Approval Requirements for a Credit Card
Author: chick
Posted: Wed Oct 26, 2005 10:41 pm
Post subject: how can I know if I'll be approved for a CC beforehand?
I'm embarassed to say that I have no idea what criteria the CC companies use to decide it they're going to give you an account. I don't want to apply, be turned down, and get dinged for the credit check.
I'd like to move my $18K in credit card debt to an account with a lower interest rate -- I'm at 26% now, ouch!
The negatives on my credit report:
1- a Chase account charged off 5/04 for $10K -- I've since paid off the entire amt to the company that bought off that account.
2 - Current credit card: open/current, was past due 30 days 8/04 (****, a late payment within the last 6 months... I'm on auto-pay now!)
3 -A Victoria Secret card Inactive/current, was past due 30 days 2/02
Can anyone advise me on getting that interest rate down? I'm paying down quickly, but I'm trying to learn how to not throw the $$ out the window in the process!
thanks!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: gameboy
Posted: Thu Oct 27, 2005 1:24 am
Post subject:
First I would call each of the credit card companies and ask them if they can reduce your interest rate.
Do you get pre-approved letters in the mail? If so, you should apply to those because they will be easier for you to get.
Do you know what your credit score is?
Author: chick
Posted: Thu Oct 27, 2005 8:34 am
Post subject:
Scores: just got Experian up 109 points as of yesterday :) I'm at 704. TU & EQ should be around 704 in the next couple weeks - they're both 3 days from updating my credit report after I contestd a bunch of junk on there.
My current card has 1 late payment in the last 6 months - they said they don't drop a rate until you've been paying ontime for 6 months -- they're the only active card I have.
All the pre-approved letters are for realy low amounts -- less than $1000. My goal would be to move my $18K to a card with a lower interest rate.
Hmmmm --- ok, I just took at my report, I used to have a ton of credit cards, and I see one major card listed as 'inactive' rather than closed --- would it be smart to call them to check on my terms and see what's involved in re-activating it?
Author: JaneiR36
Posted: Thu Oct 27, 2005 9:43 am
Post subject: Approval Requirements for a Credit Card
Yes, that is a good idea. Certain companies are more thrilled than others to have their customers back, and would work with you for better interest rates.
For instance, I BT'ed all my money out of MBNA when I was able to qualify for good APRs. Then I couldn't get any more low interest credit, so I went back to MBNA. They gave me a 1.99% rate for one year with a fee capped at $75. It's definitely worth checking out!
Also, don't apply haphazardly, but at the same time, don't be scared to apply. Sometimes you just won't know until you apply, and in the mean time you're getting charged a lot of interest on a large balance. Your credit score won't completely go in the toilet, anyway, and once you're settled in with your new low APR accounts and start paying regularly, the credit score will start climbing again. I don't think you have too much to lose and everything to gain!!
Author: mouse
Posted: Thu Oct 27, 2005 4:51 pm
Post subject:
You can be approved with $18,000 owed and denied with $0 owed
YOU NEVER KNOW
Author: chick
Posted: Thu Oct 27, 2005 6:12 pm
Post subject: Approval Requirements for a Credit Card
oh come on, that's like saying there is no logic to how the decision is being made. do you just add a post to every question whether you have something constructive to say or not?
Author: Polonius
Posted: Thu Oct 27, 2005 6:33 pm
Post subject: Approval Requirements for a Credit Card
Actually, mouse is quite right. Banks look at different things, target offers to different markets, have different profiles for the sort of customer they seek. Often it makes little sense and is quite inconsistent. I could tell stories!
Here are a few of such latest stories. I got a Chase Platinum card this week--limit $4,000. I have four other Chase cards, one with a limit of $45,500. Make sense? No.
I go online and see what balance transfers are available for the five cards I have. Because of the merger of BankOne with Chase some months ago, I can see all five accounts on the old BankOne site AND on the Chase site. When I ask for balance transfers on the BankOne site, I'm told none are available for any of the five cards. When I try the same on the Chase site, I'm told that 3 of the cards have balance transfer offers available (.99% for 6 months with a $65 fee maximum on 2, 0% on one)--and NONE AT ALL on the remaining two cards. Make sense? No.
Remember, my credit profile/scores/histories are exactly the same for each of these decisions that determined a credit limit or what balance transfer offers to make to me.
Or, to put it another way, I owe $160,000 on credit cards. Why would any bank give me another credit card? One bank will say--hey, he's got lots of credit so if the other banks trust him so will I. Another bank will say--hey, he's got a lot of credit so if he's applying for more he must be getting ready to skip town and screw us all. Same facts. Totaly different decisions. Often it all depends on what particular person is looking at the credit report and what mood they're in that day. Often if you're turned down by one credit analyst, you can just call, speak with another, say exactly the same things, and get approved.
