topic Re: How to answer a credit analyst? in Credit Cards

How to answer a credit analyst?

aloush11 — Tue, 26 Jun 2012 21:25:20 GMT

I applied for a Barclay's card in the past and recon'ed . When I spoke with the credit analyst he asked me "what's the reasoning for all the new accounts?"
I had no idea how to answer that so I answered honestly and said... I figured if I apply and I'm gonna take a hit on my AAoA, might as well make it worth it..

I never ended up getting the card and was wondering how should that be answered? I opened six new accounts over a three month span.. I'm gardening now and will not be reapply for anything for about a year...

What's your input?

Re: How to answer a credit analyst?

cashnocredit — Tue, 26 Jun 2012 21:31:36 GMT

One thing I would do is not to say anything that implies more than minimal knowledge of credit and scoring details. There are very few good reasons (from a CA pov) that people delve deeply into credit arcana. For example, I find credit and the way credit interacted with rating mortgage backed securities fascinating. I'm not normal.

Re: How to answer a credit analyst?

Anonymous — Wed, 27 Jun 2012 00:59:18 GMT

I would just be honest and say that your trying to build your credit file or something like that

Re: How to answer a credit analyst?

tntexans72 — Wed, 27 Jun 2012 01:16:28 GMT

Would be great if OP chime in on some of the popular questions a CA would ask when one do a recon. I have never done a recon but apparantly, it's working for alot of ppl.

Re: How to answer a credit analyst?

SwiftTone — Wed, 27 Jun 2012 01:46:50 GMT

@aloush11 wrote:
I applied for a Barclay's card in the past and recon'ed . When I spoke with the credit analyst he asked me "what's the reasoning for all the new accounts?"
I had no idea how to answer that so I answered honestly and said... I figured if I apply and I'm gonna take a hit on my AAoA, might as well make it worth it..

I never ended up getting the card and was wondering how should that be answered? I opened six new accounts over a three month span.. I'm gardening now and will not be reapply for anything for about a year...

What's your input?

not to bash you but I'm puzzled by this answer.

Barclay is inquiry sensitive. But if I had to answer that question I would have said something like "I'm trying to build a strong portofolio, and Barclays would round it out nicely"

Re: How to answer a credit analyst?

aloush11 — Wed, 27 Jun 2012 20:02:11 GMT

@tntexans72 wrote:
Would be great if OP chime in on some of the popular questions a CA would ask when one do a recon. I have never done a recon but apparantly, it's working for alot of ppl.

I have done a couple recons and some were successful and some were just embarrassing. lol

They all usually ask the same questions.

1. Income information (generic script)

2. Public Records

I have a BK from 7/2010 and let them know it was because of Identity theft.

3. Can you explain the balances?

I usually do PIF or leave a small balance, but Experian reports the actual amounts paid (which is awesome!).

4. Inquires (After reading another post I learned Barclays is inquiry sensitive )

I Have no idea how to answer this correctly without shooting my self in the foot

If they like you...

5. Why did you apply?

I tell them I want to expand my credit profile and after reading the benefits that the account offers I think this card is a great fit for me.

6. How much are you looking for?

I ask them to match my Chase Freedom ($5500). Sometime they do... They can also approve you for a lower amount and work they say after you establish your self (6 months) we can re review and increase.

@7. Ive had one CA counter offer the actual offer I applied for. For example I applied for 12 months @ 0%, they counter offered 6 months @ 0%.

Hope this helps

Re: How to answer a credit analyst?

kimmiller112 — Wed, 27 Jun 2012 20:13:34 GMT

When I got my Barclay's apple financing card, I told them I was thinking of buying a computer (not true, but it worked). When I got their US Airways card, I told them I travel a lot and US Air is the only commercial planes that fly out of my local airport (true). With my Discover and Chase, I was interested in their cash back programs. Whatever features a particular card offers, tell them that is what you are interested in.

Re: How to answer a credit analyst?

Revelate — Thu, 28 Jun 2012 05:19:42 GMT

@kimmiller112 wrote:
When I got my Barclay's apple financing card, I told them I was thinking of buying a computer (not true, but it worked). When I got their US Airways card, I told them I travel a lot and US Air is the only commercial planes that fly out of my local airport (true). With my Discover and Chase, I was interested in their cash back programs. Whatever features a particular card offers, tell them that is what you are interested in.

+1, sell them their own marketing back to them... "I really want this card because <insert special thing they do>"

Re: How to answer a credit analyst?

