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Full time employment: Posting here.
I know a guy who had difficulty getting an approval for a new credit card.
The explanation for the decision to decline the application was listed as a debt to income ratio being too high.
The only monthly payment obligations this guy has are for five credit cards, and the total of those payments is less than $150.
The applicant also has a secured certificate loan from a credit union that has no requirement for any payment until the certificate matures.
When the applicant followed up on the declined application with the bank offering the card it was explained that Experian reported a payment on that certificate loan of several thousand dollars per month. This large payment simply didn't exist. The credit card bank advised that the certificate loan credit union must be incorrectly reporting the loan terms to Experian.
Are you with me so far?
The applicant contacted the credit union holding the certificate loan where they denied reporting any such payment to any credit bureau. It was suggested that the problem must be with Experian reporting incorrectly.
The applicant then acquired a free credit report from Experian. That report, correctly, revealed that the certificate loan existed but clearly indicated that there is no monthly payment obligation. Discussions with Experian provided no possible explanation for the discrepancy between the information that Experian was reporting and the payment information that the credit card bank said they received from Experian.
The credit card bank insists that the monthly payment must be real, but all other sources say that it does not exist.
Having this application for a credit card declined was not any sort of disaster, but it is very puzzling.
Does anyone have any ideas or experiences that might shed some light on this brain teaser?
The explanation for the decision to decline the application was listed as a debt to income ratio being too high.
The only monthly payment obligations this guy has are for five credit cards, and the total of those payments is less than $150.
The applicant also has a secured certificate loan from a credit union that has no requirement for any payment until the certificate matures.
When the applicant followed up on the declined application with the bank offering the card it was explained that Experian reported a payment on that certificate loan of several thousand dollars per month. This large payment simply didn't exist. The credit card bank advised that the certificate loan credit union must be incorrectly reporting the loan terms to Experian.
Are you with me so far?
The applicant contacted the credit union holding the certificate loan where they denied reporting any such payment to any credit bureau. It was suggested that the problem must be with Experian reporting incorrectly.
The applicant then acquired a free credit report from Experian. That report, correctly, revealed that the certificate loan existed but clearly indicated that there is no monthly payment obligation. Discussions with Experian provided no possible explanation for the discrepancy between the information that Experian was reporting and the payment information that the credit card bank said they received from Experian.
The credit card bank insists that the monthly payment must be real, but all other sources say that it does not exist.
Having this application for a credit card declined was not any sort of disaster, but it is very puzzling.
Does anyone have any ideas or experiences that might shed some light on this brain teaser?