Citi AA World Elite MC - Equifax - Declined due to charge card

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Spunky
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Citi AA World Elite MC - Equifax - Declined due to charge card

Postby Spunky » Wed Mar 12, 2014 5:05 pm

I just had a very frustrating experience with Citi. Given all the recent US Airways/AA/Amex changes, I thought I would try to take advantage of the current 100k offer to evaluate the card against my Amex Platinum. Filled out the application and got a notice to make a followup call.

After confirming a couple questions, I was a bit taken aback that my application was declined do to excessive debt obligations. I have some student loans, a couple thousand in revolving balances with maybe 1-3% utilization, and a car loan, with almost 6-figure income, so this threw me off.

I drilling for rationale, got a copy of my credit report, called back in, and escalated to a supervisor, and got to the bottom of it: Equifax is still apparently factoring Amex charge card balance into revolving obligation, but doesn't appear to factor into available credit at all. Worse, it results in a reported monthly payment obligation of around 5x my real credit/loan payments.

The supervisor backed up the rep that there is no way to approve the application short of paying down my Amexs completely, waiting for a zero balance to post, and re-applying with a new hard pull.

Is this still the case with TU and Experian? Did I just get screwed by a bad luck of the draw--or are there any ideas for recourse here?
MB Amex Platinum | Amex Premier Gold | Amex Everyday Preferred 25k | Citi Executive 22.5k | Barclay Arrival 12.5k | USAA Amex 10.5k | WF Platinum Visa 5k | Chase Visa | GECRB Visa

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MemberSince99
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Postby MemberSince99 » Wed Mar 12, 2014 5:55 pm

To have any hope with this, and in my experience Citi is generally not great to recon with, but to have any hope you will probably have to contact the executive office at Citi. It is probably worth your time to do that since you already took a hard pull for it, and maybe you can actually reason with them. I think if anything could be successful this would be it so give that a shot and let us know what happens.

MrMosby
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Postby MrMosby » Wed Mar 12, 2014 9:44 pm

Do you have the Pay Over Time feature enabled on your platinum card, if yes it will be factored in as a revolving line with some formula based on your high balance used to determine your max limit.
Everyday Preferred $45K | Amex Platinum NPSL | Citi Hilton HHonors Reserve $45K | Delta Platinum $30K | Chase Sapphire Preferred $64K | Citi Hilton HHonors $45K | Discover IT $25K

Spunky
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Postby Spunky » Thu Mar 13, 2014 1:30 am

MrMosby wrote:Do you have the Pay Over Time feature enabled on your platinum card, if yes it will be factored in as a revolving line with some formula based on your high balance used to determine your max limit.


I did enable that, which was offered at signup--I've never used the feature. Is there definitive evidence or statements that it changes the way the cards are reported?

They are listed within "revolving" but under type are indicated as "Open" with no credit limit, although there is simply a "high credit" field.
MB Amex Platinum | Amex Premier Gold | Amex Everyday Preferred 25k | Citi Executive 22.5k | Barclay Arrival 12.5k | USAA Amex 10.5k | WF Platinum Visa 5k | Chase Visa | GECRB Visa

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MrMosby
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Postby MrMosby » Thu Mar 13, 2014 5:04 am

When I had my play I noticed with the feature on it showed up under revolving, with it off it showed up under other.
Everyday Preferred $45K | Amex Platinum NPSL | Citi Hilton HHonors Reserve $45K | Delta Platinum $30K | Chase Sapphire Preferred $64K | Citi Hilton HHonors $45K | Discover IT $25K

Spunky
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Postby Spunky » Thu Mar 13, 2014 4:27 pm

I'm starting with an email with a copy of my full report with some explanation. I'll give it a few days, and after that I might as well send out a written letter to the executive office. Thanks for the advice on that one.

What's odd is that the summary section of my Equifax indicates that my monthly payment amount does not include the Amex balance. However, one particularly professional Citi rep had said "Okay, I see exactly what's going on..." and noted that the monthly amount was much higher than what I stated.

This leads me to two ponderings...

1) I continually get an excuse from reps that they cannot see details or specific numbers, just the decision letter. However, at least this person obviously had more data in front of her. Another rep said they just see the report summary information. What's the deal--are they just coached to act like clueless, helpless idiots, as if that will build a good image of the company?

2) More importantly, I got several conflicting explanations for how Citi satisfies the required "Ability to Pay" assessment:

• Monthly debt-to-income ratio (which makes sense and is the only way I've heard that done)
• Total available credit vs stated salary (makes less sense, wouldn't utilization and historical usage be more informative?)
Total debt-to-income ratio (which makes no sense–what relevance is years or decades of installmant payments against current income?)

Any idea on what method they'd actually use, or if it's some kind of weighted mix? My total combined revolving credit limit is less then half my annual income.
MB Amex Platinum | Amex Premier Gold | Amex Everyday Preferred 25k | Citi Executive 22.5k | Barclay Arrival 12.5k | USAA Amex 10.5k | WF Platinum Visa 5k | Chase Visa | GECRB Visa

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Spunky
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Postby Spunky » Sun Mar 16, 2014 1:11 pm

Just today was I reminded that you are permitted to provide household income in an application, which is especially relevant here since I run most of our personal and business expenses through that Amex.

Called in to a CSR again, apologized for badgering them, got income corrected, and was approved with a $22K limit. Yeesh.
MB Amex Platinum | Amex Premier Gold | Amex Everyday Preferred 25k | Citi Executive 22.5k | Barclay Arrival 12.5k | USAA Amex 10.5k | WF Platinum Visa 5k | Chase Visa | GECRB Visa

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