Is Blispay too good to be true????

[Gmood1]

My brother was an instant denial. He's in the low 700's. We were both surprised!

[DantGwyrdd]

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@Anonymous wrote:

Maybe his score was "too good" if there is such a thing.  I wrote about this in another Blispay thread when trying to make sense of some of these denials, approvals and sentences to purgatory.  Blispay has been scrutinized since they came about in April as having a business model that could very well be unsustainable.  Those that don't ever pay any interest but take advantage of the 6 month financing likely cost them money, not make them money.  Perhaps 820+ scores to them are so good that they don't anticipate anything other than a PIF from the customer, where guys with scores in the low-mid 700's represent only slightly more risk but are probably more likely to carry a balance.  I'm just sort of thinking out loud here in trying to come up with some sort of reason.

Of course there are plenty of people that have received denials in the low 700's though, as well as sent to the time out room so no matter how you view the situation it's going to be a head scratcher.

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I'm wondering if utilization also plays a role, as in people with extremely low util being seen as not likely to revolve the balance past the no interest period.

[score_building]

Have no idea if this scenario is in play but John Ulzheimer discusses it in an excerpt from Smartcredit (Sep 7, 2010) "...Some lenders don’t want an abundance of customers whose scores are too high. Stratospheric scores, those well into the 800s, generally belong to people who don't use credit. And those who don't use credit don't generate income.

For the first time ever there’s now a sweet spot, credit score wise. You really want to fall between 760 and 810, give or take a few points in either direction. The 760 means you’re a very good credit risk. It also means you’re probably using credit, have credit card balances, and have installment loans. This means you’re generating revenue for your lenders and credit card issuers.

If you score too high it means you are probably not using credit cards. You’re a very good credit risk but that’s not good enough in today’s credit environment. The lender wants and needs to make some dough and if your score indicates that you’re a great credit risk but have poor revenue potential then they might just decline you. Yes, you can get declined for having too high of a score. It’s called a “high side override”, meaning you scored higher than the lender’s low-end criteria but they still declined you..."

[Anonymous]

Back in 2010, Gander Mountain sued World Financial Network National Bank (aka Comenity) for purposely denying people that had a good credit score (typically 800+) because they said those customers aren't profitable. I have no doubt that some lenders still do this - they just aren't going to tell you they're doing it.

Here's an article about the lawsuit:

http://www.bizjournals.com/twincities/stories/2010/06/21/daily42.html 

[Anonymous]

Was his denial between 6/15/16 and now or was it earlier than that?

[Anonymous]

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@DantGwyrdd wrote:

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I'm wondering if utilization also plays a role, as in people with extremely low util being seen as not likely to revolve the balance past the no interest period.

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Utilization percentages to go along with approvals, denials or for an extended limbo state for this card would be nice to see in order to see if there is any sort of pattern there with respect to utilization.

My overall utilization at the time they pulled my 734 EX was 5%.

[Anonymous]

Interesting posts and quotes from articles above.  Thanks for that info guys.

I would think an outfit such as Blispay would take a stronger look at this type of thing over some of the bigger banks out there simply because minor changes in profit can make a huge difference to them overall. 

[SOGGIE]

This is an interesting thread. The study of consumers who have scores higher than 810 is interesting as well. My scores are higher than 810 and I can attest to the fact creditors do not generate big bucks from me as I am not a big spender and I always PIF.

[Anonymous]

And I believe there are many people out there just like you.  Of course, the number of creditors that would ever suggest that they pass up on applicants with incredibly high scores has got to be minimal.  Fortunately we have this forum to talk about these things

[DonDraper]

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@SOGGIE wrote:
This is an interesting thread. The study of consumers who have scores higher than 810 is interesting as well. My scores are higher than 810 and I can attest to the fact creditors do not generate big bucks from me as I am not a big spender and I always PIF.

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There's a reason they internally call us "deadbeats."