topic Re: AJC needs to start a thread......What's so Bad about COMENITY? in Credit Cards

What's so Bad about COMENITY?

PutThatMoneyOnTheTable — Mon, 30 Sep 2019 21:27:12 GMT

I curious to know because informed delivery shows that my Comenity BJ's M/C is in the mailbox. What's so bad about comenity that folks here won't touch them with a 10 ft pole?

Re: AJC needs to start a thread......What's so Bad about COMENITY?

Anonymous — Mon, 30 Sep 2019 21:05:01 GMT

There are plenty of posters here with Comenity cards......I even have one.

Not all, but some don’t like them from past experiences.

Comenity is very relaxed on store card approvals. They will approve, approve and approve some more to the same person in a short amount of time. Then they will shut you down. Some folks don’t like that 🤷🏽‍♀️

Just as any other lender, not everyone is a fan.

Re: AJC needs to start a thread......What's so Bad about COMENITY?

Anonymous — Mon, 30 Sep 2019 21:39:52 GMT

@Anonymous wrote:
There are plenty of posters here with Comenity cards......I even have one.
Not all, but some don’t like them from past experiences.
Comenity is very relaxed on store card approvals. They will approve, approve and approve some more to the same person in a short amount of time. Then they will shut you down. Some folks don’t like that 🤷🏽‍♀️
Just as any other lender, not everyone is a fan.

I think that is a fair summary! Basically, a lot of people, especially in the rebuilding phase, get keen on getting approvals and so can get many (many) store cards, and Comenity is a major issuer. Then, as JAG73 suggests, some flag goes up in Comenity systems and decides that the person is a risk (aggressive credit seeking, too many new accounts, whatever!) and shuts them down. This leads to posts here "My Accounts closed for NO REASON" and the issuer becomes viewed as unreliable. But in moderation, it's probably OK.

(Yes, I know there have been shutdowns of people with very few cards, even one, but that also happens with other issuers)

Re: AJC needs to start a thread......What's so Bad about COMENITY?

Medic981 — Mon, 30 Sep 2019 21:47:12 GMT

Not a fan of Comenity

Re: AJC needs to start a thread......What's so Bad about COMENITY?

brandonm — Mon, 30 Sep 2019 21:48:46 GMT

For what it's worth, Comenity was the only issuer to ever give me a CLD or any form of AA. It left a sour taste in my mouth, but no hostility towards Comenity. I don't intend to get any new cards from them though.

Re: AJC needs to start a thread......What's so Bad about COMENITY?

wasCB14 — Mon, 30 Sep 2019 21:49:56 GMT

I rarely flew Virgin America and rarely shop at any stores that have Comenity cards. So there's just nothing they offer that interests me.

Most of the complaints relate to aggressive credit seeking in some fashion. A relative pushed a payment to a Comenity card using the wrong card number (which was absolutely her error) and the payment was applied to someone else account. Late fees and interest were eventually reversed, but it took a while to sort out.

Re: What's so Bad about COMENITY?

FinStar — Mon, 30 Sep 2019 21:50:48 GMT

The responses will likely vary depending on an individual's experience.

IME, I have had no major issues with them holding several Comenity V/MC/D CCs including some retail ones.

The landscape definitely changed a few years ago in their UW model for evaluating new accounts approvals and the infamous SCT and CLIs here recently - although the latter can still be YEMV.

I think the disadvantage (or advantage) depending on which camp you're in, would be the secondary audit reviews that cause many of the AA shutdowns based on perceived credit seeking behaviors.

In the past, the Approvals forum was fluid with several Comenity V/MC approvals, but not so much these days... so as long as one happens to be in the 'Goldie Locks' zone (i.e. overall credit profile), then often times that's typically safe from AA.

CLDs are another type of Comenity AA depending on a variety of risk factors, which may include increased utilization, late payments on other Comenity accounts, scores taking a dip, introduction of a collection or negative item, etc.

Re: What's so Bad about COMENITY?

Loquat — Mon, 30 Sep 2019 22:28:06 GMT

Everything! Enough said! LOL...jk, but not really. Every lender has their quirks...for me, Comenity just has one too many.

Re: What's so Bad about COMENITY?

PutThatMoneyOnTheTable — Mon, 30 Sep 2019 22:37:37 GMT

Thanks for the reponses guys. I've gotten offers for other store card but i'm a clearance type of girl and spending more than $50 in a store gives me headache. I like huge hauls for little money.

