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Why is Synchrony so Difficult with Credit Limits?

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Moderator

Re: Why is Synchrony so Difficult with Credit Limits?


@SecretAzure wrote:

Both your responses are enlightening. I guess offering credit to everyone with a 600 has come around and bit them in the butt. I don't really drive that much. I do make numerous purchases on the Marvel for dining as well as digital purchases (iTunes subscriptions and the like) but I guess they think what I have is probably enough for as little as I'm spending in these cats. 


Sorry about you Synchrony issues.

 

 

There are plenty of members here with scores in 600s.

Some are just starting out, some are deep into the rebuild, and they spend their time here helping others. 

They do not deserve to be used as lowest common denominator or examples of who bit Synchrony in the butt.

 

If we are really addressing that, we should mention that using a lender for utilization padding is a form of butt biting. 

I read that banging your head against a wall for one hour burns 150 calories.
If that was the case my scale would have negative numbers.
Message 11 of 25
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Established Contributor

Re: Why is Synchrony so Difficult with Credit Limits?


@Remedios wrote:

@SecretAzure wrote:

Both your responses are enlightening. I guess offering credit to everyone with a 600 has come around and bit them in the butt. I don't really drive that much. I do make numerous purchases on the Marvel for dining as well as digital purchases (iTunes subscriptions and the like) but I guess they think what I have is probably enough for as little as I'm spending in these cats. 


Sorry about you Synchrony issues.

 

 

There are plenty of members here with scores in 600s.

Some are just starting out, some are deep into the rebuild, and they spend their time here helping others. 

They do not deserve to be used as lowest common denominator or examples of who bit Synchrony in the butt.

 

If we are really addressing that, we should mention that using a lender for utilization padding is a form of butt biting. 


This...+1000

 

I'm Spartacus!

hr>Starting Score: EQ 546, EX 547, TU 580
Current Scores (lender): EQ 747 , EX FICO 760, TU 758 FICO scores>
Goal Score: ?
Take the FICO Fitness Challenge
Message 12 of 25
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Frequent Contributor

Re: Why is Synchrony so Difficult with Credit Limits?


@Remedios wrote:

@SecretAzure wrote:

Both your responses are enlightening. I guess offering credit to everyone with a 600 has come around and bit them in the butt. I don't really drive that much. I do make numerous purchases on the Marvel for dining as well as digital purchases (iTunes subscriptions and the like) but I guess they think what I have is probably enough for as little as I'm spending in these cats. 


Sorry about you Synchrony issues.

 

 

There are plenty of members here with scores in 600s.

Some are just starting out, some are deep into the rebuild, and they spend their time here helping others. 

They do not deserve to be used as lowest common denominator or examples of who bit Synchrony in the butt.

 

If we are really addressing that, we should mention that using a lender for utilization padding is a form of butt biting. 


I wish my daughters credit was in the 600s. I told her yesterday to give me her Credit Karma login and went to check her credit (she just started caring about it (young 19) OMG not long ago my credit was abysmal averaging 500 hers are low 400s. We got work to do!

Message 13 of 25
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Valued Contributor

Re: Why is Synchrony so Difficult with Credit Limits?


@Remedios wrote:

@SecretAzure wrote:

I guess offering credit to everyone with a 600 has come around and bit them in the butt. ... I guess they think what I have is probably enough for as little as I'm spending in these cats. 


There are plenty of members here with scores in 600s.  They do not deserve to be used as lowest common denominator or examples of who bit Synchrony in the butt.

 

If we are really addressing that, we should mention that using a lender for utilization padding is a form of butt biting. 


I agree that "hating" on people with 600s (or less) is inappropriate here.  We all are where we are at the moment, and it is what it is.  My scores have been low, my scores have been high.

 

On the utilization topic, consumers didn't start that whole debacle.  FICO and the lenders decided to use it as a major factor in scoring.  Back in the earlier days of credit, I probably was penalized a lot more for it than I even knew, before more articles about credit scoring were written and before websites like My Fico or Credit Karma.   "What do you mean you're penalizing me for daring to USE the credit limit you gave me!?!"  Smiley Mad 

 

Not to mention that our needs may vary over time, so what exactly defines excessive utilization anyway? What I need today may not be what I need tomorrow.  And if I start to be penalized for carrying more than 8.9% utilization per card, why wouldn't I want that padding to protect my credit score?  That number is ridiculously low and may have little bearing on whether someone is becoming a higher risk.  Knowing how utilzation is scored makes me know that I can never actually USE more than 10% of my credit limits, so I need them 10x higher than spend to be useful. 

 

If lenders want to stop excessive utilization padding, they should encourage FICO to reduce the penalties for using the credit lines we were approved to use.  And they should seek out more industry standardization among themselves about what an appropriate credit limit is for a given consumer profile.  Something is wrong when the same profile gets SL approvals that vary by 10's of thousands of dollars, depending on the lender. 

 

Until the industry cleans up the mess they made over utilization, I feel absolutely no remorse in adding whatever excess utilization that lenders will approve.   Besides, if they approve it, is it really "excess"?   Apparently they don't think so.



Updated 07/20/2020
Total Length of Credit = 35+ years; AoOA (Currently open accounts) = 27+ years;
AAoA = 8+ years; AoYA = less than 1 year (July 2020)
Total Open Credit Lines Over $521K. Utilization Less Than 1%.
Inquiries until Nov 2020 (TU:3 -- EQ:4 -- EX:8)
New Accounts: 3/6 months; 9/12 months; 12/24 months (as of 07/20/20)
Gardening until at least 04/2021.
*Hover cursor over each card to see name & CL, or press & hold on mobile app.
Message 14 of 25
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Valued Contributor

Re: Why is Synchrony so Difficult with Credit Limits?

