topic Re: Which do CCC lenders consider worse: multiple 30-day lates or 50% revolving util with no baddie in Credit Cards

Which do CCC lenders consider worse: multiple 30-day lates or 50% revolving util with no baddies?

galahad15 — Thu, 22 Oct 2015 15:30:14 GMT

Which do CCC lenders consider worse: someone who has multiple 30-day defaults, or someone who hypothetically has 50% revolving util with no baddies and an otherwise perfect credit report? The reason I ask is because I have had some family members with no or minimal util who have had multiple 30-day lates on their cards in the past, and yet the CCCs apparently took no adverse action on them, such as RJ, AA, CLD, etc. They also get cc offers in the mail all the time. OTOH, I have never once missed a payment and ever since my very first credit card, have no baddies and a perfect payment history -- the only thing that lenders could possibly find undesirable on my credit report was that at one time I was carrying over 50% util (since lowered), and I did experience all of the above, some years ago (i.e., RJ, CLD, AA). Has anyone else had an experience like this, where you have seen people with more than one obvious 30-day lates but no/minimal util getting better results than someone with an otherwise perfect payment history but moderate- to high-util?

Re: Which do CCC lenders consider worse: multiple 30-day lates or 50% revolving util with no baddie

Anonymous — Thu, 22 Oct 2015 15:32:45 GMT

Targeted offers are a very, very unreliable source to gauge one's credit worthiness. These offers can also be just invitation to apply instead of gauranteed approval. Don't sweat about that. What matters is wether you are approved for a good credit card (or loan) when you want/need it. In fact, I, and many others, simply opt out of receiving offers because I am tired of shredding them. Regardless, I still get offers for AAdvantage credit card probably just because I have frequent flyer number with AA.

With regard to multiple 30-day late and one high ultilization ratio. Lates are obviously worse for long term because they stay in your credit report for 7 years. High ultilization ratio are worse for short term, but as soon as you pay it off and the balance is reported, then you're good as ultilization ratio has no memory. Just current ultilization ratio is used to determine credit card/loan application/FICO score. However, not just lates and ultilization ratio are used to determine credit card eligibility, there are also income, how long have you had credit, how long in average for all of the accounts, what type of loans that you have, how many accounts you have, etc.. so it's a really complicated matter.

Anyways, stay away from high ultilization ratio, and stay even further away from lates, that will sure bring you good results

Re: Which do CCC lenders consider worse: multiple 30-day lates or 50% revolving util with no baddie

Anonymous — Thu, 22 Oct 2015 15:34:42 GMT

That's . . . weird. Everything else being equal, multiple 30 day later should have a bigger impact. I'm guessing that there are other reasons why the late person gets better results.

Re: Which do CCC lenders consider worse: multiple 30-day lates or 50% revolving util with no baddie

Anonymous — Thu, 22 Oct 2015 15:55:44 GMT

@galahad15 wrote:
Which do CCC lenders consider worse: someone who has multiple 30-day defaults, or someone who hypothetically has 50% revolving util with no baddies and an otherwise perfect credit report? The reason I ask is because I have had some family members with no or minimal util who have had multiple 30-day lates on their cards in the past, and yet the CCCs apparently took no adverse action on them, such as RJ, AA, CLD, etc. They also get cc offers in the mail all the time. OTOH, I have never once missed a payment and ever since my very first credit card, have no baddies and a perfect payment history -- the only thing that lenders could possibly find undesirable on my credit report was that at one time I was carrying over 50% util (since lowered), and I did experience all of the above, some years ago (i.e., RJ, CLD, AA). Has anyone else had an experience like this, where you have seen people with more than one obvious 30-day lates but no/minimal util getting better results than someone with an otherwise perfect payment history but moderate- to high-util?

Does the person with lates get "real" preapprovals (i.e. with a definite APR) or more "invitations"? My guess is that when CCCs are doing mass invites, the CRA is asked for those with a score range and certain demographics, rather than a detailed breakdown of lates, util etc. How does that person's score compare to yours?

Re: Which do CCC lenders consider worse: multiple 30-day lates or 50% revolving util with no baddie

galahad15 — Thu, 22 Oct 2015 16:05:56 GMT

@Anonymous wrote:
Does the person with lates get "real" preapprovals (i.e. with a definite APR) or more "invitations"? My guess is that when CCCs are doing mass invites, the CRA is asked for those with a score range and certain demographics, rather than a detailed breakdown of lates, util etc. How does that person's score compare to yours?

If I am hopefully remembering correctly, one family member is getting a mix of invitations and pre-approvals. I am not sure what their current score is though. The other family member has a credit score somewhere in the 800's, but I am not sure about the specific offers they are presently getting. One family member had their most recent 30-day late as early as a few months ago, the family member with the score in the 800's (as far as I can remember) had theirs about a year or so ago I think?

Re: Which do CCC lenders consider worse: multiple 30-day lates or 50% revolving util with no baddie

Anonymous — Thu, 22 Oct 2015 16:12:16 GMT

First, are you opted in for receiving offers? So double check that - I was opted out (don't remember doing it, I'm guessing my ex did it for me out of the kindess of his heart) and once I changed that, offers starting coming in.

Another thing, you may not even want the offers they are getting. When I say offers are coming in above, I mean like First Premier and other predatory lenders. I haven't seen Chase banging down my door! And the offers have a high interest rate, usually an annual fee and/or a low credit line offered. Trust me, my shredder gets a workout. I wouldn't worry about the "offers". Research what cards you would like to have and go from there. It looks like you already have some really nice cards. I'd gladly exchange with you and send you all my current "offers"

Re: Which do CCC lenders consider worse: multiple 30-day lates or 50% revolving util with no baddie

Anonymous — Thu, 22 Oct 2015 16:35:28 GMT

I think it depends on lenders, credit profile (i.e. utilization, length, activity) and economy (culling is more likely during recession) so I'm not sure there's a clear yes or no answer. But 30 day lates tend to get brushed off when it comes to credit card approvals, especially if it's more than 1-2 years old. And it's possible that CCCs simply didn't take AA because they didn't know there was new 30 day late reported, and when they did notice it probably was resolved (account became current) already. But increasing your util will be quickly noticed by your CCC, and if you start carrying balances when you've been PIF, that could quickly become actionable.