Citi Reconsideration Letter for Critiquing

Discussion in 'Credit Talk' started by cg2333, Jul 24, 2006.

  1. cg2333

    cg2333 Member

    Any criticisms, opinions, or advice would be greatly appreciated!


    July 25, 2006

    Office of the President
    Attn: Ken Stork
    P.O Box 6000
    Sioux Falls, SD 57117

    Dear Mr. Ken Stork:

    I recently applied for your PremierPass credit card. I was surprised when I received a letter (reference number: ) declining me for this card. I think that we could both benefit by you reconsidering this.

    I have a high household income and a perfect payment history with you and other creditors according to my credit report. I am also looking into transferring higher interest rate balances to Citibank to improve my credit. I anticipate paying Citibank a large amount of interest on these balances while working to improve my credit.

    The reason that your letter listed for declining me for this card was â??Your credit report reflects one or more of your account balances with other creditors is high compared with your available creditâ?. I might have overused credit in the past. However, I am working to correct this by paying more then the minimum on each of my accounts every month and consolidating and transferring higher interest rate credit cards to cards such as Citibankâ??s.

    If you are willing to reconsider this denial of credit you could earn interest from someone who can be counted on to pay their bills each month and who is proactively looking to improve their credit score. I could improve my credit score by possibly transferring balances to Citibank and paying you interest on these balances. If possible, I would prefer not to have an additional hard inquiry for this reconsideration request. If a hard inquiry is necessary for you to review this appeal, then it is fine if you make another hard inquiry on my credit report.

    Thank you,
     
  2. ontrack

    ontrack Well-Known Member

    You could try it, but I doubt it is worth the trouble. You should, however, send a letter to request an adverse action notice, which will indicate which credit reports they pulled and used for their decision, and use that to get free credit reports from those CRAs, to make sure there isn't something else that affected their decision. If you are willing to take the time to send a reconsideration letter, you should be willing to follow up on other aspects of managing your credit.

    "I might have overused credit in the past. However, I am working to correct this by paying more then the minimum on each of my accounts every month and consolidating and transferring higher interest rate credit cards to cards such as Citibank’s. "

    That does not instill confidence.

    I think you would spend your time better just paying down your existing accounts, building up a history of on time payments, and selectively considering 1 or 2 offers a year to get your available credit up without increasing your debt.

    In the future, open your lines of credit when you are not using much credit, not when you have high balances. The old adage that banks want to lend money to people who don't need it is true.
     
  3. cg2333

    cg2333 Member

    Thank you for the good advice.
     
  4. cg2333

    cg2333 Member

    I've revised this letter and I'm starting to work on other aspects of managing my finances. Any criticisms, opinions, or advice are greatly appreciated. Also, if you think this letter makes a weak argument please let me know.

    Thank you,
    cg2333



    Office of the President
    Attn: Ken Stork
    P.O. Box 6000
    Sioux Falls, SD 57117

    Dear Mr. Ken Stork:

    I recently applied for your PremierPass credit card. I was surprised when I received a letter (reference number: ) declining me for this card. I think that we could both benefit by you reconsidering this.

    I have a high household income and a perfect payment history with you and other creditors according to my credit report. I am seeking credit because I am interested in transferring higher interest rate balances to Citibank to improve my credit. I anticipate paying Citibank a large amount of interest on these balances while working to improve my credit.

    The reason that your letter listed for declining me for this card was â??Your credit report reflects one or more of your account balances with other creditors is high when compared to the available creditâ?. I am working to correct this in two ways. I am paying more then the minimum on my accounts each month, and I am also consolidating and transferring higher interest rate credit cards to cards such as Citibankâ??s.

    If you are willing to reconsider this denial of credit you could earn interest from someone who can be counted on to pay their bills each month and who is proactively looking to improve their credit score. I could improve my credit score by possibly transferring balances to Citibank and paying you interest on these balances. If possible, I would prefer not to have an additional hard inquiry for this reconsideration request. If a hard inquiry is necessary for you to review this appeal, then it is fine if you make another hard inquiry on my credit report.

    Thank you,
     
  5. ontrack

    ontrack Well-Known Member

    I still think you would make better use of your time by getting an Adverse Action Notice from Citi, indicating which reports they pulled, and using that to get your free copies to make sure there is no other problem. If it turns out there is no negative info, their letter tells you what they are looking for.

    What is your total debt, and your total available credit?
    What is your oldest revolving (CC) credit account?
    Do you have any negative info being reported on any of your reports?


    If your debt is high relative to your cash flow, that is a financial problem that you will not fix by having more credit.

    If your debt is low enough that your monthly cash flow can steadily pay it down without impacting other obligations, you might then look at increasing credit accounts over time, both to improve terms, and limit risk.

    Just because someone will give you credit, on some terms,does not mean that it is in your interest to use it.
     

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