MBNA Credit Card Criteria for Credit Line Increase
Guest: QikPass
Credit Expert (100+ Posts)
Post subject: MBNA Credit Card Criteria for Credit Line Increase
Posted: Mon Aug 21, 2006 9:03 am
Bikshu,
What are MBNA's criteria for automatic line increases?
We've had reports of little usage, lots of small charges, running card up to near maximum then paying down...etc.
How often can one expect an auto increase?
Care to clarify?
Also, does this work for MBNA cards only or also Affinity cards?
_________________
Fortune Favors The Bold...
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Guest: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Mon Aug 21, 2006 8:28 pm
Quote:
"QikPass"
Bikshu,
What are MBNA's criteria for automatic line increases?
We've had reports of little usage, lots of small charges, running card up to near maximum then paying down...etc.
How often can one expect an auto increase?
Care to clarify?
Also, does this work for MBNA cards only or also Affinity cards?
I WISH I KNEW
11 YEARS OF NONE
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: QikPass
Credit Expert (100+ Posts)
Posted: Tue Aug 22, 2006 11:42 am
*b*
_________________
Fortune Favors The Bold...
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Bikshu
Posted: Fri Sep 15, 2006 1:46 am
Sorry again this one took so long to get back to you on. In the interest of saving myself some time, I'm going to repost what I had mentioned on a similar thread a while back... and then some additional information. Hope this helps.
Let me start off by saying that all MBNA accounts have credit decisions based upon the same criteria and by the same analysts and computers, regardless of affinity. So whether your card is MBNA branded, Fidelity Investments, Schwab, the Humane Society, the Miami Dolphins, LL Bean, etc. makes no difference with respect to credit line decisioning.
Secondly, MBNA as far as I'm concerned is the most generous bank out there when it comes to automatic CLIs. The bank always tries to be your biggest credit line because it believes that you will consider that prestigous and use our card more. In fact, this is one of the major reasons that Capital One absolutely refuses to report your credit line to the Credit Reporting Agencies... because they know MBNA's computers will see your Cap 1 line and then leapfrog it! These CLIs usually begin only after six months of good usage and payments, and then you'll start to see little congratulations notices on your statements every now and then. In fact, sometimes if you call into my balance transfer division my computer system will allow me to offer you an additional automatic CLI just for taking the time to call in, talk to me, and consider doing a BT with me. These BT Department auto CLIs tend to be more generous than the regular ones as well, but you do need to call and speak with a real human to get one... I'm not going to give you squat if you use one of those bloody access checks. I am firmly convinced that these two forms of automatic CLIs are the easiest and best way to get an absolutely enormouse credit line with MBNA. I see bus drivers that earn $20,000 a year who have gotten $50,000 lines simply by recieving auto CLIs for the past twenty years. I mean no disrespect to bus drivers by the way...
There is a catch though: these automatic CLIs will come to an abrupt stop if a hold is placed on your credit line. A hold can be placed on your credit line either automatically by our computer strategy systems or by a human credit analyst. Either way we are not allowed to tell you that a hold has been placed on your line, you will simply eventually notice that you are no longer receiving automatic CLIs anymore. These holds can be triggered by an infinite amount of things: certain things in your credit report, in your account usage, rate surfing, etc. Also, whenever you receive a large CLI (like doubling your existing line or getting a $20,000+ increase) it will likely trigger a hold. This is simply done so that we can see how you will use the additional credit before extending more out.
There are two types of credit line holds. One is called a Stat H (Status H) and is a more temporary hold that can eventually be removed by the computer strategy systems. The other is called a Stat V (Status V) and is a permanent hold to your line that once in place can only be removed by a human credit analyst. Since a hold has been placed on your line and you don't even know it, now your line will remain exactly as it is until either you personally ask for another increase or until the computer strategy systems decide to remove the temporary Stat H. So perhaps if that bus driver had asked for a large CLI at any given time, a hold would be been placed on. Then his line might only be $25k today instead of $50k. This is why I strongly favor letting the auto CLIs just run their course, at least with MBNA.
Now for what you can do to maximize the number of auto CLIs you receive. This is a very tough question because you are basically trying to outsmart a computer system, or at least stay one step ahead of it. And bear in mind that this is a computer system that is so sophisticated that Bank of America paid $36 billion for it. I see accounts that receive auto CLIs almost every three months like clockwork while others may only get one or two per year. It sometimes seems random, but after reviewing over 10,000 accounts annually I've kind of developed my own personal hypothesis on the strategy. And it all comes back to money. Remember, the auto CLI feature was developed solely as a marketing method... to induce you to use my card more and make me more money. Therefore, there are actually multiple different scenarios that will all lead to auto CLIs. Hence the fact that you've heard some people say to use the card a lot, while others say to use it a little, and still others say to just always pay it in full. All three of those are correct!
