topic Re: AAoA, credit score. freedom in Credit Cards

AAoA, credit score. freedom

Anonymous — Sat, 20 Apr 2013 13:54:07 GMT

AAoA 1.75 years or so,
Credit score is in the sigs. 742 and 739 eq hasn't updated yet and I havent pulled it.

What are my chances of getting this card?
Any Amex cards that I might qualify for?

4 inqs on trans union
0 on exp
No idea about eq

Inquiries are all very recent. One for a car loan that I declined to get.
Discover, mortgage loan prequalify pull didn't want that. Psecu for the last one I believe.

2 new accounts opened last month.

Psecu 2k limit
Discover 500 limit ( lol )
Secured card of 1.2 years 200 limit
Closed card in good standing never late.

5 student loans fom 2010 never late in good standing.
$65 monthly due.

Re: AAoA, credit score. freedom

Anonymous — Sat, 20 Apr 2013 13:57:30 GMT

I wont apply for a new card till probably mid june or july my aaoa might be 2 years by then but discover still hasnt shown up. Regardless of that with my current credit picture. Do I have a chance? And the last inquiry isnt from psecu, it's from chase I applied for the freedom card but they couldn't generate a credit score due to name change now that everything is reporting under my new name I figured I'd try again. Apparently discover and psecu didn't mind that I had no report at the time. (Thank god.)

Re: AAoA, credit score. freedom

boomhower — Sat, 20 Apr 2013 13:59:01 GMT

It's borderline. Chase likes 12 months of revolving history. With the only thing you have is a very low limit secured card I'm not sure how'll they react to that. Two new accounts in the last month doesn't help either. Another member here was denied recently for having new accounts as well.

Re: AAoA, credit score. freedom

SnackTrader — Sat, 20 Apr 2013 14:29:19 GMT

If that secured isn't reporting as secured, there would be no way for Chase to tell it is a secured card.

Second, I don't know where everyone gets that 12 months revolving credit thing for them, there have been DOZENS of approvals stated on this site in the last 6 months with less than a year of revolving history as long as there is additional support. Including: longer AAoA from installment loans, no baddies, high income, etc.

I think it has gotten to a mythical proportion, but the truth is that Freedom has become very attainable for many folks. In fact, for Pineapple's sake - I just saw someone with a lower AAoA, and similar revolving history (also with no baddies) get approved for a $5,000 limit on theFreedom card. Income was somewhere over $50k, so that likely helped. They didn't even have to call recon, which has been a great experience for so many people.

YMMV, but your profile appears to support future prime applications. Just be sure to take it slowly, the INQs will start catching up with you.

Re: AAoA, credit score. freedom

LS2982 — Sat, 20 Apr 2013 14:30:14 GMT

I would say borderline as well. Not enough revolving history. I'd wait at least 6 months then go for It!

Re: AAoA, credit score. freedom

SnackTrader — Sat, 20 Apr 2013 14:48:53 GMT

How long was the closed credit card open? Is the secured card reporting to the bureaus as secured or unsecured?

Let's get the full picture here and we can probably give better advice.

Just for the record, I was approved for Freedom with six months revolving history.

This poster had 10 months:
http://ficoforums.myfico.com/t5/Credit-Cards/I-m-in-with-Chase/m-p/2044601/highlight/true#M567487

This poster had no prior credit cards:
http://ficoforums.myfico.com/t5/Credit-Cards/Chances-for-Chase-Freedom-with-only-student-loan-history/m-p/1777758/highlight/true#M495226

It's a very YMMV situation, but Based on my experience and what others have posted, 12 months does not appear to be an absolute rule. This poster (and many others starting out their credit journey) can afford to waste an HP on a denial, so I would rather not discourage them for trying a good card.

Re: AAoA, credit score. freedom

LS2982 — Sat, 20 Apr 2013 14:51:46 GMT

This is true snacktrader but wouldnt you want to app at the best possible time to maximize your CL from them?? IMO apping now will produce a toy limit.

Just my opinion....

Re: AAoA, credit score. freedom

Anonymous — Sat, 20 Apr 2013 16:32:18 GMT

Ill hold off on the app. The closed card is 6 months old.

The secured card does not appear as a secured card.
Thanks for all the advice guys. A year ago I couldn't get a card. So, I'm okay with waiting. 6 months? Or just do it after closing on the house? I still haven't applied to nfcu through my wife. Between the two financial institutions which would you go with if you were in my shoes?

Re: AAoA, credit score. freedom

LS2982 — Sat, 20 Apr 2013 16:33:32 GMT

When are you looking to buy the house??

Re: AAoA, credit score. freedom

Anonymous — Sat, 20 Apr 2013 16:44:57 GMT

June

Re: AAoA, credit score. freedom

LS2982 — Sat, 20 Apr 2013 16:48:08 GMT

Oh definitely wait until house is closed on before apping.

Re: AAoA, credit score. freedom

Anonymous — Sat, 20 Apr 2013 16:49:46 GMT

Okay.

