A little over a month ago I applied for the MBNA line of credit. I was approved. The interest rate was higher than I wanted but I accepted anyway. After I got off the phone with MBNA I was thinking and realized that if I was approved for the LOC I also should qualify for one of their credit cards at a much lower rate. So about the minutes after accepring the LOC I called back and asked if I could get the Platinum Plus credit card instead they said yes and that they would cancel the application for the LOC. I asked if the LOC was ever going to show up on my credit report. They assured me that it wouldn't but it is showing up on my credit report as a revolving line Too New to Rate and it says Closed by Consumer. Now what I want to know is this hurting or helping my score? Should I fight with them to have it removed? Thanks
Ok that's probabally what i'll do. Before I do thought I would like to know if any one has any opinions on how this is affecting my credit score. I know that Fico can be weird sometimes. I don't want my score to drop if I have this deleted. Thanks
they will remove it if you ask them nicely. But you should have just convert the gold option loan to gold option reserve, from there you could have used tele-sales to convert the gold-reserve into a mbna visa (or platinum plus if $5000 or higher). This would have given you the low rate, intro %, etc, just a few more steps. I was recently denied for a increase but did the BDD to increase my line $1800 anyways
Cybertrave, I have the same problem. My MBNA loc that was opened and consolidated on the same day is still showing on my reports and showing as unrated. I have called and written to no avail. But check out this thread. I'm going to give this guy a call and see if he will have it deleted for me. http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&pgnum=2&postid=244653#post244653
I appreciate all the answers but the one question that Iâ??m still wrestling with before I go trying to get this deleted. Is there any way that having this account showing on my report could be helping my score? I just don't want to get this removed and have my score drop. Thanks
I don't think anyone is going to be able to give you a definitive answer unfortunately. Between 3 CRAs that all score differently and multiple score models it's impossible to know. Based on my personal experience with 2 sets of reports, I'd say your best chance of losing a few points is with EX (they seemed to like adding tradelines) We lost several points on EQ when we had two similar never used accounts deleted, but they had been sitting there for 2 years. Turned out the result was like deleting 2 positive 2 year old tradelines. Live and learn. DemPooches
Actually, yes, there is an answer. The answer is that, initially, it will HURT a person's risk score. This is due to it bringing down the average age of accounts by being just a month or two old. However, once it's old enough to only minimally affect the average age, it will be a moot point. However, the risk score models take into account the repayment HISTORY -- therefore, if there is/was zero activity, it will only minimally increase a score once it's age is no longer a negative factor. Just an FYI: I applied for a Cap 1 "No Hassle" Platinum card some time ago. They told me that I could not be approved (see my very good scores below), but that they could offer a Cap 1 Gold card instead, which included annual fees, a higher interest rate and, basically, no extra benefits. I told them "No thanks", because I already had three platinum cards and a gold card with a total of $40K C/L, and that I specifically wanted the "no hassle" card. Low and behold, guess what shows up in the mail two weeks later, then on my credit files? Yup - the stinking gold card. I called them, told them that I had REFUSED the gold card that they offered me, but to this day am still fighting to get that account - open for less than a couple of weeks and hurting my average age of accounts - off of my credit files. It's still there -- and it's still affecting my scores. Cap 1 is nothing more than a bunch of stinking criminals trying to bait and switch (and scam).
John, If you're sure you want to get rid of that Cap1 unused tradeline, contact Eugene Cooke. He was the one who removed our two at our request. We had them for the same reason, didn't ever take the accounts. But we did lose points when they were removed. We wish we had just let them sit, but we assumed they were bringing down our average age and wanted to be rid of them. Also, all of the CRAs do not score using the same criteria. While generally a new tradeline causes the TU and EQ scores to drop a bit (but not always), on one of our EX reports, every new account is causing a score GAIN. I would assume at some point this will stop, but it has been consistent and is up to 21 tradelines now. At least 2-3 points have been added on with every new tradeline reporting. (And some already had balances with the first reporting of the tradeline, so it doesn't seem to be simply a matter of lowering overall utilization with each addition.) Our scores are in the same range as yours. I wish I could pick out some hard and fast rules of scoring that always work for all 3 CRAs but so far I haven't been able to. Seems everything always requires a "usually" disclaimer. DemPooches
Eugene Cooke is the bonehead that offered the lower gold card to me to begin with when I called to find out WHY they rejected my 'No Hassle' application (I received no real explanation). Eugene Cooke is the bonehead that I told "No Thanks" to on the phone. Eugene Cooke is the bonehead that somehow went ahead and told someone else to send me the gold card (along with the $59 annual fee tacked on immediately) when I had [specifically] told Eugene Cooke that I didn't want his crummy fee-filled gold card. I have 27 positive trade lines - six closed/paid mortgages, 4 closed/paid auto loans, 1 open auto loan, a dozen or so closed/paid credit cards and 3 open platinum/gold cards with a total of $40K in C/L with only 26% or so utilization. I do not have a single derogatory item on any of my reports. I've been fighting to get rid of this stupid Cap 1 trade line for months, as it brought my scores DOWN because all of my other tradelines were 2 to 3 years old. My scores are only down in the low 700's/high 600's because, in the past 6 months, I have: purchased a new home (being built right now, but was pre-approved for my mortgage), rented an apartment while waiting for the new house to be built, purchased a boat, purchased a new truck, opened a new credit card account and trasnferred a small balance for 0% until 2004, and opened a brokerage account. Each of these resulted in one or more inquries per incident, so my score is down about 100 points from where it should be because of them. The Cap 1 bullcrap only hurts it more. As for scoring and new accounts: as a general rule, the score will drop when a new account shows up, then will eventually flatten back out and, ultimately, raise a risk score (assuming positive activity). However, as you stated, every person's situation is different and it all depends on what ELSE is/was contained within your history at the time the new account was added -- and you didn't provide any comment relative to that, so I can't very well respond to your point with any accuracy.
Guess this shows Eugene Cooke can create the same problems he can fix. No doubt you've already asked him to remove the tradeline. Sorry your results weren't the same as ours. I can see why you're so ticked. That was my point. There are too many variables and without complete info it is virtually impossible to be definitive as to what will happen. And even then, it may vary by CRA. BTW John, www.millcbs.com is a great resource. Thank you for the efforts you have put forth to maintain it. Dempooches
