What the heck is going on with Synchrony?

[Bird123]

Blue envelope came 11/15/2016

Some Data points: Lowes since April 2016 ($20k), Marvel since July 2016 (10k). Utility 2%. Zero lates always more than minimum payment. No other Synch cards.

At first they cut off my Marvel saying it was a security issue (I moved and changed addresses in August). They corrected the address and the card worked again.

Two weeks later I couldn't get online access to either card. Told to wait for envelope in 7-10 days (fraud issue). Took three and a half weeks but I finally got it.

The funny thing is that I bought something from Sams the other day and they told me I was pre-approved for a $2500 Sams Mastercard.

My total Util is at 15%, closing these accounts will hurt that, but it is better than being in limbo and afraid to scan these cards anymore.  Still going strong with Amex BCE, Discover It, Quicksilver, Venture One, Overstock, and HSN.

[AverageJoesCredit]

Wow! Thanks for sharing your story. Nothing really pops out as to why they would blue you. Only 2 accounts ope ed months apart doesnt seem to hive with what weve seen. If you dont mind me asking, hows your stated income? Any other changes with your other creditors or unusual purchases that may have spooked them?. Crazy times we live in as no one really knows who will be next. Ive seen plenty recently getting high limit increases on their Lowes but apart from that doesnt seem like too much exposure. Keep us updated if any new datapoints become available. Thanks

[Anonymous]

---

@Bird123 wrote:

Blue envelope came 11/15/2016

Some Data points: Lowes since April 2016 ($20k), Marvel since July 2016 (10k). Utility 2%. Zero lates always more than minimum payment. No other Synch cards.

At first they cut off my Marvel saying it was a security issue (I moved and changed addresses in August). They corrected the address and the card worked again.

Two weeks later I couldn't get online access to either card. Told to wait for envelope in 7-10 days (fraud issue). Took three and a half weeks but I finally got it.

The funny thing is that I bought something from Sams the other day and they told me I was pre-approved for a $2500 Sams Mastercard.

My total Util is at 15%, closing these accounts will hurt that, but it is better than being in limbo and afraid to scan these cards anymore.  Still going strong with Amex BCE, Discover It, Quicksilver, Venture One, Overstock, and HSN.

---

Sorry this happened, bird.

2 or 3 cards from Synchrony in a period of just a few months is actually a lot given how punchy they have been. Most likely that is the reason. They may consider it aggressive credit seeking, even though that was not your intent. Regular consumers usually do not apply for 2 or 3 cards from the same lender just a few months apart.

Glad you have a positive attitude about it. I'm sure it is not a fun thing to have it happen.

[Bird123]

$110k is stated income, which is accurate. 

I did not use Lowes all that much, but I used Marvel a lot to eat out for the 3% cash back. Most meals though was about $30-$50 bucks. 

No big purchases from other creditors. The only thing I can figure is the address change a month after opening Marvel?

i thought I was being careful with them, especially since people started receiving blue envelopes.

On the other hand, discover has been great, and I'm hoping they continue to be that way. From 7.5k in June to 13k a week ago is awesome, just not sure how often to try with them. 

[Bird123]

It's not fun, but judging by this thread, I was able to brace myself for it. 

I didnt have 3 Synch cards. I was pre-approved at Sams while I was checking out. I said 'no, thank you' and paid with Discover. 

[Anonymous]

It's crazy that all this is still going on. I have my three Synchrony cards and would like to keep them all, but if asked for all that "blue envelope" info, I would tell them to stuff it and cancel the cards.  So sorry this is still happening to people.

[Anonymous]

My guess from reading these posts and situations is that Synchrony's computer algorithm is set to trip if 2 or more cards get approved in x period of time. What constitutes x period of time? None of us know. Six months is a reasonable guess.

The risk algorithm may also be looking for bust out fraud or aggressive credit seeking, whether or not that is the cardholder's intent. Lender losses from bust out fraud amount to more than 1.5 billion annually, according to Experian.

It's still wrong of them to do this but I think they are looking at normal consumer behavior compared to myfico members, and regular consumers don't apply for more than one card per year from any lender, much less from the same lender.

Just some thoughts.

[Anonymous]

Can someone explain "bust out fraud" ?? What exactly is that I've seen the term before but don't understand it. I mean, 80% (rough estimate) of people on this forum are aggressive credit seekers lol .. are the two related ??

[Anonymous]

Also I must disagree humu - I know many people who have never heard of this site, who get sucked in by the promos at stores - 15% first purchase - and end up with a slew of store cards within a few month timeframe without having any clue they're all backed by Synch (i.e. Banana, Toys R Us, Old Navy, GAP Walmart etc). They get sucked in at checkout for a discount and before you know it they have 5 asynchronous cards ! This is especially true around holidays.

[Anonymous]

SYNCH cards * not asynchronous lol