Re: AAoA, credit score. freedom

Anonymous — Sat, 20 Apr 2013 19:13:51 GMT

How many active trade lines do you have? Include Auto and Student Loans as wells as CCs.

Re: AAoA, credit score. freedom

HiLine — Sat, 20 Apr 2013 20:22:07 GMT

@Anonymous wrote:
June

OK, if you apply in June I'm positive you'll be approved!

Re: AAoA, credit score. freedom

Revelate — Sat, 20 Apr 2013 20:40:29 GMT

Snack:

You're absolutely right that 12 months revolving history isn't a hard and fast rule anymore (hasn't been since circa 06/12, if it ever was); however, most of the exceptions I've seen reported have been folks with Chase depository accounts. I think you're also correct to state that the forum historically has held the Freedom as a prime card (which carries some weight around here, right or wrong) though it's realistically obtainable now with a 640 FICO or lower as far as underwriting standards go. By no means is it a difficult card to obtain objectively, but some folks have tried for a while to obtain it without luck from years past, and that colors opinions today.

Of course, any anecdotal fixed standard is laughable in the face of Chase's recon policy: Chase is so YMMV regarding Freedom apps, may have more luck with predicting their reaction with a Oujia board than any rational analysis.

Re: AAoA, credit score. freedom

Anonymous — Sat, 20 Apr 2013 20:46:40 GMT

Haha. Hi to you too! 8 active trade lines oldest being 3 years old. From 2010. I'll wait and close on the house first. Regardless I dont have a choice

Re: AAoA, credit score. freedom

HiLine — Sat, 20 Apr 2013 20:47:28 GMT

Revelate:

I was under the impression that the 12-month requirement was about credit history in general, not specifically revolving debt history. Having a banking account with Chase would help, but only if the total assets were at least 10k - I've heard from multiple Chase personal bankers about this cutoff. But even then the 12-month requirement may not be waived, or at least, I haven't heard of it being waived.

You're absolutely right about the Freedom having low underwriting standards, barring the credit history length.

Re: AAoA, credit score. freedom

Revelate — Sat, 20 Apr 2013 20:57:22 GMT

@HiLine wrote:
Revelate:

I was under the impression that the 12-month requirement was about credit history in general, not specifically revolving debt history. Having a banking account with Chase would help, but only if the total assets were at least 10k - I've heard from multiple Chase personal bankers about this cutoff. But even then the 12-month requirement may not be waived, or at least, I haven't heard of it being waived.

You're absolutely right about the Freedom having low underwriting standards, barring the credit history length.

Some lenders specifically look at revolving history, and I believe Chase is one of those actually when it comes to certain cards and their underwriting criteria. Amex and Discover aren't disimilar.

I also don't know about that banking cutoff, it may be the case, but really, unless pooling money for a mortgage, who rationally keeps 10K in their checking account these days? Negative savings rates and better places for the money to be put than losing interest in a savings account. I would point out that denial reasons aren't always fully accurate, they just need to be a fact. Not having 10K in a bank account is an easy one to point to.

Personally I suspect that for underwriting criteria at Chase to use a simplified example, I think there's a certain number of "points" for any given benchmark: 10K in bank, +10, 640 FICO +10, 720 FICO +50, etc ad naseum, and you have to get a certain number of aggregate points to get an approval. To make it a little more realistic, there's likely a number of automatic-rejection criter too, like FICO <620 or other scenarios.

Where this goes pear-shaped is with Chase's recon, where apparently if the CSR likes you enough, pretty good chance if there's not anything too awkward in your file (or even if there is like in mine) they can get you an approval. I'm 100% confident there's a floor on this, it's just nearly impossible to tell where it is. 5 recons later people get approved, whole thing is absurd in my foolish opinion .

Re: AAoA, credit score. freedom

Anonymous — Sat, 20 Apr 2013 21:08:22 GMT

1.75 years is the average which equals to 19 months
And I have 14 months credit card with a 200 limit

Re: AAoA, credit score. freedom

HiLine — Sat, 20 Apr 2013 21:09:05 GMT

I'm not sure if Chase's credit department isn't aware of existing banking relationships unless you have a Chase banker initiate the application. Once you make the reconsideration call, you can impress the other person on the line with the amount of assets you have with Chase, and potentially sweet talk him/her into giving you the card you applied for. I pesonally wasn't successful with these calls, and I heard enough of the 12-month requirement that I gave up and just let the time pass.

In lieu of 10k in a checking/savings account, you can have significant assets in Chase's brokerage account, say 25k, to leverage the existing relationship. Though normally it doesn't make to keep much money into traditional banking accounts, the financial crisis caused quite a panic and made people flock to federally insured types of financial accounts. Of course there are also the less financially literate people or extremely risk-averse individuals that put all their money into accounts that earn practically 0% interest. But the point is you have to convince Chase that you're a long-term, lucrative customer. Too many people have Chase banking account these days they have to set a cutoff.