topic Re: Barclay monitoring...mystery solved or made more complex? in Credit Cards

Barclay monitoring...mystery solved or made more complex?

CreditCrusader — Wed, 26 Oct 2011 08:24:34 GMT

I have been reading much information on this board regarding Barclay's tendency to keep a close eye on new approvals to make sure they aren't in the midst of a swipe-n-run credit grab. Today, I decided to call Barclay and see if I could unravel the mystery that is the CLD/closed account after the initial approval...

I spoke to two different backdoor reps to get some clarification. I outlined the fact that many friends I know are nervous about being approved for one of Barclay's cards because they have been known to be closed or dramatically reduced in limit due to varying numbers of inquiries shortly after being approved. Both of them were very kind and explained as follows (keep in mind this is limited feedback, but that the following points were verified independently by separate reps, so take FWIW):

1. An inquiry in and of itself after approval will not get you closed or CLD. A rash of inquiries WILL. I could not squeeze specific numbers out of them, but both basically said what is tantamount to "You know it when you see it". In other words, if Barclay is the 5th of a string of 10 within a very short period of time, you can expect that account to be impacted.

2. Post-approval inquiries combined with substantial initial Barclay card usage can often cause accounts to be closed. This is consistent with most of what I have read here, as many who register complaints about CLDs or closure based on a few additional inquiries typically also report substantial initial usage ($500 or above) as well. So if you're thinking of going on a mini app spree, be careful about how much you put on the Barclay card right away.

3. Util during the probie period is a big deal for Barclay. If they see util creeping up (especially theirs) and notice additional apps, they consider that a red flag for someone to extend themselves. They reduce CL or close the account altogether to minimize risk.

Botom-line here: This is a relatively easy card for many to obtain, but their RM is simultaneously stringent. I do not believe that the stray application after being approved will trigger closing accounts. That would be terrible decision-making from a business perspective, as they would be losing business from what are generally credit-worthy customers with track records of paying their debts. I do believe that red-flag behavior (such as furious applications for credit or multiple apps while util is high and/or climbing) or combinations of factors (like heavy initial usage COMBINED WITH apps after the approval) are what trigger these CLDs and closures.

I should also add that both reps were very bothered to hear that some new cardholders were nervous about having and using the cards, then having them impacted in a negative way or closed. I do not believe they want to have the reputation of a company that chops accounts (just ask Sprint what this does to business apropos their "firing" several hunred long-time customers a couple of years ago..they have never really recovered from the ensuing PR nightmare) of qualified cardholders. I think they are just spooked after what happened in 2008-2009 and want to guard their bases as best they can. That was my impression, anyway.

Again, just one man's assessment based on two lengthy conversations with 2 different backdoor reps. As is always the case, YMMV and each to his own experiences

Re: Barclay monitoring...mystery solved or made more complex?

JRomulus — Wed, 26 Oct 2011 04:13:26 GMT

Good info thanks.

Recently got a Barclays US Air card after falling for a flight attendent's pitch on a flight, lots of benefits actually, that more than cover the annual fee of $89.

One was 1 airline mile for every $ of transfered balance to the card (0%) in the first 30 days (up to $10,000).

I was approved for $8800 on the card and moved $8000 over from a Citi card that had a 14% interest rate.

They pulled Transunion. So far no problems, I haven't been apping much the past few months (8 on TU during past 2 years) and my overall utility is under 25%.

But due to rumors about them, I was interested to see how they would treat me. We'll see, but the first 6 weeks have been OK, and they gave me the miles promised promptly.

Re: Barclay monitoring...mystery solved or made more complex?

Anonymous — Wed, 26 Oct 2011 04:43:28 GMT

Hmmm this is pretty interesting...I just opened a Barclaycard account at the end of a mini app spree after reconsideration...I was planning on putting a new macbook on my new card, maybe i should think again...

Re: Barclay monitoring...mystery solved or made more complex?

CreditCrusader — Wed, 26 Oct 2011 08:23:23 GMT

@Anonymous wrote:
Hmmm this is pretty interesting...I just opened a Barclaycard account at the end of a mini app spree after reconsideration...I was planning on putting a new macbook on my new card, maybe i should think again...

To be honest with you, I don't think it's the initial purchase itself that presents a problem. It's that purchase combined with multiple apps AFTER approval that would seem to make Barclay's nervous.

