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Every once in a while, I get an offer for a Georgia Tech Alumni credit card. I just received another one, and I am thinking of applying, but not sure if I will get approved and I'm not real crazy about burning an INQ if I don't get approved. Does anyone know if there is any "favoritism" involved in regards to getting approved when University Alumni groups make agreements with CCCs for these types of cards? Since so much of credit decisions are based on statistics and predicting whether someone is likely to pay, you would think that CCC would feel comfortable lending to someone who graduated from a good quality University. I have a feeling that the almight credit report and FICO score are still the only factor that comes into play, but maybe (just mabye), there is a little bias there for borderline cases.
I'm curious about this, too. A UCF Alumni Associtation card is on my wish list. It's offered through BoA. Is the Georgia Tech Alumni card that you're looking at through them, as well?
Those cards have the same criteria for approval as any other BOA cards. I had an alumni card and it wasn't no different than my current BOA card. The quality of a University or where someone graduated from has no affect on approval decisions. Those are not the questions asked on the application...unless ones is applying for a student card.
@DI wrote:Those cards have the same criteria for approval as any other BOA cards. I had an alumni card and it wasn't no different than my current BOA card. The quality of a University or where someone graduated from has no affect on approval decisions. Those are not the questions asked on the application...unless ones is applying for a student card.
Thanks. I kinda had a hunch that this would be the case.
@DI wrote:Those cards have the same criteria for approval as any other BOA cards. I had an alumni card and it wasn't no different than my current BOA card. The quality of a University or where someone graduated from has no affect on approval decisions. Those are not the questions asked on the application...unless ones is applying for a student card.
The reason I asked is because of the big "controversy" a while ago where CCC's were giving people CLDs according to which stores they shopped at. Specifically, they were saying that people who shopped at certain stores were more risky and they would use that as a basis for closing accounts or giving CLD's (those questions are not asked on the application, either). Obviously, CCCs are using certain demographic info in their risk assessments--maybe not for new applicants, but they are doing it for existing customers. If they can say that someone who typically uses their credit cart at Wal Mart is more risky than someone who uses it at a Prada store, why can't they say that any applicant who applies for this card has to be a college graduate, and they are typically less risky than a high school dropout?
@valley_man0505 wrote:
@DI wrote:Those cards have the same criteria for approval as any other BOA cards. I had an alumni card and it wasn't no different than my current BOA card. The quality of a University or where someone graduated from has no affect on approval decisions. Those are not the questions asked on the application...unless ones is applying for a student card.
The reason I asked is because of the big "controversy" a while ago where CCC's were giving people CLDs according to which stores they shopped at. Specifically, they were saying that people who shopped at certain stores were more risky and they would use that as a basis for closing accounts or giving CLD's (those questions are not asked on the application, either). Obviously, CCCs are using certain demographic info in their risk assessments--maybe not for new applicants, but they are doing it for existing customers. If they can say that someone who typically uses their credit cart at Wal Mart is more risky than someone who uses it at a Prada store, why can't they say that any applicant who applies for this card has to be a college graduate, and they are typically less risky than a high school dropout?
There's no truth to that. And what do you mean by typically being less risky just because one graduated from college? That has nothing do with credit approvals. What's in a person credit files determines whether one is less or more risky to extend credit to.
@valley_man0505 wrote:
..[...]. If they can say that someone who typically uses their credit cart at Wal Mart is more risky than someone who uses it at a Prada store, why can't they say that any applicant who applies for this card has to be a college graduate, and they are typically less risky than a high school dropout?
It's a completely reasonable assumption and wouldn't surprise me in the least. AMEX was pilloried for sending customers CLD or closure notices because:
Reference: http://www.msnbc.msn.com/id/27055285/
IMO, just because a business is taken to task for a less-than-savory business practice, does not mean that they will cease that practice. They will repackage it, polish that, and call it something else. Amex wouldn't be the only CCC to keep such files and incorporate "desirable" spending habits into their evaluation. Everything is evaluated, by every company. Affiliation with higher education certainly can't hurt. Don't know if it would help, but chances are, it has some effect.
I applied for a BofA affiliate card (professional association, rather than alumni, but IMO the same thing), and I was pretty flabbergasted to be approved for $10K. This is back when I had just barely made it into the 700 club, and had fairly recent lates, including a 60-day. Granted, it was before the credit meltdown, but the reason I app'd for this particular card was because I thought approval might be more likely. (A big part of that belief was because I doubted that I'd ever be approved for anyone for anything, lol. I was --and am --a very chicken app'er.) When I did a BT for $8K plus the BT fee and asked for a CLI, so that I wouldn't be over 50% util, they gave me $18K without blinking. Again, this was back in balmier times.
I don't think there's any way of knowing one way or another unless someone who knows for sure, aka a BofA employee who works in this area, comes in and sheds some light.
As for whether a college degree makes one less risky for credit default, I have my doubts. There are an awful lot of people with degrees who have put their house keys in the mail to the bank and walked away from their mortgage, just as one example.
LOL at the edit. Jeez.
@ficofox wrote:
@valley_man0505 wrote:
..[...]. If they can say that someone who typically uses their credit cart at Wal Mart is more risky than someone who uses it at a Prada store, why can't they say that any applicant who applies for this card has to be a college graduate, and they are typically less risky than a high school dropout?
It's a completely reasonable assumption and wouldn't surprise me in the least. AMEX was pilloried for sending customers CLD or closure notices because:
- “Our credit experience with customers who have made purchases at establishments where you have recently used your card.”(MSNBC)
- “Our analysis of the credit risk associated with customers who have residential loans from the creditor(s) indicated in your credit report.” (MSNBC)
Reference: http://www.msnbc.msn.com/id/27055285/
IMO, just because a business is taken to task for a less-than-savory business practice, does not mean that they will cease that practice. They will repackage it, polish that, and call it something else. Amex wouldn't be the only CCC to keep such files and incorporate "desirable" spending habits into their evaluation. Everything is evaluated, by every company. Affiliation with higher education certainly can't hurt. Don't know if it would help, but chances are, it has some effect.
I read this and the article and was furious, then I read it again, less furious, read yet again.
I feel, I rather have my bank tell me this for a AA than talking non human comprehensible **bleep**. After all, internally every company does similar things to evaluate risk.