@Leadberry wrote:
@NonSufficientFunds wrote:
Credit issuers have many years worth of well-researched, statistical data, which has proven to be very reliable in determining consumer behavior patterns.
The CARD Act places even more pressure on them to exercise appropriate "due-diligence" in their decisions to grant, extend, or decline applications for new credit.
A pattern of behavior which deviates too far from what is considered "normal" (i.e. applying for inordinate amounts of credit in a relatively short amount time) is a warning sign that something just isn't right with that particular consumer, and should probably not be considered for additional credit, until a long pattern of responsible account management has been established.
The creditors know exactly what they are doing, and the recent experience of forclosures and "strategic bankruptcies" has forced them to pay even more attention to new applicants who just might be trying too hard to game the system.
+1
People around here seem to think banks are out to get them, hate them, or are judging their credit. This is a highly mathematical process rooted in probability and statistics. A lot of money is invested in market research and risk mitigation. These organizations know what they're doing.
And it's most unfortunate that so many members here, who think they're "credit wise", have very childish notions about how the banking & finance system actually works - as if they should be somehow "rewarded" for good behavior, by a paternalistic benefactor.
Then they get their feelings hurt when their applications are declined - as if they were being punished or deprived of something deserved.
Hogwash!! - It's all about business and risk assessment. The numbers must work, or there is no deal. That's how grown-ups operate.