And that's understandable since it would logically signal someone eager to run up massive debt in a short time. However, I really can't see a stand-alone purchase being an issue.

Re: Barclay monitoring...mystery solved or made more complex?

mxp114 — Wed, 26 Oct 2011 08:26:39 GMT

Good info and I actually didn't share my Barclays experience but will now...

Last month I was approved for $10k by calling backdoor, because I was initially declined for too many INQ. I read all the posts here and elsewhere about how excessive Barclays is with respect to new accts and INQ, so I cancelled before the card was ever issued. A supervisor called me and said I should be fine but I just didn't want to deal with the headache of having a TL opened and closed within a month or two. I opened four accounts last month so figured I was prime for a closure/CLD. They don't offer anything I can't get elsewhere so rather than deal with that, I just decided to close.

Re: Barclay monitoring...mystery solved or made more complex?

CreditCrusader — Wed, 26 Oct 2011 08:38:22 GMT

@mxp114 wrote:
Good info and I actually didn't share my Barclays experience but will now...

Last month I was approved for $10k by calling backdoor, because I was initially declined for too many INQ. I read all the posts here and elsewhere about how excessive Barclays is with respect to new accts and INQ, so I cancelled before the card was ever issued. A supervisor called me and said I should be fine but I just didn't want to deal with the headache of having a TL opened and closed within a month or two. I opened four accounts last month so figured I was prime for a closure/CLD. They don't offer anything I can't get elsewhere so rather than deal with that, I just decided to close.

Had they already reported your line to the bureaus? Mine was reported the day after I was approved and well before the card arrived.

Re: Barclay monitoring...mystery solved or made more complex?

Anonymous — Wed, 26 Oct 2011 13:15:32 GMT

@CreditCrusader wrote:
@Anonymous wrote:
Hmmm this is pretty interesting...I just opened a Barclaycard account at the end of a mini app spree after reconsideration...I was planning on putting a new macbook on my new card, maybe i should think again...
To be honest with you, I don't think it's the initial purchase itself that presents a problem. It's that purchase combined with multiple apps AFTER approval that would seem to make Barclay's nervous.

And that's understandable since it would logically signal someone eager to run up massive debt in a short time. However, I really can't see a stand-alone purchase being an issue.

Well I'm in garden mode now that I have this new Barclays. I didn't think I had a chance for approval because of all of my inq's to begin with and relatively low scores, but they approved after i called backdoor. It a small limit compared with most people's cards, but the $1500 TL that they gave me is my largest to date, so I really can't afford to lose such a significant TL, plus this card is the closest thing I will have to a prime card, so it seems I may have to work to keep it.

Would you reccomend me calling them and asking what THEY think I should do? They seem like reasonable people over the phone, and an upside is that theyre based in the US

Re: Barclay monitoring...mystery solved or made more complex?

CreditCrusader — Wed, 26 Oct 2011 13:28:29 GMT

@Anonymous wrote:
@CreditCrusader wrote:
@Anonymous wrote:
Hmmm this is pretty interesting...I just opened a Barclaycard account at the end of a mini app spree after reconsideration...I was planning on putting a new macbook on my new card, maybe i should think again...
To be honest with you, I don't think it's the initial purchase itself that presents a problem. It's that purchase combined with multiple apps AFTER approval that would seem to make Barclay's nervous.

And that's understandable since it would logically signal someone eager to run up massive debt in a short time. However, I really can't see a stand-alone purchase being an issue.
Well I'm in garden mode now that I have this new Barclays. I didn't think I had a chance for approval because of all of my inq's to begin with and relatively low scores, but they approved after i called backdoor. It a small limit compared with most people's cards, but the $1500 TL that they gave me is my largest to date, so I really can't afford to lose such a significant TL, plus this card is the closest thing I will have to a prime card, so it seems I may have to work to keep it.

Would you reccomend me calling them and asking what THEY think I should do? They seem like reasonable people over the phone, and an upside is that theyre based in the US

I really don't think that contacting them preemptively would be necessary at this juncture unless you have a slew of inquiries set to hit your report and you want to explain to them in advance. Putting the brakes on any new apps for several consecutive months (I have frozen all three bureaus from pulls) and perhaps setting up automatic payments (they have two options...min bal and PIF, both on due date listed on statement) would be a good will gesture to them that you're serious about managing this card responsibly.