Personally, I'm glad it's all so inconsistent. Makes the game more fun!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Wed Oct 26, 2005 10:41 pm
Post subject: how can I know if I'll be approved for a CC beforehand?
I'm embarassed to say that I have no idea what criteria the CC companies use to decide it they're going to give you an account. I don't want to apply, be turned down, and get dinged for the credit check.
I'd like to move my $18K in credit card debt to an account with a lower interest rate -- I'm at 26% now, ouch!
The negatives on my credit report:
1- a Chase account charged off 5/04 for $10K -- I've since paid off the entire amt to the company that bought off that account.
2 - Current credit card: open/current, was past due 30 days 8/04 (****, a late payment within the last 6 months... I'm on auto-pay now!)
3 -A Victoria Secret card Inactive/current, was past due 30 days 2/02
Can anyone advise me on getting that interest rate down? I'm paying down quickly, but I'm trying to learn how to not throw the $$ out the window in the process!
thanks!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: gameboy
Posted: Thu Oct 27, 2005 1:24 am
Post subject:
First I would call each of the credit card companies and ask them if they can reduce your interest rate.
Do you get pre-approved letters in the mail? If so, you should apply to those because they will be easier for you to get.
Do you know what your credit score is?
Author: chick
Posted: Thu Oct 27, 2005 8:34 am
Post subject:
Scores: just got Experian up 109 points as of yesterday :) I'm at 704. TU & EQ should be around 704 in the next couple weeks - they're both 3 days from updating my credit report after I contestd a bunch of junk on there.
My current card has 1 late payment in the last 6 months - they said they don't drop a rate until you've been paying ontime for 6 months -- they're the only active card I have.
All the pre-approved letters are for realy low amounts -- less than $1000. My goal would be to move my $18K to a card with a lower interest rate.
Hmmmm --- ok, I just took at my report, I used to have a ton of credit cards, and I see one major card listed as 'inactive' rather than closed --- would it be smart to call them to check on my terms and see what's involved in re-activating it?
Author: JaneiR36
Posted: Thu Oct 27, 2005 9:43 am
Post subject: Approval Requirements for a Credit Card
Yes, that is a good idea. Certain companies are more thrilled than others to have their customers back, and would work with you for better interest rates.
For instance, I BT'ed all my money out of MBNA when I was able to qualify for good APRs. Then I couldn't get any more low interest credit, so I went back to MBNA. They gave me a 1.99% rate for one year with a fee capped at $75. It's definitely worth checking out!
Also, don't apply haphazardly, but at the same time, don't be scared to apply. Sometimes you just won't know until you apply, and in the mean time you're getting charged a lot of interest on a large balance. Your credit score won't completely go in the toilet, anyway, and once you're settled in with your new low APR accounts and start paying regularly, the credit score will start climbing again. I don't think you have too much to lose and everything to gain!!
Author: mouse
Posted: Thu Oct 27, 2005 4:51 pm
Post subject:
You can be approved with $18,000 owed and denied with $0 owed
YOU NEVER KNOW
Author: chick
Posted: Thu Oct 27, 2005 6:12 pm
Post subject: Approval Requirements for a Credit Card
oh come on, that's like saying there is no logic to how the decision is being made. do you just add a post to every question whether you have something constructive to say or not?
Author: Polonius
Posted: Thu Oct 27, 2005 6:33 pm
Post subject: Approval Requirements for a Credit Card
Actually, mouse is quite right. Banks look at different things, target offers to different markets, have different profiles for the sort of customer they seek. Often it makes little sense and is quite inconsistent. I could tell stories!
Here are a few of such latest stories. I got a Chase Platinum card this week--limit $4,000. I have four other Chase cards, one with a limit of $45,500. Make sense? No.
I go online and see what balance transfers are available for the five cards I have. Because of the merger of BankOne with Chase some months ago, I can see all five accounts on the old BankOne site AND on the Chase site. When I ask for balance transfers on the BankOne site, I'm told none are available for any of the five cards. When I try the same on the Chase site, I'm told that 3 of the cards have balance transfer offers available (.99% for 6 months with a $65 fee maximum on 2, 0% on one)--and NONE AT ALL on the remaining two cards. Make sense? No.
Remember, my credit profile/scores/histories are exactly the same for each of these decisions that determined a credit limit or what balance transfer offers to make to me.
Or, to put it another way, I owe $160,000 on credit cards. Why would any bank give me another credit card? One bank will say--hey, he's got lots of credit so if the other banks trust him so will I. Another bank will say--hey, he's got a lot of credit so if he's applying for more he must be getting ready to skip town and screw us all. Same facts. Totaly different decisions. Often it all depends on what particular person is looking at the credit report and what mood they're in that day. Often if you're turned down by one credit analyst, you can just call, speak with another, say exactly the same things, and get approved.
Personally, I'm glad it's all so inconsistent. Makes the game more fun!
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 10:29 PM
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