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Automatic Approval

Frequent Contributor

Automatic Approval

I just read somebody else's post about AU accounts and that the FICO scoring still does not tell the difference between AU and Individual accounts as far as scoring... So the question is: are there any banks out there that only use automatic approval forhigh scores? For instance HSBC Best Buy does. I was also told by US BANK account specialist that 40% of thier apps are automatic - 20% approvals (highest scores), 20% automatic denial without an underwriter review. Do you know of any other banks that mostly use an automatic approval system?
Message 1 of 16
15 REPLIES
Epic Contributor

Re: Automatic Approval

Alliant

Macys - Apply in Store

Bank of America

goodness most banks have automatic approvals, just depends what is set up in there perimeters rather you get through on the automated system. 

Message 2 of 16
Frequent Contributor

Re: Automatic Approval

So if someone applies for instance in Alliant with high EQ fico created by being added as an authorised user to someone else's accounts he could be approved for their card and auto loan without an actual underwriter review?
Message 3 of 16
Epic Contributor

Re: Automatic Approval

no way to really say. lots of people got instants though.

I missed security question so got reviewed. 

Message 4 of 16
Frequent Contributor

Re: Automatic Approval

By the way is there any reason why I don't get pre-approved on BOA website? I have good history and scores 
Message 5 of 16
Valued Contributor

Re: Automatic Approval

I doubt whether Alliant uses classic FICO at all. I doubt whether Alliant approves without u/w review.

 

But this might work with BOA, Citi, AMEX, USBank.

IN VINO VERITAS.
Message 6 of 16
Frequent Contributor

Re: Automatic Approval

I wonder if the automatic system somehow distinguishes AU accounts so they are sent for an additional review...
Message 7 of 16
Frequent Contributor

Re: Automatic Approval

Sometimes a few accounts in good standing can make up a score which is 720+ even with a credit history which is less then 1 year. Does that mean one can try applying with these big prime CC's hoping to get an automatic approval because of the high scores?
Message 8 of 16
Senior Contributor

Re: Automatic Approval


Lexa wrote:
Sometimes a few accounts in good standing can make up a score which is 720+ even with a credit history which is less then 1 year. Does that mean one can try applying with these big prime CC's hoping to get an automatic approval because of the high scores?


 

it's not impossible to imagine this could happen but an issuer may include length of history in the auto approve parameters to try to prevent it.

DCU EQ 5.0, Citi EQ 08 Bankcard, PenFed EX NG2
EX 08: AFCU, Amex, Chase, PSECU EX 98(?)
TU 08: Barclays, Discover
Message 9 of 16
Established Contributor

Re: Automatic Approval


wmarat wrote:

I doubt whether Alliant uses classic FICO at all. I doubt whether Alliant approves without u/w review.


I'm not sure whether your comment wants to point to the fact that Alliant's automatic process just results in a credit card pre-approval, but I have never heard a single case that this pre-approval was not honored afterwards. That's why I think that it's fair to consider Alliant's process automatic, if it goes through. For me, it was automatic.

 

But I also think you are right that Alliant doesn't use a normal FICO score for their approval. They seem to have their own risk model, like many lenders.

Message Edited by Ulan on 06-07-2009 10:57 PM
Message 10 of 16