CC Churning question

Discussion in 'General Discussion | Credit Cards' started by waterhazard, Nov 5, 2012.  |  Print Topic

  1. waterhazard

    waterhazard Active Member

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    My annual fee has come up for my Citi AA card, and I called the Citi retention line to see what options I had to keep the card open. One of the options was to downgrade the card to a non-fee credit card. If I downgrade the card though, am I still eligible to receive the sign-up bonus in 18 months because *technically* the card is still open?
     
  2. miles and smiles
    Original Member

    miles and smiles Gold Member

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    Citi's "rules" on when you are eligible to receive another sign-up bonus are based on when you last successfully applied for that card. Whether or not the card is still open is not relevant.
    Also 18 months is just an approximation of when you can apply again. Some folks have had success at 12 months, some not until 26 months.
    I strongly suggest that you read the first post here:
    http://www.flyertalk.com/forum/milesbuzz/1262549-citi-aa-50k-plus-other-offers-they-appear.html
     
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  3. Million Mile Secrets

    Million Mile Secrets Silver Member

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    You can have the Citi AA card open and still receive the bonus again when it is time to reapply. However, at some point you could run up against the maximum credit which Citi is willing to extend you and be a reason to deny an approval.
     
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  4. IkeEsq

    IkeEsq Gold Member

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    If that happens you just call reconsideration or go through the Executive Office. The only hard denials from Citi are if you apply for more than 2 cards in 60 day, you apply for more than one business card in 90 days, you are not a first-time user for AA Personal cards, or you have lousy credit (perhaps negotiable).
     
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  5. Slow_Mustang
    Original Member

    Slow_Mustang Silver Member

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    Not sure if this is something new, or was it just me, but my hard denial was not for any of the above listed reasons. I have only one other Citi card and I applied for a Biz card with a credit score of around 775. The reason they gave me for rejection was 'too many inquiries' in the past 12 months. Guilty as charged, but so is everyone else and other banks don't use that as an excuse for denial. The Citi reconsideration line was not much help either as they claim to have instructions to decline a new card to people with >X no. of inquiries in the last 6mos./12mos. Anyway, just providing a data point for anyone getting ready to apply for a new card with Citi. A hard pull on your credit with nothing to show for it really hurts.
     
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  6. jbcarioca
    Original Member

    jbcarioca Gold Member

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    There are a limited number of reasons for denial in a menu. As a general rule there is no single definitive reason anyway. Often it is part of a screening algorithm involving new account opening and usage or other factors. Sometimes it is the result of a projected account profitability score (more common now). Sometimes it is credit score; with credit score, no matter what anybody tells you, no single factors other than actual bankruptcy, written off accounts or multiple account >60 days past due are likely to produce credit-based denial on typical cards. Different, more severe criteria apply for high end cards.

    So, please recognize that credit score, the generic one you see with My FICO and everyone else, is NOT a reliable guide to credit approval anymore, if it ever was.

    "too many inquiries" is a plug answer. If you've opened lots of accounts within the last six months that can trigger a "too many inquiries" quoted reason.

    Everyone else does not have many inquiries. Only, say, 35% of US credit files have more than two borrower-initiated inquiries within the last six months. Active churners, defined as credit-seekers with more than ten borrower-initiated inquiries within six months, are less than, say, 5% of all credit files. Most readers of these threads probably are in that category. These proportions are the result of evaluation of a universe for selection for pre-approved offers, so they are probably representative, but not guaranteed to be so.

    Finally, Citi is reducing emphasis on retail banking globally. Check the news. The new capital requirements for credit cards are a factor, as are a change in the way losses are recognized which forces a charge called "impairment" to be applied even to brand new accounts base on Probability of Default (POD) and Loss Given Default (LGD). You can anticipate tighter requirements from them during the next year. This has been a while coming, and last year when we discussed this issue people said it was not true, that the churning spree would continue.

    Be forewarned. The future is now.
     
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  7. IkeEsq

    IkeEsq Gold Member

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    I got a similar denial on my last business card (I still had one open from earlier in the year) and I sent a note to the Executive Office explaining that this is a different business and I don't want additional credit, just a different card on which to put spend for this business and would happily move CL or take the minimum CL they would allocate. In addition, I have great scores, history with Citi, blah, blah, blah.

    They called back asked authorization to do another hard pull and to move CL around and ended up approving with a 5K CL and no CL move.
     
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  8. Slow_Mustang
    Original Member

    Slow_Mustang Silver Member

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    Thanks for your detailed response.

    Just for reference, when I say 'everyone else has many inquiries', I refer to the 5% who are active travel board members and are of the opinion, 'I never saw a CC with a sign-up bonus that I didn't like'. ;)
     
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