Anonymous — Sat, 30 Jun 2012 08:36:52 GMT

Tell them you want to give them money for you to have things you don't need now. Isn't that the truth? Come on....I know they would love that answer (it's the one the company wants to hear all the time!)

Re: How to answer a credit analyst?

Anonymous — Sat, 30 Jun 2012 08:39:11 GMT

I just don't see why having new accounts would hurt getting another new card, maybe if you have close to maxed the cards then maybe...FICO is so strange when it comes to different reasons why your score drops. If your able to verify your employment and meet all there req's your score shouldn't weigh as much on the app....in my opinon (coming from a person almost back in the 700's..the journey goes on!).

Re: How to answer a credit analyst?

Anonymous — Sat, 30 Jun 2012 08:44:07 GMT

@aloush11 wrote:
@tntexans72 wrote:
Would be great if OP chime in on some of the popular questions a CA would ask when one do a recon. I have never done a recon but apparantly, it's working for alot of ppl.
I have done a couple recons and some were successful and some were just embarrassing. lol

They all usually ask the same questions.

1. Income information (generic script)

2. Public Records
I have a BK from 7/2010 and let them know it was because of Identity theft.

3. Can you explain the balances?
I usually do PIF or leave a small balance, but Experian reports the actual amounts paid (which is awesome!).

4. Inquires (After reading another post I learned Barclays is inquiry sensitive )
I Have no idea how to answer this correctly without shooting my self in the foot
If they like you...

5. Why did you apply?
I tell them I want to expand my credit profile and after reading the benefits that the account offers I think this card is a great fit for me.

6. How much are you looking for?
I ask them to match my Chase Freedom ($5500). Sometime they do... They can also approve you for a lower amount and work they say after you establish your self (6 months) we can re review and increase.

@7. Ive had one CA counter offer the actual offer I applied for. For example I applied for 12 months @ 0%, they counter offered 6 months @ 0%.

Hope this helps

I kind of hate the answer to question #2. Not sure how Id theft would cause bk. Sounds like a lie to me. If you had debts from Id theft, there are ways to resolve outside of bk.

Re: How to answer a credit analyst?

Repo-ed — Sat, 30 Jun 2012 10:38:17 GMT

When I was asked a similar question, I told the lady that I've read nothing but positive reviews about the card, and I wanted to build a relationship with them too.

Re: How to answer a credit analyst?

RockinRay — Sat, 30 Jun 2012 11:17:54 GMT

@Anonymous wrote:
I would just be honest and say that your trying to build your credit file or something like that

+1 - be honest with them. They have heard it all!

Re: How to answer a credit analyst?

Revelate — Sat, 30 Jun 2012 15:34:59 GMT

@Anonymous wrote:
I just don't see why having new accounts would hurt getting another new card, maybe if you have close to maxed the cards then maybe...FICO is so strange when it comes to different reasons why your score drops. If your able to verify your employment and meet all there req's your score shouldn't weigh as much on the app....in my opinon (coming from a person almost back in the 700's..the journey goes on!).

Any new account is one you haven't had before, and there's a limit to everyone's ability on aggregate CL / aggregate tradelines to manage them responsibly. It's a fair and valid statistic in general to be used for a risk analysis.

Also, it's not assessed necessarily on your current balance, but what your total credit extension *could* be, and would that kick you over the hump into a situation you'd likely default on.

Random thoughts but both are legitimate things for a lender to assess in my opinion at any rate.

Re: How to answer a credit analyst?

Anonymous — Sat, 30 Jun 2012 15:45:15 GMT

"It would be a great card in my credit portfolio......... for me to poop on."

Honestly, you just say you are working on your credit file or that you saw a great promotion.

Simpler usually is better. Or even how while you were applying for other cards you started learning about Barclays and how great they are.

Re: How to answer a credit analyst?

aloush11 — Sat, 30 Jun 2012 16:11:43 GMT

I had ID theft since I was 6 years old. I only discovered when I turned 18 and applied for a job at the local credit union and was denied because of it.

I was on my own and didn't know what to do. I spoke to a couple lawyers and tried to get it resolved but they wanted a lot of money. I called the creditors and did as they asked ( proof and copies ) even filed a police report and worked with them to try to resolve it. A year passed and they started garnishing my state tax refund, savings and even my paychecks!

Finally I decided to file bk to stop all the garnishments and start over. I didn't know what else I could do...