Harmful backdating hypothetical

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Postby otter » Mon Oct 13, 2014 2:08 pm

takeshi wrote:My situation 1.5 years ago was pretty similar to your hypothetical. MSD in 1998. BK and no AmEx cards since ~2000. 2 new AmEx cards in 2013 backdated to 1998. I've had no problems with Chase.

I found the Chase example interesting as well because I've gotten 3 cards with them this year with ease. Personally, I don't think those who manually review cards have a whole lot of time to look at every app with a fine tooth comb. They're looking for the biggies-they aren't going to paying a lot of attention to a backdated Amex which doesn't have an "OK" going back years at a time; they are goingto focus making sure there are no 30/60/90's and other baddies and making sure utilization and debt-to-income are okay.
In my Wallet:
  • Amex PRG NPSL[3-14, bd 91]
  • Sallie Mae MC $8000[1-14]
  • Chase Freedom $4700[1-14]
  • Discover It $2750[8-13]
  • BoA UCF Alumni Cash Rewards $5000 [3-15]
Sometimes in my Wallet:
  • GM BuyPower WEMC $5000[9-14]
  • Wells Fargo Propel 365 Amex $7000[4-14]
  • Barclaycard Arrival WEMC $7000[3-14]
  • BoA Better Balance $3000[2-15]
In my sockdrawer: Amex BCE $1000[10-13, bd 91], OCCU Duck $10000 [11-13], The Sportsman's Guide Visa $8000[8-14], Chase Slate $4000 [9-14]Delta Gold Amex $2000 [2-15 bd 91], Diners Club MC $20000 [10-14] Commerce Bank Visa $2000 [3-15] Citi Double Cash $1000 [3-15]
Total CL: $90450

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Posts: 476
Joined: Sat Apr 13, 2013 7:49 pm
Location: Colorado, USA

Postby thom02099 » Tue Oct 14, 2014 11:13 am

otter wrote:[color="red"]You're putting more thought into this than 99.9% of credit analys[/color]ts. I know there was a lengthy discussion about backdating a while back... you made your opinions pretty clear- if you were a credit underwriter in a galaxy far, far away, you would no doubt be carefully digging through Yoda's 900 year credit history to see if there were any youthful indiscretions when he was a young padawan. Heck, for all I know, I could have been your template for "CarelessBuilder" since it is remarkably close to my history.

In the 21st century, most credit decisions are made by computer anyway, and I seriously doubt the algorithm most card issuers use would draw the picture as you did(although I'm sure some probably can recognize a backdated Amex and discount the impact of said accounts).

How about those apps which require manual underwriting? Well, the reason why bad credit goes away after seven years (or ten in some cases) is because most people make stupid mistakes when they are younger and (hopefully) get wiser with age. That's why most credit analysts don't speculate about things they don't know about for sure. [color="red"]They want to know how you've been managing credit recently, not how you managed it 25 years ago, because that's the best way to determine how you will manage the credit they might give you. [/color]Besides, Amex is not First Premier Bank- [color="red"]they have a reputation for being strict in their underwriting and being unforgiving of those who screwed them in the past. [/color]Most experienced underwriters are probably aware of Amex backdating, but I doubt they think a whole lot about why "Careless Builder" has a backdated Amex with a small CL. [color="red"]Having an Amex in your credit file reporting as "paid as agreed" is probably seen as a good thing regardless of the history with Amex[/color].


Also your hypothetical somewhat close to my own situation. I had an AMEX Green back in the 70s, let it lapse due to non-use. Fast forward to 1991, got another AMEX Green, got in trouble with the old "Sign and Travel" feature at the time, had a nasty divorce, and had it closed. Fast forward again to the 2000s, applied for the Zync card, got approved and back dated to 1991 (they couldn't find my history back to 1976). Applied for the Clear, got approved. Applied for the Gold, got approved. And most recently applied for the Blue Cash Preferred and got approved.

Prior to these cards, got some of the cards listed in my siggy, the store cards first. All of the AMEX approvals were instant approvals, so the computer decided I was credit worthy. Also have the IberiaBank Select Visa and that was a manual process. They waived their usual requirements and approved me based solely on my EX score at the time. They looked at my credit report, it didn't matter to them that I was a bit short on payment history on the AMEX cards I had at the time of the application. They were more interested, and stated so in my conversations with them, with my current, at the time, payment history, which was flawless.

AMEX Gold NPSL / AMEX Zync NPSL / AMEX Blue Cash Preferred $14K / Bank of America Cash Rewards Signature Visa $15K / Merrill Lynch Plus Signature Visa $15K / Wells Fargo Propel 365 $15K / Chase Sapphire Preferred Signature Visa $10K / J P Morgan Select Signature Visa $10K / Chase Slate Visa $6K / CITI Diamond Preferred MasterCard $13.2K / Discover IT $10.5K / IberiaBank Select Visa $8K / 1st Command Bank Platinum Visa $7.5K // Home Depot $9.7K / Lowes $10K

EX = 768 EQ = 828 TU = 834 - June/2014
Retired, and in the process of retiring cards!
EQ = 850 EX=849 TU = 850 as of 07/2017

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