billkong cited adverse action from Amrican Exprss.billkong said:Just got walloped with A/A from American Express. Went from having 5 cards with them, total credit line around $75k, no balances, to having 5 cards, total credit line $2500. Have been diligently paying down my AOR I did last November, and they just now hit me with this. Unfortunate, because the AMEX Card was my daily card.

Total credit available prior to this: $250k
HHI: $150k
Debt on cards: $44k
Highest percentage on a card: 75% (personal)


Guess AMEX loses my business forever. A $2500 credit line, sure, I understand, but $500? No thanks. It's odd that they just recently did this, though.

FICO before: 79x
FICO immediately after AOR: 72x
FICO now: 75x

Overall utilization: 44k / 250k = ~20%

No increased usage at all. I use my AMEX card as my daily spender, but don't put any more than $1500 a month through, which I always promptly pay off. I've never missed a payment in 9+ years of having a credit record.

Before the AOR, didn't do anything out of the ordinary. Strikes me as quite odd that they A/Aed me this late in the game.[[Q/]

^^^because a good trader knows there are such things as six sigma events, that's why.

Besides, why would anyone want to spend money that they don't have to?

WalStMonky said:^^^because a good trader knows there are such things as six sigma events, that's why.

Besides, why would anyone want to spend money that they don't have to?I'm aware of six sigma events. That's why I join every sane person on Earth in recommending that you don't borrow a significant portion of the money you put at risk through investments.

But saviola is confident in his abilities. And, if he can pull it off, there is no significant difference in borrowing at 20% for a few weeks and borrowing at 0% for a few weeks. He's a millionaire either way. As a matter of fact, he would be well served to exhaust every single source of funds available. If he gets lucky, he'll be earning more interest on that borrowed money that the highest rate he could possibly be paying the bank. If the dice come up snake eyes, he's bankrupt anyway. There's no such thing as really, really bankrupt.

saviola said:I beg to differ on the 20% vs. 0% bit. BT checks and their lines are readily available for deposit with modest fees if any, they are sent and cleared within a week no questions asked. On the other hand, the 20% loan or second mortgage you prefer to saddle me with take applications, trips to the bank and mortgage company, scrutiny, questions, time consuming financial probes, gas money and unwelcome intrusions in one's finances _ close this, pay that off, what need have you for that much unsecured credit, etc...Those are certainly valid reasons for preferring BT checks. But a secured loan from a bank can typically generate a much larger LOC than a credit card app, assuming you have assets (such as home equity) you can leverage. And I would certainly be willing to wait a few weeks and send a few faxes to get the maximum amount of money possible for my practically guaranteed method of quickly quadrupling my money.
Moreover, suppose, god forbids, your snake eyes dice materialize (fat chance), paying off $300K (if one assumes total loss) in a year @ 20% isn't at all like paying it off @ 0 - 2%. Nor is the dice analogy germane because throwing dice is an unccalculated risk with horrible odds by definition, trading is a calculated exercise.I assumed that you would not even try to pay off the debt if your scheme blew up. Kudos to you for planning to be responsible for your debt.

As for throwing dice, I'll admit that it's random. A better example may be counting cards in black jack. It's a calculated exercise in which you can expect to make money. But sometimes you lose instead. These things just happen.

there is no significant difference in borrowing at 20% for a few weeks and borrowing at 0% for a few weeks.

You need to go back to math class.

I'm aware of six sigma events. That's why I join every sane person on Earth in recommending that you don't borrow a significant portion of the money you put at risk through investments.

Umm, what does every sane person on earth think one thing has to do with the other? A better question is why should I believe you speak for every sane person on earth, especially since it seems that you define 'sane' as 'agrees with your opinion', which is not the definition of the word by any means.

peteypablo said:Bank of America closed all of my accounts, all of my wife's accounts and my son's account. What do we have in common? We all live at the same address and we all applied for Bank of America checking accounts and savings accounts at the same time. We all also had relatively high credit card debt showing, my wife and I with BOA, and our son with other issuers. We wanted to get the sign-up bonus and use Keep the Change. Bank of America says, "No, thank you."

Has anyone here ever lost a promotional rate with an account closure? I know there is speculation about whether it is possible. I'm just wondering if it happened to anyone.

This seems pretty severe. Would you mind providing more details about balances you have and % credit utilization?

sigh...

Just received adverse action from Chase.

I had 5 accounts with them (3 personal, 2 business). All were closed (and I received a BT offer in the mail today in regard to one of my accounts go figure)

Sadly, I have two bank accounts with them which prove more than enough to pay any possible debt but it still came to this.

CARD | CL | USAGE
Chase Freedom | 9000 | $0
Sony Card | 10500 | $600
Flexible Rewards | 8000 | $0
Chase GM Business Card | 9500 | $0
Chase Business Rewards | 1000 | $0

Did AOR in November for Sign Up Bonuses and To Further Build My CLI/Expand my portfolio

I pay my balances in full every month, and use all 5 cards at least once every two months to keep them active.

Their reasoning: High Risk - Too many inquiries on Experian (13).

Household Income: $160k

I know its not a ton of credit. The Flexible Rewards is my second oldest card so I'm a little pissed. Also, I'm just about at the $250 rewards mark for the Freedom card and was looking forward to collecting that.

After realizing my card was not working, I called Chase as soon as I had the opportunity to inquire about the situation. The first Account manager they had me speak to was not the nicest person, and did her best to rush me off the phone without legitimately hearing me out.

I collected myself and called back. I made sure that I was very pleasant yet demanding on the phone. Spoke with another account manager and inquired as to whether proving financial documentation to pay off any POSSIBLE debt would help. (Note, I pay off my balance on each acct every month) I also noted that my credit score is in the 780s. He looked further into my account and saw that I do indeed pay off my balance on each acct every month, and explained why my status with them raised red flag (too many inquiries). He said that he was going to do what he could do get my accounts re-instated and told me that he was transferring me to account security to explain that I am not a high risk customer. The call got dropped in the transfer.

I called back and was immediately transferred to security who had me speak with another account manager who was already looking into my account. She asked me a few questions in regard to employment, my self-owned business, and household income. She said that she was going to submit my account to be reinstated, but there are no guarantees. I thanked her for her help and urged her how much I appreciated her doing what she could to get the account reinstated. She advised me that faxing in documentation would also work well in my favor, and thus, I will be doing so tomorrow.

We shall see what ensues. I know it is not a ton of credit at risk here, but it is the principle of the matter, as well as the desire to not have any accounts closed by the lender on my CR.

All from November, 07

Wifey got an interesting FCRA rejection letter yesterday. Had a Diamond Preferred MC with a 20k line. Moved 19k to her Citi Pro card a couple of months ago. CashReturns card limit was sort of tight, but when she asked to move it from the Pro to the CashReturns card I got a Homer Simpson moment when I remembered that CLs only go one way with that card, at least without luck or effort. Anyway, to the CLI button. When pushed on the Diamond Rewards card she was rejected. Received explanation letter yesterday. Reason for not increasing credit line was because they had recently decreased the credit line.

Yeah, I've been getting this message since May'08 when I first CLRed from DPR to CashReturns, but there was no statement as to how much time has to pass before a card with previously decreased CL is eligible for a CLI again. On a different, but possibly related note, CLI on the CashReturns was also saying "no", b/c the card was "less than 6 month old". That was never a reason given to me prior to May'08. All-in-all, it looks like CITI has beefed up its CLI process with additional checks & requirements.