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Author: ColumbusFool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308517  
Subject: Incorrect Income troubles Date: 9/23/1998 12:54 PM
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I received a letter from FirstUSA concerning a recent request for a credit line increase in order to get a Platinum card. The letter said that they were unable to approve my request for the following reason:

"Sufficient Credit Available Considering Income"

The representative who put through my credit-limit increase request did not ask me for any updated information, like my current Income. I also understand that Experian does not maintain Income information on their credit reports. Therefore, I think they might have used old (lower) income information they would have had on file.

My present income easily satisfies the minimum requirements (by a large margin too). On top of that, I have no debt (no car loans, no mortgages, etc.), except for carrying the FirstUSA card with a $3500 credit limit.

When I contacted FirstUSA with this argument, the representative said that the decision is not negotiable.

So, I was wondering what I should be doing. The credit report (called Experian, the're sending it out) might very well list the "Insuffient income" reject, even though I have sufficient income.

Thanks in advance!
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Author: RecoveringFool Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 4542 of 308517
Subject: Re: Incorrect Income troubles Date: 9/23/1998 1:01 PM
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<<When I contacted FirstUSA with this argument, the representative said that the decision is not negotiable. >>

I would get a different card. My customer service experience with First USA was very poor and I am an excellent credit risk. Other companies seem very happy to have my business and those are the companies I do business with. The LLBean card through MBNA is my current favorite but I never pay interest and I like perks (free shipping and rebates).

RF..who no longer puts up with bad service from any credit card company.


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Author: ColumbusFool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 4543 of 308517
Subject: Re: Incorrect Income troubles Date: 9/23/1998 2:05 PM
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<<When I contacted FirstUSA with this argument, the representative said that the decision is not negotiable. >>

I would get a different card. My customer service experience with First USA was very poor and I am an excellent credit risk. Other companies seem very happy to have my business and those are the companies I do business with. The LLBean card through MBNA is my current favorite but I never pay interest and I like perks (free shipping and rebates).

RF..who no longer puts up with bad service from any credit card company.


I suppose I could do that. Except I fear that FirstUSA's reject might have a negative impact. Especially since the reject said "Insufficient Income"... Any thoughts on that?

Thanks!


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Author: RecoveringFool Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 4544 of 308517
Subject: Re: Incorrect Income troubles Date: 9/23/1998 2:13 PM
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<<I suppose I could do that. Except I fear that FirstUSA's reject might have a negative impact. Especially since the reject said "Insufficient Income"... Any thoughts on that? >>

Are you sure that will be reflected in your credit report ? I would request a copy. If you cancel the card, you can request the report reflect "account closed at customer request" and be sure to request a letter stating the same thing. One of the posts way back lists the credit agencies and probably a different one lists the states in which you are entitled to one free copy of your report each year. (I don't know if being denied additional credit is the same as a denial of credit in which case your are also entitled to a free copy of your report.)

RF


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Author: malachite Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 4545 of 308517
Subject: Re: Incorrect Income troubles Date: 9/23/1998 2:23 PM
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<<I suppose I could do that. Except I fear that FirstUSA's reject might have a
negative impact. Especially since the reject said "Insufficient Income"... Any
thoughts on that? >>

"Are you sure that will be reflected in your credit report ? I would request a copy.
If you cancel the card, you can request the report reflect "account closed at
customer request" and be sure to request a letter stating the same thing. One of
the posts way back lists the credit agencies and probably a different one lists the
states in which you are entitled to one free copy of your report each year. (I don't
know if being denied additional credit is the same as a denial of credit in which
case your are also entitled to a free copy of your report.) "

I think there might be a time lag as to how long it takes the credit report to realize that you make more money. When I first left grad school and got a "real job", I applied for one of those limited-time 4.9% deals to transfer my higher balances. I listed my new, improved income. I then got whammied twice in a row with the "you already have too much credit" and "too many recent credit checks" lines. The second one spooked me into not trying again for a number of months. A couple months ago I tried again (with Citibank, BTW, which I've had much better luck with) and they gave me the 4.9% for a year (on transfers only, but I don't make charges anymore so it doesn't bother me) and a $5000 credit limit. The moral of my babble: if your income only just went up, the credit agencies might not know it yet. But I definitely want to reiterate what RF said; get a copy of your credit report and see what is amiss. It can't hurt you to do it in any case.

Fool Away,
Mal.

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Author: ColumbusFool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 4546 of 308517
Subject: Re: Incorrect Income troubles Date: 9/23/1998 2:24 PM
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<<I suppose I could do that. Except I fear that FirstUSA's reject might have a negative impact. Especially since the reject said "Insufficient Income"... Any thoughts on that? >>

Are you sure that will be reflected in your credit report ? I would request a copy. If you cancel the card, you can request the report reflect "account closed at customer request" and be sure to request a letter stating the same thing. One of the posts way back lists the credit agencies and probably a different one lists the states in which you are entitled to one free copy of your report each year. (I don't know if being denied additional credit is the same as a denial of credit in which case your are also entitled to a free copy of your report.)

