Longshot on a CSP

Discuss the Visa & MasterCard payment networks as well as cards that operate through them.
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Vermonster
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Longshot on a CSP

Postby Vermonster » Sun Apr 05, 2015 9:13 pm

TL;DR - A relationship can have a bigger impact with a lender than you would expect. Also debt to income seems to be a bigger factor than anything for students/recent grads.

Ok so little back story. Oct of 2012 my then GF and I move to NJ to follow a job for her. I get a part time job as a math tutor. First few weeks were tight, then we had an emergency trip that we had to spend every penny on. I applied for a Freedom (for piece of mind) and was instant approved for $2.7k with a ~700 credit score, thin history, and $13k income also a full time student. Moved all our banking to Chase at the same time.

Now today. Freedom is the same limit, never asked for a CLI. Still a student (graduation in Dec) but now married , making more than twice as much at the same company. Credit score in the tank (614 TU, 670EQ) due to 60%+ utilization. Debt to income ratio sucks with loads of students loans, and 2 car loans through Chase. 1 recent missed payment that will be removed soon.

In July we are traveling to Italy for our 1 year. I really wanted to get a CSP before that so when we purchase plane tickets through UR we get the nice discount. Also no foreign transaction fee was a nice idea. I apped last night, and got a pending approval notice with a number to call. ****** So I call this morning and talk to a mildly annoyed CSR. After going back and forth she explains that with my rent, expected loan payments, and two car loans, she doesn't see how I can make ends meet, let alone afford a CSP. I was declined until I could prove I had other income. I asked if adding my wife as a joint account holder would help. She said that I should have included her salary in the app. :confused: So we add her salary to mine, and boom instant approval for $5k CSP.

I'm very happy and wanted to share my success.
Chase Freedom $9k~~Chase Sapphire Preferred $6.5k~~Amex Blue Cash Preferred $12.4k~~Citi Double Cash $4.7k


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CarefulBuilder14
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Postby CarefulBuilder14 » Sun Apr 05, 2015 11:44 pm

What's your wife's income? How much of your combined spending can you pay with a credit card? It sounds like a lot of your expenses probably have to be paid directly from a checking account.

You will have to spend $4k quickly in order to get the bonus in time to book July plane tickets.

And keep in mind that CSP has no intro 0% period, so carrying a balance and paying interest on travel expenses can quickly eat into or eliminate any value you get from the travel rewards.

I hope all goes well...
Warranties and sketchy merchants: Schwab Platinum
Price rewind: Costco
Travel insurance: Prestige, CSP
Perks: IHG, Hyatt
Rewards/Offers: Discover, Freedom, ED, BCE
Taxes/Misc: SPG

Limited value, might close: Arrival

Might add: First Tech, proper business card

Vermonster
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Postby Vermonster » Mon Apr 06, 2015 7:55 am

Our combined income was close to $100k. I work part time while in school. Over the last 6 months I was only able to put in about 15 hours a week. In March I got a promotion where I not only make a lot more, but work more hours. Everything except utilities and rent goes through the Freedom. We both pay it twice a month when paychecks come in. Our utilization tends to be very high over the winter because my wife takes public transit, which is an extra $400+ a month on top of normal expenses. Then almost immediately after I PIF the Freedom with our tax return, my car needed a new engine. It has been less than ideal carrying a balance but all signs are pointing to an easier year from a financial standpoint.

While the 40k points would be nice, we don't really need them. We have almost enough points for 2 tickets as it is, so the few hundred dollars isn't a big deal in comparison to the thousands they originally cost. I had set 500,000 points as a goal before spending, but the wife has other plans :)
Chase Freedom $9k~~Chase Sapphire Preferred $6.5k~~Amex Blue Cash Preferred $12.4k~~Citi Double Cash $4.7k

takeshi
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Postby takeshi » Mon Apr 06, 2015 7:59 am

Vermonster wrote:A relationship can have a bigger impact with a lender than you would expect.

Vermonster wrote:I was declined until I could prove I had other income. I asked if adding my wife as a joint account holder would help. She said that I should have included her salary in the app. :confused: So we add her salary to mine, and boom instant approval for $5k CSP.

Most people mean "banking relationship" when they use the word "relationship" in a credit context versus marriage and a spouse's income.

whit
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Postby whit » Mon Apr 06, 2015 10:46 am

It can be both--relationship on the personal side depending on what state you live in, you can use your spouses' income if you wish to rely on it.

On the financial side he did say they moved all their banking to chase; even if someone has over 10k in deposits with Chase it's not a guarantee that they'll get approved--it simply means they'll take that relationship into consideration

Vermonster
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Postby Vermonster » Mon Apr 06, 2015 2:25 pm

True, I did mean a banking relationship when I first wrote the post. But after thinking about changing it I realized that it really means both types.

I lurk here quite a bit (as well as myFico) and see countless threads about a single college student or recent grads going for cards well out of reach. Having a good relationship with a bank goes a long way as others have pointed out. But I am finding that having a strong relationship with a partner/spouse helps out a lot too. I think it is similar to why all of our presidents are married. A strong relationship in life shows stability and lowers the risk for a lender.
Chase Freedom $9k~~Chase Sapphire Preferred $6.5k~~Amex Blue Cash Preferred $12.4k~~Citi Double Cash $4.7k

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CarefulBuilder14
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Postby CarefulBuilder14 » Mon Apr 06, 2015 4:34 pm

Vermonster wrote:I lurk here quite a bit (as well as myFico) and see countless threads about a single college student or recent grads going for cards well out of reach. Having a good relationship with a bank goes a long way as others have pointed out. But I am finding that having a strong relationship with a partner/spouse helps out a lot too. I think it is similar to why all of our presidents are married. A strong relationship in life shows stability and lowers the risk for a lender.


I have nothing against marriage, but I think lenders care more about terms like "joint and several liability" and "higher disposable income" than "strong relationship" or "stability" when they consider extending credit.

I'm glad that you two have a healthy combined income and a lot of URs stored up. Just try to get rid of your balances soon.

Where in Italy will you be going? I went a few years ago and did a lot of the touristy artsy stuff. It was a wonderful trip.

I was using cash for my expenses, though, and can't give any CC advice for Italy.
Warranties and sketchy merchants: Schwab Platinum
Price rewind: Costco
Travel insurance: Prestige, CSP
Perks: IHG, Hyatt
Rewards/Offers: Discover, Freedom, ED, BCE
Taxes/Misc: SPG

Limited value, might close: Arrival

Might add: First Tech, proper business card

JamesMS
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Postby JamesMS » Tue Apr 14, 2015 3:14 pm

I do agree that having a "Banking Relationship" can go a very long way. Personally, I think that it works better with smaller banks than larger ones, unless you have the deposits to show. From experience, I will always have an account at a smaller local bank. This has worked very well for me. Over the past 8 years, anytime I have wanted to purchase a car or even take out a personal loan from the bank, I have been able to do so without having to have them pull my credit first. Not that it is a big deal if they do, but I like not having to have the inquiries on my credit. I do not mean just small amounts either, even took out a $14k unsecured personal loan 6 years ago.
Main Cards:
Amex BCE
Amex Everyday
Bank of America Cash Rewards
Chase Freedom
Capital One Quicksilver
Citi Thank You Preferred

Spark Cash Back (Business), Amex Plum (Business)



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