Apple Card Turned Me Down - My Credit Score is 835 -WTAF?!

[pommephone]

I'm about to buy a new MacBook Pro. I have the money to pay cash but prefer to finance at 0% to avoid taking a big chunk of cash out of savings. I don't make a lot of money- about $33K and my wife makes around $48K My credit score is 835. My wife's score is also around 835. Other than our small mortgage and car payment, we carry ZERO debt. We pay our CC balances in full every month. The reason I was not approved:

"Your monthly debt obligations are too high given your income - examples may include loan or monthly housing payments."

So my wife applied and was approved, but only for $2,000, which won't cover the purchase.

Seriously?! WTAF?!

 

[glenthompson]

Not unusual. A lot of people have encountered the same problem. Won’t help you now but keep trying every few weeks. I tried 2 or 3 times, also with 800+ score, then they called me and said try again as there was a problem in approval. Finally approved me.

 

[dsmill]

I'm about to buy a new MacBook Pro. I have the money to pay cash but prefer to finance at 0% to avoid taking a big chunk of cash out of savings. I don't make a lot of money- about $33K and my wife makes around $48K My credit score is 835. My wife's score is also around 835. Other than our small mortgage and car payment, we carry ZERO debt. We pay our CC balances in full every month. The reason I was not approved:

"Your monthly debt obligations are too high given your income - examples may include loan or monthly housing payments."

So my wife applied and was approved, but only for $2,000, which won't cover the purchase.

Seriously?! WTAF?!

That's crazy! My credit score was 792 and went to apply last night and got approved for $6,500.

 

[pommephone]

OK, this might help someone in a similar situation:

1. I checked and found that it's perfectly OK (in fact, recommended) to include income from a spouse or partner. My wife writes me a check every month toward expenses. I conservatively estimated that amount and added it to my income.
2. Screw Apple. I researched 0% interest cards that can be used immediately and found the Amex Blue Cash Everyday Card: Earn Up to $300 Back – Here's How:
   Earn 20% back on Amazon.com purchases on the Card within the first 6 months of Card Membership, up to $200 back. Apply by 10/07/2020.
   
   Plus, earn $100 back after you spend $1,000 in purchases on the Card within the first 6 months of Card Membership.† You will receive cash back in the form of statement credits. 0% intro APR on purchases for 15 months from the date of account opening, then a variable APR, 13.99% to 23.99%.
3. Applied online, got quick approval, credit line of $11,000 and a card number.
4. Used my new card to purchase the exact MacBook configuration I wanted on Amazon for $50 less than Apple or B&H Photo.
5. $200 back for Amazon purchase + $100 account credit + $50 Amazon discount = $350 SCORE! And I can pay it off interest-free over 15 months!

 

[Rigby]

This is almost certainly due to your relatively low individual income. Next time you can list your household income (i.e. include not just the checks that your wife gives you but her entire income). See e.g.:

How to Report Income on Your Credit Card Application - NerdWallet

For millions, figuring out what counts as annual income for the sake of a credit card application can be surprisingly murky. Here's a guide to the process.

www.nerdwallet.com

 

[BigMcGuire]

It is not logical. I was denied and my wife accepted. Three months later I applied again and was accepted. Shrug.

 

[mlody]

Here is good example of things being not logical. Over a year ago we paid off our mortgage and have no debt and carry zero balances on any credit cards. My credit score went down from high 840 to 795-800 and it stayed there for the past year! I don't need the credit score per say but way to motive people - the whole system is f... up.

 

[BigMcGuire]

Here is good example of things being not logical. Over a year ago we paid off our mortgage and have no debt and carry zero balances on any credit cards. My credit score went down from high 840 to 795-800 and it stayed there for the past year! I don't need the credit score per say but way to motive people - the whole system is f... up.

How do you expect banks to make money on zero balances??? How selfish! (/sarcasm). . Absolutely right.

 

[4sallypat]

Before Apple Card came out, I used 3 other card companies to finance at 0%:
1. HSBC Premier Mastercard had 18 month no interest on transfer or purchases.
2. B&H store card = 0% for 12 months - financed my 16" MBP and just about paid off in full to avoid the interest retroactively...
3. Barclay Bank Apple Rewards currently has 18 months no interest - just got this in my email but I don't need a Mac now....

Try applying using combined household income with these banks - they may have the same or similar financing...

My Apple Card I got last year I can do a 12 month financing, but waiting for the last of the Intel iMac to become discontinued....

 

[jbachandouris]

And yet my credit score was in the mid 600's and received $4000. I can guarantee my income is much less than either yours or your wife's. Very odd approval process.

 

[Erehy Dobon]

How do you expect banks to make money on zero balances??? How selfish! (/sarcasm). . Absolutely right.

The consumer credit industry has a special name for people who pay off their balances in full every month: deadbeats.

 

[C DM]

The consumer credit industry has a special name for people who pay off their balances in full every month: deadbeats.

What about those who just don't pay anything at all?

 

[Böhme417]

Here is good example of things being not logical. Over a year ago we paid off our mortgage and have no debt and carry zero balances on any credit cards. My credit score went down from high 840 to 795-800 and it stayed there for the past year! I don't need the credit score per say but way to motive people - the whole system is f... up.

