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Frequent Contributor
WBLAKE
Posts: 256
Registered: ‎06-04-2007
0

Approval Process Question

Hi All,
 
My guess is that this question will need to be answered by an insider.  What is the typical (if there is one) process for being approved or denied for a credit card.
 
For example When I first began my journey ti better credit, I was often instantly denied for cards now I find that I am getting more further processing messages. 
 
Do the CC companies have a FICO floor.  Meaning that they wont instantly approve anyone below a particular number.  Or if you are in a particular range, you will trigger a manual review.
 
Do certain baddies trigger an immediate denial regardless of your score?
 
Please share any in site that you may have.
 
WBLAKE
TU 670
EQ 670
EX 617
JFCU $5,000
JFCU AUto Loan $11,000
Jet Blue Amex $2,000
BOA 3,500
Best Buy Store Card $2,200
Kay Jewlers $3,200
Frequent Contributor
andyaycw
Posts: 298
Registered: ‎07-25-2007
0

Re: Approval Process Question

[ Edited ]
Different companies have different policies on approving new credit applications. Some, like Amex, have their own internal scoring model which I have no idea how it works. Others simply use information on your credit report such as: your credit score, payment status on your current accounts, any potentially derogatory information (such as late payments, charge offs, bankruptcy, etc.) number of recently opened accounts, new credit inquiries, % of credit utilization, etc. Some, like Penfed, also take into account your balance history. Some have been denied for "pyramiding debt" because their account balances gradually increased in the months prior to their application for credit.

Depending on the company, they may simply use your FICO score. Others will take the information that's on your credit report and use their own formula to determine if you're an acceptable risk.

Edit: In regards to instant denials, I believe some do have triggers. Amex, for example, is not very BK friendly at all. Other issuers may auto-deny for any recent derogatory information, and will ask you to wait a year or two before applying again.

Message Edited by andyaycw on 01-03-2008 03:13 PM

Message Edited by andyaycw on 01-03-2008 03:14 PM

Starting Score: EQ 773, TU 766
Current Score: EX 794, EQ 787, TU 776
Goal Score: 800


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Valued Contributor
netpanther
Posts: 1,694
Registered: ‎08-07-2007
0

Re: Approval Process Question



andyaycw wrote:
Different companies have different policies on approving new credit applications. Some, like Amex, have their own internal scoring model which I have no idea how it works. Others simply use information on your credit report such as: your credit score, payment status on your current accounts, any potentially derogatory information (such as late payments, charge offs, bankruptcy, etc.) number of recently opened accounts, new credit inquiries, % of credit utilization, etc. Some, like Penfed, also take into account your balance history. Some have been denied for "pyramiding debt" because their account balances gradually increased in the months prior to their application for credit.

Depending on the company, they may simply use your FICO score. Others will take the information that's on your credit report and use their own formula to determine if you're an acceptable risk.

Edit: In regards to instant denials, I believe some do have triggers. Amex, for example, is not very BK friendly at all. Other issuers may auto-deny for any recent derogatory information, and will ask you to wait a year or two before applying again.

Message Edited by andyaycw on 01-03-2008 03:13 PM

Message Edited by andyaycw on 01-03-2008 03:14 PM

Citi instantly denies for open or closed charge offs less than three years.
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Epic Contributor
haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
0

Re: Approval Process Question

Forget Chase with a recent late. Also, if you go to their site and pretend to apply for any of their cards (including store cards), you'll see a box asking if you have recent lates or a BK, I think it is.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Established Contributor
EddieX
Posts: 523
Registered: ‎09-09-2007
0

Re: Approval Process Question

[ Edited ]
Chase has checkboxes for their "elite" checklist.

Yes, my credit history is clear of bankruptcy.
Yes, my credit history is clear of seriously delinquent accounts.
Yes, I have NOT been denied credit by Chase within the last 6 months.

Chase denies me every 6 months so I won't be applying with them anytime soon :smileytongue:

Message Edited by EddieX on 01-03-2008 06:34 PM
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Credit repair - the Ski Mask Way.
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Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
0

Re: Approval Process Question

Hi, Eddie, I hadn't heard that about the "elite" cards. I've even seen that on the app for the Borders store card. Of course, I'm still roadkill with them until next April at the earliest. Maybe then I'll be elite roadkill!
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Established Contributor
EddieX
Posts: 523
Registered: ‎09-09-2007
0

Re: Approval Process Question

It's on the top of the page for EVERY Chase card now. I'll never get in with them I guess. Wish they didn't own half the known world.
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Credit repair - the Ski Mask Way.
Moderator Emeritus
cheddar
Posts: 6,794
Registered: ‎09-29-2007
0

Re: Approval Process Question



EddieX wrote:
It's on the top of the page for EVERY Chase card now. I'll never get in with them I guess. Wish they didn't own half the known world.

It may be more of a deterrent than anything.  I've seen some posts on other boards where people applied for Chase cards and didn't check the box next to one or more of those questions, yet they still got approved.
 
----------------------------
App free since 7/11/08.
TU 744 / EX 710 / EQ 694 (Starting to slip. :smileysurprised: )
Super Contributor
marty56
Posts: 5,672
Registered: ‎10-06-2007
0

Re: Approval Process Question

This summer I will apply for a Chase Kiss card.  I want to wait a bit till my 2nd TU inq drops off and I want to pay off my Bill Me Latter account.
 
I can wait.
09/12/2013 FICO: EQ: 772 EX:813 TU:752
Valued Contributor
netpanther
Posts: 1,694
Registered: ‎08-07-2007
0

Re: Approval Process Question



marty56 wrote:
This summer I will apply for a Chase Kiss card.  I want to wait a bit till my 2nd TU inq drops off and I want to pay off my Bill Me Latter account.
 
I can wait.


Scores are looking good Marty!! Wow!

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