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Capitol One cards "red flagged" by Amex, other credit providers? Are there others?

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B335is
Moderator Emeritus

Re: Capitol One cards "red flagged" by Amex, other credit providers? Are there others?

I think on manual reviews there may be some truth to it. Someone with Credit One, First Premier and other subprime cards may stand out more than someone with BoA and Chase history. I'd love to have all reference to my time with Credit One removed. And yes I'm aware we're talking about Cap1.
Message 11 of 28
sjt
Senior Contributor

Re: Capitol One cards "red flagged" by Amex, other credit providers? Are there others?


@Anonymous wrote:

I recently read on r/personalfinance (reddit) that:

"Capitol One has been flagged by credit providers such as Amex as being more likely to default. So if a user has CapOne it is more likely to be detrimental in some instances."

Is this true??  I've never heard this.   
I was recently advised in another thread not to open a new account for six months (my file is spotles but very thin) which gives my current card time to age in good standing.  

This concept of "red flag" accounts makes that advise even more critical.  

Can anyone advise as to 1) whether or not this is true, and 2) what other "red flag" cards there might be?  Thanks!

 

 


This is not  true. If Amex, or any other company did this, it would be a form of "red lining" and might even be illegal.

American Express: Platinum Charge, Optima, Business Gold, Delta Business Reserve, Business Cash, Business Plus
Barclays: Arrival+ WEMC
Capital One: Savor WEMC, Venture X Visa Infinite
Chase: Freedom U Visa Signature, CSR Visa Infinite
Citibank: AAdvantage Platinum WEMC
Elan/US Bank: Fidelity Visa Signature
Credit Union: Cash Back Visa Signature
FICO 08: Score decrease between 26-41 points after auto payoff (11.01.21) FICO as of 5.23, EX: 812 / EQ: 825 / TU: 815
Message 12 of 28
AzaleaB
Established Contributor

Re: Capitol One cards "red flagged" by Amex, other credit providers? Are there others?

Urban legend...


Starting Score: EX:570, 8/2011
Current
Scores(8/30/18):
EX08:850; EQ08:850,
TU08:847
Inqs(12 mo): EX/0, EQ/0, TU/0
Goal Scores: 800+
My Cards: BoA Rewards: 30K, Discover IT: 50K, Arrival : 13.3K, CDP: 30.1K, Amex PRG, Amex ED: 22.5K, Amex BCP: 20K, FU: 21K, CSR: 35K, Amazon Store: 20K, Macys:10K, Diners Club:40K
Message 13 of 28
Anonymous
Not applicable

Re: Capitol One cards "red flagged" by Amex, other credit providers? Are there others?


@chalupaman wrote:

Probably just a rumor. I have one CapOne card and I've never had issues with Amex ever.


This.  I had a whopping $300 Crapital One card when Amex approved my PRG. 

Message 14 of 28
stagefoursurvivor
Established Contributor

Re: Capitol One cards "red flagged" by Amex, other credit providers? Are there others?

According to an UW on another site, with experience at several lenders, they pay little attention to the particular lender and focus primarily on the CL and history. Truth is creditone is unlikely to provide high CLs and THAT holds more sway that the actual lender identity. Furthermore, they don't have "prime vs sub-prime" categories, nor is there a difference if the lender is a bank or CU.

AmEx $5K CL=Cap1 $5K CL=PenFed CU $5K CL

Exceptions are store cards & AU accounts, which are almost totally ignored when decisioning.

30-40 years ago, AmEx was the pinnacle, no more. They've lowered their standards while raising fees & interest rates, aren't accepted at 20-30% of merchants...they're scrambling, the loss of Costco has them reeling and reassessing their strategy.

11/14/14 Total CL $1,100; 6/30/15 Total CL $180K
Message 15 of 28
Anonymous
Not applicable

Re: Capitol One cards "red flagged" by Amex, other credit providers? Are there others?


@B335is wrote:
I think on manual reviews there may be some truth to it. Someone with Credit One, First Premier and other subprime cards may stand out more than someone with BoA and Chase history. I'd love to have all reference to my time with Credit One removed. And yes I'm aware we're talking about Cap1.

No truth to this at all, even on Manual Review.  We have someone who works/worked as a credit analyst and this question was asked.  And the response was that the type of credit accounts matters zero as to how you performed with those accounts.  If this were the case, everyone with all of these store cards would be suspect too. 

Message 16 of 28
B335is
Moderator Emeritus

Re: Capitol One cards "red flagged" by Amex, other credit providers? Are there others?

You're going by evidence provided by ONE individual. If you choose to believe that is the case for every Underwriters attitude I may have a bridge to sell you.
Message 17 of 28
stagefoursurvivor
Established Contributor

Re: Capitol One cards "red flagged" by Amex, other credit providers? Are there others?


@B335is wrote:
You're going by evidence provided by ONE individual. If you choose to believe that is the case for every Underwriters attitude I may have a bridge to sell you.

I stated this is ONE UW, which in relation to this topic, holds as much veracity as the cited source. Do I believe ALL UWs adhere to this position? I was born during the day but, it wasn't yesterday...

11/14/14 Total CL $1,100; 6/30/15 Total CL $180K
Message 18 of 28
B335is
Moderator Emeritus

Re: Capitol One cards "red flagged" by Amex, other credit providers? Are there others?

Response was directed at blackaces, not you Smiley Happy
Message 19 of 28
lg8302ch
Senior Contributor

Re: Capitol One cards "red flagged" by Amex, other credit providers? Are there others?

My personal opinion is that it is much more what Amex sees on your report and by that I do not mean Cap1 cards but the baddies. If you ask how many that are trying to rebuild have a Cap1 cards and then all of the sudden try to apply for an Amex when their profile is not ready yet for Amex this I could imagine indeed happening.  Except for Cap1 all of my cards were approved under manual review. You can look at the dates I applied and limits and have at least 1 example that Amex did not care about  my Cap1 card....neither did any of the other lenders after my Cap1 approval.

Message 20 of 28
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