Approved....but decided...I can do better....

[Anonymous]

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@taxi818 wrote:
The AAoA is absolutely factored in with closed accounts. Ok. Not in credit karma. But on fico for sure. And you will get dinged.

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Right.   Any account that is on the report, open or closed, counts in the AAoA calculation.     Of course, this also means AAoA concerns don't mean that you SHOULDN'T close a card if you don't like it, the AAoA hit happens once the account reports, so whatever you do after doesn't matter (at least till a closed account disappears)

[score_building]

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@Spotsy wrote:

@score_building.....absolutley....if they are a good issuer such as Chase, NFCU, CO...etc...the account should grow with you...but other lenders such as Credit One, First Premier....maybe not as much :-(.  The premise around this is New CC....less on "cleaning house" of existing CCs....that is a whole different topic. :-) 

Not sure I see the comparison between college and a CC...but lots of people went to and were turned away from all of those great colleges....some ended up being were very successful, others failed, others are in jail, etc...

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There's an application process, a decision, and expectations about them from both applicant and reviewer.

app and close based on an unrealistic view of lender's account terms may be an indication something is out of line, preferable to spend time researching and consider outcomes prior to app...otherwise, regardless of the issuer, the app is sorta dead in the water. 

[Anonymous]

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@score_building wrote:

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@Spotsy wrote:

@score_building.....absolutley....if they are a good issuer such as Chase, NFCU, CO...etc...the account should grow with you...but other lenders such as Credit One, First Premier....maybe not as much :-(.  The premise around this is New CC....less on "cleaning house" of existing CCs....that is a whole different topic. :-) 

Not sure I see the comparison between college and a CC...but lots of people went to and were turned away from all of those great colleges....some ended up being were very successful, others failed, others are in jail, etc...

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There's an application process, a decision, and expectations about them from both applicant and reviewer.

app and close based on unrealistic view of lender's account terms may be an indication something is out of line, preferable to spend time reasearching and consider realistic outcomes prior to app...otherwise, regardless of the issuer, the app is sorta dead in the water. 

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I think this is what I agree with most, regardless of what you're applying for. Just like colleges often let know what sort of scores/GPA they're expecting of applicants, places like here often give us a lot of info about what certain lenders expect from credit files, especially because here, people tend to be pretty transparent about their files. We're given info about which lenders are slightly more generous, which are slightly more 'stingy' (a.k.a., having stricter risk-assessment), which are good/bad with recons, or CLIs, or APR reductions. We also find out which banks will give you the SL they feel you deserve from the beginning, or will prefer to have an established relationship with you before giving in.

There's nothing wrong with reconning if, according to your research, you feel you deserve something better--in fact, there isn't anything wrong with reconning in general, because there is nothing to lose. There's also nothing wrong with setting goals or having standards for yourself. But the problem is, this method of seeking credit doesn't work for a lot of people--only people who have high scores and a thick file to support the number of new accounts and inquiries. Even then, it's only fruitful to those who also do their research before applying.

After all, if you're given a limit you feel is sub-par, then there is little point to expect a recon from a lender who simply doesn't recon. You also have to consider the lenders who like to test the waters first (Chase often likes to give a lower limit, then auto-CLI after a few months), and if you're quick to drop a card that has a low starting limit, you might also be limiting yourself away from a great card that can work with you in time instead. Capital One, for example, is a lender that slowly grows with you, save for the Venture which tends to give generous SLs. Lots of people who have high CLs on C1 cards either grew with them as builders/rebuilders, or, as of recently, combined their limits. This is also a path that, through your method, you'd be unable to tread as well.

I'm also not saying you're wrong by asserting that they need you, and not the other way around. You're totally right, these lenders need us. However, while there is no such thing as loyalty that lenders feel with their customers, there is at least a pretense of mutuality in that lenders are more likely to lend more money to people who credit-seek slowly, and establish solid relationships than people who open and close accounts quickly. In the former behaviour, they see stability, and feel more comfortable with the borrower.

I think what I'm trying to say is, that your method is valid, and actually commendable. It is, however, a very limited method that only very few are able to use, and it's also a method that should be considered very carefully.

[Anonymous]

I wouldnt be able to waste an inquiry like that. And with that type of mentality I wouldn't be where I am at today.

EG:

April, opened amazon account, limit of 800. Had I been snobby about it, this traidline over 5k wouldnt exist.. Current limit acheived 60 days after account opening.