But food is a different story, I will spend all my money on food. Outside of this forum I've read that interest was charged although account was paid by the due date. Despite this I still went ahead and got the BJ's Card. Surprisingly my APR is lower than my Amex at 17.24% (Amex is around 17.8%). At the moment I do not exhibit or intend to exhibit any credit seeking behavior.

I guess time will tell how well Comenity treats me.

Re: What's so Bad about COMENITY?

Anonymous — Mon, 30 Sep 2019 22:38:30 GMT

I have two retails from them, opening in July and September of last year. Have had them paid off, have carried balances, have used promos. I’ve gotten regular CLIs on both, to many multiples of their SLs (both started at $500, one is now $2500 and one is $3700).

I’ve had no issues. What I have seen in many tales was people opening several retail cards in a shorter-than-smart timeframe, and then getting a V/MC from them also, and being subsequently shut down. I believe the AA closures simply are from abuse of the SCT in the past and opening more lines than one’s profile could support. Most SCT abusers were fairly early rebuilders from what I can recall, with low 600s, who were snapping up any possible credit like kids on Halloween candy, and paid the price for getting too much too soon.

Re: AJC needs to start a thread......What's so Bad about COMENITY?

PutThatMoneyOnTheTable — Mon, 30 Sep 2019 22:39:27 GMT

@Medic981 wrote:
Not a fan of Comenity

I was gonna crack an A/C (Air Conditioning) joke, but nevermind.

Do you mind telling me what went wrong for you with comenity?

Re: What's so Bad about COMENITY?

Anonymous — Mon, 30 Sep 2019 22:55:54 GMT

@Anonymous wrote:
I have two retails from them, opening in July and September of last year. Have had them paid off, have carried balances, have used promos. I’ve gotten regular CLIs on both, to many multiples of their SLs (both started at $500, one is now $2500 and one is $3700).

I’ve had no issues. What I have seen in many tales was people opening several retail cards in a shorter-than-smart timeframe, and then getting a V/MC from them also, and being subsequently shut down. I believe the AA closures simply are from abuse of the SCT in the past and opening more lines than one’s profile could support. Most SCT abusers were fairly early rebuilders from what I can recall, with low 600s, who were snapping up any possible credit like kids on Halloween candy, and paid the price for getting too much too soon.

Unfortunately it's not that simple. Comenity can and has shut customers down who never had a Comenity card and got a V/MC card for too many new accounts. It's the only reason I never applied for the WS VISA and why I'm not going to go for Sony or PlayStation in November but rather wait til February.

Re: What's so Bad about COMENITY?

Anonymous — Mon, 30 Sep 2019 23:02:09 GMT

Case in point, this was just posted today.

https://ficoforums.myfico.com/t5/Credit-Card-Approvals/Sportsman-guide-advantage-visa/m-p/5759564/highlight/true#M629233

Approved and then shut down for inquiries.

Re: What's so Bad about COMENITY?

Anonymous — Mon, 30 Sep 2019 23:15:18 GMT

I’m definitely on board with the fact that what I was saying isn’t the whole story. Comenity seems to hold far higher standards on the V/MC offerings than on retail cards. That example you listed is a case in point, along with what I was saying regarding multiple store cards followed by a major card - too many apps before getting the V/MC. Otherwise though, it does seem that overexuberant apping for any card that would be approved (does ANYONE need a credit card for Piercing Pagoda?) was the catalyst for the AA.

Re: What's so Bad about COMENITY?

Anonymous — Tue, 01 Oct 2019 00:03:26 GMT

I have the Comenity BJs card, had it for about 3 years and have had ZERO issues. They are good with soft pull CLI and also $0 offers to transfer balances to them for 18 to 20 months with $0 APR. I honestly can't say enough nice about them because they've treated me great. I originally got it just to save 10 cents on gas, but I never expected I'd like it for anything else. I couldn't resist the balance transfer offer they gave me, that was unexpected, especially when everyone else had a 3% or more transfer fee.

Re: What's so Bad about COMENITY?

JR_TX — Tue, 01 Oct 2019 00:20:23 GMT

I’m staying clear of Comenity!
RIP Comenity!

Re: AJC needs to start a thread......What's so Bad about COMENITY?

