Reply
Regular Contributor
boireann
Posts: 183
Registered: ‎03-10-2008

What is pyramiding?

I keep reading about folks who are denied because of this, but I have no idea what the banks/CUs mean by this. 
03/08 scores: TU: 660 EQ: 646 EX: 624
09/09 scores: TU: 735 EQ: 778 EX: ???
02/10 scores: TU: 779 EQ: 801 EX: 798 (loan officer pull)
All that hard work paid off!!!! I'm now a happy home owner with an awesome interest rate!
Senior Contributor
smallfry
Posts: 4,831
Registered: ‎04-20-2007

Re: What is pyramiding?

Depends. Could mean you have too much available credit or you are trying to increase credit limits in order to move your debt around without actually paying it off. Like a balance transfer.
Frequent Contributor
DickC
Posts: 260
Registered: ‎05-21-2009

Re: What is pyramiding?


smallfry wrote:
Depends. Could mean you have too much available credit or you are trying to increase credit limits in order to move your debt around without actually paying it off. Like a balance transfer.

 


smallfry wrote:
Depends. Could mean you have too much available credit or you are trying to increase credit limits in order to move your debt around without actually paying it off. Like a balance transfer.

It is a common term Casino's use. The casinos also refer to the customers as "rounders" . The phrase does refer to a customer seeking credit.

 

 I am retired from the gaming industry and I find it ironic that my local bank branch manager (US BANK) tells me they are hiring consultants from the "credit departments" of the gaming industry to help them in their CC business, as over the years the gaming industry has had significantly lower losses on extended credit.

 

In this credit climate I think we will see more of this, as frankly lenders are looking for ways to accomodate customers BUT also want to do it with the least amount of risk.

 

When I told him (the branch manager) how the casinos operated (in regards to credit) he could not believe it, because of the simplicity.

 

Of course he did not know how others in the banking business would view the system used by casinos but told me US BANK was looking for the best methods to provide maximum credit with minimum risks.

 

Something tells me, more banks will start this because frankly, when one bank sees another having success, they do try to copy it.

Senior Contributor
txjohn
Posts: 4,214
Registered: ‎09-12-2008

Re: What is pyramiding?

As a general definition, it refers to the rapid acquisition of a significant amount of new available credit or new debt.  Pyramiding would refer to the possibility that old debt is being rolled or moved onto/into new debt or that new debt is being added to old debt (stacked).

 

Therefore CCC's usually mean too much new credit which has yet to show how it will be used and managed.

 

 

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
Frequently Requested Threads * FICO High Achievers  *  FICO Score Estimator


09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+