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Do some creditors never forgive low score/SL?

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Anonymous
Not applicable

Do some creditors never forgive low score/SL?

I hear sometimes about people barely getting approved for a card and understandably starting with a low SL, but over time even after strengthening their profile/scores considerably they are still "treated" as if their score was just about where it was back at the time of approval in that they are either unable to achieve CLIs or if they do, get very minor ones.  Do some creditors simply put you in a sort of super risky bucket and never take you out, regardless of how your credit health improves?  Do they sort of take the stance "hey, you were lucky enough for us to even extend you credit in the first place, be happy with what you've got?"

 

I've sort of gotten this impression from reading through threads on here for any number of creditors where card holders seemingly can't ever catch a break, and many times it goes back to them barely being approved in the first place.

 

I'll give a quick personal example.  I was in bind about 2 years ago and was approved for a Capital One card with a 619 score with a $3000 SL.  Not a bad SL for that score I'll admit, but my only other card at the time (local CU card) had a $10k limit so maybe because of that I received a better than average [for that score] SL.  What Capital One didn't know was that my $10k card had just been cancelled; I applied for the CO card right after my other one was cancelled and of course hadn't reported yet.  

 

At time time I requested my first CLI with Capital One, my scores had rebounded to the 670-680 range.  I received a $500 CLI.

 

6 months later when I was eligible for another CLI, my scores were in the 720-730 range.  Again, another $500 CLI.

 

Next month I'll be eligible for another CLI.  My scores now and at that time will be 745-760.  I'm honestly not expecting more than a $500 CLI again.

 

I've moved on from the CO card and have been using other cards for the last few months, so at this point I really don't care about a CLI on the CO, I'm just curious if creditors tend to sort of label certain customers as "once incredibly risky" and treat them as such indefinitely. 

13 REPLIES 13
Anonymous
Not applicable

Re: Do some creditors never forgive low score/SL?

They probably don't think of it as "always incredibly risky" but more of a higher burden of proof thing, that you have to accumulate more time and history before they will give you a break. I am afraid of this happening to myself with US Bank...at $1000 on the Cash+ just to get in with them and really hoping it doesn't just stop there as my other big bank cards go up over time..
Message 2 of 14
Anonymous
Not applicable

Re: Do some creditors never forgive low score/SL?

I Imagine American Express to be that way. If you started with $1,000 limit and your scores go up a great deal but you are still low spend, they may not help you out. As your scores have gone up you probably have applied elsewhere and gotten a limit you wanted and now use those cards. All is not lost when you apply for a second or third American Express they give you a good SL you can move them around once one of them is a year old.
Message 3 of 14
galahad15
Valued Contributor

Re: Do some creditors never forgive low score/SL?

Ironically enough, this happened to me with my Cap1 NHM card, which Cap1 approved for me in 2012 with a SL of $1k, which they have refused to budge on giving a CLI to, even though I have now achieved an 800 FICO score on at least 1 CRA and very close to 800 on the other 2 CRAs.  Don't get me wrong, I am genuinely  glad and grateful to have the card and love the cashback I am getting on it every month (anywhere from $10 - $20 monthly depending on the exact month, and which either matches or beats out the quarterly BBR statement credit).  The card having Venture-identical benefits without the AF is another excelllent benefit, but I am rather limited in how often I can use the card if I want to keep my util on it optimal for my FICO scores.  (The card is PIF every month regardless of reported balances btw.)  Between the the relatively-low APR on the card, the 2% travel rewards cashback, and the no AF on it, I don't realistically see Cap1 as giving me a CLI on it anytime soon, or possibly ever.  At the time I applied for it in 2012 , IIRC I think my FICO scores were even in pretty decent shape and slightly or moderately above 700, so idk what their logic was, since at the time the card was being touted by Cap1 as an uber-prime card offering with up to $30k CLs and/or flexible spending benefits.


Message 4 of 14
Anonymous
Not applicable

Re: Do some creditors never forgive low score/SL?

This used to be the case with Capital One. I opened my first card with them in 2006 right after BK7, SL of $300, then credit steps increase to $500. Opened a second Cap 1 card in 2008, and got a similar result: SL of $500, credit steps increase to $750.  At that time Capital One usually never granted any further CLIs to their subprime cards beyond the one Credit Steps increase, no matter how "prime" your profile had become afterwards. 

 

I was finally able to combine the two Cap 1 cards into one $1250 card in 2009 but had to call their EO.  I had no CLIs on this account until July 2016, when thanks to these forums I found out Cap 1 changed their policy and now allows SP CLIs every 6 months. Got a dinky CLI to $1400, but at least that was something.