May, opened sams club account, limit of 1200. Less than 4 weeks in, the account sits well over 5k.

Why would I waste an inquiry on an account that has potential???

If you are going to be so judgemental about APR/Credit line, then I would like to think you would garden for better scores, or be more strategic in choosing your lendors. Thats just my .02.

[Callandra]

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@score_building wrote:

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@Spotsy wrote:

@score_building.....absolutley....if they are a good issuer such as Chase, NFCU, CO...etc...the account should grow with you...but other lenders such as Credit One, First Premier....maybe not as much :-(.  The premise around this is New CC....less on "cleaning house" of existing CCs....that is a whole different topic. :-) 

Not sure I see the comparison between college and a CC...but lots of people went to and were turned away from all of those great colleges....some ended up being were very successful, others failed, others are in jail, etc...

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There's an application process, a decision, and expectations about them from both applicant and reviewer.

app and close based on unrealistic view of lender's account terms may be an indication something is out of line, preferable to spend time researching and consider realistic outcomes prior to app...otherwise, regardless of the issuer, the app is sorta dead in the water. 

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Agreed. If you are applying for cards and not getting the terms/limits you want, you should look at why you are not getting them. Especially if this is happening in succession from multiple banks. Most likely your credit file/income does not support what you want and you need to work on these issues. Whether it's cleaning up your report, waiting for inqs to fall off/accounts to age more, or maybe you need to get your first big limit to get others (best way is to get SP CLIs). 

I think it's fine to recon a starting limit but sometimes keeping the card and waiting for CLIs is a good idea too. 

[taxi818]

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@Anonymous wrote:

I wouldnt be able to waste an inquiry like that. And with that type of mentality I wouldn't be where I am at today.

EG:

April, opened amazon account, limit of 800. Had I been snobby about it, this traidline over 5k wouldnt exist.. Current limit acheived 60 days after account opening.

May, opened sams club account, limit of 1200. Less than 4 weeks in, the account sits well over 5k.

Why would I waste an inquiry on an account that has potential???

If you are going to be so judgemental about APR/Credit line, then I would like to think you would garden for better scores, or be more strategic in choosing your lendors. Thats just my .02.

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That has been the point all along. just not good strategy as it really is not about how big the limits are on a single card. of course we all want high limits. But if i could just have two 100k cards. why would i need another?. since i can't i take what i can get and let it grow over time.

[NRB525]

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@Spotsy wrote:

Here is what has happened to me (over the past 1.5 years): 

1) NWFCU - opened a savings acct for better rate and apped for CC....was offered 1k, but low rate - Declined to accept CC...limit was below my minimum amount of 5k.

2) Walmart MC - they opened a StoreCard at 1200 - declined to accept and closed once I received the card, wanted MC at a minimum w/ 5k

3) PayPal MC - they opened at $2500 - declined to keep since my minimum of 5k and the rate was too high for that low of a limit

4) Alliant CU - They opened at 5k, meh interest rate, declined to accept due to lower limit combined with so-so rate...would have kept if the limit was higher or the rate was lower.  They can do better especially with the growing savings account I am building there and the multiple other cards I have that are well over 10k in limits, I raised my minimum to 10k now for a major CC.

5) Barclays -  tried them for 6 months, didn't grow the card enough based off spend and AF...closed...gave business to BBVA NBA Amex.

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1) This was a situation where you are a new customer with a local CU. They offer low limits until they get to know you. It is an indication your credit profile wasn't immediately apparently strong. Should have kept it open to build the limit later and enjoy the low APR.

2)  WalMart declining to give you a CC, opting for the store card is a similar indication of not a strong profile. This limit for a store card is not out of line with what you could hope to spend at a WM store. And limits with these cards do grow with proper usage and care. It may PC to a CC later, though I don't know enough about WM CC to say.

3) Have you seen anyone get a PayPal CC with a $5k initial CL?

4) Alliant APR was a measure of how they felt your credit profile looks at the time. What was the APR? What APR were you hoping for? Again, a situation where you could likely use the card and ask for APR reductions later on. And, if you aren't carrying balances, APR is a non-factor, until they lower your APR later and you decide it is OK to carry the balance at that rate.

5) You probably just jumped off the train a few months before they would be able to come around and review for some sort of CLI.

I think your expectations are too high. With a BK on your reports, you can't expect golden credit when you ask for it. That's just a fact of getting new credit. These CCC have standards too, and you are in the process of rebuilding trust among all your lenders, especially those you are new to.