Of course, every person's approach is not similar, but this is the one I have chosen. I figure that no apps + PIF via autopay for 6 months will put them at ease and put me in line for a sweet CLI once all that gardening reaps a pretty harvest!

Re: Barclay monitoring...mystery solved or made more complex?

Anonymous — Wed, 26 Oct 2011 13:30:42 GMT

@CreditCrusader wrote:
@Anonymous wrote:
@CreditCrusader wrote:
@Anonymous wrote:
Hmmm this is pretty interesting...I just opened a Barclaycard account at the end of a mini app spree after reconsideration...I was planning on putting a new macbook on my new card, maybe i should think again...
To be honest with you, I don't think it's the initial purchase itself that presents a problem. It's that purchase combined with multiple apps AFTER approval that would seem to make Barclay's nervous.

And that's understandable since it would logically signal someone eager to run up massive debt in a short time. However, I really can't see a stand-alone purchase being an issue.
Well I'm in garden mode now that I have this new Barclays. I didn't think I had a chance for approval because of all of my inq's to begin with and relatively low scores, but they approved after i called backdoor. It a small limit compared with most people's cards, but the $1500 TL that they gave me is my largest to date, so I really can't afford to lose such a significant TL, plus this card is the closest thing I will have to a prime card, so it seems I may have to work to keep it.

Would you reccomend me calling them and asking what THEY think I should do? They seem like reasonable people over the phone, and an upside is that theyre based in the US
I really don't think that contacting them preemptively would be necessary at this juncture unless you have a slew of inquiries set to hit your report and you want to explain to them in advance. Putting the brakes on any new apps for several consecutive months (I have frozen all three bureaus from pulls) and perhaps setting up automatic payments (they have two options...min bal and PIF, both on due date listed on statement) would be a good will gesture to them that you're serious about managing this card responsibly.

Of course, every person's approach is similar, but this is the one I have chosen. I figure that no apps + PIF via autopay for 6 months will put them at ease and put me in line for a sweet CLI once all that gardening reaps a pretty harvest!

Well I think that most of my inq's have already hit over the last week or so, save for maybe 1, Once I get the card, I will set up autopay on it, and over the next 3-4 months, I'm going to work on zeroing all of my balances out and trying to keep a 10-15% uti on the new barclaycard. I have no further plans for apping in the near future until I can close some of my less favorable cards for more prime cards (cough cough, first premier)

Re: Barclay monitoring...mystery solved or made more complex?

mxp114 — Wed, 26 Oct 2011 13:32:45 GMT

@CreditCrusader wrote:
Had they already reported your line to the bureaus? Mine was reported the day after I was approved and well before the card arrived.

After I closed, I faxed a letter to the credit bureau disputes team and requested that the account not get reported. A credit bureau rep called me and I told them I didn't yet agree to the terms by signing the card, nor have I activated it and received it, etc. After some haggling, she confirmed it would not get reported.

Re: Barclay monitoring...mystery solved or made more complex?

CreditCrusader — Wed, 26 Oct 2011 13:38:57 GMT

@Anonymous wrote:
@CreditCrusader wrote:
@Anonymous wrote:
@CreditCrusader wrote:
@Anonymous wrote:
Hmmm this is pretty interesting...I just opened a Barclaycard account at the end of a mini app spree after reconsideration...I was planning on putting a new macbook on my new card, maybe i should think again...
To be honest with you, I don't think it's the initial purchase itself that presents a problem. It's that purchase combined with multiple apps AFTER approval that would seem to make Barclay's nervous.

And that's understandable since it would logically signal someone eager to run up massive debt in a short time. However, I really can't see a stand-alone purchase being an issue.
Well I'm in garden mode now that I have this new Barclays. I didn't think I had a chance for approval because of all of my inq's to begin with and relatively low scores, but they approved after i called backdoor. It a small limit compared with most people's cards, but the $1500 TL that they gave me is my largest to date, so I really can't afford to lose such a significant TL, plus this card is the closest thing I will have to a prime card, so it seems I may have to work to keep it.

Would you reccomend me calling them and asking what THEY think I should do? They seem like reasonable people over the phone, and an upside is that theyre based in the US
I really don't think that contacting them preemptively would be necessary at this juncture unless you have a slew of inquiries set to hit your report and you want to explain to them in advance. Putting the brakes on any new apps for several consecutive months (I have frozen all three bureaus from pulls) and perhaps setting up automatic payments (they have two options...min bal and PIF, both on due date listed on statement) would be a good will gesture to them that you're serious about managing this card responsibly.

