?

 

BTW..my fico is 680, no derogs. Just new accounts and high utilization on two cards, each card has less than a 300 credit limit(target card...I have $132 on a $200 credit line)

[breana902]

what is pyramiding debts?

[DINOSAUR JOCKEY]

I believe it means that you transfer your balances around from one card to another in order to hide debt/make payments.

[CALady]

what is pyramiding debts?

 

When you borrow from Peter to pay Paul.

[breana902]

Oh. Thank you. I wouldn't close any of your accounts - just let them age. 680 is a pretty good score for now, it can only go higher as things age and utilization is paid down some. Maybe you could PFB penfed.

[LKH]

Why not call Penfed and ask them what they are referring to and then advise them you've never done a bt?

[GEORGE]

what is pyramiding debts?

BOGUS DENIAL REASON

[DINOSAUR JOCKEY]

Why not call Penfed and ask them what they are referring to and then advise them you've never done a bt?

 

Do you think that would help?

[LKH]

Why not call Penfed and ask them what they are referring to and then advise them you've never done a bt?

 

Do you think that would help?

 

I have no idea, but, if you let it go, they think they were right. If you call them on it, you're letting them know they're full of crap.

[GEORGE]

ANYBODY WITH A BRAIN

 

...knows that it is logical to pay off 21% with a 15%

 

Then pay off the 15% with a 9%

 

Then pay off the 9% with a 0%

 

It isn't pyramiding debts

[DINOSAUR JOCKEY]

I just called them back. The lady was nice but wouldn't put me through to the loan department. I explained pyramiding debts and that I have never done a balance transfer. She advised that I may not have done a balance transfer, but they believe that I owe money and it is possible that I'm opening a new account to make payments on my other accounts. That's absolutely insane. I just paid off my car loan, and 3k of other debts in hard earned cash. They did say I can fax them a letter. I'm going to do that now.

[GEORGE]

If you NEVER

[DINOSAUR JOCKEY]

If you NEVER

 

Very true. They have pulled 2 credit reports at my request. I asked them to compare the two. Since the first one they pulled I paid off over 5k in debt. None of my balances have gone up, they have all gone down. Hopefully, they will notice this.

[GEORGE]

VISA card is advertised with 3.90% till 12/31/04 BT others gone...

 

New offer 5.90% TILL PAID

 

THEY TALK WITH FORKED TONGUE

 

THEY TALK OUT OF BOTH SIDES OF THEIR MOUTH

 

THEY ENCOURAGE PYRAMIDING WITH A BT AND THEN DENY CREDIT FOR THE SAME REASON????

 

BOGUS TO THE MAX!!!!

[Auto_Body_Chick]

Was the op ever sucessful at getting the CC?

 

I was just denied for the same reason

[DINOSAUR JOCKEY]

I asked for reconsideration but they wouldn't give me a second thought. I sent them a detailed letter asking for reconsideration. I then tried to talk to the underwriter but was told that they will not allow me to contact them directly.

[pryan67]

I asked for reconsideration but they wouldn't give me a second thought.  I sent them a detailed letter asking for reconsideration.  I then tried to talk to the underwriter but was told that they will not allow me to contact them directly.

 

 

It's a lame excuse to deny someone...I got the same thing...their reason they called it "pyramiding" is because I got a mortgage within the last year...

 

I've just not gotten around to cancelling my membership....I think I'll have to do that today though now that it's on my mind

[Caramel_Pinay]

Why not call Penfed and ask them what they are referring to and then advise them you've never done a bt?

 

Do you think that would help?

 

I have no idea, but, if you let it go, they think they were right. If you call them on it, you're letting them know they're full of crap.

 

I was about 2 inches from a shouting match with their "Senior Loan Officer".

 

I told him the only time I transferredanything was from DH's card after a rate-jacking and that it was PIF within 4 months(MBNA)

 

He put me on a Feris Wheel ride of bullcrap.

[Caramel_Pinay]

I asked for reconsideration but they wouldn't give me a second thought.  I sent them a detailed letter asking for reconsideration.  I then tried to talk to the underwriter but was told that they will not allow me to contact them directly.

 

Liars. I spoke with one named Paul. I honestly believe he was an underwriter b/c of his level of expertise.

