Not all cards are the same? Type of card matters?

[Cblough93]

I want to start this post with a disclaimer: I don't know if what I'm about to say is fact, it's something I read, and it seemed plausible enough to start a discussion. To get your opinions. So feel free to consider the information, but don't take this as fact.

i don't remember where I read this, but I read that when issuers/underwriters are reviewing your profile, the type of card you have matters. (Whether it be for a new card application or CLI etc)

now, a lot of us know that AU cards are not viewed the same, and never have been. And there are also gimmicks like experian boost which is ignored by pretty much everyone, but this isn't what I'm talking about.

 
apparently it goes much deeper than that, and from an underwriting standpoint, the following cards are not taken as seriously as "regular bank cards"

- credit union cards

- Apple Pay limits/paypal limits/Robinhood gold card

- store cards 

I'm bringing this up because it's been a long time "hack" on this forum to apply for cards from certain credit unions such as navy fed, because they give out larger limits compared to normal banks. and supposedly issuers also know this. In fact I saw a post on here just the other day of someone getting a credit limit increase on their apply card, and they were increased to like 85,000 or sometbing ridiculous. So if this turns out it to be true, I guess I shouldn't be surprised that issuers have caught on. And therefore they view these accounts with less weight. 

so for example, when apply for a new card, issuers will often look at your current limits, highest limit, average limit, etc. so say your profile looks like this

- capital one -4k limit

- chase 5k limit

- navy fed 20k limit

-PayPal 18k limit

- Apple Card 17k limit 

And you go to apply for a new card, the PayPal, apple, and navy fed card,  would be viewed much less favorably than the others when setting your limit, because banks know that places like these give out larger limits.

[ptatohed]

Cb93, what is the question?  

[Cblough93]

@ptatohed 

Are credit union cards/paypal cards/apple

cards/store cards viewed less favorably (Especially when it comes to the size of the credit limit on those types of cards) by under writers In comparison to "regular bank cards" such as chase, Amex, etc?

[Jnbmom]

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@Cblough93 wrote:

@ptatohed 

Are credit union cards/paypal cards/apple

cards/store cards viewed less favorably (Especially when it comes to the size of the credit limit on those types of cards) by under writers In comparison to "regular bank cards" such as chase, Amex, etc?

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No

[Kforce]

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@Jnbmom wrote:

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No

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^^^^^ This

and

Who cares?   

If a CU card give 6% on grocery with a $2000/mo cap, why would I put

charges on a "Bank" card that looks good to others with only 4%?

I get and use cards that work for me, don't care what other institutions,

or anyone else thinks about my choices.  

Probably why I drive a Subaru.

[ptatohed]

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@Cblough93 wrote:

@ptatohed 

Are credit union cards/paypal cards/apple

cards/store cards viewed less favorably (Especially when it comes to the size of the credit limit on those types of cards) by under writers In comparison to "regular bank cards" such as chase, Amex, etc?

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I don't think so!  

[Anonymous]

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@Kforce wrote:

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I get and use cards that work for me, don't care what other institutions,

or anyone else thinks about my choices.  

Probably why I drive a Subaru.

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Only utter and complete brain-dead social misfits with [two hundred other negative adjectives] would even think about driving such crap as a Subaru.

OK, next you will tell us that you care about anonymous comments on a forum even less!

[UncleB]

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@Jnbmom wrote:

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@Cblough93 wrote:

@ptatohed 

Are credit union cards/paypal cards/apple

cards/store cards viewed less favorably (Especially when it comes to the size of the credit limit on those types of cards) by under writers In comparison to "regular bank cards" such as chase, Amex, etc?

---

No

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This. ^^^

[Cblough93]

That's good to know,

I didn't think it was true, but it sounded plausible enough to warrant discussion. I figured if AU cards aren't taken as seriously, it's theoretically possible that store cards/credit union cards could potentially be the same. 

It's good to know that issuers and under writers don't judge cards differently just because of who issues them. 

[1lifeisworthit]

Well, for one thing, once you get past a certain point in your starting/rebuilding level, anything you do is not going to have the same impact.

Like, say you start with a $300 Capital One Quicksilver, and then you get a $4000 PayPal, that'll have a different effect than when you have a $3,000 Capital One Quicksilver, an $8,000 Discover, a $10,000 American Express, but then you add a $4,000 PayPal. Am I right?

I mean, It's the exact same dollar amount of a jump.... $4,000.... right? But the impact isn't the same. And the issue is not that it's PayPal!!! The issue is that the first jump was a WOWZER! and the other jump was a whatever. Same jump. Paypal isn't the thing that's the issue.

For another, and much more important thing.... Isn't it about what card gives you the best rewards for your life's needs?

So let's look at PayPal, for my previous example. If I can get 3% back on my PayPal card on something I spend a lot on every single month, and none of my other cards will give me that return.... Of course, I'm still gonna go after those higher rewards for something I'm buying anyway... for the exact same effort....

Well, if I'm SMART, I'm gonna go after the higher rewards. I'm no dummy. PayPal for the win... 3% for something I'm buying anyway, vs 1%?