Looking for a new premium Visa/Mastercard

Discuss the Visa & MasterCard payment networks as well as cards that operate through them.
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CarefulBuilder14
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Re: Looking for a new premium Visa/Mastercard

Postby CarefulBuilder14 » Tue Sep 08, 2015 2:50 pm

timothym96 wrote:So much for being approved. :mad: I got a call saying that after further review (even though the site said I was approved), they can't open it not because of credit, but they simply didn't like I had 6 cards open (Three Amex which I actually did close a month ago as I only use Platinum now, Citi Diamond, Jcrew, and Best Buy) they can't reconsider the application even though it was on my credit report they were closed. After further research this is clearly a policy that was just recently put in place, but seems very odd how they can see they are closed but won't budge.

So there's a sad Tuesday morning...

Sorry to hear about that. The policy has been around for a few months, but you didn't mention (and we didn't ask about) other accounts besides Citi and Amex.

Since you're 19, it sounds like all the cards have been opened within the last two years. It's the fact that you've opened a lot of credit recently (within two years) that bothers them. The fact that the accounts are now closed doesn't counteract the fact you opened them.

A lot of new accounts tend to suggest:
1. A person may be financially in trouble, or may expect to be in trouble soon.
2. A person may be looking for bonuses without planning on spending much or keeping the cards after a year or two.
3. A person may be more likely to make late payments if they have more cards and can't stay organized.

So the policy isn't without some logic.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when


Whatamuji
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Re: Looking for a new premium Visa/Mastercard

Postby Whatamuji » Wed Sep 09, 2015 12:31 am

CarefulBuilder14 wrote:1. A person may be financially in trouble, or may expect to be in trouble soon.


Would an example of that be: I open a lot of accounts and charge bills to it because I don't have the money to pay them on time?

I've never really understood how opening a lot of cards in a short period of time equates to financial trouble.
Kohls: $300, Discover IT: $1.8k, Capital One Quicksilver: $2k, Amazon Store Card: $2.2k, BoA Cash Rewards: 1k, Chase Freedom: 3.2k, AMEX HHonors 3k

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CarefulBuilder14
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Re: Looking for a new premium Visa/Mastercard

Postby CarefulBuilder14 » Wed Sep 09, 2015 1:14 am

Whatamuji wrote:
CarefulBuilder14 wrote:1. A person may be financially in trouble, or may expect to be in trouble soon.


Would an example of that be: I open a lot of accounts and charge bills to it because I don't have the money to pay them on time?

I've never really understood how opening a lot of cards in a short period of time equates to financial trouble.

A somewhat troubled borrower may know he won't be paying balances down quickly, and may want to have lower utilization with higher total CLs.

A very troubled borrower may know bankruptcy (or default on a large scale) is inevitable down the road, and decide to overspend and have a party while the champagne's still pouring. If someone got into the real estate bubble, and saw he'd be inevitably defaulting on hundreds of thousands (or millions) of dollars in mortgage debt, he might decide that defaulting on $30k of CC debt won't make things any worse.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when

Vermonster
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Re: Looking for a new premium Visa/Mastercard

Postby Vermonster » Wed Sep 09, 2015 8:18 am

Chase is known to be on the conservative side with the CSP. Had we known about all the other accounts I don't think anyone would have suggested that card.

As CB said, a lot of new accounts shows a risky borrower. Besides the chance of bonus chasing or financial trouble, Chase would be worried that you would simply "sock drawer" their card. There is zero benefit, for a company, to extend credit to people that aren't likely to use it.
Chase Freedom $9k~~Chase Sapphire Preferred $6.5k~~Amex Blue Cash Preferred $12.4k~~Citi Double Cash $4.7k

Whatamuji
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Re: Looking for a new premium Visa/Mastercard

Postby Whatamuji » Wed Sep 09, 2015 10:36 am

Not to hijack this post or anything. Does that card limit policy Chase has only for it's more mainstream cards? If so, then should there be any issue in me apping for the IHG card within the next year or so even though all my account are no older than a year?
Kohls: $300, Discover IT: $1.8k, Capital One Quicksilver: $2k, Amazon Store Card: $2.2k, BoA Cash Rewards: 1k, Chase Freedom: 3.2k, AMEX HHonors 3k

Kevin86475391
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Re: Looking for a new premium Visa/Mastercard

Postby Kevin86475391 » Wed Sep 09, 2015 10:57 am

Whatamuji wrote:Not to hijack this post or anything. Does that card limit policy Chase has only for it's more mainstream cards? If so, then should there be any issue in me apping for the IHG card within the next year or so even though all my account are no older than a year?


I was about to respond and say that my understanding was that it did apply to all Chase cards...but then I thought I'd better verify that and actually it looks like I was wrong. I found 3 different sources of information indicating it was only their proprietary cards like Freedom and Sapphire Preferred etc. that the limit applied to and NOT co-branded cards like IHG and Southwest, etc. News to me and definitely good to know!

Although, personally I'd take it as a general indication that Chase won't like seeing a lot (more than 5 or 6) of new accounts (under 2 years) and may be more likely to decline, even if they don't strictly have the policy in place for IHG cards. I hope they don't of course and good luck, but I'd probably be more conservative and wait till I had fewer than 5 new accounts in the last 2 years before applying.

My personal approach, just across the board on all cards is never to apply for a card of any kind more often than every 6 months, and in practice more like 12-18 months. I know a lot of people app much more often though and seem to be fine.

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CarefulBuilder14
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Re: Looking for a new premium Visa/Mastercard

Postby CarefulBuilder14 » Wed Sep 09, 2015 2:12 pm

IHG is my most recent card, and all my cards are less than 2 years old. All my 9 other cards were reporting when I applied in June and got instant approval.

It's possible that the policy has changed since then, or can change at any time, of course.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when

timothym96
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Re: Looking for a new premium Visa/Mastercard

Postby timothym96 » Sat Sep 12, 2015 8:32 pm

CarefulBuilder14 wrote:
timothym96 wrote:So much for being approved. :mad: I got a call saying that after further review (even though the site said I was approved), they can't open it not because of credit, but they simply didn't like I had 6 cards open (Three Amex which I actually did close a month ago as I only use Platinum now, Citi Diamond, Jcrew, and Best Buy) they can't reconsider the application even though it was on my credit report they were closed. After further research this is clearly a policy that was just recently put in place, but seems very odd how they can see they are closed but won't budge.

So there's a sad Tuesday morning...

Sorry to hear about that. The policy has been around for a few months, but you didn't mention (and we didn't ask about) other accounts besides Citi and Amex.

Since you're 19, it sounds like all the cards have been opened within the last two years. It's the fact that you've opened a lot of credit recently (within two years) that bothers them. The fact that the accounts are now closed doesn't counteract the fact you opened them.

A lot of new accounts tend to suggest:
1. A person may be financially in trouble, or may expect to be in trouble soon.
2. A person may be looking for bonuses without planning on spending much or keeping the cards after a year or two.
3. A person may be more likely to make late payments if they have more cards and can't stay organized.

So the policy isn't without some logic.


True, I had a call from some office at Chase that apologized for the run around and offered me the chance to apply in the next few months assuming the cards closed (which I probably should have anyway, I upgraded and never needed them anymore). Thank you for your explantation, and hope for the best later :)



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