VattenÃ© wrote:Does anyone know if there is a reason other companies don't/can't implement backdating? It is a really nice perk, and I would expect other companies to copy it if there wasn't some legal issue or cost standing in the way. I don't know which came first - the Chase Freedom or Discover it - but it really looks like one copied the rewards structure of the other. I think Discover was the first to offer true FICO scores to members as a perk, and I have seen other companies rip that off recently.
I've heard different reasons why Amex backdates and others don't. Someone on FICO once suggested that because Amex extended credit before almost anyone else, they've been "grandfathered" in somehow since they predate most of the credit reporting laws. i don't think that's true- I think Amex simply marches to the beat of their own drum and does what they please. I don't see any reason why a creditor can't do it... the law says they have to report accurately, but that's really only enforced when the inaccuracy is negative. That's how people are able to get PFD's even though the derogs are accurate. I did have a friend who once convinced Chase to backdate, but that was years ago and I doubt it would work today.
I'm really surprised no company has tried to use some sort of backdating scam (ie. I pretend to extend you $50,000 in credit, backdate the account to 1950, report to all three bureaus as "paid as agreed" with a $1 balance, and in exchange you pay me $50 a year for the boost to your credit score). I guess it would be exposed pretty quickly, but I'm surprised it hasn't been tried
In my Wallet:
Sometimes 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]
- 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