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w20031424
Posts: 360
Registered: ‎10-17-2012
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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. :smileywink:

 

I'll be careful not make my local CU bankrupt because of this.. :smileyhappy:

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enharu
Posts: 6,889
Registered: ‎02-27-2013
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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. :smileywink:

 

I'll be careful not make my local CU bankrupt because of this.. :smileyhappy:


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).

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LS2982
Posts: 15,434
Registered: ‎04-09-2011
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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. :smileywink:

 

I'll be careful not make my local CU bankrupt because of this.. :smileyhappy:


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 ^^^^^^^^^^^^^^^^^^^^^^^^^ :smileyhappy:




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Walt_K
Posts: 3,065
Registered: ‎11-02-2009
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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. :smileywink:

 

I'll be careful not make my local CU bankrupt because of this.. :smileyhappy:


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 ^^^^^^^^^^^^^^^^^^^^^^^^^ :smileyhappy:


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. 


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LS2982
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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. :smileywink:

 

I'll be careful not make my local CU bankrupt because of this.. :smileyhappy:


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 ^^^^^^^^^^^^^^^^^^^^^^^^^ :smileyhappy:


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.




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w20031424
Posts: 360
Registered: ‎10-17-2012
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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. :smileywink:

 

I'll be careful not make my local CU bankrupt because of this.. :smileyhappy:


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.

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parakleet
Posts: 1,135
Registered: ‎04-13-2013
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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. 


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w20031424
Posts: 360
Registered: ‎10-17-2012
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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.

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enharu
Posts: 6,889
Registered: ‎02-27-2013
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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.

 

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LS2982
Posts: 15,434
Registered: ‎04-09-2011
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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. 


:smileyvery-happy:




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