CSP- Anyone denied for "lack of open revolving accounts"?

[abundancejones]

I have 5 positive closed tradelines that go back about 9 years. I'm being added as an AU on a citi card this week. I'm wondering if I can possibly get approved once my FICO scores hit from the open AU card. I keep reading that Chase likes 2 open revolving tradelines, but wondering of other's experiences. 

[mnavas]

As far as i know Chase ignores the AUs in their internal scoring model so your FiCO might improve but your approval odds with Chase might not.... They also like to see at least one 5K tradeline before granting you a CSP...

[reverted]

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@mnavas wrote:
As far as i know Chase ignores the AUs in their internal scoring model so your FiCO might improve but your approval odds with Chase might not.... They also like to see at least one 5K tradeline before granting you a CSP...

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+1

They said they wanted to see revolving credit under my own name when I app'd for the Freedom last year. And since the CSP is a minimum $5k Visa Sig, they want to also see experience with at least one $5k CL

[sds14]

It's not a killer if you don't have a 5k limit on a card as I didn't when I got mine a few weeks ago. My highest limit at the time was 2.5k on a Citi card but I had had my Freedom card for a year when I applied for the CSP. This probably helped as I ran most of my spending through the Freedom that entire year. My scores were around 690 when I applied and had to small medical collections that are now gone from disputing them. I was approved with recon for 5k but I did have to call in to confirm identity (name, SSN, address, etc.)

[red259]

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@mnavas wrote:
As far as i know Chase ignores the AUs in their internal scoring model so your FiCO might improve but your approval odds with Chase might not.... They also like to see at least one 5K tradeline before granting you a CSP...

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Chase does not need to see a 5k credit line with another card first. This is often cited as some sort of golden rule and it is a bit misleading. To get the CSP card you need to be able to qualify for 5k credit line. If the only cards lenders are willing to give you are $500 limits then the CSP is likely a no go, but Chase does not need to see other cards with a 5k limit.

However, Chase does like to see active revolving credit lines (and if you have active accounts and qualify for a 5k limit you will probably already have a card over 5k hence why people make the statement about chase wanting to see a card with a 5k limit). People who bank with Chase and have a decent amount on deposit may be able to circumvent Chase's concerns about lack of open credit lines. .

I had two cards on my report that had been closed out years ago. One of them was a chase card that had been paid off completely. I was denied the CSP as a result (for lack of open revolving accounts), but I was able to obtain a freedom card with a 3k credit line. 6-7 months later I was able to obtain a CSP with a 17k credit line instant approval. I believe I was able to get my foot back in the door with chase, due to having a prior relationship with them years ago, but that prior relationship alone was not enough for them to give me large credit lines or a CSP. Although, that prior relationship combined with 6 to 7 months of data on a new revolving account with them was enough to solidfy my position in their eyes. Therefore, the conclusion I draw from this is that Chase does not really put as much weight on closed revolver accounts (a closed chase account is of slight benefit, but other lenders not so much). I believe chase weighs active accounts more, because it reflects a person's current financial situation more accurately than what they did years ago.