Credit card issuers that cancel your credit card solely for attaining more credit after the fact

[K-in-Boston]

---

@Remedios wrote:

---

---

Well, some people play videogames in their underwear.

I do believe any decent game deserves better than Victoria Secret, but that's just me. 

---

That's perfectly fine, but does one also necessarily need Abercrombie & Fitch, American Kennel Club, Barney's, Bed Bath & Beyond, Camping World, Crate & Barrel, David's Bridal, DSW, Eddie Bauer, Forever21, Hot Topic, Home Shopping Network, J.Crew, Land's End, Lane Bryant, New York & Co., Orbitz, Piercing Pagoda, Pottery Barn, Restoration Hardware, Sportsman's Guide, Sony, Williams-Sonoma, and Zales on the same day to complete the gaming experience?    And not to stereotype, but HSN person is probably not also shopping at Barney's to pair their $9.99 sweater with a $25,000 t-shirt.

[kremonis]

---

@SecretAzure wrote:

---

@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 @Anonymous 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. 

---

@SecretAzure 

It seems this post has sparked quit the conversation. Ironically I wanted to apply for the Abound 5% cash back on gas  credit card and the UMB Sinply Rewards but passed on both for different reasons. The former has no SUB and the latter is geofenced with backdoor way in that I can find.

I usually app for 3-4 credit cards during the late spring and early summer. The expectation is approval for 1-2.

Target credit cards:

1. Chase Ink Business Unlimited
   1. $750 Sub
   2. Does not report on personal credit so does not count against 5/24
2. Chase Freedom Unlimited
   1. $200
   2. 3% cash back on dining, and drugstore, 1.5% everything else
3. BOA Cash Rewards clones
   1. $200 SUB
   2. 3% cash on category you choose upto $2500
4. SDFCU (State Department Federal Credit Union) $200
   1. $200 sub
   2. Not dependent of PayPal for 2% cash back card

Here are some stats:

Average age of open accounts: 6.5 years

Age of oldest account: 23 years

1 secure share loan with the NFCU. Done to keep credit score up after paying on car $418 left from $5k

currently at 3/24:

2% utilization

TU: 1HP falls of Mid Spring

EQ: 1HP falls of start of the start of summer

EX: 3HP one falls of the summer

No derogs.

100 % payment history

[TheBoondocks]

I'm planning to get the Abound credit card as well. I'm trying to get the chase ink card as I'm under 524, but want the 5% gas card to be my last card. Would they fire me as a customer? I have 17 credit cards, 2 recent past a year. I just opened a checking account but still in process. Hopefully, I hear back.

Somebody said this on Cap1 as a lender - If you have great credit, avoid, they don’t like people who don’t make them money off of fees and interest. Is that true? 

[FinStar]

---

@TheBoondocks wrote:

I'm planning to get the Abound credit card as well. I'm trying to get the chase ink card as I'm under 524, but want the 5% gas card to be my last card. Would they fire me as a customer? I have 17 credit cards, 2 recent past a year. I just opened a checking account but still in process. Hopefully, I hear back.

Somebody said this on Cap1 as a lender - If you have great credit, avoid, they don’t like people who don’t make them money off of fees and interest. Is that true? Myth - where are you reading this/source?

---

No one can predict what a lender will do, especially in your situation @TheBoondocks.  Once you have a source of steady income to apply (as per your other thread(s)), then you can try them.  I would think (pure speculation though) that if you don't plan on aggressively seeking credit within 12 months, and if you were approved, perhaps you'll be ok 🤷‍♂️

[kremonis]

---

@FinStar wrote:

---

@TheBoondocks wrote:

Somebody said this on Cap1 as a lender - If you have great credit, avoid, they don’t like people who don’t make them money off of fees and interest. Is that true? Myth - where are you reading this/source?

---

---

@FinStar 

This was something I heard about Cap1 one myself. Cap1 was focused on the subprime market. Here is a Youtube video link that speaks on it: https://youtu.be/pJ_GY4xloNk?t=217

[Remedios]

---

@kremonis wrote:

---

@FinStar wrote:

---

@TheBoondocks wrote:

Somebody said this on Cap1 as a lender - If you have great credit, avoid, they don’t like people who don’t make them money off of fees and interest. Is that true? Myth - where are you reading this/source?

