Hi all, I followed up with Generations Bank to find out more about their underwriting guidelines for their VISA card, and why my TU score of 687 only qualified for the middle apr of 15.9%. Here is their e-mail response (pbm: they state in their terms and conditions that this is free information available upon request - see https://www.generationsbank.com/creditapp/index.asp): ____________________ "Our underwriting guidelines that specifically relate to our credit card are determined by credit scores. We have five tiers of interest rates that are directly related to these credit scores. Our rates are 9.9, 12.9, 15.9, 18.9 and 21.9 and as I have said, are related to credit scores, the higher the beginning score, the lower the rate. With our card however, once you qualify, each year that you make timely payments your rate will be reduced one tier until it reaches our lowest rate-currently 9.9%. Thus if someone had a low score for whatever reason, they can improve their credit standing with us and obtain a better and better rate as time goes on. Some other underwriting standards would include: 1-No more than 33% debt to income ratio 2-Minimum of $15,000 annual income 3-On the job for at least 6 months 4-Proof of income and employment Michael Laughlin, VP Chief Lending Officer" _______________________ Other info from their credit dept: All applications need income verification after approval. And balance transfers *significantly* raise one's credit limit. They purposely do not report to any of the CRAs and there is no plan to do so in the near future. Interest rate reductions are done on an annual basis from tier to tier (evidently, no skipping tiers). The bank is a little more than one year old, started by an insurance company in Missouri. I suppose that Generations is trying to be really careful about credit risks, since my mention of better terms from the big issuers did not impress them, and since they seem to be just starting out. FYI,
Well the cra's can help verify income by calcalating a person's payment pattern,and other factors to a person's credit report.Most credit card companies uses a persons credit report to help verify if the income part is true.They can tell if a person is lying on the appication.It has been a very long time since i ever had to prove my income to any creditor.If someone is going to figure in some cost of living ajustments that would be fine just as long as a person is not overstating to much money that they are not really getting after all alot of companies know that most people does get pay raises each year.Has anyone that has a high credit score,and excellent track record got the card without proving their income?Generations bank sounds like they are a prime creditor offering credit from fair to excellent credit customers charging interest according to risk asscociated with the applicant,and each year of ontime payments they will cut a full percentage point until that person get the lowest rate with this card.This card is just like the moneystores mortgage's "get back on track" program for people with damaged credit.At least they are willing to lower a person rate over time as compared to some other companies not being that nice.I got a total of 120K worth of credit limits on 14 different credit cards,and none of this required proof of income.If i ever had to prove my income to any creditor then they don't want my business to bad after all.
Generations requires income verification from all applicants. I had to submit the verification and I have good scores. I got the 9.9% rate. I was offered a 10k limit or a 25k limit w/ balance transfers.
I had to fax a pay stub as well, and despite having a 737 Tu score, I got a limit of only 1K, but 10K for balance transfers. I called to find out why the limit was so low, and was told that my score was fine, income fine, that this was just the limit that their system came up with.
I just pulled this from Christine at Bayhouse.Com: "Generations Bank score guidelines: I was told today: They use Fair Isaac's FICO scores, to get the 9.9% rate you need to have a 730 or higher score. Their minimum is a 620 score for the 21.9% rate. "
