topic Re: Who are worst adverse action culprits? in Credit Cards

Who are worst adverse action culprits?

SouthJamaica — Sun, 06 Mar 2016 13:34:03 GMT

I frequently read posts about banks taking sudden adverse action for reasons other than violation of terms of agreement. E.g., having high utilization, taking out new cards elsewhere, doing balance transfers, etc.

My impression, anecdotally, is that

1. Barclays

2. Amex

3. Chase

4. Bank of America

5. Citi

6. Comenity (lately)

are the biggest culprits.

Is my impression correct? Is the order correct? Are there others we should know about?

Update 3/5/16, 5:24 PM ET:

Added to list:

7. Wells Fargo (per Bmac & others)

8. Synchrony (per huhum....)

Update 3/6/16 8:27 AM ET:

Possible other additions (per FinStar):

9. US Bank

10. FNBO

11. DCU

Re: Who are worst adverse action culprits?

Anonymous — Sat, 05 Mar 2016 17:43:46 GMT

You'll want to include Synchrony as well - lately there have been reports of them slashing people's 15k credit lines down to $1,000.

I don't know that there is a list of worst advers action culprits per se. Any, and all, lenders will take action if they see sudden profile changes or things that concern them.

Re: Who are worst adverse action culprits?

Anonymous — Sat, 05 Mar 2016 17:44:57 GMT

Seems about right...we also must consider that some banks are more popular than others thus giving a false impression that they do AA more often. When looked at as a percentage the real results might be much different. I think the exception might cap1 very popular, yet you seldom here of AA from them.

Re: Who are worst adverse action culprits?

Anonymous — Sat, 05 Mar 2016 17:46:39 GMT

Pretty much any bank can be if they see you as a risk. Especially risky are the ones that already have 20+ credit cards but still see a need to apply for more. You'll see more of this as we inch closer to a recession/market correction.

Re: Who are worst adverse action culprits?

degs138 — Sat, 05 Mar 2016 18:09:51 GMT

We just had a market correction and I was issued credit like beer to a drunken sailor on shore leave. I have never had an AA. I PIF every time. Barclay actually raised my limit when I put a 3000 vacation on my card.

I think AA would happen from any bank that starts to see you live beyond your means. If you put that you make 30k a year or they verify that and you all of the sudden went from an average CC debt of 1500 a month to 15k, they would start to pull back. Even if your utility stayed under 30%.

I see a lot of people on here that have 200k in credit. If you put 60k on your cards and kept under 30% I think there would be some AA across the board.

Re: Who are worst adverse action culprits?

kdm31091 — Sat, 05 Mar 2016 18:26:53 GMT

Your list seems about right. I think avoiding AA no matter what the creditor is pretty simple. We all know what tends to cause it.

Live within your means, don't apply for cards every week, pay your bills...you should be fine. Otherwise, no sense in stressing about it or worrying about which lender is most likely to do this. Any creditor can and will do it.

Re: Who are worst adverse action culprits?

Anonymous — Sat, 05 Mar 2016 19:04:01 GMT

It seems to me that AA disproportionately affects accounts that were borderline approvals in the first place.

If Bank X has loose underwriting criteria and approves applications that Bank Y would reject, then Bank X can get a reputation for AA, even if X and Y look for the same things when reviewing existing accounts for risk.

With Barclaycard, they may give AA, but they're willing to take a risk on some customers that other banks wouldn't even approve in the first place. Barclaycard AA horror stories from people who were approved after recon with a 650 TU shouldn't necessarily be a consideration for someone who has a 750 TU.

Re: Who are worst adverse action culprits?

Bmac66 — Sat, 05 Mar 2016 19:04:15 GMT

I would include Wells Fargo on the list. They CLD me last month for having more than 2 inq and 2 new accounts in past 6 months. Less than 10% and I have a mortgage with them! 2 auto loans and no Kate's or neg accounts. Not sure why that spooked them but cut me from $3k to $1750.

Re: Who are worst adverse action culprits?

