No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
@Anonymous wrote:
@Anonymous wrote:
@UncleB wrote:
@Anonymous wrote:Yarp. That's right, totally makes sense from the point of view of dealer and property owner.
But my main curiosity was the banks. Let's say I buy an 8000 dollar painting with my SPG Amex using full limit, an alienware for $6000 with my Chase Slate using full limit so on and so forth. Would this type of spending in one month alert these separate banks and eventually stop me using my legal and legitimate limits. Is there such a thing like being blocked before one could use all her CL limits?
I just don't want to be turned down..
That's a different question... now you're asking will your lenders mind if you actually 'use' your credit line.
The answer is that in theory, you should be fine. Now in reality, whenever I make a purchase that is outside my usual pattern I call the issuer to let them know what's going on to prevent a decline at the merchant, but it's not really required. Capital One in particular advised me to simply use my card and call them if there's a problem (so far there never has been).
If you're wondering if your lenders would be concerned about you doing a 'bust out', that's a possibility, but they won't have the information about your increased balances with your other lenders until your reports cycle, which could take a few weeks. By that time you would likely have a problem, since maxing out all your cards simultaneously will definitely set off flags, as it should.
I'm actually curious why you're concerned about this... is this 'academic', or do you have a specific need?
I agree with UncleB...It could throw up flags of "bust out". One major sign is that the buster usually has a great credit file and always pays on time with very low or no UTI. Usually the buster has a relatively new file with many new accounts but behaves completely normal and then BAM they run up all theirs lines very quickly and never pay.
Sometimes before the bust out they will run up their credit lines and pay in full a few months before the bust.
Good point Donny. However, you have told two scenarios.One is with new file, good credit, pays on time, low utilization.
The other is, they run up their credit for a few months, pay full, and then run.
Aren't these, especially the second one, somewhat normal? I mean these actually happen, even without the bust out.
then the question is, how do banks tell between an actual spending change and a potential bust out?
do they have such a flagging system? What if they are wrong about the potential? How can a card user convince them they are wrong?
Watching too many heist movies lately :-)
LOL... it's not exactly "Mission Impossible".
I wouldn't call running up all credit cards simultaneously "somewhat normal" by any means.
Banks definintely have algorithms in place that try to stop bust-outs from happening. They might not use that term directly with customers but if they pick up that all (or many) of your accounts are suddenly maxed out (and assuming you haven't just won the lottery) they will likely take action. It will be up to you to convince them that you don't have anything nefarious going on, which might be difficult.
You can read this for more information: http://www.experian.com/assets/decision-analytics/white-papers/bust-out-fraud-white-paper.pdf
Also, while different from a bust-out this same behavior is also sometimes seen prior to bankruptcy filings, which is another reason a bank would likely take action.
Awesome data, just awesome. I am an academic, literally; and really interested in such papers, articles.
Thanks!!
Awesome data, just awesome. I am an academic, literally; and really interested in such papers, articles.
Wondering the average credit score of the bust out frauds, which was not in the report.
Thanks!!
@Anonymous wrote:Awesome data, just awesome. I am an academic, literally; and really interested in such papers, articles.
Wondering the average credit score of the bust out frauds, which was not in the report.
Thanks!!
I agree the report is interesting, but remember the motivation, to sell issuers Experian's BustOut score. It would be very interesting to find out how issuers do prediction today (I know the article suggests that they don't do it until too late, but that may just be marketing...)
@Anonymous wrote:
@Anonymous wrote:
@UncleB wrote:
@Anonymous wrote:Yarp. That's right, totally makes sense from the point of view of dealer and property owner.
But my main curiosity was the banks. Let's say I buy an 8000 dollar painting with my SPG Amex using full limit, an alienware for $6000 with my Chase Slate using full limit so on and so forth. Would this type of spending in one month alert these separate banks and eventually stop me using my legal and legitimate limits. Is there such a thing like being blocked before one could use all her CL limits?
I just don't want to be turned down..
That's a different question... now you're asking will your lenders mind if you actually 'use' your credit line.
The answer is that in theory, you should be fine. Now in reality, whenever I make a purchase that is outside my usual pattern I call the issuer to let them know what's going on to prevent a decline at the merchant, but it's not really required. Capital One in particular advised me to simply use my card and call them if there's a problem (so far there never has been).
If you're wondering if your lenders would be concerned about you doing a 'bust out', that's a possibility, but they won't have the information about your increased balances with your other lenders until your reports cycle, which could take a few weeks. By that time you would likely have a problem, since maxing out all your cards simultaneously will definitely set off flags, as it should.
I'm actually curious why you're concerned about this... is this 'academic', or do you have a specific need?
I agree with UncleB...It could throw up flags of "bust out". One major sign is that the buster usually has a great credit file and always pays on time with very low or no UTI. Usually the buster has a relatively new file with many new accounts but behaves completely normal and then BAM they run up all theirs lines very quickly and never pay.
Sometimes before the bust out they will run up their credit lines and pay in full a few months before the bust.
Good point Donny. However, you have told two scenarios.One is with new file, good credit, pays on time, low utilization.
The other is, they run up their credit for a few months, pay full, and then run.
Aren't these, especially the second one, somewhat normal? I mean these actually happen, even without the bust out.
then the question is, how do banks tell between an actual spending change and a potential bust out?
do they have such a flagging system? What if they are wrong about the potential? How can a card user convince them they are wrong?
Watching too many heist movies lately :-)
Lol!!!!