RF


I guess it's the same, the letter said that I could get a free report from Experian, which I did yesterday. I guess I'll know for sure in 8-10 days.

Thanks.

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Author: ColumbusFool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 4547 of 308517
Subject: Re: Incorrect Income troubles Date: 9/23/1998 2:29 PM
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I think there might be a time lag as to how long it takes the credit report to realize that you make more money.
.
.
<snip>
.
.
The moral of my babble: if your income only just went up, the credit agencies might not know it yet. But I definitely want to reiterate what RF said; get a copy of your credit report and see what is amiss. It can't hurt you to do it in any case.

Fool Away,
Mal.


Here's the curious part. I talked to Experian yesterday, and the representative said that they DON'T carry Income information in their credit report.

My income increased about 5 months back.

And yes, I'm getting a copy.

Thanks.

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Author: ts2 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 4548 of 308517
Subject: Re: Incorrect Income troubles Date: 9/23/1998 2:35 PM
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Is it possible that the all three credit bureaus were consulted? This often happens. I am aware that Equifax lists your profession.

If your increase in income also included a promotion, maybe they are basing their assessment with respect to your income on your previous position. Just a thought.

TS2
Trying to be Foolish but the Man keeps trying to get me down....

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Author: ColumbusFool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 4550 of 308517
Subject: Re: Incorrect Income troubles Date: 9/23/1998 2:49 PM
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Is it possible that the all three credit bureaus were consulted? This often happens. I am aware that Equifax lists your profession.


The letter said that Experian was consulted, they didn't talk about the other two.


If your increase in income also included a promotion, maybe they are basing their assessment with respect to your income on your previous position. Just a thought.


It involved a job change. The problem is, the FirstUSA rep doesn't know what exact criteria were applied, and they don't want to give me a line to the credit dept either :-(

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Author: TMF2Aruba Big funky green star, 20000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 4551 of 308517
Subject: Re: Incorrect Income troubles Date: 9/23/1998 3:55 PM
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So, I was wondering what I should be doing.

ColumbusFool,

You might try calling them again and seeing if you can explain your case to a supervisor. I tend to think that their line "the decision is not negotiable" is bull.

If all else fails, you might consider just moving on to another company who will give you a credit line that meets your needs.

Tony
...but I still am...

Off2Aruba

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Author: shannonjones Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 4553 of 308517
Subject: Re: Incorrect Income troubles Date: 9/23/1998 5:32 PM
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<<<<
I suppose I could do that. Except I fear that FirstUSA's reject might have a negative impact. Especially since the reject said "Insufficient Income"... Any thoughts on that?
>>>>

When you already have an account with a creditor, they can usually pull your credit file without adding a public inquiry to your report.

There are four types of credit inquiries. The first happens when you request new credit. Too many of these in the recent past will hurt your credit. This is the only type that shows up on the credit report that creditors see.

The second type is the account monitoring inquiry. This is where a current creditor re-checks your credit to see if anything is amiss or to grant you further credit. The third type is your personal request for a copy of your report. The fourth type is a mass market search they do to find suckers (whoops, customers) to sign up for new cards.

These last three inquiries do not show up on the credit report given to creditors and will not be used to calculate credit risk. They WILL show up on your personal copy of the credit report.

Also, the credit report doesn't tell why credit was denied. It doesn't even say IF credit was granted or denied. Of course, if credit is granted you will probably have a new account listed on the report.

Disclaimer: Your credit card company might not have actually done the account monitoring inquiry. They might have done a full 'new credit' inquiry, especially if you filled out an application and everything. The only way to know for sure is to pull a copy of your credit report which is free since you were denied credit.

---
Shannon Jones

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Author: TMFJedi Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 4598 of 308517
Subject: Re: Incorrect Income troubles Date: 9/25/1998 5:06 PM
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<<When I contacted FirstUSA with this argument, the representative said that the decision is not
negotiable.>>

Call back and ask to speak with a supervisor. If they can't help you, ask who can. If they say no one, ask for their supervisor. Just go up the chain.

Good luck!

Kaiti
Royal House of Alderaan

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Author: WhiteHouse Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 4611 of 308517
Subject: Re: Incorrect Income troubles Date: 9/25/1998 7:39 PM
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credit card companies and there offers are everywhere. Opening a new account will require disclosure of you current income. Why the old account didn't ask to update the information seems to be the problem. Move on sounds like it would be easy for you to do with your history.

Tricia

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