Pardon my ignorance, but AA on accounts.....

[olehammer]

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@Anonymous wrote:

AA is rare. Don't take advantage of loopholes in the holder agreement, pay on time (or early) and try to pay at least 2x the minimum. Don't run uti on one card too high and don't apply for a lot of new credit in a short period of time. If a card is new, don't run big purchases or BTs through it for at least a couple of months.

And I agree, these boards aren't really representative of the public. A lot of people here apply for 5-10 cards in a month, open a new card and try to BT a large balance to it as soon as it arrives in the mail, get CLs up to 3x their income or more, freeze reports and then app for credit to avoid inquiries, etc. These are good ways to get AA. Just think like a lender and make yourself look like a low risk borrower and you should be fine.

Also don't use cash advances on cards where the CA rate is higher than the purchase rate. Just don't do it. Some lenders don't mind and will signal such by making the CA APR equal to the purchase APR, but that's the exception, not the rule.

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+1. Great summary!  App spree or too much exposure with a single creditor would be what I would avoid.  And keeping max balance under ~70%

[yfan]

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@irunfromcredit wrote:

I have been learning quite  bit from reading others' experiences on this board, so thank you!  

I have been reading a few posts about how some are getting AA on their credit cards.  I realize that when an AA occurs, it is very subjective based on the individual's current credit profile/activity.  But was wondering if there are some tips out there to prevent it from happening.  Does AA happen often (again, my ignorance)?  Again, i have learned alot from reading on this board and from what I'm currently reading I'm wondering what are some things I can do to prevent this from happening to me.

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There's no formula as to what causes AA from a particular lender, but it's safe to say that AA is most often the result of credit behavior they consider abnormal. If a lender suspects you are MSing, there's a high risk of AA. If you are scoring a bonus and then closing a card right before an AF hits, that's a red flag with lenders. If they see you doing what they consider excessive credit seeking - either from themselves or from other financial institutions - they may decide you have become a higher risk customer and decide to limit their exposure with you or shut down your accounts. If you lie about your income and they find out (such as during a financial review from Amex), you could be in trouble.

But the fact is, AA in the general population is uncommon. If you choose your cards wisely, use them responsibly and don't try to "game the system", keep your spending under control and your debt low, you are more than likely safe.