What do the credit card companies like to see

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MemberSince99
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What do the credit card companies like to see

Postby MemberSince99 » Sun May 18, 2014 7:30 am

I saw this question asked, and what came to mind is - who really cares?


Seriously we are the customers here. Without us they don't make money. But without them, our lives will go on just fine.


It kind of seems to me like it's backwards really and should be what do I like to see in a credit card company. Why should I give business to company A over company B, or to any of them at all?


I have to confess I've been guilty of this sort of thinking, but in the light of day, why should we worry about bending over backwards to try to please them? Just live your life smart and do what benefits you and that means NOT carrying a balance and paying them 27% interest on everything you buy and maximizing your rewards where it makes sense. If they choose to give you CLIs or whatever, great, but why sweat worrying about what makes them happy - worry about what makes YOU happy.


In terms of following this I had been giving Discover a lot of swipes. I will now use it for the 5% categories and beyond that, a small swipe every few months to keep it active. I had also been giving Amex a lot of swipes, and I may continue that so long as the rewards benefit me. Same with Chase - they'll get the 5% swipes on Freedom. None of these outfits are likely to give me a CLI, but they certainly offer decent rewards that I should take advantage of.


That's my take.


Gamma
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Postby Gamma » Sun May 18, 2014 3:17 pm

Kind of reminds me of this thread I found in my fico
http://ficoforums.myfico.com/t5/Credit-Cards/Discover-Chat-Fail/td-p/3035386

I thought that was a pretty stupid question to ask them. I mean, what kind of answer was he really expecting?

MemberSince99
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Postby MemberSince99 » Sun May 18, 2014 4:05 pm

Yeah kinda like that. I think it's just common sense - use it, pay it on time every time.

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otter
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Postby otter » Sun May 18, 2014 10:05 pm

I've been thinking about many of the same things lately- we are their customers, not the other way around. Sure, they have something we want(credit extended to us), but why should the banking business be different than anything else? They should be endeavoring to make us happy, not the other way around!

I no longer worry about "upsetting" creditors. When I got my first Barclaycard everyone at FICO warned me to not app for anything else. Well, I think I have around 15 apps since that first Barclaycard nine months ago. Well, I guess Barclay wasn't too upset as they gave me two more cards with bigger limits than the first card they gave me.

Do the big things right (pay on time, every time) and keep utilization low and that's 65% of your score... unless you're applying for a mortgage or a car loan, no need to worry about the rest. I like those people on FICO who worry about eeking out the final 5 points they can possibly get on their credit score... so many more important things to worry about in life.
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

MemberSince99
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Postby MemberSince99 » Mon May 19, 2014 6:52 am

Interesting you mention that about score otter. The scores I was shown at mortgage preapproval were quite a bit lower than my FICOs (two were in the high 750s) Score really is mostly meaningless - if the report is good that's the key. I used to obsess and worry about it too but really why - other than taking care of business you can't control it, and frankly once you get scores like I have, I can't think of a single thing going higher does for you in the real world other than give you bragging rights "Oh look at me I'm over the magic 800 number". Ok, congrats, too bad it doesn't get you anything else. Even checking FICO, what a given lender pulls could be very different so it's kind of pointless really.


A lot of them live in fear of Amex F/R too, as if that's as bad as a close relative getting cancer. They are forever striving to keep Amex happy to avoid the dreaded F/R. My feeling is, it should be the other way around - Amex should be striving to keep me happy as a customer so I continue to give them spend (money/profits) as I have plenty of other options. I just gave the bank a 4506-T, the dreaded Amex tax review form (the bank actually just gave it to me to sign, I signed it and handed it over) but would I give Amex that if they demand it? I'm not sure to be honest. If they just want to verify my income I'm happy to do that, not a problem. But a 4506-T, I haven't decided if I feel that's too intrusive - I could see it for a mortgage but for a credit card, especially one that has an NPSL that MIGHT barely allow me to hit 5 figures and another for 2K? Seems a bit much to me. I mean it might be different if you are talking 25K or higher, but not sure I'd do it for what I have now.


So I don't worry about it either. In fact I've been thinking my life might get easier if I weed a couple out, though now that I've gotten preapproval the best way I can make my life easy is to change NOTHING until I close. But when I do close, ironic the choice of term there, I will look at them all with a critical eye of what have they done for me lately and most especially Barclay's with the Capital One service experience I had with them. They are on reprieve for the time being.

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Postby takeshi » Mon May 19, 2014 9:07 am

You always have to consider the source. The source in most of these cases is someone who doesn't know anything (or very little) about credit, scoring, creditors, etc. Many of them are building or rebuilding and are looking to do whatever it takes to get approvals, CLI's etc.

MemberSince99 wrote:I saw this question asked, and what came to mind is - who really cares?

Obviously many or else you wouldn't have created this thread.

If you don't care that's great. Just keep in mind that "I don't care" never means "no one cares". If you don't care then why do you care if others care? Move on to topics that you do care about.

Guess I should be careful saying that as it seems that you greatly care what myFICO users posts about. ;)

MemberSince99 wrote:If they choose to give you CLIs or whatever, great, but why sweat worrying about what makes them happy - worry about what makes YOU happy.

Each has to do what works for the individual. Approvals and CLI's do make some people happy. I wouldn't say that CLI's alone make me happy but I did seek out CLI's to get my limits to where my spend falls around 10% or less utilization.

otter wrote:I like those people on FICO who worry about eeking out the final 5 points they can possibly get on their credit score... so many more important things to worry about in life.

One size never fits all. If they enjoy trying to squeeze blood out of turnip for a few FICO points then why should it matter to anyone else? I don't see the point in it but it's their time to spend. What's important and what one is willing to carve out time for is going to vary from person to person.

We all have things that seem to be a waste of time to others. We all see things that others do that seem to be a waste of time. All we can do is control how we spend our own time.

MemberSince99 wrote:A lot of them live in fear of Amex F/R too

Again, its a matter of ignorance and reading some those threads and posts makes them seem worse than they really are. The unknown always seems much worse than the known.

MemberSince99 wrote:But a 4506-T, I haven't decided if I feel that's too intrusive - I could see it for a mortgage but for a credit card, especially one that has an NPSL that MIGHT barely allow me to hit 5 figures and another for 2K? Seems a bit much to me. I mean it might be different if you are talking 25K or higher, but not sure I'd do it for what I have now.

4506-T for AmEx is no big deal IMO but that's a subjective matter as in my case it lead to nearly 3x. I could start a thread about how your fear of the 4506-T makes no sense to me but it's really your call to make as to how you handle it.

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Postby MemberSince99 » Tue May 20, 2014 6:49 am

I never said I "feared" the dreaded 4506-T - I just gave one to the bank who did my pre-approval. I'm not afraid of the thing - I'm just not sure I care to give it to Amex. There's a difference - I'm ok with doing that for a mortgage but a credit card, especially with the limits I have with them, hell Associated gave me over 20k without requesting that and Amex gives me 2k which very likely is going to stay that for as long as I have the card. Frankly I'm not sure I'd go along with it. That doesn't mean I think Amex is going to drop a nuke on me or rendition and harshly interrogate me if I fail to comply or send Guido over to my house to kick my ass. I don't know where you come up with the whole I'm in fear of it but whatever. I just am not sure they need that for a credit card. If you are, more power to you, comply. I'll decide that for myself when and if the time comes.



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