@Creditaddict wrote:I literally received my first statement in today's mail but receive an alert from Experian that it had been closed... upon calling it was reviewed as high risk on 22nd and closed!
im like less than 30 days after approval!!!
you should delete the entire account from my credit if you are going to just approve, open and then close accounts before I can even make a payment...
that is wild!
@kdm31091 wrote:Of course they're free to close your account whenever they want but from a business POV it makes no sense to expend the resources (however small) to create a new account and print and mail you a card only to cancel it immediately. If that's the case just tweak your approval algorithim to deny "risky" applicants to begin with. The secondary audit thing could take place much more easily if they just placed apps "under review" until a final decision was made. The approval and immediate cancellation is a pretty backwards way of handling things.
But, unfortunately, you applied for the card and the tradeline is technically valid, even though their business/lending practices are inefficient at best. So, I don't see much chance of having it removed.
Many posters here have had threads where their new card was closed. A common wish is for the bank to have simply not opened the account. But that desire for a thorough first-review and an initial "No thanks" from the bank assumes the bank has a thorough enough approval algorithm to be able to do that.
Still others are concerned about the amount of time it takes for US Bank to grant an approval. That underwriting approval would be necessary to prevent the "new closed card" scenario more widely, but it is costly for the banks.
So the more common approach is a simplified approval, and a follow on batch processing algorithm that gets to the more granular risk analysis. And here we are. Sorry it got closed, CA.
