Credit Cards Center Credit cards from our partners
Reply
Frequent Contributor
Posts: 360
Registered: ‎10-17-2012
0

I found out that a lot of local banks are overlooked.

[ Edited ]

I just found some local banks or CUs issue some  "churnable" CCs. Like 5% for grocery store within six months.. I guess they don't know what the consequence of this will be . The good thing about local CU is .. you don't really care whether they blacklist you or not,  which is obviously not the case with Citi or Chase. Smiley Wink

 

I'll be careful not make my local CU bankrupt because of this.. Smiley Happy

Fide Amex 15K | Barclays Reward 3.5K | Citi Forward Student 5K | Discover IT 12.8K | US Cash Reward 6K | GE Paypal 5.5K | Wal Discover 6K | CapOne 3.5K | Kohl's 0.3K
Super Contributor
Posts: 7,132
Registered: ‎02-27-2013
0

Re: I found out that a lot of local banks are overlooked.


w20031424 wrote:

I just found some local banks or CUs issue some  "churnable" CCs. Like 5% for grocery store within six months.. I guess they don't know what the consequence of this is. The big advantage is .. you don't really care whether the local CU blacklist you or not, not the case with Citi or Chase. Smiley Wink

 

I'll be careful not make my local CU bankrupt because of this.. Smiley Happy


Whenever an account is closed by lender, it's never a good thing to see on your CR. Just imagine the scenario where the underwriter / analyst ever brings it up in a manual review.

Especially in scenarios where multiple accounts are closed by lender(s).

JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Mega Contributor
Posts: 15,453
Registered: ‎04-09-2011
0

Re: I found out that a lot of local banks are overlooked.


enharu wrote:

w20031424 wrote:

I just found some local banks or CUs issue some  "churnable" CCs. Like 5% for grocery store within six months.. I guess they don't know what the consequence of this is. The big advantage is .. you don't really care whether the local CU blacklist you or not, not the case with Citi or Chase. Smiley Wink

 

I'll be careful not make my local CU bankrupt because of this.. Smiley Happy


Whenever an account is closed by lender, it's never a good thing to see on your CR. Just imagine the scenario where the underwriter / analyst ever brings it up in a manual review.

Especially in scenarios where multiple accounts are closed by lender(s).


This ^^^^^^^^^^^^^^^^^^^^^^^^^ Smiley Happy




EQ FICO 548 3/3/16
Senior Contributor
Posts: 3,070
Registered: ‎11-02-2009
0

Re: I found out that a lot of local banks are overlooked.


LS2982 wrote:

enharu wrote:

w20031424 wrote:

I just found some local banks or CUs issue some  "churnable" CCs. Like 5% for grocery store within six months.. I guess they don't know what the consequence of this is. The big advantage is .. you don't really care whether the local CU blacklist you or not, not the case with Citi or Chase. Smiley Wink

 

I'll be careful not make my local CU bankrupt because of this.. Smiley Happy


Whenever an account is closed by lender, it's never a good thing to see on your CR. Just imagine the scenario where the underwriter / analyst ever brings it up in a manual review.

Especially in scenarios where multiple accounts are closed by lender(s).


This ^^^^^^^^^^^^^^^^^^^^^^^^^ Smiley Happy


Yes, but keep it in perspective.  In an otherwise clean report, it's unlikely to ever come up.  I have several accounts that were closed by lenders in 2008.  I've since gotten several additional credit cards including cards from the same lenders, a mortgage, and an auto loan, and no one has asked me why the accounts are noted closed by lender.  And my reports aren't clean.  Those accounts were closed because I fell behind during a period of unemployment.  The lates still sit on my reports.  Pretty much, if your overall credit profile is good, a "closed by lender" notation isn't going to mean anything. 


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


Take the FICO Fitness Challenge
Mega Contributor
Posts: 15,453
Registered: ‎04-09-2011
0

Re: I found out that a lot of local banks are overlooked.


Walt_K wrote:

LS2982 wrote:

enharu wrote:

w20031424 wrote:

I just found some local banks or CUs issue some  "churnable" CCs. Like 5% for grocery store within six months.. I guess they don't know what the consequence of this is. The big advantage is .. you don't really care whether the local CU blacklist you or not, not the case with Citi or Chase. Smiley Wink

 

I'll be careful not make my local CU bankrupt because of this.. Smiley Happy


Whenever an account is closed by lender, it's never a good thing to see on your CR. Just imagine the scenario where the underwriter / analyst ever brings it up in a manual review.

Especially in scenarios where multiple accounts are closed by lender(s).