I feel that. One month after I paid off my student loans, my score(s) took a 60 point dive. The reason listed for my score dropping was "lack of installment account(s)." My car and home are paid off, so I have no other installment accounts. Credit scoring is absurd.

 

[glenthompson]

One way to increase your credit score is to have a number of high limit cards with little or no balance. Percentage of credit used is a major factor. We travel full time in our motorhome so almost everything is paid via credit card. Even though we pay balances off every month, it looks like we have high balances. We’re in the process of buying a house and coming off the road. I expect our score will rise since our average balance over the month will be much less.

 

[MacCheeseLai]

It’s your income reported (add your wife’s income to yours next time you apply) and paying off your cards every month. CC companies hate that because it generates no income for them.

I’ve got three credit cards and the Apple Card (which I haven’t used yet) has the highest limit. The other two are jokes in plastic form, $500 limit, high apr. I keep a small balance on both each month. I use them every month but pay off enough to keep a small balance. I always pay above the minimum. It’s all a game anyways, they want you to use the cards but don’t make it look like the cards need you more than you need them. They don’t like $0 card balances.

 

[Elmo1938]

why not give them a vall?

 

[C DM]

its your income reported and paying off your cards every month. CC companies hate that because it generates no income for them.

Well, not as much income. They still make money from the purchases that are made.

 

[Erehy Dobon]

What about those who just don't pay anything at all?

Collection agency referrals.

 

[Erehy Dobon]

Well, not as much income. They still make money from the purchases that are made.

Not from the buyer. From the merchant via transaction fees. The buyer still contributes no income to the credit card issuer.

Credit card companies love people who carry a balance for several months yet make their minimum monthly payments on time.

The worst thing a consumer can do with a credit card is use it in a fiscally conservative and overly responsible, sane way.

 

[C DM]

Not from the buyer. From the merchant via transaction fees. The buyer still contributes no income to the credit card issuer.

But without the buyer the buying something from the merchant the fees from that merchant for those purchases wouldn't be coming in.

The worst thing a consumer can do with a credit card is use it in a fiscally conservative and overly responsible, sane way.

Well, not having that consumer with their credit card would seem to be worse than that.

 

[Erehy Dobon]

Nah, there are administrative fees and monthly overhead with an inactive customer.

I haven't used my Apple Card for a year because of Goldman Sachs' utter incompetence and garbage customer service.

Yes, I could cancel the card and take the short-term credit score hit. However, it's more punishing to GS if I stay on as an inactive customer. They still need to process my account and send me the monthly account statement.

Worse, I have an $0.13 Apple Card cash reward credit.

GS could cancel my account for inactivity but they would be on the hook to send me thirteen cents. Consumer banking laws are pretty strict and I wouldn't be surprised if GS needs to accrue $0.13 cash to ensure they can hand back my property to me when I demand it or when our contractual agreement is over.

First-class postage is more than that but the processing to cancel my account, send me the notification (by snail mail) and actually mail me a check would probably exceed $30-40 to GS.

I believe GS was quoted stating that the new customer acquisition cost was around $200 per account. The fancy titanium physical Apple Card has never left my house, has never been used in a single transaction. This is one example of a GS new customer acquisition cost that will unlikely never be recouped.

They even have a program where a customer can request for a postage paid box to send an unwanted card back to be safely and securely destroyed. That's an additional cost that I have not yet invoked.

I signed up for Apple Card, GS customer service effed up in less than two months and now we're at a stalemate. I have the upper hand because they owe me thirteen cents. With each day my credit history grows with this issuer and my credit utilization is zero. The two months I actually charged something, I made the payments before the close date. With the ongoing $0.13 credit, there is no question of me not making payments.

I am not the debtor, I am the creditor. Consumer credit card companies loathe being debtors. But right now, that's where GS and I stand. They owe me money.

GS should love to dump me as a customer but it's too costly for them to give me the boot.

 

[4sallypat]

I use the Apple Card everytime I go out grocery shopping, home improvement, and other high traffic stores due to the pandemic.

What I love is not having to touch the PIN pad / card swipe device and letting my phone pay.

Every month, I end up paying the entire balance to avoid interest and gotta say that GS loves that because both Apple and GS have made a few % off the purchases....

 

[compwiz1202]

The consumer credit industry has a special name for people who pay off their balances in full every month: deadbeats.

If they barely use the card I agree. But they still love the ones who purchase a lot because they rack up merchant fees.

 

[pommephone]

1. Screw Apple.

I'm enjoying all the replies to this thread! Actually Apple Card/Goldman Sachs did me a favor by turning me down. By doing a little research I was able to save $350 and get my new MBP from Amazon delivered in 2 days (assuming it arrives today - out for delivery)!

 

[DblHelix]

I'm about to buy a new MacBook Pro. I have the money to pay cash but prefer to finance at 0% to avoid taking a big chunk of cash out of savings. I don't make a lot of money- about $33K and my wife makes around $48K My credit score is 835. My wife's score is also around 835. Other than our small mortgage and car payment, we carry ZERO debt. We pay our CC balances in full every month. The reason I was not approved:

"Your monthly debt obligations are too high given your income - examples may include loan or monthly housing payments."

So my wife applied and was approved, but only for $2,000, which won't cover the purchase.

Seriously?! WTAF?!

I have a high score, make good 6 figure income, applied before I had a mortgage, no other debt, don’t carry a balance. Although I got a high limit I did not get the prime interest rate.