Adverse Action triggers

[settleordelete]

There are thousands who visit this site every week for advice and suggestions on credit cards and its responsible use. But many, many millions who dont come here and who are also heavy users credit cards everyday irresponsibly for huge down payments on cars to purchasing a snickers bar at a 7-11are contributing to adverse actions to some of us who are innocent. In other words the good has to suffer for the bad sometimes.

[hyprble]

I've been receiving a lot of AA - all CLDs due to "high debt to credit".  As one card CLD's and my debt to credit ratio goes up, more cards CLD and use that as a reason.  I have a huge balance I've been paying down, no longer charge anything i can't PIF by end of the month and as balance goes down my credit's gotten worse as the CLD (chasing down balances) make me seem even more irresponsible.

All I want to do is pay down debt, but I'm still scared of getting even more AA.

I can only guess my cards CLD me for having high balances at low interest rates and not charging anymore and then AA/CLD me again for the high balances to low credit limits (which they caused in the first place!)  That's how I went from around 50% debt to credit to 90% even though my actual balance is lower now.

[Anonymous]

---

@scrambler wrote:
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

---

I have to disagree with that. I doubt one receives an AA for using their cc for groceries. most CCs with reward programs have a gas & grocery category where you get nice cash back incentive. I can't speak about liquor stores but I have been using my CCs at the supermarket and so far no AA. 

I will not be surprised to see someone getting AA after they enroll in debt management program - that is definitely a red flag that's going to scare away CC companies. 

[GomerPyle]

Updated list of reasons for AA from the members of this forum. Do you have any of these? Which ones are common to all who have had AA?

• 1. Lack of use(CL is stagnant)
• 2. Maxing out a CL
• 3. Lack of online contact
• 4. Chargebacks
• 5. Use is not well rounded
• 6. Who your mortgage holder is.
• 7. Which stores you shop at, amex's "experience with others that shop where you shop"
• 8 Which state you live in (the ones with the realestate that has dropped a lot.
• 9 Balances on other cards and how fast you pay them down.
• 10 Change in purchasing
• 11 Number of inq
• 12 What industry you work in (housing construction, finance)
• 13. Unemployment
•  14. Taking a lot of cash advances.
•  15. Taking ANY cash advances
•  16. Regular use of your credit card for food  or alcohol
•  17. Using your credit card while traveling to another state.
• 18. Buying an oversea traveling air ticket with your CC
• 19. Irresponsibly for huge down payments on cars  
• 20. Purchasing a snickers bar at a 7-11
• 21. High debt to credit having high balances at low interest rates and not charging anymore.
• 22. Enrolling in a debt management program.
  

Message Edited by GomerPyle on 03-23-2009 02:16 PM

[scrambler]

---

@Anonymous wrote:

---

@scrambler wrote:
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

---

I have to disagree with that. I doubt one receives an AA for using their cc for groceries. most CCs with reward programs have a gas & grocery category where you get nice cash back incentive. I can't speak about liquor stores but I have been using my CCs at the supermarket and so far no AA. 

I will not be surprised to see someone getting AA after they enroll in debt management program - that is definitely a red flag that's going to scare away CC companies. 

---

The type of food I am talking about is restaurant and fast food (McDonald's type of food).

It could trigger a sign of been unemployed and depending on CC to eat.

[Anonymous]

I guess I've been unemployed and hungry for years... I use my CCs at fast foods almost daily. (Rewards points.)

[Anonymous]

i understand your list and your intention but unfortunately CC companies data it's way more complex than just where you made a purchase, they take a lot of variables into consideration, not one person's situation is the same.

payment history, transaction amount, etc. etc. can easily outweigh one possible red flag or even 10 red flags, therefore creating no AA at all.

for example 18. Buying an oversea traveling air ticket with your CC

how could a CC think that's risk?  i think it's more solid (less risk) for them because if someone goes on international travel they could afford paying it off vs. making minimum payments

just my 2cents

[GomerPyle]

---

@Anonymous wrote:

i understand your list and your intention but unfortunately CC companies data it's way more complex than just where you made a purchase, they take a lot of variables into consideration, not one person's situation is the same.

payment history, transaction amount, etc. etc. can easily outweigh one possible red flag or even 10 red flags, therefore creating no AA at all.

for example 18. Buying an oversea traveling air ticket with your CC

how could a CC think that's risk?  i think it's more solid (less risk) for them because if someone goes on international travel they could afford paying it off vs. making minimum payments

just my 2cents

---

I agree. Yes everyone is unique and all of our patterns are different. I am beginning to believe more and more that it really is not the person at all but the problem is the CCC. Their resources are limited and they must cut corners somehow. AA is a strange thing and probably not capable of being understood but it is fun to try.

[scrambler]

---

@Anonymous wrote:
I guess I've been unemployed and hungry for years... I use my CCs at fast foods almost daily. (Rewards points.)

---

If it is your pattern to eat with CC, then that wouldn't be a problem. If you suddenly start charging your fast food/alcohol on CC, then it could trigger an AA.

[score_building]

---

@scrambler wrote:

---

@Anonymous wrote:
I guess I've been unemployed and hungry for years... I use my CCs at fast foods almost daily. (Rewards points.)

---

If it is your pattern to eat with CC, then that wouldn't be a problem. If you suddenly start charging your fast food/alcohol on CC, then it could trigger an AA.

---

agreed - this is apparently the popular wisdom -and does include groceries and other necessities that you hadn't charged prior eg. student loan payments. 

whereas, if you charged these items all along w/o a problem it may not trigger AA.  some of these appear to be conditional triggers and others instant.