topic Re: Automatic Approval in Credit Cards

Automatic Approval

Anonymous — Sun, 07 Jun 2009 20:23:42 GMT

I just read somebody else's post about AU accounts and that the FICO scoring still does not tell the difference between AU and Individual accounts as far as scoring... So the question is: are there any banks out there that only use automatic approval forhigh scores? For instance HSBC Best Buy does. I was also told by US BANK account specialist that 40% of thier apps are automatic - 20% approvals (highest scores), 20% automatic denial without an underwriter review. Do you know of any other banks that mostly use an automatic approval system?

Re: Automatic Approval

Creditaddict — Mon, 08 Jun 2009 01:48:15 GMT

Alliant

Macys - Apply in Store

Bank of America

goodness most banks have automatic approvals, just depends what is set up in there perimeters rather you get through on the automated system.

Re: Automatic Approval

Anonymous — Mon, 08 Jun 2009 03:14:30 GMT

So if someone applies for instance in Alliant with high EQ fico created by being added as an authorised user to someone else's accounts he could be approved for their card and auto loan without an actual underwriter review?

Re: Automatic Approval

Creditaddict — Mon, 08 Jun 2009 03:16:39 GMT

no way to really say. lots of people got instants though.

I missed security question so got reviewed.

Re: Automatic Approval

Anonymous — Mon, 08 Jun 2009 03:18:33 GMT

By the way is there any reason why I don't get pre-approved on BOA website? I have good history and scores

Re: Automatic Approval

wmarat — Mon, 08 Jun 2009 03:18:38 GMT

I doubt whether Alliant uses classic FICO at all. I doubt whether Alliant approves without u/w review.

But this might work with BOA, Citi, AMEX, USBank.

Re: Automatic Approval

Anonymous — Mon, 08 Jun 2009 03:20:02 GMT

I wonder if the automatic system somehow distinguishes AU accounts so they are sent for an additional review...

Re: Automatic Approval

Anonymous — Mon, 08 Jun 2009 03:33:56 GMT

Sometimes a few accounts in good standing can make up a score which is 720+ even with a credit history which is less then 1 year. Does that mean one can try applying with these big prime CC's hoping to get an automatic approval because of the high scores?

Re: Automatic Approval

score_building — Mon, 08 Jun 2009 05:31:02 GMT

Lexa wrote:
Sometimes a few accounts in good standing can make up a score which is 720+ even with a credit history which is less then 1 year. Does that mean one can try applying with these big prime CC's hoping to get an automatic approval because of the high scores?

it's not impossible to imagine this could happen but an issuer may include length of history in the auto approve parameters to try to prevent it.

Re: Automatic Approval

Anonymous — Mon, 08 Jun 2009 05:57:31 GMT

@wmarat wrote:
I doubt whether Alliant uses classic FICO at all. I doubt whether Alliant approves without u/w review.

I'm not sure whether your comment wants to point to the fact that Alliant's automatic process just results in a credit card pre-approval, but I have never heard a single case that this pre-approval was not honored afterwards. That's why I think that it's fair to consider Alliant's process automatic, if it goes through. For me, it was automatic.

But I also think you are right that Alliant doesn't use a normal FICO score for their approval. They seem to have their own risk model, like many lenders.

Message Edited by Ulan on 06-07-2009 10:57 PM

Re: Automatic Approval

Anonymous — Mon, 08 Jun 2009 05:58:57 GMT

@Anonymous wrote:
By the way is there any reason why I don't get pre-approved on BOA website? I have good history and scores

If you've ever had a CO with BofA or with MBNA, then they will not preapprove you for a card regardless of scores.

Re: Automatic Approval

haulingthescoreup — Mon, 08 Jun 2009 11:13:44 GMT

Also, if you're opted-out, you won't get any pre-approvals from anywhere. They need to be able to soft your accounts for a pre-approval.

Re: Automatic Approval

Anonymous — Mon, 08 Jun 2009 20:12:54 GMT

That's what I was actually thinking. I might be OPT OUT because I haven't got any pre-approval offers for a while, except for Discover More that are mailing me one every week, and my FICO scores are EX 721, EQ 733, TU 730. How do I find out for sure? and how do I OPT back IN? Do I have to do it separately for every bureau?

Re: Automatic Approval

haulingthescoreup — Mon, 08 Jun 2009 22:03:41 GMT

https://www.optoutprescreen.com/?rf=t

Same site works for opting both out and in, and it will take care of all three bureaus. I don't think it will show you your current status (whether you're in or out), so you just click whichever you want.

I think it took 3-4 weeks for junk to hit my mailbox when I opted back in.

I do remember feeling mystified and a little hurt when I couldn't even get an offer for a secured card on the BofA pre-app site! --it was because I had opted out.

Re: Automatic Approval

Anonymous — Tue, 09 Jun 2009 12:43:13 GMT

@haulingthescoreup wrote:
Also, if you're opted-out, you won't get any pre-approvals from anywhere. They need to be able to soft your accounts for a pre-approval.

The exception to this would be an issuer that you already have a relationship with. Some use internal history.

Re: Automatic Approval

Anonymous — Wed, 10 Jun 2009 07:51:30 GMT

BTW i talked to Alliant loan officer today. She told me that since the pre-approvals are automatic they usually look at your file after you choose to accept an offer... Had anybody got denied or given a different ammount from what he received on the pre-approval?