knowing credit line before approval?

[Pat94108]

I must be one of the few who agrees with Fico2Go lol.  In an ideal world, I would love it if the credit card companies would give you disclosure and say something like, "given your credit profile you have 90% of chance of being approved for this credit card with a limit of $7000" or something along these lines but let's face it not going to happen.

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@Fico2Go wrote:
Bottom line is I dont want to apply for a credit, get a HP, then get a CL I dont want.

Then have to keep this TL on my CR for ten years even if I decide I dont want it.

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Something I never understood. I wouldn't mind if the TL from accounts I closed and are paid off and were never late or in collection would be deleted from my report. 

[FinStar]

Sorry to hear you don't agree or like it.  In all reality, that's how the credit origination markets work.  Whether it's a business loan, personal credit card, mortgage, auto loan, etc.

[enharu]

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@Fico2Go wrote:
And yet 100 inquiries for a home loan in two weeks period is counted as one?

But 100 inquiries for cc in two weeks can drop your 800 score to 500?

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that's only true in theory.

If the lenders mislabel or simply just forget to label the inquiries, which they do quite often, especially for auto loans, then those inquiries are regarded as individual inquiries. People have been denied because of this. A phone call to reconsiderations and a simple explanation usually clear things up though.

There's another important aspect that you're forgetting.

A mortgage and auto loan are secured loans with the property itself being collateral. Banks therefore have less risk exposure compared to credit cards. If you don't pay up, they repo the collateral. They may make a loss, but at least it's not a total loss. In a way it's also nice to let you shop your for the best rate because even 0.1% can make a big difference over an entire mortgage duration.

A credit card on the other hand, is unsecured, and you can pretty much spend on anything you like, with the bank having zero collateral, unless it's a secured card. If you're actively seeking credit just so you can go on a spending spree with no regard over your ability to repay the debt, it puts the banks in an extremely risky position. 

[Fico2Go]

Enharu... It may be in theory but there is resolution after some clarification to the loan underwriter. 

In the case of a CC application there is no resolution since a HP is a HP.  There is nothing to clarify.  And no amount of explaination can remove the HP. 

Ok everyone.. I appreicate your input and constructive feedback.

It is what it is. 

[enharu]

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@Fico2Go wrote:

Enharu... It may be in theory but there is resolution after some clarification to the loan underwriter. 

In the case of a CC application there is no resolution since a HP is a HP.  There is nothing to clarify.  And no amount of explaination can remove the HP. 

Ok everyone.. I appreicate your input and constructive feedback.

It is what it is. 

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I understand the points you have brought forward so far, but there's a reason why those rules are in place.

It isn't a perfect system, but it's probably the best "practical" system that can / could be put in place without ridiculous overhead costs. Another thing to note is that the FICO formula is constantly changing, though what you suggested probably will not happen in the forseeeable future.

Like others have said, an inquiry is just an inquiry. It has minimal impact on your credit score. Most of the time inquiries don't even really matter, unless there's a ridiculous amount of recent inquiries on file, or that the individual also has derogs on file.

[pdog661]

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@Fico2Go wrote:
And yet 100 inquiries for a home loan in two weeks period is counted as one?

But 100 inquiries for cc in two weeks can drop your 800 score to 500?

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But the 100 inquires for the home are only for 1 new amount of debt. 

The 100 CC inquires are in an attempt to add 100 new credit risk.  Not to mention these are unsecured as well.  

A credit score is only a measure risk to the lender.  They are designed to protect the lender, and judge the consumer on whether or not they will repay the debt.  

[slap_happy]

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@myjourney wrote:

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@Platinum wrote:

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@myjourney wrote:

You can't due to the fact you'll never know the lenders algorithm and all that factors into it

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Someone here recently received $7100 CLI from Chase just by calling them back after receiving SM that they will do SP $7100. The amount of the increase was revealed in advance to him/ her and this is honestly the first time I hear something like that. Sometime the creditor will increase your CL for the amount of BT.

