I applied for the Gold AAdvantage card, and was turned down, but I wanted to share with you some information the representative gave me: If you have more than 25k in debt, you are automatically turned down regardless of whether you earn 25k per year or 25 million per year. Now I am assuming this is just revolving debt, look how many people have at least that much in student loans. Also, she said even if you don't owe a lot relative to your limits, if you have even one card balance > 65% of the limit, that pulls your score way down. (I don't know is she meant Citibank score or FICO score) Just thought I would share these interesting tidbits.
one balance >65% of your limit and your score goes down a lot. I think this will further enrage Cap1 cardmembers because Cap1 doesn't report limits, only high credit.
I don't know much about that kind of information about credit scoring as far with credit limits.I can't imagine that 1 card with a 65% of credit limit used up would really knock anyones score down that big.The only way i beleive that it can lower a score is if a person just only pays the minimum due only.Each time a person pays on their credit card balances their creditor tells the cra how much they paid,and also the scoring model know how much that a person pays in interest on their balances.Don't let anyone kid you on this.What you don't know can hurt you.How do you think that pre-approved offers are set?They get the information from the cra.If anyone has a good pattern as far with make huge payments much more then what the creditor is asking for proves that a person is very responsible with their credit.So not only does the scoring model keeps track of your balances against the credit limit,but it also moniters your payments very close to help any future lender on how well a person manages credit,and rates part of the risk with this information.If what i say isn't true then i wouldn't be paying 3.5% A.P.R. on my balances right now.I also got a 3.9% offer from MBNA platinum today.Being very responsible with the cards is the key to very low interest rates.Also paying much more then the minimum,never being late,and not going over your credit limit is a big plus for getting the highest credit score that anyones can get.
Ble103 "How do you think that pre-approved offers are set?They get the information from the cra..." Explain this: I have a male friend who is 32 and had NEVER in his life had a credit card or a bank account for that matter. Citibank sends him pre-approved offers for their Platinum Select card ALL THE TIME!
Re: Ble103 I highly doubt that creditors report to the CRA the interest rate you are paying. If so, then why can't we see it so that we could dispute it if they are reporting the wrong amount. The APRs I am currently paying on my balances are 7.9, 6.99, 4.9, and 2.9. However I find it highly unlikely that my creditors are reporting my APRs to the CRAs.
Re: Ble103 "If you have more than 25k in debt, you are automatically turned down regardless of whether you earn 25k per year or 25 million per year." I disagree... If you make $25,000,000 per year, and have $25,000 in debt, you will be approved... How to you come to this conclusion? I mean give me a break, we are talking about the Gold AAdvantage card, it is not that "coveted"... This was not meant to insult you, but rather their "rep" who makes it sound like this is such an "exclusive" card...
Re: Ble103 No,they don't report the A.P.R,but the scoring software knows what you are paying each time a creditor updates a persons account with the cra.Here is how it works,let's say a person owes a $1000.00,and the minimum due on the balance is $25.00 then let's say that the person only paid that amount only.When the account gets reported to the cra,and the only reduction was $10.00 off of a $1000.00 balance what does that tell you?Can you catch what i am saying?If a person kept only paying the minimum can you see now how the scoring model knows what you are paying in interest?It really does know your A.P.R. beleive me it does.This is how creditor's know what to charge a person as far with interest.The more you pay on the outstanding balance the better!Take another example let's use the same balance of $1000.00,and the $25.00 minimum due payment amount.Now let's say that a person is getting a 2.9% offer it will show through the reduction on the outstanding balance.Instead of reducing it by $10.00 it is now being reduced by $22.10 off of the $1000.00 balance.See the difference?Interest of 2.90 is being charged instead of the $15.00 which equals a A.P.R. of 18%!I know this sounds confusing,but it is the truth!This is how any creditor when reviewing any of their accounts decides what A.P.R. on balance transfers that they will offer someone.I have been getting these low rates all the time since 1997,and it keeps comming to me.I have a $30,134.00 balance,and i am paying $890.00 a month every month!My A.P.R is 3.5%!I am reducing my balance by $780.00 a month.Now let's say this balance was being charged an 18% A.P.R. how much would my balance decrease by?Still paying the $890.00 a month payment the answer is $438.00,see the difference between the A.P.R's?Now can you see how the scoring models knows what a person is paying in interest per month?FICO already knows!So there is no need for any creditor to report the A.P.R..I think this message board should also have people that knows alot about credit to share some valuable tips on maintaing the best credit rating after a person gets their credit back on track.Why pay high interest rates if anyone is carrying a balance when they don't have to?I hope this information that i am sharing is valuable to some that want's to know how to get very low interest rates,and keep it low!The more you know the better off you will be.
Re: Chris Those were the reps words, not mine... The rep. didn't make it sound like an exclusive card... Where did you get that from?
Re: Chris Maybe I misunderstood.. But it makes no sense... When I am making $25,000,000 do you think I will be turned down for a credit card if I have more than 25,000 in debt? I mean let's be realistic..
Re: Chris Hey, guys Just had to jump into this fight...where do your purchases fit into the game? You're assuming only previous balance vs new balance. Wouldn't any new purchases throw the calculation off? Just playing devil's advocate
