Buyer Beware - Amex Pre-approval

[Beefy1212]

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@PRose123 wrote:
Same thing happened to me but with a different card that ''promised' a 3x limit compared to an applicants current CLs. I applied and got a very insulting limit. 1) it dropped my average age of credit being new

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So you closed a card day 1 because it would lower your average age of credit...

You do realize once approved the card is on your profile right?

[NYC_Fella]

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@Beefy1212 wrote:
So you closed a card day 1 because it would lower your average age of credit...You do realize once approved the card is on your profile right?

The poster was concerned about his average limit (which IMO is not particularly important), not the average age of his credit.

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[Anonymous514]

I-. I've never heard of anyone being concerned about average credit limit. They all increase at some point to around the same limits anyways lol 

[Beefy1212]

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@NYC_Fella wrote:

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@Beefy1212 wrote:
So you closed a card day 1 because it would lower your average age of credit...You do realize once approved the card is on your profile right?

The poster was concerned about his average limit (which IMO is not particularly important), not the average age of his credit.

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No I just misquoted them...

I meant to bold "1) it dropped my average age of credit being new" instead I deleted it.

if you have several "20k+ cards"it is also meaningless to get upset over a single card. The only thing average limit really effects is credit based insurance scores and anything over 12k is meaningless.

Canceling a card you are already approved for just hurts your profile for no good reason. You already took the AAoA hit, the hard pull and the score card reassignment. 

[Beefy1212]

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@Anonymous514 wrote:

I-. I've never heard of anyone being concerned about average credit limit. They all increase at some point to around the same limits anyways lol 

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Most states allow credit reports to be used for determining insurance rates, one factor is average credit limit. It is a slightly valid concern however if you have several 20k or higher cards as they implied a single 1k card won't matter.

[NYC_Fella]

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@Beefy1212 wrote:

Most states allow credit reports to be used for determining insurance rates, one factor is average credit limit. It is a slightly valid concern however if you have several 20k or higher cards as they implied a single 1k card won't matter.

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Learned something new.

[PRose123]

I periodically do a sweep where i cancel - just like the banks do. I certainly will not accept NEW cards that don't serve my agenda. I do not feel entitled but...😬

[PRose123]

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@Beefy1212 wrote:

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@PRose123 wrote:
Same thing happened to me but with a different card that ''promised' a 3x limit compared to an applicants current CLs. I applied and got a very insulting limit. 1) it dropped my average age of credit being new

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So you closed a card day 1 because it would lower your average age of credit...

You do realize once approved the card is on your profile right?

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YUUUP! (in my Danielle Bregoli on Dr Phil voice) 🤗

[PRose123]

The credit game changes daily. I personally don't want any new low cards because the banks will do just like the commenters did here with the original poster: think something went wrong and judge you on your latest approval(s) and your OVERALL credit profile. It's one reason why I got rid of most of my store cards. They are great for early padding but that's about it. Also, there are MANY different FICO models. SEVERAL count average age of OPEN credit cards.

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@Beefy1212 wrote:

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@Anonymous514 wrote:

I-. I've never heard of anyone being concerned about average credit limit. They all increase at some point to around the same limits anyways lol 

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Most states allow credit reports to be used for determining insurance rates, one factor is average credit limit. It is a slightly valid concern however if you have several 20k or higher cards as they implied a single 1k card won't matter.

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[Beefy1212]

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@NYC_Fella wrote:

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@Beefy1212 wrote:

Most states allow credit reports to be used for determining insurance rates, one factor is average credit limit. It is a slightly valid concern however if you have several 20k or higher cards as they implied a single 1k card won't matter.

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Learned something new.

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A little more info for you...

https://www.valuepenguin.com/how-does-your-credit-score-affect-auto-insurance-rates#:~:text=How%20mu....

"Worst states for drivers with bad credit

Poor credit raises rates the most for drivers in Arizona, by an average increase of 175%. Arizona is one of six states, along with Texas, New Hampshire, New Jersey, Minnesota and New York, where poor credit more than doubles your rates."

I couldn't find the breakdown of how it is scored other than to say the author of the credit scoring primer said it was, and I am going to assume he is right.