SouthJamaica — Sat, 05 Mar 2016 22:27:43 GMT

@Bmac66 wrote:
I would include Wells Fargo on the list. They CLD me last month for having more than 2 inq and 2 new accounts in past 6 months. Less than 10% and I have a mortgage with them! 2 auto loans and no Kate's or neg accounts. Not sure why that spooked them but cut me from $3k to $1750.

Thanks for your input Bmac, Careful, kdm, degs, Jon, Open, humu........

I've added Synchrony and Wells Fargo to the list.

Re: Who are worst adverse action culprits?

Anonymous — Sat, 05 Mar 2016 23:00:31 GMT

@kdm31091 wrote:
Your list seems about right. I think avoiding AA no matter what the creditor is pretty simple. We all know what tends to cause it.

Live within your means, don't apply for cards every week, pay your bills...you should be fine. Otherwise, no sense in stressing about it or worrying about which lender is most likely to do this. Any creditor can and will do it.

That part is hard, the rest is pretty easy.

Re: Who are worst adverse action culprits?

Anonymous — Sat, 05 Mar 2016 23:15:00 GMT

hard for the weak-willed, perhaps.

Re: Who are worst adverse action culprits?

Anonymous — Sat, 05 Mar 2016 23:15:53 GMT

@Anonymous wrote:
hard for the weak-willed, perhaps.

I'll bet you have more credit cards than I do.

Re: Who are worst adverse action culprits?

Anonymous — Sat, 05 Mar 2016 23:33:13 GMT

It certainly helps ease some tension to have a significant other to get cards with. I have added Amazon, sams, 4 amex cards, 2 chase cards, 1 citi card, 1 bank of america card, 1 credit union card, 1 bank visa, and a retail card.

I pay most charges off instantly, usually the same day, if not the end of the week. I always carry a balance on a 0% card but keep my total util under 5% and never go above 30% on one card.

I am too scared to apply with barclays!!! That is for sure! Demanding birth certs , IDs, professional licensures, etc.... craziness! Not to mention demanding that it be sent in regular mail, without tracking, no signature required! How crazy is that!

Re: Who are worst adverse action culprits?

Callandra — Sun, 06 Mar 2016 00:19:58 GMT

@Anonymous wrote:
It certainly helps ease some tension to have a significant other to get cards with. I have added Amazon, sams, 4 amex cards, 2 chase cards, 1 citi card, 1 bank of america card, 1 credit union card, 1 bank visa, and a retail card. That's funny you say that since my fiance and I actually have the same cards! He has his own QS (he doesn't really use it though) and Sallie Mae (he just uses that for the most part).

I pay most charges off instantly, usually the same day, if not the end of the week. I always carry a balance on a 0% card but keep my total util under 5% and never go above 30% on one card.

I am too scared to apply with barclays!!! That is for sure! Demanding birth certs , IDs, professional licensures, etc.... craziness! Not to mention demanding that it be sent in regular mail, without tracking, no signature required! How crazy is that! I've never had such issues with Barclays and I know a lot of others here have not (neither has my fiance).

Re: Who are worst adverse action culprits?

Anonymous — Sun, 06 Mar 2016 00:34:39 GMT

@Callandra wrote:
@Anonymous wrote:
It certainly helps ease some tension to have a significant other to get cards with. I have added Amazon, sams, 4 amex cards, 2 chase cards, 1 citi card, 1 bank of america card, 1 credit union card, 1 bank visa, and a retail card. That's funny you say that since my fiance and I actually have the same cards! He has his own QS (he doesn't really use it though) and Sallie Mae (he just uses that for the most part).

I pay most charges off instantly, usually the same day, if not the end of the week. I always carry a balance on a 0% card but keep my total util under 5% and never go above 30% on one card.

I am too scared to apply with barclays!!! That is for sure! Demanding birth certs , IDs, professional licensures, etc.... craziness! Not to mention demanding that it be sent in regular mail, without tracking, no signature required! How crazy is that! I've never had such issues with Barclays and I know a lot of others here have not (neither has my fiance).

