Credit Card Rejected due to Debt-to-income Ratio from Loans

[Inyonose]

I am a current PGY1 in my intern year and am about to move to my advanced program in diagnostic radiology. I decided to apply for the Chase Sapphire Preferred due to their current promotion of 80k points and waiving the first year of AF, as I am planning to spend a decent amount of my move. I applied for the CSP, but I was rejected due to my debt-to-income ratio being too high.

For background, I reported my income as a standard PGY1 (60k) and I have ~350k in student loans. All my loans are federal, and I consolidated it last June to begin early PSLF payments. I have not had to make a single payment during this time due to the CARES act, so my monthly payment is zero, but I've paid 0.01 each month to try to qualify for PSLF payments.

When I called the CSP reconsideration line, the worker stated that Experian reported my balance as 350k as if I owed all 350k right now. He recommended I call FedLoan, who told me that they could not change anything on their end, since they are reporting I need to pay $0 and I have not missed payments. I checked Experian and it shows that my balance is ~350k with no missed payments and $0 as minimum payments.

What is frustrating is that several of my colleagues with similar loan burdens have been approved without issue. However, none of them have consolidated, so their loans are potentially listed as multiple different smaller loans rather than one big ~350k loan. I was wondering if anyone else had issues with this and if how they were able to solve it.

[Bdoc]

whats your credit score? Have you been using credit cards in medical school?

[Craigslist]

I was in your shoes for the exact same credit card exactly the same time you applied in relation to leaving med school and starting residency. Nothing you can do about it, I was able to finally get CSP 1 year later. Yes the points are salivating and you are going to easily spend 10k during this transition, but you can't do anything about it and you're not going to get the card at this time.

[F0017S0]

Craigslist is right: you aren’t likely to prevail on this one. WSJ reports that credit card issuers are buttoning up lending standards, especially at the premium end.

[StarTrekDoc]

You can appeal that with resolutions again and explain the situation since in deferment; the interpretation of the credit report appears incorrect. Offer to send in the information to reflect status.

[Sampter]

I wouldn't waste anymore energy on it, you already tried recon and got denied.

[pierre]

I have not had to make a single payment during this time due to the CARES act, so my monthly payment is zero, but I've paid 0.01 each month to try to qualify for PSLF payments.

Why are you doing this when they’ve already said the your $0.00 payment counts?

[artemis]

You might see if Chase will approve you for the Chase Freedom Unlimited card; it's a bit easier to qualify for than the Chase Sapphire Preferred or Reserve cards. While Freedom Unlimited is advertised as a 1.5% cash back card, you can save those points and later (when you qualify for the Chase Sapphire Preferred or Reserve card), those points can be transferred to the Sapphire card where they can be used as hotel/frequent flyer points (after transfer to once of Chase's partners) or to purchase travel through the Chase Rewards portal as well as redeemed for cash.

[StarTrekDoc]

You might see if Chase will approve you for the Chase Freedom Unlimited card; it's a bit easier to qualify for than the Chase Sapphire Preferred or Reserve cards. While Freedom Unlimited is advertised as a 1.5% cash back card, you can save those points and later (when you qualify for the Chase Sapphire Preferred or Reserve card), those points can be transferred to the Sapphire card where they can be used as hotel/frequent flyer points (after transfer to once of Chase's partners) or to purchase travel through the Chase Rewards portal as well as redeemed for cash.

True. I had dd go this route too. Always nice since no af to keep to keep points alive while churning ultimate cards

[Tim]

True. I had dd go this route too. Always nice since no af to keep to keep points alive while churning ultimate cards

Getting added to a relatives card can work wonders on your profile that is pulled, different profile.

[Inyonose]

I was in your shoes for the exact same credit card exactly the same time you applied in relation to leaving med school and starting residency. Nothing you can do about it, I was able to finally get CSP 1 year later. Yes the points are salivating and you are going to easily spend 10k during this transition, but you can't do anything about it and you're not going to get the card at this time.

Yeah, I understand why I was rejected, but the issue is that I have friends who have similar loan burdens but got approved. They have near the same amount and applied two days after I did, but the only difference is that they didn't consolidate, so their amount is separated into multiple loans.

Why are you doing this when they’ve already said the your $0.00 payment counts?

When I submit payments on MyFedLoan, it won't accept 0.00 payments. So I just do 0.01 just in case. They have recorded my payments last time I verified my income.