Credit Card Company's Risk Review Red Flags
Guest: ALex
Post subject: Credit Card Company's Risk Review Red Flags
Posted: Sun Apr 23, 2006 6:27 pm
Listed are a few things that can cause a periodic risk review and could result is a reduction of you credit line or a closed status.
1. Delinquency on your credit report
2. recent Non sufficent Funds payments on account
3. Using access checks to pay your mortgage or Auto payments
4. Maxing out your available credit or having your accounts show over the limit.
5. A large payment on account when your normal payment history shows minimum payments.. If there is a recent refinance , Home equity loan, ect on your credit report, a good credit analyst can figure out where the large payment came from..
6. A sudden drop in Fico or risk scores..
7. A lot of ATM or over the counter cash usage and if your credit card is attached to your checking acct for overdraft protection and there is a lot of overdraft charges on your credit card , Suntrust and any Wachovia Credit card account That are handled by Individual Bank Card SErvices ( MBNA Legacy)
8. If you are calling in to a credit card company to do a balance transfer and you have available credit to do so, there may be a stategy set up to have the account manager that is doing the balance transfer to have to transfer you to the risk department to do a risk review , and if there is a risk to the credit card company to allow the Balance transfer to go through, they could tell you that due to certain risk factors that they will not be able to allow the Balance transfer and also if you do have a large amount of available credit, they could reduce your credit line and may even close your account.. You are better off using a cash advance check to pay the creditor.. as this will not get you transfered to the High Risk department
On the flip side to this, due to automation strategies that automatically reduce credit lines and send a letter out to the Customer if an account happens to have one of the above reasons for a credit review.. There is a chance after you call the number on the letter , that the decision can be reversed and have the original credit line put back on the account.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Sun Apr 23, 2006 11:37 pm
Quote:
"ALex"
Listed are a few things that can cause a periodic risk review and could result is a reduction of you credit line or a closed status.
1. Delinquency on your credit report
2. recent Non sufficent Funds payments on account
3. Using access checks to pay your mortgage or Auto payments
4. Maxing out your available credit or having your accounts show over the limit.
5. A large payment on account when your normal payment history shows minimum payments.. If there is a recent refinance , Home equity loan, ect on your credit report, a good credit analyst can figure out where the large payment came from..
6. A sudden drop in Fico or risk scores..
7. A lot of ATM or over the counter cash usage and if your credit card is attached to your checking acct for overdraft protection and there is a lot of overdraft charges on your credit card , Suntrust and any Wachovia Credit card account That are handled by Individual Bank Card SErvices ( MBNA Legacy)
8. If you are calling in to a credit card company to do a balance transfer and you have available credit to do so, there may be a stategy set up to have the account manager that is doing the balance transfer to have to transfer you to the risk department to do a risk review , and if there is a risk to the credit card company to allow the Balance transfer to go through, they could tell you that due to certain risk factors that they will not be able to allow the Balance transfer and also if you do have a large amount of available credit, they could reduce your credit line and may even close your account.. You are better off using a cash advance check to pay the creditor.. as this will not get you transfered to the High Risk department
On the flip side to this, due to automation strategies that automatically reduce credit lines and send a letter out to the Customer if an account happens to have one of the above reasons for a credit review.. There is a chance after you call the number on the letter , that the decision can be reversed and have the original credit line put back on the account.
I DO SOME OF THESE THINGS ALL THE TIME!!!
4) MAXING OUT A CARD AT 0.00% BT IS A NO BRAINER
5) LARGE PAYMENTS TO PAY OFF LARGE BALANCES or TO PAY OFF A BT THAT IS GOING TO EXPIRE IS LOGICAL IN THE "REAL" WORLD
6) FICO CAN CHANGE WITH THE WEATHER or FOR NO REASON AT ALL
8 ) IF THEY PULL SOME "RISK" GARBAGE AND DENY A BT WHEN THERE IS AVAILABLE CREDIT LIMIT...THEY ARE GONE WITH THE WIND
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: maddybeagle
Credit Expert (100+ Posts)
Posted: Mon Apr 24, 2006 10:31 am
I am not sure that all of these will nec. get you in hot water. I dont see that you listed large overpayments. A lot of them really hate that.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Mon Apr 24, 2006 10:45 am
What's the origin of this list, ALex--are these your ideas or are you copying something you found elsewhere?
Much of that post makes little sense to me. Credit analysts usually LIKE to see you moving unsecured debt to secured debt. That reduces your unsecured debt--and the analysts hate unsecured debt.
Using a cash access/convenience check INSTEAD of a balance transfer check? Huh? Those come with cash advance interest rates plus a 3% uncapped fee. Using such checks is a sign of desperation.
I agree that maxing out an account is a red flag. But I still don't understand the logic. If a bank says: "You're a customer we like--here's a $20,000 credit limit for you to use" then why should it be upset if you actually use it? If it gets nervous if you use more than half of a credit limit, then give you only that half. What's the point of having a credit limit that you can't use?
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Mon Apr 24, 2006 12:06 pm
Quote:
"maddybeagle"
I am not sure that all of these will nec. get you in hot water. I dont see that you listed large overpayments. A lot of them really hate that.