You have to step back and look at your own MBNA account details as well as analyse how you use all of your other accounts. Then try to put yourself in MBNA's shoes for a minute and think "What do I know about QikPass and what can I do to make QikPass make me (more) money?" When our computer systems get an update from the CRAs, are we seeing that you have been using other cards instead of ours? If so, are we seeing that those other cards have higher lines? Then we'll try auto CLIs for a bit to see if you simply weren't using us due to insufficient available credit. Are we seeing that you definitely use us as your primary daily use card, but are constantly approaching your limit? If so, we'll bump it to allow you to make us even more off the interchange fees. Or are we seeing that you aren't carrying any debt whatsoever, never use any of your credit cards, and simply stick to debit cards? Then likely we'll assume we will never make money off of you in which case your stuck with what you've already got.
Honestly, the best rule of thumb is a simple five pronged approach:
1. Keep your FICOs as high as possible. I know various people here insist that your FICO doesn't pay your bills, and that's true. But when it comes to our computer systems analysing your current financial situation, its the best indicator that we have.
2. Keep your debt levels managable, even if they are high. If our systems ever even remotely think you may be overextending yourself, that's it your done. Having high credit lines and high balances is perfectly OK, but only if you've got the credit history and income to justify them. If not, once again you are stuck with what you've already got.
4. Call in to the BT department every few months to speak with a real human being. Kindly ask us if you've got any good promo rates available on your account and if you're eligible for an auto CLI. Its kind of like MBNA's version of the Luv Button, so its certainly worth a quick phone call every three or four months.
5. Tease the bank somehow by showing them how much money they could make off of you "if only your limit was higher." You could do this by putting a ton of retail on the card, thus showing us we can make a nice dime off of your interchange fees. You could also do this by using a non-MBNA card heavily and leaving ours locked in your sock drawer. This basically does the same exact thing, as we'll try auto CLIs or maybe even an account upgrade to see if we can bump you off your Chase card habit. Maybe do a nice hefty sized BT or ACH at some point, to show us that your not afraid of having a big balance. The one rule is never ever be pegged as a rate surfer. If either my computer system or I ever catch you being a rate surfer your done for. Your auto CLIs will either become less frequent, of a smaller amount, or dry up altogether. Your promo rates will also become cruddier, or we may refuse to offer you promo rates altogether. The thinking here is: if you are constantly costing us money, and you are constantly costing your other banks money as well, you can go get lost and find yourself another source of funds.
That about sums it up...
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Credit Expert (100+ Posts)
Post subject: MBNA Credit Card Criteria for Credit Line Increase
Posted: Mon Aug 21, 2006 9:03 am
Bikshu,
What are MBNA's criteria for automatic line increases?
We've had reports of little usage, lots of small charges, running card up to near maximum then paying down...etc.
How often can one expect an auto increase?
Care to clarify?
Also, does this work for MBNA cards only or also Affinity cards?
_________________
Fortune Favors The Bold...
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 Aug 21, 2006 8:28 pm
Quote:
"QikPass"
Bikshu,
What are MBNA's criteria for automatic line increases?
We've had reports of little usage, lots of small charges, running card up to near maximum then paying down...etc.
How often can one expect an auto increase?
Care to clarify?
Also, does this work for MBNA cards only or also Affinity cards?
I WISH I KNEW
11 YEARS OF NONE
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: QikPass
Credit Expert (100+ Posts)
Posted: Tue Aug 22, 2006 11:42 am
*b*
_________________
Fortune Favors The Bold...
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Bikshu
Posted: Fri Sep 15, 2006 1:46 am
Sorry again this one took so long to get back to you on. In the interest of saving myself some time, I'm going to repost what I had mentioned on a similar thread a while back... and then some additional information. Hope this helps.
Let me start off by saying that all MBNA accounts have credit decisions based upon the same criteria and by the same analysts and computers, regardless of affinity. So whether your card is MBNA branded, Fidelity Investments, Schwab, the Humane Society, the Miami Dolphins, LL Bean, etc. makes no difference with respect to credit line decisioning.
Secondly, MBNA as far as I'm concerned is the most generous bank out there when it comes to automatic CLIs. The bank always tries to be your biggest credit line because it believes that you will consider that prestigous and use our card more. In fact, this is one of the major reasons that Capital One absolutely refuses to report your credit line to the Credit Reporting Agencies... because they know MBNA's computers will see your Cap 1 line and then leapfrog it! These CLIs usually begin only after six months of good usage and payments, and then you'll start to see little congratulations notices on your statements every now and then. In fact, sometimes if you call into my balance transfer division my computer system will allow me to offer you an additional automatic CLI just for taking the time to call in, talk to me, and consider doing a BT with me. These BT Department auto CLIs tend to be more generous than the regular ones as well, but you do need to call and speak with a real human to get one... I'm not going to give you squat if you use one of those bloody access checks. I am firmly convinced that these two forms of automatic CLIs are the easiest and best way to get an absolutely enormouse credit line with MBNA. I see bus drivers that earn $20,000 a year who have gotten $50,000 lines simply by recieving auto CLIs for the past twenty years. I mean no disrespect to bus drivers by the way...
