@CreditGuy03 wrote:
So that being said what are some other creditors out there that get spooked very easy and will give you a CLD for the slightest of reasons?
It is not just a matter of the creditor. If you're only looking at the creditor you're only considering half of the equation. One's credit profile is just as important. Any creditor can take adverse action if one's credit profile exceeds the creditor's risk tolerance. In other words, person A may be at risk of AA from a number of creditors while person B may not even though person B uses the same creditors. Everyone's credit profile isn't idenitical so you need to consider that. There's no secret to what might lead to AA. Negative payment history and other derogs are red flags to creditors. High revolving utilization, sudden spikes in revolving utilization and debt can also be red flags to creditors. A lot of new accounts and credit seeking activity can be red flags to creditors though what constitues "too many new accounts" is going to also vary by credit profile. One person could see adverse action from adding X accounts while another with a stronger profile might not for the same number of new accounts.
Those with thicker profiles in good standing will tend to see less reaction from creditors for such changes while those with thinner profles and profiles with issues will tend to see more reaction from such changes.
I've run into CLD's and balance chasing but at the time I had a BK on my reports and high revolving utilization. Since my reports have been clean and I've kept revolving utilization low that has not been a problem. However, I have had creditors issue low limits for me due to recent activity. As that activity has aged those limits have increased. All that's only anecdotal but offered as an example of how your credit profile matters in all this.
Some creditors are more risk averse than others but it's not just a matter of the creditor alone. Don't rely solely on a creditor's risk aversion. Even creditors that are less risk averse can take adverse action on a profile that has serious issues. The opposite is true as well. A highly risk averse creditor isn't going to take adverse action if one has a strong enough credit profile.
@CreditGuy03 wrote:
No there are some banks that use just more than "RISK" to CLD you. Some do get spooked major easy and some times it isnt even warranted. Look at my BOA post above.
It is all about risk in the credit industry. It's not what you perceive to be too risky but what the creditor perceives to be too risky. It is never just about the one account held with the creditor but one's entire credit profile.
@Anonymous wrote:
Anyone can face this at anytime. Staying "under the radar" by making regular more than minimun payments,
The minimum doesn't really matter aside from being the least you need to pay to avoid a late payment. Other than that, it's really revolving utilization that really matters in this context. I generally wouldn't advise only making minimum payments but that's really more from a debt perspective than a matter of adverse action.
