topic Re: BOA unsecured denial reason in Credit Cards

BOA unsecured denial reason

money_talks — Sun, 20 Oct 2013 03:12:49 GMT

Last month I applied for a BOA unsecured card. The letter that came by snail mail says "After a careful review, which included an assessment of your application, current economic trends and credit report information, we have determined that we are unable to approve your reuest because you have current or past delinquency, derogatory public record(s), or collection account(s) appearing on your credit file."

I plan on applying again in December and should have all my baddies paid off.

Question: Is applying at a branch a must now? That is, go in there with copies of the paid off baddies? If yes, do I notify the banker before submitting the application that I have these letters? Or do I have the banker submit the application, and if denied again, ask the banker to reconsider and show them the letters?

My reasoning here is that apparently BOA thinks I'm a risk because I have CO accounts and per their letter, that is the only reason for denial. But once I pay these acounts (PFDs not working, so they would still be on my CR as paid CO), I have showed that I proved my previous lenders wrong in that I have paid off when they thought I would not pay, hence the CO.

Thoughts? Thanks!

Re: BOA unsecured denial reason

09Lexie — Sun, 20 Oct 2013 03:20:51 GMT

Your banker isn't or won't be the decision maker. You should wait to re-apply once your CR's are updated. Tbh, a CA paid or not is still a derog and they may want more time in between the paid CA and granting an extension of credit.

Re: BOA unsecured denial reason

FinStar — Sun, 20 Oct 2013 03:28:07 GMT

@09Lexie wrote:
Your banker isn't or won't be the decision maker. You should wait to re-apply once your CR's are updated. Tbh, a CA paid or not is still a derog and they may want more time in between the paid CA and granting an extension of credit.

Hopefully, by the next time you apply again, your CRs will appear more favorably. And, whether you decide to pursue any reconsideration efforts, they may request copies of such information or in the event the CRAs do not reflect such updates.

Re: BOA unsecured denial reason

money_talks — Sun, 20 Oct 2013 04:53:32 GMT

Thanks 09Lexie and FinStar.

The way I see it the updating of the CR (CCs going to a 0 bal) is only benefical to my util, since my baddies are CCs. Whether I apply online or at a branch, it's all computerized and instant, so I don't think BOA computer review system differentiates between an unpaid CO and a paid CO on the review of the CR (I know FICO doesn't). In this case a manual review is required, right?

Also, if a recon is requested, couldn't the branch manager review the app? What if they called an underwriter and they could tell that person that I am requesting a recon and that I have letters of the paid off COs.

Re: BOA unsecured denial reason

09Lexie — Sun, 20 Oct 2013 04:57:38 GMT

Do you have a banking relationship with BoA? As, I said before it might not matter that that CAs are paid or not if they feel that not enough time has elapsed. Although a paid CA helps with manual review, it still is a CA.

Re: BOA unsecured denial reason

money_talks — Mon, 21 Oct 2013 02:17:31 GMT

09Lexie: What is your reasoning behind BOA possibly wanting a waiting period from the day the CO is paid to the day the credit is granted by BOA? If anything, isn't it more important the time period in between the last CO on my CR and the credit granting? The latter at a basic level says that my last CO happened a long time ago and since then I've had nothing but positive payment history on the rest of my other TLs.

Re: BOA unsecured denial reason

Anonymous — Sun, 20 Oct 2013 05:11:33 GMT

I can tell you 1 thing, YOUR NAME MEAN EVERYTHING. When you have large amount in your bank like M Or B in your bank then you talk they listen.

Re: BOA unsecured denial reason

09Lexie — Sun, 20 Oct 2013 05:11:00 GMT

My understanding is that currently you have baddies on your CR's ; that your recent app was denied due to those baddies reporting and now you want to reapply after the COs are paid. Correct?

Re: BOA unsecured denial reason

FinStar — Sun, 20 Oct 2013 05:15:45 GMT

@money_talks wrote:
Thanks 09Lexie and FinStar.

The way I see it the updating of the CR (CCs going to a 0 bal) is only benefical to my util, since my baddies are CCs. Whether I apply online or at a branch, it's all computerized and instant, so I don't think BOA computer review system differentiates between an unpaid CO and a paid CO on the review of the CR (I know FICO doesn't). In this case a manual review is required, right?

Also, if a recon is requested, couldn't the branch manager review the app? What if they called an underwriter and they could tell that person that I am requesting a recon and that I have letters of the paid off COs.

The banker or branch manager cannot review the application. He/she has no authority or "influence" on the underwriting decision.

@09Lexie wrote:
Do you have a banking relationship with BoA? As, I said before it might not matter that that CAs are paid or not if they feel that not enough time has elapsed. Although a paid CA helps with manual review, it still is a CA.

The fact that time has elapsed would be in line with scoring factors. Some lenders have some flexibility with the underlying premise that if a CO reflects as paid, then they can factor that into the decisioning process. However, not all underwriters view CAs in the same light. As Lexie mentioned, at the end of the day, a CA is a CA - whether satisfied or not.

Re: BOA unsecured denial reason

Anonymous — Sun, 20 Oct 2013 05:26:37 GMT

Something you guy said is right,something is wrong !. i opened BOA secured CC last year, after 3 months i ran total 200K to that CC and deposited xx,xxx,xxx.xx to BOA. i requested to unsecured and they approved it .My credit picture at that time with 1 Paid CA,2 Unpaid CA,2 CO with 0 balance 3x inquiries on EQ . So like i said OP name is telling everything.

Branch manager can not review the applications,but they can call Credit underwriting and tell them This is VIP customer.

