cancel
Showing results for 
Search instead for 
Did you mean: 

Interesting...near-800 FICOs no longer qualify for the lowest-available APRs on new card apps...

galahad15
Valued Contributor

Interesting...near-800 FICOs no longer qualify for the lowest-available APRs on new card apps...

So I went to the BB&T prequal page, just to try to see what (if any) offers were available.  I was given offers of the Spectrum Cash Rewards card of 17.24% V, also 17.24% V for the Spectrum Travel Rewards card, and 15.24% V for the Bright card.  The thing is, these offers have go-to APRs that are 2% higher than the lowest-available rates for each card (i.e., 15.24%, 15.24%, and 13.24%, respectively).  My FICO8 scores are currently 796 (EQ), 794 (TU), and 781 (EX), so tbh, not really sure why the higher rates were offered, and why the scores would not potentially merit the lowest-available rates?

 

Also not sure if this is a recent pattern of sorts by the cccs, where near-800 or even 800+ FICOs will no longer guarantee the lowest go-to rates?  IME, this has occurred with several recent apps for me now, including WF Propel from less than a year ago (given 17.49% V), and BoA Amtrak (given 21.24% V).  Although at the time of each app, I was super-close to 800s (and in some cases, over 800+) across all 3 bureaus.

 

I know, I know lol, PIF makes the APR irrelevant  Smiley Happy  At the same time however, I cannot seem for the life of me seem to figure out why FICO scores across all 3 bureaus that are only a few points plus or minus 800 consistently approved or preapproved me for 3 cards at higher rates, vs. in the past, it would have seemed to be a slam-dunk for the very lowest rates?  Do super-high FICO scores no longer matter as much to the cccs like they did in past years, in terms of being able to qualify for the best-possible terms and conditions, and is there maybe perhaps some sort of changing trend going on here?


18 REPLIES 18
wasCB14
Super Contributor

Re: Interesting...near-800 FICOs no longer qualify for the lowest-available APRs on new card apps...

There's more to an application than the FICO score.

With "several recent apps" maybe some issuers see it as aggressive credit seeking?

Maybe minor concerns about bust-out fraud...enough to give a median APR, but not enough to reject the application?

 

There are potential macro factors, too.

Issuers may fear that trade wars will lead to higher unemployment and debt defaults.

Many consumers are also taking on higher-risk car loans (high car prices relative to income, longer times to repay) so if you have a car loan or lease that could have some effect.

Spend: BofA PR + WWFCR, BBP, Schwab Platinum, CFF+CF, Costco, Discover
Perks: IHG49, Hyatt75, Delta Platinum, "Old" SPG95
SD/AAoA Ballast: Arrival, CFU, DC
Upgrade/downgrade games: BCE, EDP
SUB: JetBlue, Amex Platinum
Mostly earning MRs and cash back as I use up hotel and airline points spread across several programs.
Message 2 of 19
NRB525
Super Contributor

Re: Interesting...near-800 FICOs no longer qualify for the lowest-available APRs on new card apps...

FICO score is only one factor in an application being considered.

 

How much total limit do you already have?

How many cards do you already have?

As noted above, how many new cards recently?

Those metrics are all available, quickly, from your file, in addition to FICO score.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
Message 3 of 19
galahad15
Valued Contributor

Re: Interesting...near-800 FICOs no longer qualify for the lowest-available APRs on new card apps...


@NRB525 wrote:

FICO score is only one factor in an application being considered.

 

How much total limit do you already have?  A little over $400k

How many cards do you already have?  23-24 cards, plus PayPal Credit

As noted above, how many new cards recently?  1 new card plus PayPal Credit, within the last 6 months

Those metrics are all available, quickly, from your file, in addition to FICO score.


Hi, thanks for your feedback, please see answers to questions above in bold font style.


Message 4 of 19
kdm31091
Super Contributor

Re: Interesting...near-800 FICOs no longer qualify for the lowest-available APRs on new card apps...

It's never just about score. If you have recent apps/appear to be credit seeking, the APR assigned to you is likely going to be higher than someone with say, 0/24. There's a lot of factors that go into assigning an APR and score is only one of them.

 

There's also a lot of factors going on right now that could make higher APRs more common. Worries about a recession/credit crunch/etc are likely causing banks to be conservative.

 

In the end, as you know, it really doesn't matter as none of the APRs on a rewards card are generally useful for borrowing money. Whether it's 18% or 23% you still don't want to be carrying a balance on it.

Message 5 of 19
AverageJoesCredit
Mega Contributor

Re: Interesting...near-800 FICOs no longer qualify for the lowest-available APRs on new card apps...

If all else fails apply for a Navy cardSmiley Happy. There are profiles that are suspect that always seem to get the best apr lolSmiley Wink
Message 6 of 19
RealityBites
Established Contributor

Re: Interesting...near-800 FICOs no longer qualify for the lowest-available APRs on new card apps...

My only sub-20 rate is on my first card, at 17.49% (RBC Visa, a US card only for Canadians). Next lowest is TD at 20.49.

 

In Canada rates don't tend to vary on a card. Standard is 19.99%, with some sub-prime cards heading into the low 20s and a few low-interest-rate cards. 

 

I guess from my point of view I can look at the high interest rates as a win all around. Since I PIF, if a higher interest rate lets lenders offer me a higher credit limit that keeps my utilization low or a card they otherwise wouldn't offer at all, we all win. And in the long term it will lead to a higher score and better rates if and when I really need to borrow.

 





Message 7 of 19
K-in-Boston
Moderator

Re: Interesting...near-800 FICOs no longer qualify for the lowest-available APRs on new card apps...

I'll certainly echo that APRs are determined by much more than scores.  The example I often use is my Citi Diamond Preferred approved at 12.24% in 2016 with scores around 710s-720s and overall utilization around 30-40% followed by my Citi ThankYou Premier approved at 25.24% 17 months later in 2018 with scores around 770s and overall utilization around the 10% mark.

Message 8 of 19
gdale6
Moderator

Re: Interesting...near-800 FICOs no longer qualify for the lowest-available APRs on new card apps...

Yup, mine was 797 when I apped for my first card since 12/2017 in July of this year, running 4% util with 150K total credit avail and another card with said bank that is nearly 4 percentage points lower.

Message 9 of 19
wasCB14
Super Contributor

Re: Interesting...near-800 FICOs no longer qualify for the lowest-available APRs on new card apps...


@galahad15 wrote:

@NRB525 wrote:

FICO score is only one factor in an application being considered.

 

How much total limit do you already have?  A little over $400k

How many cards do you already have?  23-24 cards, plus PayPal Credit

As noted above, how many new cards recently?  1 new card plus PayPal Credit, within the last 6 months

Those metrics are all available, quickly, from your file, in addition to FICO score.


Hi, thanks for your feedback, please see answers to questions above in bold font style.


Assuming your income is less than $250k, I could also see some issuers getting a little uneasy about the total amount of credit you have available.

Spend: BofA PR + WWFCR, BBP, Schwab Platinum, CFF+CF, Costco, Discover
Perks: IHG49, Hyatt75, Delta Platinum, "Old" SPG95
SD/AAoA Ballast: Arrival, CFU, DC
Upgrade/downgrade games: BCE, EDP
SUB: JetBlue, Amex Platinum
Mostly earning MRs and cash back as I use up hotel and airline points spread across several programs.
Message 10 of 19
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.