Of course, every person's approach is similar, but this is the one I have chosen. I figure that no apps + PIF via autopay for 6 months will put them at ease and put me in line for a sweet CLI once all that gardening reaps a pretty harvest!
Well I think that most of my inq's have already hit over the last week or so, save for maybe 1, Once I get the card, I will set up autopay on it, and over the next 3-4 months, I'm going to work on zeroing all of my balances out and trying to keep a 10-15% uti on the new barclaycard. I have no further plans for apping in the near future until I can close some of my less favorable cards for more prime cards (cough cough, first premier)

I think you'll be fine. It's how people like you and I behave from this point forward that will dictate our respective futures with this lender. I had a long list of (incorrect) superfluous inquiries, courtesy of the auto dealership who I purchased two new vehicles from (25 pulls from various lenders...AFTER the deal was done...dealership in the process of getting these removed and has 4 of them off my reports already)...and Barclay approved me after hearing my explanation, so they didn't seem too terribly concerned with it so long as I behave appropriately with my account and credit moving forward. I think at this point Barclay is looking for responsible card use and overall credit management...understandable for a company that is taking a flyer on two people with fringe credit credentials!

I know I will definitely be gardening and making the right moves...it sounds like you're right there with me, mstew!

Re: Barclay monitoring...mystery solved or made more complex?

Anonymous — Wed, 26 Oct 2011 13:53:06 GMT

I had a lot of inqs from the dealers two...bought two new cars this year and the dealership sent my credit to about 5 different banks on one day, but that didn't seem to bother them. I think you're right in that they're simply looking for responsible credit usage, which I have been and will continue to do. I think they just dont want to get burned by "that guy" who opens a new account simply to charge it up to the max and pay mins for the next 2 years before he either has the card charged off or files for BK.

Hopefully as a result of our gardening in 6 months from now we'll see some nice CLIs

Re: Barclay monitoring...mystery solved or made more complex?

CreditCrusader — Wed, 26 Oct 2011 19:51:29 GMT

@Anonymous wrote:
I had a lot of inqs from the dealers two...bought two new cars this year and the dealership sent my credit to about 5 different banks on one day, but that didn't seem to bother them. I think you're right in that they're simply looking for responsible credit usage, which I have been and will continue to do. I think they just dont want to get burned by "that guy" who opens a new account simply to charge it up to the max and pay mins for the next 2 years before he either has the card charged off or files for BK.

Hopefully as a result of our gardening in 6 months from now we'll see some nice CLIs

What I want to know is what is waiting for us at the end of the journey?

Say I pay my util down to 1-2% over the next 6 months...get those inquiries removed and cease applications during that same span...bump FICO to the 680-720 range...will I be able to take the leap into full-blown (Is Barclay prime?) prime card territory?

Re: Barclay monitoring...mystery solved or made more complex?

Anonymous — Wed, 26 Oct 2011 20:40:22 GMT

Well I don't know about you, but I'm really hoping for a decent CLI, somewhere around 1k within the next year. As for prime, I'm really not sure. I like to think its semi-prime, as they won't just approve anyone and their limits are pretty decent, but then again they did accept us, sort of on the fringe of what they will approve, so it looks like their target ficos are closer to 700. I also hope that within under a year when many of my inqs fall off, I'll be able to jump into prime offerings like chase and discover, and maybe, if i'm really careful, an amex

by the way, just got another inq from them today from the recon, they pulled experian

Re: Barclay monitoring...mystery solved or made more complex?

CreditCrusader — Wed, 26 Oct 2011 20:48:55 GMT

@Anonymous wrote:
Well I don't know about you, but I'm really hoping for a decent CLI, somewhere around 1k within the next year. As for prime, I'm really not sure. I like to think its semi-prime, as they won't just approve anyone and their limits are pretty decent, but then again they did accept us, sort of on the fringe of what they will approve, so it looks like their target ficos are closer to 700. I also hope that within under a year when many of my inqs fall off, I'll be able to jump into prime offerings like chase and discover, and maybe, if i'm really careful, an amex

by the way, just got another inq from them today from the recon, they pulled experian

Barclay pulled another inquiry during your recon? Wow...they just looked up my original TU report on mine. Bummer!