Re: BOA unsecured denial reason

money_talks — Sun, 20 Oct 2013 05:38:09 GMT

09Lexie: That's correct. I'm hoping that I can now go to BOA and say "Per your letter, you declined me due to the sole reason of COs on my CR. If it helps my case, I have paid off all COs on my CR since that application". Based on the responses I received on the thread below, paying something is better than not paying at all. I guess that's what I'm trying to achieve in my next app.

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Settled-for-less-than-full-always-better-than-CO-yes/m-p/2523971

TrishN: You bring up an interesting point and I don't know if it holds any weight. I guess if I had a lot of money I would just apply for a secured card and problem solved! But I don't and can't afford to have money tied up in a secured card.

FinStar: Based on your response then, I guess you would agree that the only benefit of applying at a branch is that I can speed up the recon process. Ie, if denied, the banker can call the underwriter. If the underwriter request copies of the paid off COs or any other information, then I can supply them in person to the banker.

Re: BOA unsecured denial reason

Anonymous — Sun, 20 Oct 2013 05:39:31 GMT

@money_talks wrote:
09Lexie: That's correct. I'm hoping that I can now go to BOA and say "Per your letter, you declined me due to the sole reason of COs on my CR. If it helps my case, I have paid off all COs on my CR since that application". Based on the responses I received on the thread below, paying something is better than not paying at all. I guess that's what I'm trying to achieve in my next app.

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Settled-for-less-than-full-always-better-than-CO-yes/m-p/2523971

TrishN: You bring up an interesting point and I don't know if it holds any weight. I guess if I had a lot of money I would just apply for a secured card and problem solved! But I don't and can't afford to have money tied up in a secured card.

FinStar: Based on your response then, I guess you would agree that the only benefit of applying at a branch is that I can speed up the recon process. Ie, if denied, the banker can call the underwriter. If the underwriter request copies of the paid off COs or any other information, then I can supply them in person to the banker.

Do you remember the list of reasons they gave you for denial? Was it just about your COs?

Re: BOA unsecured denial reason

FinStar — Sun, 20 Oct 2013 05:48:23 GMT

@Anonymous wrote:
Something you guy said is right,something is wrong !. i opened BOA secured CC last year, after 3 months i ran total 200K to that CC and deposited xx,xxx,xxx.xx to BOA. i requested to unsecured and they approved it .My credit picture at that time with 1 Paid CA,2 Unpaid CA,2 CO with 0 balance 3x inquiries on EQ . So like i said OP name is telling everything.
Branch manager can not review the applications,but they can call Credit underwriting and tell them This is VIP customer.

Trish - you cannot compare your outcome to the OP's. Everyone's profiles are different AND any underwriting decision takes into consideration all known factors. Even when some exceptions are made (i.e. deposit relationships, ABL, business relationship, etc.), they are made on a case by case basis.

While you may have a significant deposit relationship which may have provided some "weight" with your specific CC, the OP is in a different ball park. The only common denominator is the CA/CO scenario.

Re: BOA unsecured denial reason

money_talks — Sun, 20 Oct 2013 05:49:25 GMT

enharu: See my first post. I list exactly what BOA stated in their letter.

Re: BOA unsecured denial reason

Anonymous — Sun, 20 Oct 2013 05:51:02 GMT

do you want to hear a story?

i went to branch couple days ago,branch manager asked come to her room and closed the door, app'ed for Business and CC and request CL increase on my BOA CC. Bam instant declined for all of them. She called credit underwriting and told them. Good morning this is xxxx bank ID number,, bla bla bla i have my customer app'ed for CC and he can't get approved for the card he want,and this is VIP customer with xx,xxx,xxx.xx deposited into our bank within 3 months,can you over look of his application, 1 min later approved with no question asked. Business CC is samething,she called and approved my card right after 1 min

Re: BOA unsecured denial reason

Anonymous — Sun, 20 Oct 2013 05:53:54 GMT

to Finstar. this is from what you said.

The banker or branch manager cannot review the application. He/she has no authority or "influence" on the underwriting decision.

Re: BOA unsecured denial reason

09Lexie — Sun, 20 Oct 2013 05:57:36 GMT

@TrushN

The banker didn't approve your cc's, just asked for it to be reviewed and listed your banking relationship. In the end, the decision was ultimately the UW.

Re: BOA unsecured denial reason

FinStar — Sun, 20 Oct 2013 06:01:46 GMT

@Anonymous wrote:
to Finstar. this is from what you said.
The banker or branch manager cannot review the application. He/she has no authority or "influence" on the underwriting decision.

Again, they are not making the decision Trish. They are simply informing and confirming your deposit relationship with the U/W department, nothing else. The bankers or branch managers do not approve or deny applications. BOA/FIA card services U/W will make the decision based on that deposit relationship to extend it. Again, case by case basis.

Clearly the point was also missed, the OP is not a VIP client (yet) and does not have M or B sitting on the books.

Re: BOA unsecured denial reason

Anonymous — Sun, 20 Oct 2013 06:08:27 GMT

Yeaah i may miss understand what you said,but i want to prove for OP has asked this question

(this from OP question)Also, if a recon is requested, couldn't the branch manager review the app? What if they called an underwriter and they could tell that person that I am requesting a recon and that I have letters of the paid off COs.

manager they can do that,but yes they cannot make decision

Re: BOA unsecured denial reason

parakleet — Sun, 20 Oct 2013 16:01:46 GMT

It seems unlikely that taking documents of proof showing your paid off COs to the branch manager will have a significant impact on the ultimate decision, which will be made by the underwriter. The UW will likely do another HP to verify the info, regardless of the branch manager "vouching" for you or whatever. You could do all of that at home by just calling the backdoor recon yourself. I think people like to feel like their banking relationship will have a greater impact on a CC decision than it really does. Sure, if you're a "VIP" customer- good for you if you can get extra pull. But most people aren't VIPs and they're going to have to navigate the CC UW decision process the old fashioned way.