 

We discussed Rate-jacking, utilization, BT offers, fluctuating FICO's, Creditors lack of updating/incorrect updating, etc.

 

He stayed on the line with me for over 30 minutes, too.

[debtfreegoal]

I refuse to apply with PenFed for this very reason. 'Pyramiding' is just a lame excuse, imo.

[Caramel_Pinay]

I asked for reconsideration but they wouldn't give me a second thought.  I sent them a detailed letter asking for reconsideration.  I then tried to talk to the underwriter but was told that they will not allow me to contact them directly.

 

 

It's a lame excuse to deny someone...I got the same thing...their reason they called it "pyramiding" is because I got a mortgage within the last year...

 

I've just not gotten around to cancelling my membership....I think I'll have to do that today though now that it's on my mind

 

Pryan, is your house made of brick in a rising triangular formation with catacombs and sarcophaguses underneath it? Do you happen to bury treasure and believe in the afterlife? Is Imhotep a distant relative?

 

If not then HTF can they relate a mortgage to a friggin pyramid?????

[pryan67]

I asked for reconsideration but they wouldn't give me a second thought.  I sent them a detailed letter asking for reconsideration.  I then tried to talk to the underwriter but was told that they will not allow me to contact them directly.

 

 

It's a lame excuse to deny someone...I got the same thing...their reason they called it "pyramiding" is because I got a mortgage within the last year...

 

I've just not gotten around to cancelling my membership....I think I'll have to do that today though now that it's on my mind

 

Pryan, is your house made of brick in a rising triangular formation with catacombs and sarcophaguses underneath it? Do you happen to bury treasure and believe in the afterlife? Is Imhotep a distant relative?

 

If not then HTF can they relate a mortgage to a friggin pyramid?????

 

 

*lol* Good point...my house is none of the above...

 

Unfortunatley, I just realized that I never filled out the membership application and mailed it in...they have my money, but I don't have a member number yet...I'll have to call them and tell them to get bent

[Caramel_Pinay]

Ok, now I can add PenFed to my list of creditors who are losing their damn minds:

 

1. Penfed- Egyptian Folklore

2. Citi- Make decisions from the side of their necks

3. Amex-Financial review the wrong people

4. Capital One-Too many reasons

[pryan67]

Ok, now I can add PenFed to my list of creditors who are losing their damn minds:

 

1. Penfed- Egyptian Folklore

2. Citi- Make decisions from the side of their necks

3. Amex-Financial review the wrong people

4. Capital One-Too many reasons

 

 

cool...I found my membership number...and this is what I'm sending them...any opinions?

 

 

I opened an account with you, having heard that you were a good organization.  I also applied for a credit card with you, which was denied due to "pyramiding of debt".  When I spoke to a CSR concerning this, I was told it was because I had recently taken on a large amount of debt.  I told her that yes, I had.  I bought a house.  As I'm sure you are aware, it is difficult to purchase a house without increasing the amount of debt one has.  I then asked her to have the application reconsidered.  It appears that it was NOT actually reconsidered, but rather just automatically denied due to the same "reason".  If my application for a credit card can't be actually reconsidered and approved, like any other bank or credit union would do, please cancel my membership, and refund to me the monies I have deposited

[Caramel_Pinay]

Ok, now I can add PenFed to my list of creditors who are losing their damn minds:

 

1. Penfed- Egyptian Folklore

2. Citi- Make decisions from the side of their necks

3. Amex-Financial review the wrong people

4. Capital One-Too many reasons

 

 

cool...I found my membership number...and this is what I'm sending them...any opinions?

 

 

I opened an account with you, having heard that you were a good organization.  I also applied for a credit card with you, which was denied due to "pyramiding of debt".  When I spoke to a CSR concerning this, I was told it was because I had recently taken on a large amount of debt.  I told her that yes, I had.  I bought a house.  As I'm sure you are aware, it is difficult to purchase a house without increasing the amount of debt one has.  I then asked her to have the application reconsidered.  It appears that it was NOT actually reconsidered, but rather just automatically denied due to the same "reason".  If my application for a credit card can't be actually reconsidered and approved, like any other bank or credit union would do, please cancel my membership, and refund to me the monies I have deposited

 

Terse and candid. I like it a lot. scratch it. I love your letter. Penfed is an salamander.

(How can an inanimate entity be an salamander you ask?)