Who are worst adverse action culprits?

[SouthJamaica]

I frequently read posts about banks taking sudden adverse action for reasons other than violation of terms of agreement. E.g., having high utilization, taking out new cards elsewhere, doing balance transfers, etc.

My impression, anecdotally, is that

1. Barclays

2. Amex

3. Chase

4. Bank of America

5. Citi

6. Comenity (lately)

are the biggest culprits.

Is my impression correct? Is the order correct? Are there others we should know about?

Update 3/5/16, 5:24 PM ET:

Added to list:

7. Wells Fargo (per Bmac & others)

8. Synchrony (per huhum....)

Update 3/6/16 8:27 AM ET:

Possible other additions (per FinStar):

9. US Bank

10. FNBO

11. DCU

[Anonymous]

You'll want to include Synchrony as well - lately there have been reports of them slashing people's 15k credit lines down to $1,000.

I don't know that there is a list of worst advers action culprits per se. Any, and all, lenders will take action if they see sudden profile changes or things that concern them.

[Anonymous]

Seems about right...we also must consider that some banks are more popular than others thus giving a false impression that they do AA more often. When looked at as a percentage the real results might be much different. I think the exception might cap1 very popular, yet you seldom here of AA from them.

[Anonymous]

Pretty much any bank can be if they see you as a risk. Especially risky are the ones that already have 20+ credit cards but still see a need to apply for more. You'll see more of this as we inch closer to a recession/market correction.

[degs138]

We just had a market correction and I was issued credit like beer to a drunken sailor on shore leave.  I have never had an AA.  I PIF every time.  Barclay actually raised my limit when I put a 3000 vacation on my card.

I think AA would happen from any bank that starts to see you live beyond your means.  If you put that you make 30k a year or they verify that and you all of the sudden went from an average CC debt of 1500 a month to 15k, they would start to pull back.  Even if your utility stayed under 30%.

I see a lot of people on here that have 200k in credit.  If you put 60k on your cards and kept under 30% I think there would be some AA across the board.

[kdm31091]

Your list seems about right. I think avoiding AA no matter what the creditor is pretty simple. We all know what tends to cause it.

Live within your means, don't apply for cards every week, pay your bills...you should be fine. Otherwise, no sense in stressing about it or worrying about which lender is most likely to do this. Any creditor can and will do it.

[Anonymous]

It seems to me that AA disproportionately affects accounts that were borderline approvals in the first place.

If Bank X has loose underwriting criteria and approves applications that Bank Y would reject, then Bank X can get a reputation for AA, even if X and Y look for the same things when reviewing existing accounts for risk.

With Barclaycard, they may give AA, but they're willing to take a risk on some customers that other banks wouldn't even approve in the first place. Barclaycard AA horror stories from people who were approved after recon with a 650 TU shouldn't necessarily be a consideration for someone who has a 750 TU.

[Bmac66]

I would include Wells Fargo on the list. They CLD me last month for having more than 2 inq and 2 new accounts in past 6 months. Less than 10% and I have a mortgage with them!  2 auto loans and no Kate's or neg accounts. Not sure why that spooked them but cut me from $3k to $1750. 

[SouthJamaica]

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@Bmac66 wrote:

I would include Wells Fargo on the list. They CLD me last month for having more than 2 inq and 2 new accounts in past 6 months. Less than 10% and I have a mortgage with them!  2 auto loans and no Kate's or neg accounts. Not sure why that spooked them but cut me from $3k to $1750. 

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Thanks for your input Bmac, Careful, kdm, degs, Jon, Open, humu........

I've added Synchrony and Wells Fargo to the list.

[Anonymous]

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@kdm31091 wrote:
Your list seems about right. I think avoiding AA no matter what the creditor is pretty simple. We all know what tends to cause it.

Live within your means, don't apply for cards every week, pay your bills...you should be fine. Otherwise, no sense in stressing about it or worrying about which lender is most likely to do this. Any creditor can and will do it.

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That part is hard, the rest is pretty easy.