Inquiries Question

[Anonymous]

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@Anonymous wrote:
What is AA

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AA = Adverse Action

Examples = APR increases and CL decreases. Closure and suspension of charge privileges are also in there!

[Anonymous]

Okay, so when I used balance transfers from Discover to pay off debt at a zero or lower interest rate, this caused AA? 

[Anonymous]

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@Anonymous wrote:

Okay, so when I used balance transfers from Discover to pay off debt at a zero or lower interest rate, this caused AA? 

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Too many balances carried on too many cards for too long is frequently the cause of AA. (As opposed to the obvious stuff like lates, overlimits and things like judgments or liens creeping onto your report. They will do it, too. So will too many recent INQ's, too many new accounts with a really picky issuer.)

[Anonymous]

No I used the Discover to reduce the balance on other cards to 1/2, paid the Discover in the allotted time with very reduced interest.  This transfer always resulted in a savings with the interest on the other card.  Thus, I eliminated both cards in a very short time, while keeping both balances below 35% of the limit.  When the next balance transfer became available I did it again.  The balance transfer fee was way lower than the interest I was paying or would have paid for both cards.  I've eliminated 3 cards in this manner.  Would this tactic be considered an adverse action.  I have no lates or otherwise derogatory information on my report.  The extent of my negatives amount to too much debt and too many inquiries. 

[Anonymous]

Adverse Action is term for something a CC company inflicts on you, so I am really unclear on what you are stating/asking.

[Anonymous]

I'm asking if since I've done these things, did this cause the other credit card companies to lower my limits and increase my rates. 

[Lel]

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750Lady wrote:

I'm asking if since I've done these things, did this cause the other credit card companies to lower my limits and increase my rates. 

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This has been happening to everyone, partially in response to the weakened economy and the attempts by the CCC to reduce their exposure, and partially in response to the new limits on the CCCs by the Credit CARD Act.

[Anonymous]

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@Anonymous wrote:

I'm asking if since I've done these things, did this cause the other credit card companies to lower my limits and increase my rates. 

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Hard to say without a really clear roadmap/play-by-play of the proceedings. (Probably not worthwhile at this point.) So "possibly" is the best answer I can give you.

Lel is also correct and there is a general trend toward AA. However, it usually takes some kind of a triggering condition to bring it on. We're just not too clear sometimes on what it might have been or when.

[Anonymous]

What about applying for a new car loan. I was told these would be soft inquiries and now it shows I have 8 inquiries from car lenders and banks on my report. Any way to get THOSE removed?

[Jazzzy]

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@Anonymous wrote:
What about applying for a new car loan. I was told these would be soft inquiries and now it shows I have 8 inquiries from car lenders and banks on my report. Any way to get THOSE removed?

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When you apply for a car loan, those would be hard inquiries. It is too bad that you were misinformed.

I don't see a way to have them removed. They will be seen as legitimate inquiries. For FICO scoring, if they were done within a short period of time, they will be counted as one. When you apply for credit, however, you may have to explain why there are so many inquiries to your potential new creditors.