topic Re: SoFi Credit Card Has No CLI's in Credit Card Applications

SoFi Credit Card Has No CLI's

SouthJamaica — Thu, 21 Jul 2022 11:19:03 GMT

SoFi Credit Card has a policy of issuing no credit limit increases. Period.

That reminded me of Capital One's "bucketed" accounts, which rarely give credit limit increases due to the fact that they are securitized, so I looked into whether that was the reason for SoFi's flat no-CLI policy.

And sure enough, that appears to be the exact reason: SoFi relies primarily on securitization to finance its lending:

https://www.sofi.com/blog/how-sofi-makes-money/

This gives me pause about continuing to hold a SoFi credit card.

Re: SoFi Credit Card Has No CLI's

Suzette2 — Thu, 21 Jul 2022 12:43:01 GMT

@SouthJamaica wrote:
SoFi Credit Card has a policy of issuing no credit limit increases. Period.

That reminded me of Capital One's "bucketed" accounts, which rarely give credit limit increases due to the fact that they are securitized, so I looked into whether that was the reason for SoFi's flat no-CLI policy.

And sure enough, that appears to be the exact reason: SoFi relies primarily on securitization to finance its lending:
https://www.sofi.com/blog/how-sofi-makes-money/

This gives me pause about continuing to hold a SoFi credit card.

I'm now crossing it off any I will ever apply for....

Re: SoFi Credit Card Has No CLI's

SouthJamaica — Thu, 21 Jul 2022 13:24:44 GMT

@Suzette2 wrote:
@SouthJamaica wrote:
SoFi Credit Card has a policy of issuing no credit limit increases. Period.

That reminded me of Capital One's "bucketed" accounts, which rarely give credit limit increases due to the fact that they are securitized, so I looked into whether that was the reason for SoFi's flat no-CLI policy.

And sure enough, that appears to be the exact reason: SoFi relies primarily on securitization to finance its lending:
https://www.sofi.com/blog/how-sofi-makes-money/

This gives me pause about continuing to hold a SoFi credit card.
I'm now crossing it off any I will ever apply for....

I'm going to stop using it, and will either sock drawer or close it. Closing it would increase my average credit limit, but decrease my total available limits.

Re: SoFi Credit Card Has No CLI's

cashorcharge — Thu, 21 Jul 2022 16:52:06 GMT

Thanks @SouthJamaica for sharing this. This quandry has been on my mind for some time now and I appreciate it.

Re: SoFi Credit Card Has No CLI's

MJ-san — Fri, 22 Jul 2022 11:49:51 GMT

Nearly everyone securitizes their cards.

I'm guessing the no CLI policy is because the card is/was originally issued by Bank of Missouri under a partnership and now that SoFi is it's own bank they are probably going to migrate them in-house at some point.

This card used to report as TBOM and recently changed to SoFi as owner on my CR.

it's not a bad card with 2% and no FTF, but nothing special either.

Re: SoFi Credit Card Has No CLI's

Janneman — Fri, 22 Jul 2022 17:26:50 GMT

I have recently closed my SoFi account...and very pleased with my such decision.

Re: SoFi Credit Card Has No CLI's

Wavester64 — Fri, 22 Jul 2022 19:57:39 GMT

@SouthJamaica wrote:
SoFi Credit Card has a policy of issuing no credit limit increases. Period.

That reminded me of Capital One's "bucketed" accounts, which rarely give credit limit increases due to the fact that they are securitized, so I looked into whether that was the reason for SoFi's flat no-CLI policy.

And sure enough, that appears to be the exact reason: SoFi relies primarily on securitization to finance its lending:
https://www.sofi.com/blog/how-sofi-makes-money/

This gives me pause about continuing to hold a SoFi credit card.

Glad I was able to get a strong SL right from the get-go, so I don't have to worry about CLI requests. Though it would have been nice to know I could app for one if I had wanted to. Oh well..

