hi, i was curious about how does credit lenders review applications for credit cards, because i got a credit history for like 7 months and got a score og 710-720, i tried to apply for american express blue cash everyday and they approved me with the limit of 1000, i got excited so i try to apply to citi divedend master card and chase freedom card but they denied me, they say i have limited history, but why did AMEX blue cash everyday approved me? how that happens? i thought AMEX are more strict in approving cards?
Consider that your limit is very low for an AMEX credit card. Also look at the APR they assigned you. If it's the high one, then you probably got approved purely because of your FICO score. The limit given is so tiny they feel that's all they are willing to take a chance on you at the moment.
Citi dividend and Chase Freedom(depending on which signup offer you used) have lower APRs available than the AMEX BCE
AMEX BCE APR starts low end of range at 17.24%
Citi Dividend APR starts low end of range is 12.99%
Chase Freedom low end of range is I believe 9.99% for the $50 sign up bonus offer.
I will take a wild guess and say that you got $1000 limit with 22.24% APR. That would say to me, again, that they are willing to give you a chance, but are putting you on a short leash for now.
Chase and Citi, considering the APR ranges, won't be comfortable without 12 to 18 months of history. Chase is also surprisingly stingy sometimes.
I spoke with a Chase CSR a couple of months ago. According to CSR, they generally do not extend credit for people with limited credit history. They look for a minimum of one year history, but prefer 2. This is what I was told.