Medic981 — Tue, 01 Oct 2019 00:48:59 GMT

@PutThatMoneyOnTheTable wrote:
@Medic981 wrote:
Not a fan of Comenity
I was gonna crack an A/C (Air Conditioning) joke, but nevermind.
Do you mind telling me what went wrong for you with comenity?

I opened up an Adorama CC to take advantage of 0% financing for 6 months. I set up bill pay through NFCU to pay on the account. My first payment was posted 8 days late. NFCU investigated and found that they sent a paper check (Comenity didn't allow for ACH payment) 4 days before the bill was due. Comenity states they didn't get the payment until 8 days past the due date. Comenity refused to return the late payment so I canceled my Adorama account and immediately paid off the account.

This is why I am not a fan of Comenity.

So to say the least, I will never knowingly open a credit account with Comenity again.

Re: What's so Bad about COMENITY?

PutThatMoneyOnTheTable — Tue, 01 Oct 2019 01:22:29 GMT

@Anonymous wrote:
I have the Comenity BJs card, had it for about 3 years and have had ZERO issues. They are good with soft pull CLI and also $0 offers to transfer balances to them for 18 to 20 months with $0 APR. I honestly can't say enough nice about them because they've treated me great. I originally got it just to save 10 cents on gas, but I never expected I'd like it for anything else. I couldn't resist the balance transfer offer they gave me, that was unexpected, especially when everyone else had a 3% or more transfer fee.

Nice to know that the 0% BT offers also applies to the BJ's card. 10 cents on gas is great. We spend on average $300-500 per month on groceries.

Re: AJC needs to start a thread......What's so Bad about COMENITY?

PutThatMoneyOnTheTable — Tue, 01 Oct 2019 01:25:53 GMT

@Medic981 wrote:
@PutThatMoneyOnTheTable wrote:
@Medic981 wrote:
Not a fan of Comenity
I was gonna crack an A/C (Air Conditioning) joke, but nevermind.
Do you mind telling me what went wrong for you with comenity?
I opened up an Adorama CC to take advantage of 0% financing for 6 months. I set up bill pay through NFCU to pay on the account. My first payment was posted 8 days late. NFCU investigated and found that they sent a paper check (Comenity didn't allow for ACH payment) 4 days before the bill was due. Comenity states they didn't get the payment until 8 days past the due date. Comenity refused to return the late payment so I canceled my Adorama account and immediately paid off the account.

This is why I am not a fan of Comenity.

So to say the least, I will never knowingly open a credit account with Comenity again.

Sorry you had to go through that, but that's some valuable information. I'll make a purchase and do a test payment to find out if they do ACH with my checking account. If it's paper check I'll have to schedule my payments days ahead or find out what bank they are ACH compatible with.

Re: AJC needs to start a thread......What's so Bad about COMENITY?

FinStar — Tue, 01 Oct 2019 02:02:10 GMT

@PutThatMoneyOnTheTable wrote:
@Medic981 wrote:
@PutThatMoneyOnTheTable wrote:
@Medic981 wrote:
Not a fan of Comenity
I was gonna crack an A/C (Air Conditioning) joke, but nevermind.
Do you mind telling me what went wrong for you with comenity?
I opened up an Adorama CC to take advantage of 0% financing for 6 months. I set up bill pay through NFCU to pay on the account. My first payment was posted 8 days late. NFCU investigated and found that they sent a paper check (Comenity didn't allow for ACH payment) 4 days before the bill was due. Comenity states they didn't get the payment until 8 days past the due date. Comenity refused to return the late payment so I canceled my Adorama account and immediately paid off the account.

This is why I am not a fan of Comenity.

So to say the least, I will never knowingly open a credit account with Comenity again.

Sorry you had to go through that, but that's some valuable information. I'll make a purchase and do a test payment to find out if they do ACH with my checking account. If it's paper check I'll have to schedule my payments days ahead or find out what bank they are ACH compatible with.

Payments can also be made (or pulled) directly from the Comenity website. I've had no issues doing so. That said, if you are pushing payments directly from your own institution, it's best to test things out to learn what the typical delivery/posting timeframe is. I would never assume that any institutions would handle it via ACH as banks/CUs have their own Bill Pay agreements and funds settlement process. So, in the above scenario, it's always good to learn beforehand how some payments are made/delivered to a variety of payees.