Re: SoFi Credit Card Has No CLI's

Remedios — Sat, 23 Jul 2022 02:16:38 GMT

@SouthJamaica wrote:
SoFi Credit Card has a policy of issuing no credit limit increases. Period.

That reminded me of Capital One's "bucketed" accounts, which rarely give credit limit increases due to the fact that they are securitized, so I looked into whether that was the reason for SoFi's flat no-CLI policy.

And sure enough, that appears to be the exact reason: SoFi relies primarily on securitization to finance its lending:
https://www.sofi.com/blog/how-sofi-makes-money/

This gives me pause about continuing to hold a SoFi credit card.

Why pause?

Was this application simply for utilization padding? $7500 can buy a lot of stuff, it's not peanuts

Re: SoFi Credit Card Has No CLI's

SouthJamaica — Sat, 23 Jul 2022 02:28:14 GMT

@Remedios wrote:
@SouthJamaica wrote:
SoFi Credit Card has a policy of issuing no credit limit increases. Period.

That reminded me of Capital One's "bucketed" accounts, which rarely give credit limit increases due to the fact that they are securitized, so I looked into whether that was the reason for SoFi's flat no-CLI policy.

And sure enough, that appears to be the exact reason: SoFi relies primarily on securitization to finance its lending:
https://www.sofi.com/blog/how-sofi-makes-money/

This gives me pause about continuing to hold a SoFi credit card.

Why pause?
Was this application simply for utilization padding? $7500 can buy a lot of stuff, it's not peanuts

I don't like the idea of approving someone for a credit card, and then abandoning the relationship. I know securitization is common, but according to the article I read SoFi takes it to a whole new level, relying on it almost as its exclusive method of financing.

Re: SoFi Credit Card Has No CLI's

blazerein — Sat, 23 Jul 2022 02:36:24 GMT

For me, I only used this card for my Cell Phone monthly bills. Have to used that cell phone protections benefits.

Re: SoFi Credit Card Has No CLI's

SouthJamaica — Sat, 23 Jul 2022 02:54:28 GMT

@blazerein wrote:
For me, I only used this card for my Cell Phone monthly bills. Have to used that cell phone protections benefits.

Yeah well for me it doesn't do anything my other cards don't do.

Re: SoFi Credit Card Has No CLI's

MCM1 — Sun, 24 Jul 2022 02:52:09 GMT

I am unsure of the possible CLI's as I have only had the credit card for 3 months. However, your assumption on the securitization and their business model, as it relates to credit cards, is not accurate. The credit card is actually a Sofi branded card issued by The Bank of Missouri - TBOM. If you call customer service and ask them, they are actually employees of TBOM. TBOM has a whole host of credit cards they issue under various names and partners. You are correct on their lending products such as personal loans and student loans, those are all securitized and sold into the markets.

Re: SoFi Credit Card Has No CLI's

Credit12Fico — Sun, 24 Jul 2022 05:09:50 GMT

@SouthJamaica wrote:

This gives me pause about continuing to hold a SoFi credit card.

What is it that you are worried about?

Re: SoFi Credit Card Has No CLI's

Credit12Fico — Sun, 24 Jul 2022 05:15:05 GMT

@SouthJamaica wrote:

And sure enough, that appears to be the exact reason: SoFi relies primarily on securitization to finance its lending:
https://www.sofi.com/blog/how-sofi-makes-money/

Also, what does any of this have to do with the credit card. The article says:

First, our lending products (that’s Student Loan Refinancing, Personal Loans, Private Student Loans, and Home Loans). There are many different ways companies make money in lending.....We employ a blend of the last two approaches at SoFi, but primarily make money the third way, through securitizations and whole loan sales. The buyers in these securitizations are institutions like pension and insurance funds, as well as other asset managers, who pay a premium upfront for the future potential cash flows from the loans. We’re able to make money through securitizations because investors trust the quality of our loans.