@SecretAzure  Sorry to hear about your Sync misfortune.

One thing I've learned since joining this forum is that the credit game is a whole lot of AI causing YMMV!
Scores don't matter as much as we're lead to believe as far as being the be all and end all of this crazy roller coaster of the credit ride. Someone with a 650 can be luckier than me as much as me being luckier than someone with an 800.
Just the nature of this game.
Sometimes there really just is no answer for every question.  
F this Pandemic that much I can say!!!!!

BK7 dc in 01/2011 with FICO8 in the 500s

HPs EX 3 EQ 1 TU 1
AAoA 5y4m
UTIL 1% - 3%

$200K+ Total Limits







New cc TLs 0/6 ; 0/12 & 2/24
Message 15 of 25
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Valued Contributor

Re: Why is Synchrony so Difficult with Credit Limits?


@SecretAzure wrote:

Yeah, I just read the active thread regarding Amex. They are my second oldest card with my highest limit. Y'all have me paranoid now. I haven't used it in almost 6 months. I did get a nice letter from Barclays telling me they would close my account if I didn't use it soon so I immideately ran up some spend.

 

I typically use 2/3 cards regularly, my Chase Freedom Unlimited for daily, Marvel for digital/dining and semi-regularly Freedom for Category spend (depending on the category).

 

I will make sure to keep frequent spend across the board. For once, I envy my friend who has all his cards with 80%+ util paid with a minimum amount every month.


Wait. What? No!! That is not a position anyone wants to be in, if they can help it, and certainly not one to envy. Your friend is at huge risk to be balance chased and/or have cards closed. 





Message 16 of 25
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Established Member

Re: Why is Synchrony so Difficult with Credit Limits?

Surprise!  Bottom feeder Synch disappoints again!     

Message 17 of 25
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Community Leader
Mega Contributor

Re: Why is Synchrony so Difficult with Credit Limits?


@MacCreed wrote:

Surprise!  Bottom feeder Synch disappoints again!     


Why are they bottom feeders? Nobody complains about getting 5% discount off Amazon or when they receive 2, 4, 6k increases or achieve 10k plus limits. What they are doing is wrong imo, could be done better, but in no way are they bottom feeder. Thats kind of a disservice  to those who use their Sync cards responsibly and Synchrony has helped many build up their profile where many others may not have. 

Message 18 of 25
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Established Contributor

Re: Why is Synchrony so Difficult with Credit Limits?


@AverageJoesCredit wrote:

@MacCreed wrote:

Surprise!  Bottom feeder Synch disappoints again!     


Why are they bottom feeders? Nobody complains about getting 5% discount off Amazon or when they receive 2, 4, 6k increases or achieve 10k plus limits. What they are doing is wrong imo, could be done better, but in no way are they bottom feeder. Thats kind of a disservice  to those who use their Sync cards responsibly and Synchrony has helped many build up their profile where many others may not have. 


You're comparing apples to oranges. Sync is certainly not at the top of the list of respectable lenders. Just because people, that have stronger credit profiles, have their cards doesn't mean they are respectable. They handle business in an awful way. 

Personal Credit -
AMEX: Platinum, Green, Blue Cash Preferred, Schwab Investor
PNC: Cash Rewards, Points
NFCU: Flaghship Rewards, Cash Rewards, More Rewards, CLOC
PSECU: Founders
BB&T: Spectrum Cash Rewards
CapOne: Quicksilver
Discover: IT Chrome, IT
Synchrony: PayPal 2%, PayPal Credit
Barclays: Uber
PenFed: Power Cash Rewards
Store Cards: Target
AU Cards: Citi Rewards+

Business Credit-
AMEX: Delta Gold, Amazon Prime, Simply Cash Plus
Message 19 of 25
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Established Contributor

Re: Why is Synchrony so Difficult with Credit Limits?


@CreditSweeper wrote:

@AverageJoesCredit wrote:

@MacCreed wrote:

Surprise!  Bottom feeder Synch disappoints again!     


Why are they bottom feeders? Nobody complains about getting 5% discount off Amazon or when they receive 2, 4, 6k increases or achieve 10k plus limits. What they are doing is wrong imo, could be done better, but in no way are they bottom feeder. Thats kind of a disservice  to those who use their Sync cards responsibly and Synchrony has helped many build up their profile where many others may not have. 


You're comparing apples to oranges. Sync is certainly not at the top of the list of respectable lenders. Just because people, that have stronger credit profiles, have their cards doesn't mean they are respectable. They handle business in an awful way. 


In fairness, neither are any store card providers in recent memory (not the co-branded cards, just simple store cards).

 

Think back to GE Capital and now to Comenity, Sync and Cap1. They are more or less required to market and approve credit products to folks with scores in the 600 range in order to produce profits because those stores cannot stay solvent without those 600-699 FICO folks buying with credit. Regardless of the circumstances that landed folks in the 600s, they are statistically deemed a higher credit risk to store card lenders.

 

Now, this is the bed these store card lenders have made for themselves, so let's not shed any tears for their plight in credit life. I personally think these lenders handing out large lines to prime borrowers who only marginally use them is GOOD for their business. Virtually no one with a $25,000 credit line will use anything close to that amount, but the cards are being used nonetheless and stores are benefitting from that business. Sure, those large lines represent potential losses, but how often will someone with 750-850 FICO scores roll up large balances and walk away from them?

 

Nevertheless, they givith and can taketh away at their whim. Folks who use store cards to mask their true usage are always rolling the dice, as we have seen time and again since the pandemic took hold.

I'm Spartacus!

hr>Starting Score: EQ 546, EX 547, TU 580
Current Scores (lender): EQ 747 , EX FICO 760, TU 758 FICO scores>
Goal Score: ?
Take the FICO Fitness Challenge
Message 20 of 25
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