topic Re: What is AA? in Credit Cards

What is AA?

techygal — Tue, 10 Feb 2015 16:27:40 GMT

I have read on this forum regarding prolonged high credit card utilization and AA? Pardon my ignorance but what is AA?

Re: What is AA?

Anonymous — Tue, 10 Feb 2015 16:28:31 GMT

Adverse Action.

Re: What is AA?

Anonymous — Tue, 10 Feb 2015 16:29:23 GMT

just learned something new...

good questin .. i didnt know either.

Re: What is AA?

Anonymous — Tue, 10 Feb 2015 16:29:31 GMT

AA = Adverse Action

I believe it includes actions like closing accounts and credit line decreases. There might be more to it If so someone will be along shortly to elaborate or correct me

Re: What is AA?

techygal — Tue, 10 Feb 2015 18:18:51 GMT

Very good. Makes perfect sense. I just couldn't for the life of me figure out what the two words could be!

Thanks for enlightening me :-)

Re: What is AA?

Anonymous — Tue, 10 Feb 2015 18:26:09 GMT

Here is a guide to common abbreviations used on this site. While it doesn't include them all its a good start.

http://ficoforums.myfico.com/t5/User-Guidelines-General/Common-Abbreviations/m-p/88458

Re: What is AA?

Anonymous — Tue, 10 Feb 2015 19:29:03 GMT

@Anonymous wrote:
AA = Adverse Action

I believe it includes actions like closing accounts and credit line decreases. There might be more to it If so someone will be along shortly to elaborate or correct me

That sums it up. Strictly it would also include things like switching to a penalty APR rate (for late payments or whatever) but people here don't seem to count that.

Re: What is AA?

Anonymous — Tue, 10 Feb 2015 19:35:39 GMT

@Anonymous wrote:
@Anonymous wrote:
AA = Adverse Action

I believe it includes actions like closing accounts and credit line decreases. There might be more to it If so someone will be along shortly to elaborate or correct me
That sums it up. Strictly it would also include things like switching to a penalty APR rate (for late payments or whatever) but people here don't seem to count that.

A penalty APR is an AA. I construe the term broadly and see no reason why not to as that just overcomplicates things.

@Anonymous wrote:
Here is a guide to common abbreviations used on this site. While it doesn't include them all its a good start.

http://ficoforums.myfico.com/t5/User-Guidelines-General/Common-Abbreviations/m-p/88458

Re: What is AA?

SunriseEarth — Tue, 10 Feb 2015 19:58:54 GMT

@Anonymous wrote:
@Anonymous wrote:
AA = Adverse Action

I believe it includes actions like closing accounts and credit line decreases. There might be more to it If so someone will be along shortly to elaborate or correct me
That sums it up. Strictly it would also include things like switching to a penalty APR rate (for late payments or whatever) but people here don't seem to count that.

I would agree.

Re: What is AA?

Anonymous — Tue, 10 Feb 2015 19:58:56 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
AA = Adverse Action

I believe it includes actions like closing accounts and credit line decreases. There might be more to it If so someone will be along shortly to elaborate or correct me
That sums it up. Strictly it would also include things like switching to a penalty APR rate (for late payments or whatever) but people here don't seem to count that.
A penalty APR is an AA. I construe the term broadly and see no reason why not to as that just overcomplicates things.

Yes, I guess it is discussed less here simply because people know what causes them (they are stated in the T&Cs) So while we do see "X closed [or CLD] my card for NO REASON!!!" we don't see "X gave me a penalty APR for paying late!!"

Re: What is AA?

MaisCher — Thu, 12 Feb 2015 02:40:31 GMT

How common is this for new accounts? I know many go on app sprees but then I also read about AA so I'm trying to figure out how I determine what is too much. I've had a flurry of activity lately lol

Aug - Barclay Apple

Nov - NFCU

Dec - Amex Green, Amex Delta

Jan - Chase, Barclay Sallie Mae

Feb - New Car Loan, HFCU Platinum, Venture

Is that a lot?

Re: What is AA?

Anonymous — Thu, 12 Feb 2015 02:55:36 GMT

@MaisCher wrote:
How common is this for new accounts? I know many go on app sprees but then I also read about AA so I'm trying to figure out how I determine what is too much. I've had a flurry of activity lately lol

Aug - Barclay Apple
Nov - NFCU
Dec - Amex Green, Amex Delta
Jan - Chase, Barclay Sallie Mae
Feb - New Car Loan, HFCU Platinum, Venture

Is that a lot?

You're fine. While AAs happen they are rare and unless you do something to draw a creditors attention you won't have anything to worry about.

Re: What is AA?

NRB525 — Thu, 12 Feb 2015 03:23:10 GMT

@Anonymous wrote:
AA = Adverse Action

I believe it includes actions like closing accounts and credit line decreases. There might be more to it If so someone will be along shortly to elaborate or correct me

Closing accounts: Check - 4 accounts I think

Credit Line Decreases: Check - All but Capital One (and AMEX and USBank since I had no cards open earlier with them)

Penalty Interest Rates: Check - Citi through AT&T Universal, Chase.

Financial Review: Not me

All those, except FR, I have gone through on several accounts after my balances were very high in the Credit Bubble. As the balances came down, most lenders ran CLD behind the declining balances to ensure I didn't charge more up. Citi outright closed an account that was (is still) on a 1.99% permanent APR. Another account, they proposed raising the 7.99% APR to 29.99%, so I said, no, I don't agree, closed it, and kept the 7.99% rate terms on that balance, also still paying off.

Fast forward to this week:

I got a CLI from BofA on an account they balance chased me to $12,700. A $3k CLI yesterday to $15,700. Made my day, no doubt.

I am considering requesting Citi open the account that had the 1.99% rate. They declined a CLI (don't ask me why Citi has a "Request a CLI" button on these two closed accounts, but they do) and in the denial letter said they could not give a CLI because the account was closed, but to call them if I wanted the card opened again. Like I said, yesterday was a good day.

I am also considering opening the AT&T Universal card, which is closed and still displays a $21k CL, and only a $2k balance remaining to pay.

So, while AA does occur, it is NOT the end of the world. You just keep paying on the card, make the CCC feel more comfortable about your ability to pay, and then rebuild that relationship the best you can.

Re: What is AA?

Anonymous — Thu, 12 Feb 2015 06:17:27 GMT

I think I can top it. Pretty bad, I know. BMW lease, new tour rocket for hubby, BOA CL increase, Cap One increase times 2, AMEX, Citi, Chase, Saks, SamsClub MC, (cancelled SamsClub card for it) Discover it, First National Bank AMEX, Williams Sonoma Barclays, Restoration Hardware & Amazon! I still have those crappy start up cards. Everytime I go to cancel, they talk me into keeping them. I have 4. Should I cancel them? Some are 3 yrs old. Will they affect my utilization? Total of CL on al 4 is 4300.00.

Re: What is AA?

NRB525 — Thu, 12 Feb 2015 13:55:04 GMT

@Anonymous wrote:
I think I can top it. Pretty bad, I know. BMW lease, new tour rocket for hubby, BOA CL increase, Cap One increase times 2, AMEX, Citi, Chase, Saks, SamsClub MC, (cancelled SamsClub card for it) Discover it, First National Bank AMEX, Williams Sonoma Barclays, Restoration Hardware & Amazon! I still have those crappy start up cards. Everytime I go to cancel, they talk me into keeping them. I have 4. Should I cancel them? Some are 3 yrs old. Will they affect my utilization? Total of CL on al 4 is 4300.00.

This is NOT AA