There is a catch though: these automatic CLIs will come to an abrupt stop if a hold is placed on your credit line. A hold can be placed on your credit line either automatically by our computer strategy systems or by a human credit analyst. Either way we are not allowed to tell you that a hold has been placed on your line, you will simply eventually notice that you are no longer receiving automatic CLIs anymore. These holds can be triggered by an infinite amount of things: certain things in your credit report, in your account usage, rate surfing, etc. Also, whenever you receive a large CLI (like doubling your existing line or getting a $20,000+ increase) it will likely trigger a hold. This is simply done so that we can see how you will use the additional credit before extending more out.
There are two types of credit line holds. One is called a Stat H (Status H) and is a more temporary hold that can eventually be removed by the computer strategy systems. The other is called a Stat V (Status V) and is a permanent hold to your line that once in place can only be removed by a human credit analyst. Since a hold has been placed on your line and you don't even know it, now your line will remain exactly as it is until either you personally ask for another increase or until the computer strategy systems decide to remove the temporary Stat H. So perhaps if that bus driver had asked for a large CLI at any given time, a hold would be been placed on. Then his line might only be $25k today instead of $50k. This is why I strongly favor letting the auto CLIs just run their course, at least with MBNA.
Now for what you can do to maximize the number of auto CLIs you receive. This is a very tough question because you are basically trying to outsmart a computer system, or at least stay one step ahead of it. And bear in mind that this is a computer system that is so sophisticated that Bank of America paid $36 billion for it. I see accounts that receive auto CLIs almost every three months like clockwork while others may only get one or two per year. It sometimes seems random, but after reviewing over 10,000 accounts annually I've kind of developed my own personal hypothesis on the strategy. And it all comes back to money. Remember, the auto CLI feature was developed solely as a marketing method... to induce you to use my card more and make me more money. Therefore, there are actually multiple different scenarios that will all lead to auto CLIs. Hence the fact that you've heard some people say to use the card a lot, while others say to use it a little, and still others say to just always pay it in full. All three of those are correct!
You have to step back and look at your own MBNA account details as well as analyse how you use all of your other accounts. Then try to put yourself in MBNA's shoes for a minute and think "What do I know about QikPass and what can I do to make QikPass make me (more) money?" When our computer systems get an update from the CRAs, are we seeing that you have been using other cards instead of ours? If so, are we seeing that those other cards have higher lines? Then we'll try auto CLIs for a bit to see if you simply weren't using us due to insufficient available credit. Are we seeing that you definitely use us as your primary daily use card, but are constantly approaching your limit? If so, we'll bump it to allow you to make us even more off the interchange fees. Or are we seeing that you aren't carrying any debt whatsoever, never use any of your credit cards, and simply stick to debit cards? Then likely we'll assume we will never make money off of you in which case your stuck with what you've already got.
Honestly, the best rule of thumb is a simple five pronged approach:
1. Keep your FICOs as high as possible. I know various people here insist that your FICO doesn't pay your bills, and that's true. But when it comes to our computer systems analysing your current financial situation, its the best indicator that we have.
2. Keep your debt levels managable, even if they are high. If our systems ever even remotely think you may be overextending yourself, that's it your done. Having high credit lines and high balances is perfectly OK, but only if you've got the credit history and income to justify them. If not, once again you are stuck with what you've already got.
4. Call in to the BT department every few months to speak with a real human being. Kindly ask us if you've got any good promo rates available on your account and if you're eligible for an auto CLI. Its kind of like MBNA's version of the Luv Button, so its certainly worth a quick phone call every three or four months.
5. Tease the bank somehow by showing them how much money they could make off of you "if only your limit was higher." You could do this by putting a ton of retail on the card, thus showing us we can make a nice dime off of your interchange fees. You could also do this by using a non-MBNA card heavily and leaving ours locked in your sock drawer. This basically does the same exact thing, as we'll try auto CLIs or maybe even an account upgrade to see if we can bump you off your Chase card habit. Maybe do a nice hefty sized BT or ACH at some point, to show us that your not afraid of having a big balance. The one rule is never ever be pegged as a rate surfer. If either my computer system or I ever catch you being a rate surfer your done for. Your auto CLIs will either become less frequent, of a smaller amount, or dry up altogether. Your promo rates will also become cruddier, or we may refuse to offer you promo rates altogether. The thinking here is: if you are constantly costing us money, and you are constantly costing your other banks money as well, you can go get lost and find yourself another source of funds.
That about sums it up...
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
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