This ^^^^^^^^^^^^^^^^^^^^^^^^^ Smiley Happy


Yes, but keep it in perspective.  In an otherwise clean report, it's unlikely to ever come up.  I have several accounts that were closed by lenders in 2008.  I've since gotten several additional credit cards including cards from the same lenders, a mortgage, and an auto loan, and no one has asked me why the accounts are noted closed by lender.  And my reports aren't clean.  Those accounts were closed because I fell behind during a period of unemployment.  The lates still sit on my reports.  Pretty much, if your overall credit profile is good, a "closed by lender" notation isn't going to mean anything. 


You are correct as well, good point.




EQ FICO 548 3/3/16
Frequent Contributor
Posts: 360
Registered: ‎10-17-2012
0

Re: I found out that a lot of local banks are overlooked.

[ Edited ]

enharu wrote:

w20031424 wrote:

I just found some local banks or CUs issue some  "churnable" CCs. Like 5% for grocery store within six months.. I guess they don't know what the consequence of this is. The big advantage is .. you don't really care whether the local CU blacklist you or not, not the case with Citi or Chase. Smiley Wink

 

I'll be careful not make my local CU bankrupt because of this.. Smiley Happy


Whenever an account is closed by lender, it's never a good thing to see on your CR. Just imagine the scenario where the underwriter / analyst ever brings it up in a manual review.

Especially in scenarios where multiple accounts are closed by lender(s).


Well.. If I have 10+ accounts with perfect payment history and there's one local CU CC closed by creditor and somehow future underwriter noticed that and asked me what happened to that..

 

I can come up with one hundred excuses to that.. like the local CU went bankrupt/ the local CU close customer's account if they move to other states/ They demand my pay stub suddenly and I refused because of privacy /  I lost my job for a certain period and the CU learnt about that and closed my CC account, etc.

 

I doubt the future underwriter will really care about that though.

Fide Amex 15K | Barclays Reward 3.5K | Citi Forward Student 5K | Discover IT 12.8K | US Cash Reward 6K | GE Paypal 5.5K | Wal Discover 6K | CapOne 3.5K | Kohl's 0.3K
Valued Contributor
Posts: 1,145
Registered: ‎04-13-2013
0

Re: I found out that a lot of local banks are overlooked.

 

Another one of these schemes. If you have to risk getting blacklisted by banks, you're doing it wrong. 


Gardening since 7/16/14
Current: EQ 711 7/13/14; EX 724 TU 721 6/19/14
Goal: 760+
Frequent Contributor
Posts: 360
Registered: ‎10-17-2012
0

Re: I found out that a lot of local banks are overlooked.


parakleet wrote:

 

Another one of these schemes. If you have to risk getting blacklisted by banks, you're doing it wrong. 


That's what I said.. local CUs and regional banks. I can always move my biz elsewhere if they do blacklist me. It's not like metabanks like Chase or Citi who offers a lot of sign-up bonus anyway.

Fide Amex 15K | Barclays Reward 3.5K | Citi Forward Student 5K | Discover IT 12.8K | US Cash Reward 6K | GE Paypal 5.5K | Wal Discover 6K | CapOne 3.5K | Kohl's 0.3K
Super Contributor
Posts: 7,132
Registered: ‎02-27-2013
0

Re: I found out that a lot of local banks are overlooked.

[ Edited ]

Walt_K wrote:

Yes, but keep it in perspective.  In an otherwise clean report, it's unlikely to ever come up.  I have several accounts that were closed by lenders in 2008.  I've since gotten several additional credit cards including cards from the same lenders, a mortgage, and an auto loan, and no one has asked me why the accounts are noted closed by lender.  And my reports aren't clean.  Those accounts were closed because I fell behind during a period of unemployment.  The lates still sit on my reports.  Pretty much, if your overall credit profile is good, a "closed by lender" notation isn't going to mean anything. 


I definitely agree with what you said. If everything else is spotless, they probably wouldn't care. For simple credit apps it will most likely be an automatic approval.

 

However, mortage apps are often more closely scrutinzed, depending on the lender itself. Your accounts were closed during a period where the economy was tanking and account closures / CLDs were widespread simply because the lenders didn't have as much money to lend out as they did before, plus it wasn't just you who were behind in payments. 

 

Also, whenever there's some blemishes (i.e. high inquiries, lates, etc), underwriters will look through everything much more closely and sometimes nitpick. Afterall it's their job on the line if the applications he/she approves have a higher problem ratio than normal. It's a YMMV situation and also depends on the how strict/easy going the UW is itself. But rather than to gamble on luck it's always safer to play safe and avoid unncessary risks for small gains.

 

JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Highlighted
Mega Contributor
Posts: 15,453
Registered: ‎04-09-2011
0

Re: I found out that a lot of local banks are overlooked.


parakleet wrote:

 

Another one of these schemes. If you have to risk getting blacklisted by banks, you're doing it wrong. 


Smiley Very Happy




EQ FICO 548 3/3/16

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.