---

---

@FinStar 

This was something I heard about Cap1 one myself. Cap1 was focused on the subprime market. Here is a Youtube video link that speaks on it: https://youtu.be/pJ_GY4xloNk?t=217

---

Umm, let's start with "Why people hate Cap One and Citi"

People do not hate Citi and Cap One, people have unrealistic expectations. 

Cap One has their own business model, and it won't work for everyone. Citi can be all over the place, but that describes any entity involved in lending money. 

We all praise lenders who meet our expectations, then talk doodoo about those who don't. 

With Cap One, the salty ones are those who cannot get large lines from them when they feel like they deserve them. 

People be all "My Fico is 80001, I got $5000.00 SL while someone with BK got $25,000. That's bs, hate them"

They forget to mention that NFCU does the same thing, but since they have large CLs with NFCU, it becomes irrelevant. 

Similar business model when it comes to approvals, but one is great, the other one gets hate because they didn't meet customer's expectations. 

People also like to brag about "I PIF, so that must be why they hate me, they want me to pay interest" 

Nah, they don't want to approve/increase   because you got 50 cards last year. No lender hates people who pay their bills. 

Would they like you to pay some interest, of course. That's how they stay in business, that's how lending works. 

What they "hate" is not paying your bills, getting in too deep where the interest you pay prior to default won't come close to covering the loss. 

Citi plays by Citi playbook, nothing to love or hate. Some complain about customer service, and perhaps in their case that holds true, I haven't had any issues with their customer service. 

There is always someone "hating" a faceless entity. The fact that they stay in business for decades simply means most of their customers do not "hate" them. 

Then again, most people do not hang out on the credit card forum, and mention class action lawsuits every time correctable mistake is made. 

Every lender gets a label,  be it conservative, generous, stingy etc. 

All are true and at the same time, none are true. 

In the end it will be your profile they evaluate and make a decision based on that evaluation. 

I guess it's easier on the ego to "hate bad lender" rather than  facing the fact you are not everyone's ideal customer. 

Lastly, someone else can address getting credit info from youtube peeps, I'm not tactful enough. 

[FinStar]

---

@kremonis wrote:

---

@FinStar wrote:

---

@TheBoondocks wrote:

Somebody said this on Cap1 as a lender - If you have great credit, avoid, they don’t like people who don’t make them money off of fees and interest. Is that true? Myth - where are you reading this/source?

---

---

@FinStar 

This was something I heard about Cap1 one myself. Cap1 was focused on the subprime market. Here is a Youtube video link that speaks on it: https://youtu.be/pJ_GY4xloNk?t=217

---

First off, that video - which I've seen before - bears quite a bit of scrutiny.  

It really isn't gospel for one, @kremonis.  There are a few elements that the blogger  points out that are true as far as individuals that are typically starting out with credit (or rebuilding), who may get approved for less than stellar limits.

But, the blogger and the author of the comments, do not mention what 'research' was done, what analytics were involved to arrive at such answers, where on the Annual Report does it provide the specifics, and nowhere does it mention what portion of Capital One's portfolio is segmented to those who have the desirable profile to be approved for cards like Venture, Quicksilver or Savor, for instance.  Btw, just because one has an ~800 score, utilization of 1%, etc., doesn't provide the full picture (which the commenter neglected to mention), so it can be inferred that the individual was perceived as a churner and we have no idea how many new accounts they opened prior to applying for a Capital One card.  They did tighten the UW requirements a while back and the ship has sailed for their looser UW back several years ago.

So, yeah, YouTube bloggers 🤷‍♂️

[FinStar]

---

@Remedios wrote:

---

@kremonis wrote:

---

@FinStar wrote:

---

@TheBoondocks wrote:

Somebody said this on Cap1 as a lender - If you have great credit, avoid, they don’t like people who don’t make them money off of fees and interest. Is that true? Myth - where are you reading this/source?

