topic Re: Approval Process Question in Credit Cards

Approval Process Question

Anonymous — Thu, 03 Jan 2008 23:04:32 GMT

Hi All,

My guess is that this question will need to be answered by an insider. What is the typical (if there is one) process for being approved or denied for a credit card.

For example When I first began my journey ti better credit, I was often instantly denied for cards now I find that I am getting more further processing messages.

Do the CC companies have a FICO floor. Meaning that they wont instantly approve anyone below a particular number. Or if you are in a particular range, you will trigger a manual review.

Do certain baddies trigger an immediate denial regardless of your score?

Please share any in site that you may have.

WBLAKE

Re: Approval Process Question

andyaycw — Thu, 03 Jan 2008 23:14:56 GMT

Different companies have different policies on approving new credit applications. Some, like Amex, have their own internal scoring model which I have no idea how it works. Others simply use information on your credit report such as: your credit score, payment status on your current accounts, any potentially derogatory information (such as late payments, charge offs, bankruptcy, etc.) number of recently opened accounts, new credit inquiries, % of credit utilization, etc. Some, like Penfed, also take into account your balance history. Some have been denied for "pyramiding debt" because their account balances gradually increased in the months prior to their application for credit.

Depending on the company, they may simply use your FICO score. Others will take the information that's on your credit report and use their own formula to determine if you're an acceptable risk.

Edit: In regards to instant denials, I believe some do have triggers. Amex, for example, is not very BK friendly at all. Other issuers may auto-deny for any recent derogatory information, and will ask you to wait a year or two before applying again.

Message Edited by andyaycw on 01-03-2008 03:13 PM

Message Edited by andyaycw on 01-03-2008 03:14 PM

Re: Approval Process Question

Anonymous — Thu, 03 Jan 2008 23:29:02 GMT

andyaycw wrote:
Different companies have different policies on approving new credit applications. Some, like Amex, have their own internal scoring model which I have no idea how it works. Others simply use information on your credit report such as: your credit score, payment status on your current accounts, any potentially derogatory information (such as late payments, charge offs, bankruptcy, etc.) number of recently opened accounts, new credit inquiries, % of credit utilization, etc. Some, like Penfed, also take into account your balance history. Some have been denied for "pyramiding debt" because their account balances gradually increased in the months prior to their application for credit.

Depending on the company, they may simply use your FICO score. Others will take the information that's on your credit report and use their own formula to determine if you're an acceptable risk.

Edit: In regards to instant denials, I believe some do have triggers. Amex, for example, is not very BK friendly at all. Other issuers may auto-deny for any recent derogatory information, and will ask you to wait a year or two before applying again.

Message Edited by andyaycw on 01-03-2008 03:13 PM

Message Edited by andyaycw on 01-03-2008 03:14 PM

Citi instantly denies for open or closed charge offs less than three years.

Re: Approval Process Question

haulingthescoreup — Thu, 03 Jan 2008 23:31:51 GMT

Forget Chase with a recent late. Also, if you go to their site and pretend to apply for any of their cards (including store cards), you'll see a box asking if you have recent lates or a BK, I think it is.

Re: Approval Process Question

Anonymous — Thu, 03 Jan 2008 23:34:48 GMT

Chase has checkboxes for their "elite" checklist.

Yes, my credit history is clear of bankruptcy.
Yes, my credit history is clear of seriously delinquent accounts.
Yes, I have NOT been denied credit by Chase within the last 6 months.

Chase denies me every 6 months so I won't be applying with them anytime soon

Message Edited by EddieX on 01-03-2008 06:34 PM

Re: Approval Process Question

haulingthescoreup — Thu, 03 Jan 2008 23:36:24 GMT

Hi, Eddie, I hadn't heard that about the "elite" cards. I've even seen that on the app for the Borders store card. Of course, I'm still roadkill with them until next April at the earliest. Maybe then I'll be elite roadkill!

Re: Approval Process Question

Anonymous — Thu, 03 Jan 2008 23:45:05 GMT

It's on the top of the page for EVERY Chase card now. I'll never get in with them I guess. Wish they didn't own half the known world.

Re: Approval Process Question

Anonymous — Fri, 04 Jan 2008 01:09:34 GMT

EddieX wrote:
It's on the top of the page for EVERY Chase card now. I'll never get in with them I guess. Wish they didn't own half the known world.

It may be more of a deterrent than anything. I've seen some posts on other boards where people applied for Chase cards and didn't check the box next to one or more of those questions, yet they still got approved.

Re: Approval Process Question

marty56 — Fri, 04 Jan 2008 02:13:49 GMT

This summer I will apply for a Chase Kiss card. I want to wait a bit till my 2nd TU inq drops off and I want to pay off my Bill Me Latter account.

I can wait.

Re: Approval Process Question

Anonymous — Fri, 04 Jan 2008 03:46:16 GMT

marty56 wrote:
This summer I will apply for a Chase Kiss card. I want to wait a bit till my 2nd TU inq drops off and I want to pay off my Bill Me Latter account.

I can wait.

Scores are looking good Marty!! Wow!