[score_building]

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@Spotsy wrote:
@kdm31081 - definitely agree opening and closing "constantly" is never a good thing. If you have gotten before, but now can't get, cards that you feel are "good enough", you should throttle back and re-evaluate your standards and focus on what you have vs getting more. There is a problem somewhere to prevent the good stuff. I agree on the ding for a HP but the AAoA should be fine since that account is not factored into the equation because it is closed. That's why you should not close an old account?

If the card issued does not meet your needs and you have other cards that do..why keep it open? If you need more cards because the others are charged up....you don't need more cards...pay down what you have. If you are looking to replace less attractive existing CCs...then that is a different topic....mucho more discussions. :-)

All of those that have responded...thank you so much for your input! Please don't take my responses back and being "contrite". I am just trying to provide my thoughts.

These forums are great !

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Again, ideally this will be a primary consideration prior to app, waiting to do the math post app is one of the most common types of amateur moves, however one attempts to dress it up or retroactively justify. Decide you can do better beforehand for better results.

[OmarGB9]

No offense, but you seem way too picky about all this, and also maybe a bit entitled. Just as you can pick and choose who to do business with, the bank's pick and choose who to lend money too. IMO, in all your examples, you didn't even give the banks much of a chance to prove themselves to you. If a bank gives you a lower limit/higher APR than you expect, it's because that's what they're comfortable offering you based on your existing profile. Some conservative banks start you off low but then grow quickly with patience and proper handling of the account. Also, opening and closing accounts constantly like that will cause many TLs to show on your report, which, upon manual review, may not bode well with future (and possibly even existing) lenders. And yes, new accounts do factor into your AAoA regardless of whether you keep them open or not. Just my 2 cents.

[WLRK11]

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@Spotsy wrote:

Wanted to see who has been approved for a CC but decided that you deserve better....so either reconed for better terms or closed the account?  I have started doing that lately, for the following reasons: (some may think I am crazy or misguided...and that may be..but it helps me balance my expectations and keep the sock drawer from having more CCs then socks ;-) )

1) Weither you are rebuilding or feel that you are an established credit user...they need YOU to make money, you don't need them so you can make them money?

2) It actually makes you feel more "in control" of your financial direction....it's OK to say "No Thanks"...there are better options out there?

3) These forums are an excellent source of info as to what others are getting and what you may be able to get if you "shop", stand firm on what you want, but also be realistic?

Here is what has happened to me (over the past 1.5 years): 

1) NWFCU - opened a savings acct for better rate and apped for CC....was offered 1k, but low rate - Declined to accept CC...limit was below my minimum amount of 5k.

2) Walmart MC - they opened a StoreCard at 1200 - declined to accept and closed once I received the card, wanted MC at a minimum w/ 5k

3) PayPal MC - they opened at $2500 - declined to keep since my minimum of 5k and the rate was too high for that low of a limit

4) Alliant CU - They opened at 5k, meh interest rate, declined to accept due to lower limit combined with so-so rate...would have kept if the limit was higher or the rate was lower.  They can do better especially with the growing savings account I am building there and the multiple other cards I have that are well over 10k in limits, I raised my minimum to 10k now for a major CC.

5) Barclays -  tried them for 6 months, didn't grow the card enough based off spend and AF...closed...gave business to BBVA NBA Amex.

This is all IMHO, and YMMV depending on what standards you set for yourself when accepting a CC.  Being realistic with knowing what you can/ should get vs what you want is important... i.e. If you are in the low 600 and are happy with $300 or $500 limits since you may be rebuilding...don't expect 5k....but if you are now carrying multiple 10k plus lines on various cards through various issuers...maybe you should set your minimums to 5k or 10k, start weeding out the toy limits.   Anyone else operate under similar self imposed guidelines?

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I couldn't help but notice that the OP is "New Contributor". Between this website, the Credit Pulls Database (slightly outdated), and most importantly, lenders' pre-qualification websites, your APR and limit for a potential credit account shouldn't be much of a surprise. 

Applying for a card with one interest rate (like the Ring, CSP, etc.) subject to a formula including the prime rate is another way to guarantee an interest rate. 

Credit unions usually have defined underwriting matrices and if you ask they'll often share where you'll land. 

I understand the logic of closing a card after several unsuccessful attempts for an APR reduction, a CLI, a PC, or any other reasonable request despite a significantly improved profile. However, for the reasons above, I cannot understand why somebody would blindly apply for a credit account and then immediately close it.