United Explorer

[Anonymous]

Hi all, 

I'm planning on applying for the United Explorer card in early Nov for the in-flight 62.5k miles for $3k in 3 mo SUB, one day after 2 months after getting the Chase Freedom Unlimited card in early September. Is this too risky in terms of velocity for Chase? I've read about Chase denials and shutdowns for too many recent accounts and/or inquiries such as the BustOut score stuff, so wanted to get some input. 

Some more info for context:

My current cards:

BoA Cash Rewards (7/2013) CL $8k

Citi Double Cash (4/2018) CL $6.7k

Uber Credit Card (1/2019) CL $11k

Chase Sapphire Preferred (10/2019) CL $13.6k

Chase Freedom Unlimited (9/2020) CL $11.8k

Utilization: 1%

Income: $70k

FICO 8 scores: TU 777 EX 779 EQ 777

AAoA: 3 yrs 9 mo

AoOA: 7 yrs 3 mo 

I've read that Chase United cards pull TU and EX, which each have 2 HPs in last 2 yrs.

Thanks in advance!

[coldfusion]

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@Anonymous wrote:

Hi all, 

I'm planning on applying for the United Explorer card in early Nov for the in-flight 62.5k miles for $3k in 3 mo SUB, one day after 2 months after getting the Chase Freedom Unlimited card in early September. Is this too risky in terms of velocity for Chase? I've read about Chase denials and shutdowns for too many recent accounts and/or inquiries such as the BustOut score stuff, so wanted to get some input. 

Some more info for context:

My current cards:

BoA Cash Rewards (7/2013) CL $8k

Citi Double Cash (4/2018) CL $6.7k

Uber Credit Card (1/2019) CL $11k

Chase Sapphire Preferred (10/2019) CL $13.6k

Chase Freedom Unlimited (9/2020) CL $11.8k

Utilization: 1%

Income: $70k

FICO 8 scores: TU 777 EX 779 EQ 777

AAoA: 3 yrs 9 mo

AoOA: 7 yrs 3 mo 

I've read that Chase United cards pull TU and EX, which each have 2 HPs in last 2 yrs.

Thanks in advance!

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In your case the bigger question is if you would be approved in the first place, not so much that you risk being shut down after the fact.  

99.98% certainty that you would be hit with an EX HP, less so if you would take a 2nd HP from one of the other CRAs. 

I would expect you would get a denial, and upon recon if you offered to transfer over $5K CL from your CSP you may get an approval. 

[Anonymous]

Thanks for the input! Do you primarily expect that I'd get a denial because the CFU account is too new? I've heard the 50% total Chase credit-to-income ratio rule of thumb, and I'm currently at ~36%, so I feel like I still have room for the minimum $5k credit line needed for the Explorer. Do you think sending a secure message to decrease my credit limit pre-emptively would increase my chances, or should I only suggest transferring credit from CSP if I get initial denial?

In terms of HPs I'm not really concerned about getting new HPs, especially since the Uber one will be falling off in a couple of months. 

[coldfusion]

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@Anonymous wrote:

Thanks for the input! Do you primarily expect that I'd get a denial because the CFU account is too new? I've heard the 50% total Chase credit-to-income ratio rule of thumb, and I'm currently at ~36%, so I feel like I still have room for the minimum $5k credit line needed for the Explorer. Do you think sending a secure message to decrease my credit limit pre-emptively would increase my chances, or should I only suggest transferring credit from CSP if I get initial denial?

In terms of HPs I'm not really concerned about getting new HPs, especially since the Uber one will be falling off in a couple of months. 

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Don't bother pre-emptively reducing CL.  That's an old churning trick consistent with their short- and long-term goals but not with yours.

Only suggest a reallocation if the UW is leaning toward denial and doesn't first suggest it themself.

The 30/40/50% of yearly gross is skewed when talking about low or very high income but is generally pretty accurate in your income range. Anything is possible but IMO 40% of gross in your case is their comfort level, but it's not important because you already have enough on your CSP to support a reallocation of $5K to get the Explorer.

[Anonymous]

OK, thank you so much for the advice!

[JackBeNimble1]

What is the Chase credit-to-income ratio rule of thumb you mentioned? In July, Chase denied my application for the Chase Freedom Unlimited (a card I've prevous owned) because I had "too much credit available." My credit utilization is typically 1% or less so, again, it's not that I have too much debt. It's that Chase thinks I have "too much credit available." Does that mean too much credit with Chase, or through all issuers, or what exactly? I make around $100k and have around $85k in total credit available to me through ten credit cards from various issuers. I am well under 5/24 but I do have a Chapter 7 on my record (stemming from a mortgage I walked away from during the 2007 meltdown). It is almost 10 years old and will fall off soon.