---

---

@FinStar 

This was something I heard about Cap1 one myself. Cap1 was focused on the subprime market. Here is a Youtube video link that speaks on it: https://youtu.be/pJ_GY4xloNk?t=217

---

Umm, let's start with "Why people hate Cap One and Citi"

People do not hate Citi and Cap One, people have unrealistic expectations. 

Cap One has their own business model, and it won't work for everyone. Citi can be all over the place, but that describes any entity involved in lending money. 

We all praise lenders who meet our expectations, then talk doodoo about those who don't. 

With Cap One, the salty ones are those who cannot get large lines from them when they feel like they deserve them. 

People be all "My Fico is 80001, I got $5000.00 SL while someone with BK got $25,000. That's bs, hate them"

They forget to mention that NFCU does the same thing, but since they have large CLs with NFCU, it becomes irrelevant. 

Similar business model when it comes to approvals, but one is great, the other one gets hate because they didn't meet customer's expectations. 

People also like to brag about "I PIF, so that must be why they hate me, they want me to pay interest" 

Nah, they don't want to approve/increase   because you got 50 cards last year. No lender hates people who pay their bills. 

Would they like you to pay some interest, of course. That's how they stay in business, that's how lending works. 

What they "hate" is not paying your bills, getting in too deep where the interest you pay prior to default won't come close to covering the loss. 

Citi plays by Citi playbook, nothing to love or hate. Some complain about customer service, and perhaps in their case that holds true, I haven't had any issues with their customer service. 

There is always someone "hating" a faceless entity. The fact that they stay in business for decades simply means most of their customers do not "hate" them. 

Then again, most people do not hang out on the credit card forum, and mention class action lawsuits every time correctable mistake is made. 

Every lender gets a label,  be it conservative, generous, stingy etc. 

All are true and at the same time, none are true. 

In the end it will be your profile they evaluate and make a decision based on that evaluation. 

I guess it's easier on the ego to "hate bad lender" rather than  facing the fact you are not everyone's ideal customer. 

Lastly, someone else can address getting credit info from youtube peeps, I'm not tactful enough. 

---

[Anonymous]

---

@Remedios wrote:

---

There is always someone "hating" a faceless entity. The fact that they stay in business for decades simply means most of their customers do not "hate" them. 

Then again, most people do not hang out on the credit card forum, and mention class action lawsuits every time correctable mistake is made. 

---

I agree, but from time to time I think there might be SOME truth in a statement like "Issuer X is a little less 'friendly' to the average MyFico profile than Issuer Y is.", i.e. X might be less generous with SL, CLI and more prone to AA on profiles which have been more aggressively seeking credit.  And this isn't reflected in the wider world of normal profiles.  So most customers indeed do not hate them, but perhaps MyFicoers should!

On the other hand, my view of which issuer X is changes from time to time, so either the process is dynamic, or, more likely, there is little truth there at all and we are just picking up on random variations as we get a mini-surge of posts about X's meaness and forget that last week Y did the same.

> Lastly, someone else can address getting credit info from youtube peeps, I'm not tactful enough.

Since "tact" is my second, fourth and sixth name (my parents lacked imagination): the same is somewhat true here.   We have people here who very forcefully present as gospel things that are at best unclear and may well be false.   The difference here is that because it is more a dialog, others can put forward opposing views.   Doing that in youtube comments is much less powerful as the original video clearly dominates.

[Aim_High]

---

@Remedios wrote:

---

@kremonis wrote:

---

@FinStar wrote:

---

@TheBoondocks wrote:  Somebody said this on Cap1 as a lender - If you have great credit, avoid, they don’t like people who don’t make them money off of fees and interest ...

---

---

@FinStar   ... Here is a Youtube video link that speaks on it: https://youtu.be/pJ_GY4xloNk?t=217

---

Umm, let's start with "Why people hate Cap One and Citi" ...

 ... Lastly, someone else can address getting credit info from youtube peeps, I'm not tactful enough. 

---

Right.  A lot of those YouTube "experts" don't know what they're talking about, whether it's on credit or other topics. 

I found the subject line amusing.  People don't hate Cap One and Citi en masse.

But I listened for a few minutes until he broadly labeled both Capital One and Citi as "Subprime lenders." 

Excuse me now.  I have to go clean the coffee off my computer screen.