I do like barclays, dont get me wrong. Props to them on offering a credit union esque product where folks may not have easy access. Barclays should offer a checking account that can be connected so the ring can function like a line of credit and add a grace period.

Happy to see you have a Better Balance Rewards! Hopefully he has a savings account and has you added as a joint applicant! That way you will get the extra $20 a year on both of your cards. Just wire $300 to it and thats it! When do you guys plan on getting your 2nd BBRs?

Re: Who are worst adverse action culprits?

Anonymous — Sun, 06 Mar 2016 01:06:33 GMT

And how, I had a Wells Fargo account that went from $6500 to 3700 after six months.

@Bmac66 wrote:
I would include Wells Fargo on the list. They CLD me last month for having more than 2 inq and 2 new accounts in past 6 months. Less than 10% and I have a mortgage with them! 2 auto loans and no Kate's or neg accounts. Not sure why that spooked them but cut me from $3k to $1750.

Re: Who are worst adverse action culprits?

Anonymous514 — Sun, 06 Mar 2016 01:23:07 GMT

I am cutting my cards up that I do not want. I only carry my Venture, Citi Dc WEMC, Discover It, and Upromise WMC with me now. I see that it is unnecessary to have so many cards. My Bestie only has 2 Us Bank cards (1 he didnt even realize he applied for) and he has a better score than me and my credit profile is much more diverse than his.

Re: Who are worst adverse action culprits?

kdm31091 — Sun, 06 Mar 2016 01:26:17 GMT

@Anonymous wrote:
@Callandra wrote:
@Anonymous wrote:
It certainly helps ease some tension to have a significant other to get cards with. I have added Amazon, sams, 4 amex cards, 2 chase cards, 1 citi card, 1 bank of america card, 1 credit union card, 1 bank visa, and a retail card. That's funny you say that since my fiance and I actually have the same cards! He has his own QS (he doesn't really use it though) and Sallie Mae (he just uses that for the most part).

I pay most charges off instantly, usually the same day, if not the end of the week. I always carry a balance on a 0% card but keep my total util under 5% and never go above 30% on one card.

I am too scared to apply with barclays!!! That is for sure! Demanding birth certs , IDs, professional licensures, etc.... craziness! Not to mention demanding that it be sent in regular mail, without tracking, no signature required! How crazy is that! I've never had such issues with Barclays and I know a lot of others here have not (neither has my fiance).

I do like barclays, dont get me wrong. Props to them on offering a credit union esque product where folks may not have easy access. Barclays should offer a checking account that can be connected so the ring can function like a line of credit and add a grace period.

Happy to see you have a Better Balance Rewards! Hopefully he has a savings account and has you added as a joint applicant! That way you will get the extra $20 a year on both of your cards. Just wire $300 to it and thats it! When do you guys plan on getting your 2nd BBRs?

Since you have to put $300 into BOA for the extra $20 a year, that's a relatively high opportunity cost. Yes you can take out the $300, but then you lose the $20 benefit.

So in other words, you have to keep that $300 in there for years before it will be recouped.

Of course, not an issue if you bank with BOA anyway, but if you are literally opening an account and placing $300 in it but not using the account, that's basically a $300 cost for an extra $20, which again, would take years to recoup. Just different way of viewing it I guess.

Re: Who are worst adverse action culprits?

sjt — Sun, 06 Mar 2016 01:49:01 GMT

The one thing about Amex is they will FR or request updated information before they take AA in most cases.

Re: Who are worst adverse action culprits?

Anonymous — Sun, 06 Mar 2016 01:56:52 GMT

@sjt wrote:
The one thing about Amex is they will FR or request updated information before they take AA in most cases.

I've seen quite a few cases where they will give major CLDs as the first sign that anything is amiss. Then people call in and get hit with the full FR.

I don't know what would actually happen if a person just accepted the CLD and didn't call in right away.