Apple credit card
Why is it that I only have one payment which is a credit card and I get told “Your monthly debt obligations are too high given your income”
Question marked as
Hi, I’d be happy to answer your questions to the best of my knowledge and personal experience.
When you applied for an Apple Card MasterCard, it’s considered a revolving credit account and you access your credit limit with credit card. So, a credit card is often referred to as an account.
So, when you applied for your Apple Card MasterCard account, the lender, Goldman Sachs Bank pulled a credit report from TransUnion. TransUnion is known as a Credit Bureau or also a Credit Agency. They collect information from banks, lenders, credit card companies and other credit agencies.
You can learn more about how your Apple Card application was evaluated at this link,
How your Apple Card application is evaluated – Apple Support
The credit score used to evaluate your application was provided by TransUnion. Goldman Sachs uses a credit score known as FICO 9. This is just one measure of your current credit situation that Goldman Sachs uses to evaluate applications.
If they declined your application for credit, they sent you a notification with some reasons and also your FICO score. This is required by law.
Many times the reasons for denial are confusing and seem misleading or incorrect. This is common because most borrowers/consumers don’t know the terms and don’t know where or how to learn them.
When lenders consider your for credit one factor they look at is your debt to income ratio. This seems complicated but basically they look at your rent/mortgage payment and other standardizes expenses such as utilities, food etc. Lenders also look at other debts you have which may include other loans (auto, mortgage, consumer accounts), other credit card accounts you may owe on.
Once the lender understands your debts they compare it to your income and try to determine if they can lend you money, and if you’ll be able to pay it back.
This is a very, very simplified version of how Credit applications work.
When Goldman Sachs notified you that they estimated your debt was too high for your stated income on your application, they thought it was too big a risk to extend more credit to you.
Goldman Sachs allows you to report various types and forms of income. This is what Goldman Sachs says you can report as income,
Include all sources of income, including income from assets. [For your reference, example sources of income can include]:
Wages from full-time, part-time, or seasonal jobs
Self-employment income
Interest or dividends from investments
Retirement income
Public assistance
If you include non-taxable income / benefits, increase amount by 25%
Shared income from someone else that is regularly deposited into your individual account or into a joint account
If you are 21 or older, you may also include the portion of someone else’s income that is regularly used to pay your expenses
If you did not report all the income that you’re allowed to report, please wait 30+ days and report the higher income you’re allowed to report.
Im happy to answer additional questions within the confines of the Apple Communities.