Credit Card Application being Reviewed

Discussion in 'General Discussion | Credit Cards' started by flynhwn, Feb 13, 2014.  |  Print Topic

  1. flynhwn

    flynhwn Silver Member

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    I have a 820 credit score but whenever I apply for a card it goes into review. I always get approved for the cards. But it's very frustrating. Does anyone know why this happens and how I can fix this or why it's happening. Thanks
     
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  2. marcwint55

    marcwint55 Gold Member

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    It happens to me all the time. I believe that if your income is over a certain limit, they do a more thorough check.
     
  3. m_tschanz

    m_tschanz Active Member

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    My understanding it's not really on size of income but rather the amount of credit already extended relative to banks lending max. If you are at/ exceed then you go into review immediately
     
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  4. NYCUA1K

    NYCUA1K Gold Member

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    Although it may not be the only factor, this is consistent with my recent experience. After being instantly approved for a number of Chase cards, my last application (for a Chase Marriott Rewards visa) took three weeks to review before it was approved, and Chase even explained the delay in a letter. They needed more time to review how best to extend credit to me because I already had very high credit from them. Their solution was to decrease my credit line on another card and apply it to the new card (the CL for my Chase Hyatt Visa was $28K; they decreased it to $18K, and assigned a CL of $10K to the new Chase Marriott card and approved it).
     
    Last edited: Feb 13, 2014
  5. m_tschanz

    m_tschanz Active Member

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    You raise a good point -- in that there may be other factors -- although w/ 820 figured more around line limit. My experience is a quick call to the consideration line "solves" the hold up fairly quickly. I'm always prepared with a rationale as to why requesting the hard and have even gone so far (in one case) to indicate that I wasn't even seeking further extension of credit line.
     
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  6. NYCUA1K

    NYCUA1K Gold Member

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    I thought the reason for the delay in approving me was precisely because I had too many Chase cards and they were wondering why they should approve me for yet another, so I called to explain that my need was not for more credit but rather for a card that I would use to get the most out of my stays at Marriott properties. However, I got the distinct impression that they already figured that out based on the fact that I had only co-branded loyalty cards (Hyatt, UA) and that I was using only 6% of my total available credit at the time.
     
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  7. othermike27

    othermike27 Silver Member

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    This is consistent with my Chase and AMEX experience as well. The banks (well, these big ones anyway) now seem to expect that many of their customers will hold a "portfolio" of credit cards, and would prefer to have several of their cards in that portfolio. No doubt Chase is happy that I hold three VISA cards issued by them. Heck, they even make it super convenient for me to manage my Chase card portfolio online from a single login. So they manage their exposure to the risks of doing business with me at the portfolio level, not for each card. When I applied for my third Chase VISA (Hyatt card), it came with a relatively puny credit line, but the total of the three adds to a nice round figure. Later on, if I decide to keep this card, I may shuffle credit limits a bit or apply to have one or the other increased (probably with a hard pull).

    To the OP's question, your stated income on your application and also any credit limit request you make could influence how quickly you are approved.
     
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  8. gconnery

    gconnery Silver Member

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    Makes me wonder about the advice to always keep as much credit as possible, never just cancelling cards outright. Rather waiting until you apply for a new card and then when you call in be willing to cancel or transfer credit from the old card. This does seem like worthwhile advice for increasing your credit score. But given that:

    a) At some point your credit score is "good enough" and in fact increasing it higher apparently makes you less attractive (you pay all your bills on time so they make less profit off you)
    b) You can be turned down for simply having "too many cards (with us)" and even on reconsideration calls this can become a focus of the conversation
    c) It seems like it makes the whole process a little more work in that you're going to get fewer automatic approvals

    I tend to agree with the "fewer automatic approvals" thing. For myself I follow the increase your credit score as much as possible advice and I mostly have to call to get approved, sometimes multiple times (senior advisor needed, he went home). For my wife I don't want to make her do too much work so we just cancel the old cards, often via SM, and apply for new ones. She gets automatically approved more than I do even though she has a lower credit score.
     
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  9. John Deere

    John Deere Silver Member

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    for letter b, you can try canceling a card and transferring that credit line over to an existing card. This way you can later transfer that credit line to a new card, and you won't have the issue of "too many cards".
     
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  10. satman40

    satman40 Gold Member

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    Chase has moved my credit line to the new card, and they hold more in my accounts, than my CC limits,

    If they feel uncomfortable I can understand, it's just a business decision.

    I am only going to spend a certain amount, in a month, and I tell them, I just applied for the perks.

    They do seem to understand, it is almost like they say, "have another card."
     

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