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I am curious how often credit card issuers that cancel your credit card solely for attaining more credit after the fact. Maybe harness the collective knowledge and experience of Myfico members to make informed decision about applying for credit cards with credit issuers who are known to do this. I would not want to waste time and a HP for a credit the is likely going to get adverse actioned later because I am finally under 5/24 and stalking a juicy Chase SUB.
Please include:
I will start:
1. Abound Credit Union 5% card
https://www.aboundcu.com/Spend-Save/Personal-Accounts/Credit-Cards/Cash-Back-VISA-Card
2. UMB Simply Rewards
As I said in the Abound thread, it's really a matter of degree and very profile dependent. The issuers are not closing "just" because of a new credit card, but because of a perceived risk. Certainly some issuers may view credit seeking more risky than some others, but we shouldn't jump to conclusions like "If you get a card from X, don't get another card ever/for 2 years/etc"
A while back, Barclays was widely viewed as "jealous" new credit would get the card closed. Many of us have had some Barclay card for years with lots of new credit since, with no issues. Whereas some, doing some pretty aggressive credit seeking, did get shut down. But, to me at least, that's understandable and not some strange jealousy!
ETA: note that your UMB thread is from 2017 and not filled with large numbers of "me too" One or two cases doesn't make a firm pattern.
Has anyone ever been provided a closure reason from a CCC that says anything about the addition of recent credit?
I agree with what LTL said above, where overall profile/risk is what matters most.
Cornelius may have a 650 score, open a card with Bank XYZ, then open up 3 more cards with other lenders and see his card with Bank XYZ closed.
Rupert may have a 775 score, open up a card with Bank XYZ, then open up 5 more cards with other lenders and not see his card with Bank XYZ closed.
Rupert's profile is overall stronger, so he's able to take on equal or even greater risk relative to Cornelius without running into AA.
Unless a CCC has some sort of hard rule like if you open X number of accounts within Y months of opening one with us (which I'm not sure any do) my take is that it's always going to come down to overall profile if such a decision is made.
@Anonymous wrote:Has anyone ever been provided a closure reason from a CCC that says anything about the addition of recent credit?
I do remember some time ago about Penfed having multiple denials (not sure if they were closures too) for pyramiding debt. I remember hearing that word very frequently. Perhaps, others have more details as to whether they were closed.
I'm not @longtimelurker and don't know how to effeciently find 3 year old posts in 30 seconds.
@SecretAzure wrote:
@Anonymous wrote:Has anyone ever been provided a closure reason from a CCC that says anything about the addition of recent credit?
I do remember some time ago about Penfed having multiple denials (not sure if they were closures too) for pyramiding debt. I remember hearing that word very frequently. Perhaps, others have more details as to whether they were closed.
I'm not @longtimelurker and don't know how to effeciently find 3 year old posts in 30 seconds.
Walking like an Egyptian would only result in pyramiding debt as a denial reason for new cards and CLIs.
Chase and Barclaycard are the only two that come immediately to mind for DPs where people did genuinely have accounts closed for being a significantly elevated risk by opening numerous accounts immediately after opening an account with one of those lenders. But it's very much YMMV. It won't happen to everyone, but with a weaker profile and a big app spree with new cards reporting soon after opening a new account it can definitely happen.
@K-in-Boston wrote:
@SecretAzure wrote:
@Anonymous wrote:Has anyone ever been provided a closure reason from a CCC that says anything about the addition of recent credit?
I do remember some time ago about Penfed having multiple denials (not sure if they were closures too) for pyramiding debt. I remember hearing that word very frequently. Perhaps, others have more details as to whether they were closed.
I'm not @longtimelurker and don't know how to effeciently find 3 year old posts in 30 seconds.
Walking like an Egyptian would only result in pyramiding debt as a denial reason for new cards and CLIs.
Chase and Barclaycard are the only two that come immediately to mind for DPs where people did genuinely have accounts closed for being a significantly elevated risk by opening numerous accounts immediately after opening an account with one of those lenders. But it's very much YMMV. It won't happen to everyone, but with a weaker profile and a big app spree with new cards reporting soon after opening a new account it can definitely happen.
This is the best, most relevant, and accurate response I've gotten here in all my years.
I just don't understand why so many choose to play this risky game. There's no hurry in the credit world and usually those who try to rush things usually end up in a bind of some sort. I can see the logic for app'ing for 2 cards at once with a thin but established profile...maybe even stretching to 3 cards under the right circumstances. But people who have an AAOA under 1.5 years (due to either a new profile or because of a PAD {Persistent App'ing Disorder}) and choose to apply for several cards in a short window are asking for trouble, especially if they're running high utilization percentages.
OP, this is an unlikely situation and usually, one with common sense should be able to see it coming a mile away. And if you're unsure, post your stats and what you're likely to app spree for and let the genius community here be your guide.
Comenity loves to do this when they review your account. Many have found their approved card was closed by the time it came in the mail because of their apping shenanigans.
@SecretAzure wrote:
I just don't understand why so many choose to play this risky game. There's no hurry in the credit world and usually those who try to rush things usually end up in a bind of some sort. I can see the logic for app'ing for 2 cards at once with a thin but established profile...maybe even stretching to 3 cards under the right circumstances. But people who have an AAOA under 1.5 years (due to either a new profile or because of a PAD {Persistent App'ing Disorder}) and choose to apply for several cards in a short window are asking for trouble, especially if they're running high utilization percentages.
.
I don't think this is really the reason for people today, but long long ago (in credit world time) people would use the "two browser trick" and apply for two credit cards as close to the same time as their fingers would allow, often from the same issuer. The idea is that the (slightly) second app would not see the inq from the first, and this would increase the chance of both. Then repeat. It's possible that this worked at some time, but now inqs are recorded almost instantly, but for some time this behavior persisted.
Now spree advocates push the argument that this allows several cards to age together, making a "bullet proof" profile after a while. Yes, unless the apps are unsuccessful or leads to closure!
@SecretAzure wrote:
I'm not @longtimelurker and don't know how to effeciently find 3 year old posts in 30 seconds.
? I don't find them, I have merely memorized every post (surely it's rude to the poster if you don't).
@Anonymous wrote:Comenity loves to do this when they review your account. Many have found their approved card was closed by the time it came in the mail because of their apping shenanigans.
Was that known to happen when applying for cards from other lenders, or just to the many noted cases of "Comenity approved me for a card, so I applied for 20 more of their store cards since it won't hurt my credit because shopping cart trick and lenders only care about HPs, and everyone knows that there are no other risk factors when it comes to credit besides HPs?" I only have one Comenity card, but it's one of those "Everyone knows Comenity will shut you down if you even think about applying for another card afterward" cards and I went a little crazy the following couple of years with new apps, and evil Comenity just kept giving me CLIs until I hit the $30k max on the card and left my card open.
Edit: I also had BillMeLater/PayPal Credit that was sold to Synchrony; forgot about that.