closed my Chase Freedom

[red259]

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@Fico2Go wrote:
sometimes I wonder and think the entire credit account industry is a joke. How can one bank approve 500. And another at 22.5k?

no algorithm can be this off and be differefent
that much.

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A high limit from a credit union is not the same thing has a high limit from a credit card company. There are much different underwriting standards and formulas therefore the lenders consider applicants differently. Credit unions are much more likely to give high credit lines, but I think they look more throughly into applicants then credit card companies usually do. At least that is my understanding.   

[09Lexie]

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@red259 wrote:

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@Fico2Go wrote:
sometimes I wonder and think the entire credit account industry is a joke. How can one bank approve 500. And another at 22.5k?

no algorithm can be this off and be differefent
that much.

---

A high limit from a credit union is not the same thing has a high limit from a credit card company. There are much different underwriting standards and formulas therefore the lenders consider applicants differently. Credit unions are much more likely to give high credit lines, but I think they look more throughly into applicants then credit card companies usually do. At least that is my understanding.   

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If you take away the CU CL, the $500 CL is not that far off. 

[FinStar]

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@09Lexie wrote:

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@red259 wrote:

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@Fico2Go wrote:
sometimes I wonder and think the entire credit account industry is a joke. How can one bank approve 500. And another at 22.5k?

no algorithm can be this off and be differefent
that much.

---

A high limit from a credit union is not the same thing has a high limit from a credit card company. There are much different underwriting standards and formulas therefore the lenders consider applicants differently. Credit unions are much more likely to give high credit lines, but I think they look more throughly into applicants then credit card companies usually do. At least that is my understanding.   

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If you take away the CU CL, the $500 CL is not that far off. 

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+1

[Fico2Go]

Yes 40x more generous. If OP can build a base or garden at this level it is the way to go. No need for miniscule CL.

Congrats OP.

[jamesdwi]

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@drkaje wrote:

Why should someone keep a $500 limit Freedom (that is unlikely to grow well through regular use) when they have a NFCU membership and $27K in limits betwen two cards?

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The Freedom card offers 5% catagories and 10% back for some purchases via online, and has no AF, Rewards are far better and worse case it can sit in a sock drawer the card, 5 months of history is too soon to expect a CLI on  card that was a border line approval in the first place. $500 CL from prime lenders are a sign sure we will give you a card but we really don't trust you.

They should give you an option before you get a $500 card, A. Take a $500 card with a strong possibility of a long slow road to a decent CL in a couple years, or B. don't take the card, wait 6 months to a year and get no baddies and no more INQ's and have a chance for a decent limit that will grow when you apply again.

[takeshi74]

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@Fico2Go wrote:
How can one bank approve 500. And another at 22.5k?

no algorithm can be this off and be differefent
that much.

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Of course they can vary.  Underwriting criteria can and do vary by creditor.  Scoring algorithm may be the same but that's not the same thing as underwriting criteria.  Some creditors are much more conservative than others.  Different creditors are going to vary in regard to the limits that they're willing to extend.

There's also the matter of one's credit changing from one app to the next.  A new tradeline with a CL of $X can certainly change one's credit.  

[madmann26]

Everyone,

Thanks for the comments.

As for my Siggy with the 22k limit, it started off as a $500 secured card 12 months ago.

It wasn't that I was asking for the world when I asked Chase for an increase. I probably paid that card off once a week for 5 months.

Fine. I don't have the attitude that I thought I was entitled to an increase but since it was my lowest limit card, I was hoping they would at least TRY to keep me as a customer.

When the EO said they couldn't help, I asked to close the account and there wasn't even a rebuttal from them.

IMO, they lost a customer.

[MMB85]

Pretty weird you only had a $500 CL with them. I applied for Freedom in June and got approved for $5,000

[Fico2Go]

Well I was once a loan underwriter and loan officer.  I can tell you that we dealt with a dozen or so lenders and although underwriting criteria vary.. and should.....I know their criteria off the bat for the most part. 

A separation between 500 and 24K credit line is not a difference in criteria it would be something along the lines of different business model.. and maybe different product. 

[Startome]

Everyone keeps arguing to close cards you don't need that have no annual fee saying there is no harm in closing it, when it dings your AAoA with a 5 mo acct for the next 10 years. Why not just shred the card and never look back. Let them close it later and have a better AAoA.