[FinStar]

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@JackBeNimble1 wrote:

What is the Chase credit-to-income ratio rule of thumb you mentioned? In July, Chase denied my application for the Chase Freedom Unlimited (a card I've prevous owned) because I had "too much credit available." My credit utilization is typically 1% or less so, again, it's not that I have too much debt. It's that Chase thinks I have "too much credit available." Does that mean too much credit with Chase, or through all issuers, or what exactly? I make around $100k and have around $85k in total credit available to me through ten credit cards from various issuers. I am well under 5/24 but I do have a Chapter 7 on my record (stemming from a mortgage I walked away from during the 2007 meltdown). It is almost 10 years old and will fall off soon.

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Typically, when that reason is provided (profile-dependent of course), they're really saying that you currently have 'sufficient' credit obligations, which includes any unused available credit with your current lenders.

In the current lending environment, Chase appears to have tightened up a bit.  This really wasn't much of a reason or DP cited pre-COVID-19 as many tenured profiles with excess of $500K in open lines had no issue getting approved, so as long as one cleared the  5/24 hurdle.

[coldfusion]

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@FinStar wrote:

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@JackBeNimble1 wrote:

What is the Chase credit-to-income ratio rule of thumb you mentioned? In July, Chase denied my application for the Chase Freedom Unlimited (a card I've prevous owned) because I had "too much credit available." My credit utilization is typically 1% or less so, again, it's not that I have too much debt. It's that Chase thinks I have "too much credit available." Does that mean too much credit with Chase, or through all issuers, or what exactly? I make around $100k and have around $85k in total credit available to me through ten credit cards from various issuers. I am well under 5/24 but I do have a Chapter 7 on my record (stemming from a mortgage I walked away from during the 2007 meltdown). It is almost 10 years old and will fall off soon.

---

Typically, when that reason is provided (profile-dependent of course), they're really saying that you currently have 'sufficient' credit obligations, which includes any unused available credit with your current lenders.

In the current lending environment, Chase appears to have tightened up a bit.  This really wasn't much of a reason or DP cited pre-COVID-19 as many tenured profiles with excess of $500K in open lines had no issue getting approved, so as long as one cleared the  5/24 hurdle.

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Unless there has been a policy change I'm not aware of Chase still by default autodenies and won't recon if a BK is reporting.

[FinStar]

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@coldfusion wrote:

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@FinStar wrote:

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@JackBeNimble1 wrote:

What is the Chase credit-to-income ratio rule of thumb you mentioned? In July, Chase denied my application for the Chase Freedom Unlimited (a card I've prevous owned) because I had "too much credit available." My credit utilization is typically 1% or less so, again, it's not that I have too much debt. It's that Chase thinks I have "too much credit available." Does that mean too much credit with Chase, or through all issuers, or what exactly? I make around $100k and have around $85k in total credit available to me through ten credit cards from various issuers. I am well under 5/24 but I do have a Chapter 7 on my record (stemming from a mortgage I walked away from during the 2007 meltdown). It is almost 10 years old and will fall off soon.

---

Typically, when that reason is provided (profile-dependent of course), they're really saying that you currently have 'sufficient' credit obligations, which includes any unused available credit with your current lenders.

In the current lending environment, Chase appears to have tightened up a bit.  This really wasn't much of a reason or DP cited pre-COVID-19 as many tenured profiles with excess of $500K in open lines had no issue getting approved, so as long as one cleared the  5/24 hurdle.

---

Unless there has been a policy change I'm not aware of Chase still by default autodenies and won't recon if a BK is reporting.

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That's still the case for BK reporting, although if BK is not cited as a main reason on the letter, there's been only a few reported cases that have been successfully overriden.  A rarity these days and weighed on a case-by-case basis.  That said if BK is listed as a primary reason then it's unlikely Chase will override.  I only heard of 1 case being successful, but the approval was $500 😬.  

[JackBeNimble1]

I've received all three of my Chase cards with a Chapter 7 on my report. Chase auto rejects, but up until recently I have been able to successfully appeal through the bank's reconsideration line. The Chapter 7 was listed as a reason but the agent ultimately said it was too much available credit that did me in. I probably added $10K in available credit between that rejection and my previous Chase approvals. My guess is Chase and other banks have tightened up lending standards in light of the current economic climate. The rejection was in July but I am dying to get the 80K bonus for the Sapphire Preferred before it expires in a couple of weeks. I have shut down one of my cards to reduce credit availabilty but even then I suspect I will be denied. So I will probably just wait until the Chapter 7 falls off my report in the spring and see what Chase offers are available then. Amex auto approves me so I may pick up one of their cards in the meantime.