 

I still can't combine any of my four low-limit Capital One cards (even the two that have a zero balance), but I keep trying.  Eventually I want to get my 2008 Platinum card up to a $5K+ limit and keep the age, although I know I'll have to do more spending on it as Cap 1 seems to like activity in order to grant CLIs.

Message 5 of 14
Anonymous
Not applicable

Re: Do some creditors never forgive low score/SL?

I feel like Capital One and Citi are like that with me. My original QS1 was stuck forever and I finally had to give up and roll it into my QS which I was happy to do anyway as I don't want AFs. My Citi DC is one of my oldest cards and they refuse to budge off my original $800 SL. My files are clean now and my score is over 100 points higher but a year and half later...no luv.

Message 6 of 14
Anonymous
Not applicable

Re: Do some creditors never forgive low score/SL?

Sounds like others have experience this with Capital One as well.  I know people have talked about it being the case with Amex too. 

 

I figured it has to have something to do with the approval score/profile, as every other card I've been approved for since then has given me SLs of 2X-3X my CO limit, and all of them have given me CLIs far in excess of anything I've ever gotten from CO.  I guess creditors in these situations want to see you prove yourself for a longer period of time than it takes for your scores to improve significantly, which many can accomplish in a year or so of time.

Message 7 of 14
RaiseMyScoreASAP
Regular Contributor

Re: Do some creditors never forgive low score/SL?

I was approved for several credit cards with FICO scores in the GOOD range and still got rates that stunk. It seems once you get pegged, you are trapped. Discover is an exception, but you have to call and request a lower rate and can do that twice per year. I just made my first request for a rate reduction. They will able to lower it to a reasonable level, but I opted for a year at 0%. So I am confident I will be able to get to their lowest rate for Discover it, which I understand is 11.99%. 

 

With Chase, this will take a lot more work. They were not willing to lower the rate at all and offered nothing like Discover did. Chase's statements were that this was the best rate we are going to offer you. Period. I am not going to apply for another Chase card until I am fairly certain to get the lowest rate. 

 

I currently have an AMEX PRG and will not apply for a revolver there until is it certainly I will get the best rate.

 

When you begin with toy limits your increases are toys even if they will do anything at all. I don't want any more toys. 

 

Message 8 of 14
RaiseMyScoreASAP
Regular Contributor

Re: Do some creditors never forgive low score/SL?


@Anonymous wrote:

Sounds like others have experience this with Capital One as well.  I know people have talked about it being the case with Amex too. 

 

I figured it has to have something to do with the approval score/profile, as every other card I've been approved for since then has given me SLs of 2X-3X my CO limit, and all of them have given me CLIs far in excess of anything I've ever gotten from CO.  I guess creditors in these situations want to see you prove yourself for a longer period of time than it takes for your scores to improve significantly, which many can accomplish in a year or so of time.


Capital One issued my Kohl's card and was glad at the time that they would give me a card even with a $300 limit. But it's been three year and the limit has only increased to $700 and they won't approve me for anything else despite having good FICO scores, perfect payment record and so on.

 

AMEX is another story. I have the PRG and don't want to do anything to damage that relationship. I really would like the EveryDay Preferred, but am not going to risk getting a toy limit and a bad interest rate. And one late payment 54 months ago could prevent me getting the card or get me stuck with a toy limit and bad interest rate. Not ready to be go there yet.

 

This is very much like the sexist thing that happens when women are offered lower salaries--then it affects every single move they want to make after that because of stupid thinking.

 

Message 9 of 14
Anonymous
Not applicable

Re: Do some creditors never forgive low score/SL?


@RaiseMyScoreASAP wrote:


Capital One issued my Kohl's card and was glad at the time that they would give me a card even with a $300 limit. But it's been three year and the limit has only increased to $700 and they won't approve me for anything else despite having good FICO scores, perfect payment record and so on.

 

AMEX is another story. I have the PRG and don't want to do anything to damage that relationship. I really would like the EveryDay Preferred, but am not going to risk getting a toy limit and a bad interest rate. And one late payment 54 months ago could prevent me getting the card or get me stuck with a toy limit and bad interest rate. Not ready to be go there yet.

 

This is very much like the sexist thing that happens when women are offered lower salaries--then it affects every single move they want to make after that because of stupid thinking.

 


I'm not following your point on Amex.  Did Amex also give you a low SL and your worried about getting another low SL in applying for the EDP?  If so, I think it would be best to hold off until your scores are in a better place before applying for your next Amex product.

Message 10 of 14
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