Re: Barclay monitoring...mystery solved or made more complex?

Anonymous — Wed, 26 Oct 2011 20:49:50 GMT

Yeah it sucks but at least now i know that they approved me still despite all of the recent inqs so im not as worried now about them closing the account on me or dropping the TL.

Re: Barclay monitoring...mystery solved or made more complex?

CreditCrusader — Wed, 26 Oct 2011 20:54:06 GMT

@Anonymous wrote:
Yeah it sucks but at least now i know that they approved me still despite all of the recent inqs so im not as worried now about them closing the account on me or dropping the TL.

Exactly...and really, the whole hysteria over CLDs and closing accounts is, IMHO, a little overblown in this forum. The situations I have read about haven't been cases of applying for an additional card or two after being approved. They are usually fairly large initial Barclay card purchases combined with several additional inquiries. Maybe Barclay is checking on new cardholders, but I believe it takes a specific set of circumstances to warrant closing an account or significantly lowering CLI right away.

Bottom-line: If you use your card responsibly and mind the store with the rest of your credit, you should be good

Re: Barclay monitoring...mystery solved or made more complex?

Anonymous — Wed, 26 Oct 2011 21:01:14 GMT

@CreditCrusader wrote:
@Anonymous wrote:
Yeah it sucks but at least now i know that they approved me still despite all of the recent inqs so im not as worried now about them closing the account on me or dropping the TL.
Exactly...and really, the whole hysteria over CLDs and closing accounts is, IMHO, a little overblown in this forum. The situations I have read about haven't been cases of applying for an additional card or two after being approved. They are usually fairly large initial Barclay card purchases combined with several additional inquiries. Maybe Barclay is checking on new cardholders, but I believe it takes a specific set of circumstances to warrant closing an account or significantly lowering CLI right away.

Bottom-line: If you use your card responsibly and mind the store with the rest of your credit, you should be good

Exactly. I'm going to be working furiously over the next 4 months (should be less than 60 days but christmas season is coming...) to pay all of my balances off so that onc these inqs are gone i'll be well positioned for a nice hefty CLI and maybe a new card to replace first premier with

Re: Barclay monitoring...mystery solved or made more complex?

JRomulus — Thu, 27 Oct 2011 01:58:19 GMT

Want to also confirm that the new Barclay's (US Air MC) TL hit my credit report even before I got the card. That IS unusual, and more than likely the practice of a company really intent on minimizing "app sprees".

Also, I had all 3 CB's frozen when I filled out the paper app on the US Air plane (you get an extra 500 miles if you app'd right on the plane, on top of the 30K new account bonus miles!). After I got home I had 2nd thoughts, so I just left my TU account frozen. (Bad boy for app'ing during garden mode!)

Exactly 2 weeks later I unfroze it when I app'd for a mortgage refinance at a bank. Unfroze it for just 48 hours. Sure enough the Barclay's hard pull went through in that 48 hour window. Even if it took the airline a week to get the hard copy applications to Barclays, they must have tried to get that hard pull done DAILY until it went through.

And 2 days after the pull, it showed up as a TL on my TU.

Re: Barclay monitoring...mystery solved or made more complex?

Anonymous — Thu, 27 Oct 2011 02:06:26 GMT

@JRomulus wrote:
Want to also confirm that the new Barclay's (US Air MC) TL hit my credit report even before I got the card. That IS unusual, and more than likely the practice of a company really intent on minimizing "app sprees".

Also, I had all 3 CB's frozen when I filled out the paper app on the US Air plane (you get an extra 500 miles if you app'd right on the plane, on top of the 30K new account bonus miles!). After I got home I had 2nd thoughts, so I just left my TU account frozen. (Bad boy for app'ing during garden mode!)

Exactly 2 weeks later I unfroze it when I app'd for a mortgage refinance at a bank. Unfroze it for just 48 hours. Sure enough the Barclay's hard pull went through in that 48 hour window. Even if it took the airline a week to get the hard copy applications to Barclays, they must have tried to get that hard pull done DAILY until it went through.

And 2 days after the pull, it showed up as a TL on my TU.

Well the inq from the recon showed up today after getting it recon & approved yesterday. Was advised I should recieve the card in as little as 3 business days, so it might appear on my report as early as tomorrow...