New accounts ??? No way to know in advance. Nice try.

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I saw that thread last night but and this is just IMHO 

I questioned the theory as its the first i've ever seen and may just have been an inexperiened CSR saying that

Because we all know Chase will HP for a $500 CLI's and some still end in denial 

 

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seems like you guys dont believe what happened and I dont blame you, I was quite shocked at the reply from chase... 

I sent an SM asking if there is anyway I can get a CLI without a HP, I explained that i been with chase for over 3 years with perfect credit history, my scores are right at 800, I also told them that my chase freedom is my lowest CL, I have access to all 3 of my CRA files, chase did ramdomly soft pull my expirian about 10 days ago, right after I got my BOA CLI which was a HP, boa reported it that same day (mid cycle report) so chase seen it with their SP. 

the next day I got the SM reply telling my that I have an offer up to $7100 (which made it my highest CL by $100) without a HP. I still didnt believe it and called in, the rep told me: yes, you do have a standing offer of a CLI without us having to do a HP up to $7100, if you want more then it will be a HP, I said lets go for the $7100.

all she did was ask my income, that is it. and instantly got the CLI, I checked all 3 CRA files today and nothing from chase. so yes, it can happen, im sure its rare but remember, I have been with them over 3 years, not 3 months. 

[Fico2Go]

you are assuming that 100 cc inquiries means 100 attempts for 100 credit cards. Why not see it as 100 attempts to get three best cc accts?

A better solution might be to base on actual acct opened. Credit card companies could EASILY UPDATE APPROVAL THE MINUTE IT HAPPENS. competing creditors could know right away whos getting what and when.

A more logical defense for the cc industry..at least for me. would be to say HPs prevent idiots from applying for credit cards none stop...eating up resources, time, etc. Since its free to apply a HP makes people think twice.

Thats all folks..

[FinStar]

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@slap_happy wrote:

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@myjourney wrote:

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@Platinum wrote:

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@myjourney wrote:

You can't due to the fact you'll never know the lenders algorithm and all that factors into it

---

Someone here recently received $7100 CLI from Chase just by calling them back after receiving SM that they will do SP $7100. The amount of the increase was revealed in advance to him/ her and this is honestly the first time I hear something like that. Sometime the creditor will increase your CL for the amount of BT.

New accounts ??? No way to know in advance. Nice try.

---

I saw that thread last night but and this is just IMHO 

I questioned the theory as its the first i've ever seen and may just have been an inexperiened CSR saying that

Because we all know Chase will HP for a $500 CLI's and some still end in denial 

 

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seems like you guys dont believe what happened and I dont blame you, I was quite shocked at the reply from chase... 

I sent an SM asking if there is anyway I can get a CLI without a HP, I explained that i been with chase for over 3 years with perfect credit history, my scores are right at 800, I also told them that my chase freedom is my lowest CL, I have access to all 3 of my CRA files, chase did ramdomly soft pull my expirian about 10 days ago, right after I got my BOA CLI which was a HP, boa reported it that same day (mid cycle report) so chase seen it with their SP. 

the next day I got the SM reply telling my that I have an offer up to $7100 (which made it my highest CL by $100) without a HP. I still didnt believe it and called in, the rep told me: yes, you do have a standing offer of a CLI without us having to do a HP up to $7100, if you want more then it will be a HP, I said lets go for the $7100.

all she did was ask my income, that is it. and instantly got the CLI, I checked all 3 CRA files today and nothing from chase. so yes, it can happen, im sure its rare but remember, I have been with them over 3 years, not 3 months. 

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It does happen, but very, very rarely.  I only had this happen a couple times on two of my Chase CCs and once on my BOA Privileges CC.  They were indeed SPs, but I never initiated a CLI request, it was indirectly as a result of a general inquiry about my accounts and the CSRs had simply noted the available offers on them.

[Fico2Go]

slap happy, i believe u. its not what u did but how. your how might have come across more convincing.