Adverse Action triggers

[Anonymous]

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@GomerPyle wrote:
After reading this forum I have been trying to figure out what it is that card holders who suffer AA (CLD etc) have in common. I have been fortunate to not receive any AA from any of my cards. I have a couple of theories about why some suffer AA. I will propose that it could be the category percentages of your purchases. Do CCC prefer a user who uses their card in a more rounded way? I would also propose that they prefer all contact to be online(paying bills etc). One other possibility could be chargebacks. Do any of you who have had adverse actions have any of these factors? It sure would be nice to know what is the common thread so we can avoid that behavior.

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You've got me really worried when you say chargebacks. I have a gift card that is likely to be refunded to the credit card it was purchased with. Is this considered a chargeback and will it increases chances of AA?
I don't understand why it would.

[GomerPyle]

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@Anonymous wrote:

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@GomerPyle wrote:
After reading this forum I have been trying to figure out what it is that card holders who suffer AA (CLD etc) have in common. I have been fortunate to not receive any AA from any of my cards. I have a couple of theories about why some suffer AA. I will propose that it could be the category percentages of your purchases. Do CCC prefer a user who uses their card in a more rounded way? I would also propose that they prefer all contact to be online(paying bills etc). One other possibility could be chargebacks. Do any of you who have had adverse actions have any of these factors? It sure would be nice to know what is the common thread so we can avoid that behavior.

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You've got me really worried when you say chargebacks. I have a gift card that is likely to be refunded to the credit card it was purchased with. Is this considered a chargeback and will it increases chances of AA?
I don't understand why it would.

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My intentions were not to create worry but to try and alleviate some. My idea of chargebacks would be when your account is credited for returns etc. This has been a big problem with PayPal and Ebay. My thought was that if you file a lot of chargebacks the CCC may look at you in an adverse way.I do not believe that AA is just a random computer act. There has to be a common trigger or a consistent conbination of actions that precipitate creditors to take such action. If members of this board would respond we could probably scientifically figure it out but maybe I hope for too much.

[thebostonredsox]

I agree with most of the reasoning here. I do feel that the biggest factors today are the state you live in and whether or not you carry a mortgage. Since the failing economy to a large degree was caused by the housing decline, I think lenders are particularly cautious with those carrying large mortgages. They're afraid that the borrower may own a home that they owe more money on than the home is worth.

The other factor is unemployment. I think lenders are targeting hard hit areas of the country and being especially cautious in the amount of credit extended to people in those areas.

Some of the risk models being used by lenders simply DO NOT work however. Example, the only AA I received since the crunch began was from Discover. They lowered my CL by $2,000 and sent me a letter that stated my credit report had insufficient mortgage data. The fact is I do not carry a mortgage on my home! So I called their account review people, and in a matter of minutes I got this corrected and my credit line was restored.

The Discover representative said that their computer model is very inaccurate, and they received literally thousands of calls like mine. They apologized several times and assured me that my account was noted and this would not happen again. So far, so good.

[Anonymous]

I would say....taking a lot of cash advances.

[ralbusta]

Gomer I have to disagree with your definiton of chargebacks. Chargebacks occur when you dispute a charge with the cc company for numerous reasons: could be faulty merch., invalid charges, etc. The cc company charges the merchant back for the amount of the transaction, hence the term.The cc company then credits your account. Regular returns of merch. including gift cards are credits not chargebacks so no worry there. Chargebacks are the reason you sign slips when charging, the vendor keeps these for a number of years as proof you authorized the charge to prevent chargebacks. Hopes this alleviates some worry out there.

[score_building]

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@Anonymous wrote:
I would say....taking a lot of cash advances.

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or taking ANY cash advances.  i'd imagine even one could trigger a red flag.

[scrambler]

Regular use of your credit card for food  or alcohol. I got adverse action for enrolling in debt management program (DMP) or CCS.

Message Edited by scrambler on 03-23-2009 09:09 AM

[Anonymous]

if you get adverse action from BOA, will that show up in your account online immediately?  will they email you? 

I wouldn't want to have to wait for a letter to know.

[scrambler]

- Using your credit card while travelling to another state.

- Buying an oversea travelling air ticket with your CC

[Anonymous]

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@scrambler wrote:

- Using your credit card while travelling to another state.

- Buying an oversea travelling air ticket with your CC

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those should be fraud alert triggers, but not AA triggers.

I haven't had a problem using BOA in other states.

Message Edited by urgent_help_needed on 03-23-2009 09:21 AM