AMEX told me they "CAN" close the account for OVER-PAYMENTS
I demanded they mail me PROOF...3 TIMES
NEVER HAPPENED!!!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Post subject: Credit Card Company's Risk Review Red Flags
Posted: Sun Apr 23, 2006 6:27 pm
Listed are a few things that can cause a periodic risk review and could result is a reduction of you credit line or a closed status.
1. Delinquency on your credit report
2. recent Non sufficent Funds payments on account
3. Using access checks to pay your mortgage or Auto payments
4. Maxing out your available credit or having your accounts show over the limit.
5. A large payment on account when your normal payment history shows minimum payments.. If there is a recent refinance , Home equity loan, ect on your credit report, a good credit analyst can figure out where the large payment came from..
6. A sudden drop in Fico or risk scores..
7. A lot of ATM or over the counter cash usage and if your credit card is attached to your checking acct for overdraft protection and there is a lot of overdraft charges on your credit card , Suntrust and any Wachovia Credit card account That are handled by Individual Bank Card SErvices ( MBNA Legacy)
8. If you are calling in to a credit card company to do a balance transfer and you have available credit to do so, there may be a stategy set up to have the account manager that is doing the balance transfer to have to transfer you to the risk department to do a risk review , and if there is a risk to the credit card company to allow the Balance transfer to go through, they could tell you that due to certain risk factors that they will not be able to allow the Balance transfer and also if you do have a large amount of available credit, they could reduce your credit line and may even close your account.. You are better off using a cash advance check to pay the creditor.. as this will not get you transfered to the High Risk department
On the flip side to this, due to automation strategies that automatically reduce credit lines and send a letter out to the Customer if an account happens to have one of the above reasons for a credit review.. There is a chance after you call the number on the letter , that the decision can be reversed and have the original credit line put back on the account.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Sun Apr 23, 2006 11:37 pm
Quote:
"ALex"
Listed are a few things that can cause a periodic risk review and could result is a reduction of you credit line or a closed status.
1. Delinquency on your credit report
2. recent Non sufficent Funds payments on account
3. Using access checks to pay your mortgage or Auto payments
4. Maxing out your available credit or having your accounts show over the limit.
5. A large payment on account when your normal payment history shows minimum payments.. If there is a recent refinance , Home equity loan, ect on your credit report, a good credit analyst can figure out where the large payment came from..
6. A sudden drop in Fico or risk scores..
7. A lot of ATM or over the counter cash usage and if your credit card is attached to your checking acct for overdraft protection and there is a lot of overdraft charges on your credit card , Suntrust and any Wachovia Credit card account That are handled by Individual Bank Card SErvices ( MBNA Legacy)
8. If you are calling in to a credit card company to do a balance transfer and you have available credit to do so, there may be a stategy set up to have the account manager that is doing the balance transfer to have to transfer you to the risk department to do a risk review , and if there is a risk to the credit card company to allow the Balance transfer to go through, they could tell you that due to certain risk factors that they will not be able to allow the Balance transfer and also if you do have a large amount of available credit, they could reduce your credit line and may even close your account.. You are better off using a cash advance check to pay the creditor.. as this will not get you transfered to the High Risk department
On the flip side to this, due to automation strategies that automatically reduce credit lines and send a letter out to the Customer if an account happens to have one of the above reasons for a credit review.. There is a chance after you call the number on the letter , that the decision can be reversed and have the original credit line put back on the account.
I DO SOME OF THESE THINGS ALL THE TIME!!!
4) MAXING OUT A CARD AT 0.00% BT IS A NO BRAINER
5) LARGE PAYMENTS TO PAY OFF LARGE BALANCES or TO PAY OFF A BT THAT IS GOING TO EXPIRE IS LOGICAL IN THE "REAL" WORLD
6) FICO CAN CHANGE WITH THE WEATHER or FOR NO REASON AT ALL
8 ) IF THEY PULL SOME "RISK" GARBAGE AND DENY A BT WHEN THERE IS AVAILABLE CREDIT LIMIT...THEY ARE GONE WITH THE WIND
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: maddybeagle
Credit Expert (100+ Posts)
Posted: Mon Apr 24, 2006 10:31 am
I am not sure that all of these will nec. get you in hot water. I dont see that you listed large overpayments. A lot of them really hate that.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Mon Apr 24, 2006 10:45 am
What's the origin of this list, ALex--are these your ideas or are you copying something you found elsewhere?
Much of that post makes little sense to me. Credit analysts usually LIKE to see you moving unsecured debt to secured debt. That reduces your unsecured debt--and the analysts hate unsecured debt.
Using a cash access/convenience check INSTEAD of a balance transfer check? Huh? Those come with cash advance interest rates plus a 3% uncapped fee. Using such checks is a sign of desperation.
I agree that maxing out an account is a red flag. But I still don't understand the logic. If a bank says: "You're a customer we like--here's a $20,000 credit limit for you to use" then why should it be upset if you actually use it? If it gets nervous if you use more than half of a credit limit, then give you only that half. What's the point of having a credit limit that you can't use?
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Mon Apr 24, 2006 12:06 pm
Quote:
"maddybeagle"
I am not sure that all of these will nec. get you in hot water. I dont see that you listed large overpayments. A lot of them really hate that.
AMEX told me they "CAN" close the account for OVER-PAYMENTS
I demanded they mail me PROOF...3 TIMES
NEVER HAPPENED!!!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 3:49 PM
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