@jbestman007 wrote:
@Sharingan wrote:I have to disagree with some of the earlier posts. Maybe not with NFCU, but there’s plenty of evidence in the approvals section of people getting approved for large credit limits from various banks with a fresh history and just one or two AU accounts on their reports. I’m reading a fairly recent, large AmEx approval right now resulting solely from AU history. Obviously, the veracity of some of the accounts can be questionable, and I don’t agree with that kind of lending; but this loophole has existed for quite some time, and is seemingly very much alive today depending on where you apply.
I believe you are conflating two things. Yes, there are banks that would give "large credit limits" to users with only AU accounts reporting but that does not prove any correlation between the limits the primary user had with the limit the AU gets. There is more to credit profile than credit limits. In fact, I would submit that the biggest benefit that a AU gets from being added to an established account is AAoA. That alone can improve one's credit score leading to the higher credit limit you speak of.
Also, this "loophole", as you call it, happens mainly with users new to credit. They already have clean profiles. Just not aged profiles. So, a 690 profile with an AAoA of 9 months added to a 15yr tradeline, now gets bumped to 760 with an AAoA of 6yrs. User now gets a card with $5000 SL from Amex. Has nothing to do with the credit limit that the primary user had, I don't believe.
Couple things. The essence of my post was to counter the notion that, broadly, banks discount or don’t consider AU history during the underwriting process, which you’ve countered as well. There are clearly banks out there who do consider AU history, even the big names.
Additionally, while you are correct that there’s more to a credit profile than credit limits, a number of the approvals were with very limited AAoAs, and not always congruent with the scenarios you provided. Since it’s really not possible to prove the correlation you mentioned with 100% certainty, it’s reasonable to attribute a high SL to the credit limits on the existing primary/AU accounts in examples involving limited AAoAs, assuming the bank considers AUs. You aren’t exactly proving a correlation with certainty in your second paragraph either, while also dismissing (“I don’t believe”) another factor (existing credit limits) in the credit profile. You can acquire a long history with low limit accounts and end up with low SLs. Personally, I would be even less inclined to believe a score would influence an SL more than reported limits.
