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Frequent Contributor
JediNeo
Posts: 299
Registered: ‎11-22-2013
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Re: knowing credit line before approval?

It does suck we cannot know before hand. From what I've read even prior that do the shopping cart trick do not know what the CL is when sp approved.
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ArmyVietVet
Posts: 5,786
Registered: ‎10-03-2008
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Re: knowing credit line before approval?

Great idea - prior knowledge. Don't want HP for denial or small line increases. Yeah...


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Super Contributor
longtimelurker
Posts: 8,014
Registered: ‎04-22-2013
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Re: knowing credit line before approval?


Fico2Go wrote:
A follow up to my recent posting on why you use credit cards.

How can we find out our CL in approved ...before risking our highly precious HP?

As others have said, usually you can't, but HPs really aren't that precious.  If you don't apply for lots of cards and/or CLIs, they hardly matter, and age off anyway.

 

What you would probably like is something similar to what is meant to happen to mortgage inqs, shopping around for the best credit card rates/terms, and have all inqs count as one.    That would be nice, but the difference is that the expectation is that you only take one mortgage/loan from those offered, whereas clearly people might want to take several of the cards.

Valued Contributor
Themanwhocan
Posts: 1,809
Registered: ‎04-04-2013
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Re: knowing credit line before approval?


Fico2Go wrote:
Thats sad. And unfair.

Consumers should know what we are buying before spending our HPs.

The creditors have a major advantage in suppressing everyones scores this way.

There is no need to have an indicator that counts how many times a person successfully obtains more credit. That information is already on the credit report (new credit lines, or increased credit limits appear there already). What the credit companies do need to know, is how many times a person is requesting credit. That is additional data beyond just knowing what was granted.

 

Making a lot of requests for additional credit in a short time frame can be an indicator of risky behaviour. Just one of many possible indicators, of course.

 

It is neither fair nor unfair. It is merely data that is important for the credit companies to know, so that they can use it in their calculations.


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FinStar
Posts: 6,831
Registered: ‎10-21-2012
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Re: knowing credit line before approval?

[ Edited ]

Fico2Go wrote:
Thats sad. And unfair.

Consumers should know what we are buying before spending our HPs.

The creditors have a major advantage in suppressing everyones scores this way.

IMHO, it's not unfair.  Lenders have to assess risk - all determined from a regulatory aspect and shareholder perspective.  If you have demonstrated good credit habits, have the appropriate income to support getting such loan (i.e. loan on plastic) then the lender will approve you for the highest CL possible based on their underwriting criteria.  It may seem unfair IF you set your expectations too high given that your profile isn't in the good or excellent ballpark.  However, from folks' anecdotal experiences, individual's have the option to appeal a decision with the lender to determine if there's some flexibility...some will be successful, others will not.

 

Not sure what you mean with your comment of  "creditors having a major advantage in suppressing everyone's scores" ... do you have proof of this?  A credit score alone is NOT the only factor that a lender considers into a credit decision.  There's much to learn Fico2Go.

Established Contributor
Fico2Go
Posts: 852
Registered: ‎12-05-2013
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Re: knowing credit line before approval?

LTlurker.... I would take a 30 year fixed rate on a credit card and stick with 1 credit card company if they would  agree not to  call the credit card limit or cancel the account at will. 

 

In fact a 30 year fixed credit card rate with one lender would  be ideal.   

 

You might see it differently. 

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Established Contributor
Fico2Go
Posts: 852
Registered: ‎12-05-2013
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Re: knowing credit line before approval?

Themanwhocan.. i would support more of a limit of credit cards per customer anyday. 

 

I would also support 1 credit for a fixed term of the credit card too like we have now for home mortgages.  Then let the customer refinance/BT to the lender o fthier choosing.

 

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myjourney
Posts: 26,659
Registered: ‎02-07-2013
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Re: knowing credit line before approval?


Fico2Go wrote:

LTlurker.... I would take a 30 year fixed rate on a credit card and stick with 1 credit card company if they would  agree not to  call the credit card limit or cancel the account at will. 

 

In fact a 30 year fixed credit card rate with one lender would  be ideal.   

 

You might see it differently. 


It would never happen Prime rates change daily CCC wouldn't make any money say 3 years from now when the Prime rate could double and just how long would you stay with said company when the rewards structure changed and you aren't offered the new package? 

 

You would do just what we do now Lol App another card and discontiue using the old one

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Established Contributor
Fico2Go
Posts: 852
Registered: ‎12-05-2013
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Re: knowing credit line before approval?

Finstar.. I am afraid I dont have access to proof  that could convince u either way.  that was not my intent.  I was merely suggestign there needs to  be a better way of disclosure the loan amount/CL and/or rate to consumers before the application process.  I understand in the current situation and regulatory environment this may not be possible or desired by the industry.. and yet.. can you name another industry whereby the consumer must invest his credit for a chance of getting something?  

 

Each HP is a loss to his credit score and loss to his overall credit evalutation.  And yet at that point there is no clear product as to what the consumer is really buying or applying for.   I mean really..a HP is just an "opportunity" to get  something.  Meanwhile a single HP can make a consumer miss out on an FHA loan where a single point below 640 would mean no FHA loan.  A single HP can increase a consumer's auto insurance bill. 

 

A single HP can mean the consumer must put down money for a mobile phone account. 

 

A single HP can cost so much more than a chance to get a credit card. 

 

Let's not limit losses arising from a single HP to just credit cards. 

 

Perhaps a better way to explain here is that a HP isn't as critical or as crucial to a consumer as the cost of a HP in score.  Sure inquiries can drop off in two year and the affect of a HP can fade in a years time.. but during this time there's a loss of opportunity to the consumer.

 

Just a thought. 

 

 

 

 

 

 

 

 

 

 

 

 

Discover IT $12,500 == 12/2013
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Established Contributor
Fico2Go
Posts: 852
Registered: ‎12-05-2013
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Re: knowing credit line before approval?

myjourney.. sounds like a great opportunity for credit card companies to be in the refinancing business on plastic. 

 

Oooops sorry.  They have  that it's called balance transfer. 

 

Discover IT $12,500 == 12/2013
AMEX PRG NPSL == 12/2013 ---> BCP $11,000 === 12/2013 ----->BC $8000 ====04/2014
CHASE SLATE $5,700 === 12/2013
BoA 123 $6000 === 12/2013
Barclay Rewards $1500 == 12/2013

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