It makes no mention of the credit cards. Even if it did, I don't understand how this impacts your choice to use the card. Why do you care who holds the debt as long as it's being held and the charges are being approved.

Re: SoFi Credit Card Has No CLI's

babygirl1256 — Sun, 24 Jul 2022 05:16:37 GMT

@SouthJamaica Thanks for posting and allowing me to avoid the HP.

Re: SoFi Credit Card Has No CLI's

SouthJamaica — Sun, 24 Jul 2022 15:43:13 GMT

@MCM1 wrote:
I am unsure of the possible CLI's as I have only had the credit card for 3 months. However, your assumption on the securitization and their business model, as it relates to credit cards, is not accurate. The credit card is actually a Sofi branded card issued by The Bank of Missouri - TBOM. If you call customer service and ask them, they are actually employees of TBOM. TBOM has a whole host of credit cards they issue under various names and partners. You are correct on their lending products such as personal loans and student loans, those are all securitized and sold into the markets.

The article came out 3 years before they introduced the credit card.

Re: SoFi Credit Card Has No CLI's

SouthJamaica — Sun, 24 Jul 2022 15:45:18 GMT

@Credit12Fico wrote:
@SouthJamaica wrote:

This gives me pause about continuing to hold a SoFi credit card.
What is it that you are worried about?

I'm not "worried" about anything.

As I said upthread, the reason it gives me pause is that:

"I don't like the idea of approving someone for a credit card, and then abandoning the relationship. I know securitization is common, but according to the article I read SoFi takes it to a whole new level, relying on it almost as its exclusive method of financing."

Re: SoFi Credit Card Has No CLI's

SouthJamaica — Sun, 24 Jul 2022 15:51:21 GMT

@Credit12Fico wrote:
@SouthJamaica wrote:

And sure enough, that appears to be the exact reason: SoFi relies primarily on securitization to finance its lending:
https://www.sofi.com/blog/how-sofi-makes-money/
Also, what does any of this have to do with the credit card. The article says:

First, our lending products (that’s Student Loan Refinancing, Personal Loans, Private Student Loans, and Home Loans). There are many different ways companies make money in lending.....We employ a blend of the last two approaches at SoFi, but primarily make money the third way, through securitizations and whole loan sales. The buyers in these securitizations are institutions like pension and insurance funds, as well as other asset managers, who pay a premium upfront for the future potential cash flows from the loans. We’re able to make money through securitizations because investors trust the quality of our loans.

It makes no mention of the credit cards. Even if it did, I don't understand how this impacts your choice to use the card. Why do you care who holds the debt as long as it's being held and the charges are being approved.

The article came out 3 years before SoFi introduced credit cards.

And as to why I care, as I said upthread:

One practical ramification of that is that no matter how good a job you do with managing the card, you can never, ever earn a credit limit increase, because..... there's no one managing the relationship.... because there is no relationship.

Re: SoFi Credit Card Has No CLI's

SouthJamaica — Sun, 24 Jul 2022 15:56:58 GMT

@MCM1 wrote:
I am unsure of the possible CLI's as I have only had the credit card for 3 months.

Credit limit increases are not available.
https://support.sofi.com/hc/en-us/articles/4415066108941-Can-I-increase-my-line-of-credit-on-my-SoFi-Credit-Card-

However, your assumption on the securitization and their business model, as it relates to credit cards, is not accurate. The credit card is actually a Sofi branded card issued by The Bank of Missouri - TBOM. If you call customer service and ask them, they are actually employees of TBOM. TBOM has a whole host of credit cards they issue under various names and partners. You are correct on their lending products such as personal loans and student loans, those are all securitized and sold into the markets.

Re: SoFi Credit Card Has No CLI's

MCM1 — Sun, 24 Jul 2022 16:07:25 GMT

On the card they aren't abandoning anyone as they actually don't issue or service it. The card is actually a branded card by The Bank of Missouri.