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Everything posted by MP80

  1. I'm not a financial accountant, however, my assertion points to a common argument that banks set aside reserve funds to cover losses, and one aspect of the guidance approach is to cut customers' credit lines. This may be controversial to many, but it is an effective strategy. You may not agree with this strategy, but I believe and think that all banks that have put money into other investments have emptied or reduced their liquidity vaults and will need additional funds to cover losses if they come in time. As Synchrony has done in recent practice, after so many years, that's why they are hated by many people. Who closes 7 to 8 credit card accounts in 1 day to so many customers on an average of $50K to $80K affiliated with the credit limit, and why would a reputable financial entity do that if not having liquidity issues? Capital One is allegedly taking the same approach that Synchrony continues to take, and perhaps they need to do so because of the millions of co-branded card portfolios and their financial asset capacity is not enough to cover Continuum's losses. In addition to CLDs, Capital One can rely on ABSs for additional liquidity.
  2. Asset-backed security (ABS) is a financial investment that is collateralized by a pool of underlying assets, typically assets that generate cash flow through debt, such as loans, leases, credit card balances, or accounts receivable. It takes the form of a bond or note that pays income at a fixed interest rate over a specified period of time until maturity. These ABS pools of loans are packaged into investable securities that can be purchased by investors, primarily large institutions such as hedge funds, insurance companies, and pension funds. ABS offers a different approach to diversification than typical bond mutual funds or the individual bonds themselves. Best of all, they are income-producing assets that often offer higher returns than regular corporate bonds, all dependent on the ABS's credit rating.
  3. The answer is yes! According to Capital One's publicly disclosed data, the group is classified as A-rated, meaning more than 70% of its top AAA-rated customers have an average credit limit of $8,712, balances in excess of $1,663, and a utilization rate of about 19.43% with the average FICO score of 720. We might ask what, why, and how it happened that Capital One cardholder were left with a balance on a credit card account that paid interest every month. I believe everyone in the credit community agrees that Capital One is skilled, generous, forgiving, and well-suited for folks who recently filed for bankruptcy to apply for their credit card. They're not worried about people having balances to pay interest on, they're not worried about delinquencies, charge-offs, or customers filing for bankruptcy, they're just worried about you not applying for their credit card or making purchases with it. Capital One employs a paradigm of business formulas done by AI algorithms, where everything is managed by computer analysis to approve or deny various credit applications and credit issues, and no human employees can overturn the computer's decisions. Capital One will not penalize or mistreat you for having a balance. Unfortunately, other banks may lower your credit limit or close your account when you prolong a large balance and pay the minimum monthly payment. This is probably the main reason AAA consumers choose Capital One to hold their balances.
  4. I've never had a card issued by Sync or Comenity in my credit card portfolio, so I don't know about the forgiveness of their loan policies. I know someone who has a Bank of America AAA card and recently moved his AAA credit card to Comenity. This person has a credit limit of $85,000 on his AAA card, so I don't know the current credit limit status of that card. However, keep your fingers crossed for the potentially huge CLD on this card. The axis of evil of Sync and Comenity plus Barclays have a bad reputation with customers having their credit limit reduced and all accounts closed without giving them enough warning. This is very bad if you transfer a decent card portfolio to them because this would jeopardize the relevant credit limit policies they implement in all credit products, in particular serving over one hundred co-branded store credit cards as issuers. There are some store cards that I like, but they are the issuer of those store cards, and I would consider them inappropriate for the application for what I believe are the above reasons.
  5. I think PNC is more sensitive to multiple inquiries in a short period of time, like 2 or more inquiries in 3 months, I'm just guessing because PNC is not a popular and well-known bank and there is a lack of information about people reporting on PNC Data positive credit seeker approval guidance policy. As for my recent experience with Wells Fargo, Wells Fargo is now flooding my inbox with various loans since I got approved for their Reflect Card last December, 9 months ago. They wanted me to take them up on their offer, specifically the shiny Autograph card. All theories point to Wells Fargo easing their wallets somewhat, and if you are currently a tenant in your residence, I would go with the Bilt card.
  6. The short video clip of the protagonist reminded me of the Ed Sullivan Show's seeing Peter Noone singing Mrs. Brown, You Got A Lovely Daughter. The guy looks and talks like Peter, too.
  7. PotO was here 6 months ago and CV left 18 months ago. I wish them both the best! Now, where's Hege?
  8. Hello and welcome, @searchingcredit Aqua Card and Vanquis Credit, two financial institutions entities from the UK that offer maximum credit limits between £250 and £1,200, are suitable for people who currently have poor credit or need to rebuild their credit history. Most people in the credit forum community are not familiar with Aqua Card or Vanquis Credit, in fact in my last 8 years of CB experience it has never been mentioned in these forums. Both credit card providers only offer their services to UK residents, and if you don't have a current address in the UK you're not eligible to apply for an Aqua or Vanquis credit card. If you live in the United States, you are not eligible to apply. I recommend trying to apply for a Capital One credit card if living here or in the UK. Good luck!
  9. People familiar with the last derogatory account saying will uniquely cause the consumer to give and take ~50 FICO score points. Remember, the last negatives have substantial weight with the scores. You're lucky that the point loss is non-negligible.
  10. Good Lord! Another of these First Premier substitutes banging the folks for a sucker! The only good thing about the scheme tactic is telling folks the Payday loan now has the policy to report your on-time payment to the bureaus. Other than that, it's a crock of feces to scam your money knowingly you're in a desperate position to rebuild your horrible credit. Even @MarvBear laughed at who would be a crazy dingbat!
  11. I think some folks got the wrong idea about what I was referring to, it has nothing to do with Target or Walmart and the rest of the store cards businesses. I was pointing out to the OP to be cautious about applying to the store card, given that some issuers of store cards are consumer finance accounts and may affect FICO scoring.
  12. I believe all creditors and lenders have a blacklist of former clients who have caused them losses. Your recent bankruptcy is considered very new, so don't be surprised if you appear on the list. It all depends on how bankruptcy-friendly they are, and if it's Capital One, there's absolutely no hindrance to jumping in with open arms.
  13. Any Barclays product is a no-go for me! Co-branded credit card or not, Barclays is a skittish lender, they've been burned so hard, their lending policies have become so conservative, and they're like a jealous Wife, They like it when you only use their credit cards.
  14. Yes, you can apply to Amazon, Target, and Walmart. Large banks will not consider these store cards as consumer finance accounts because these store cards may be upgraded to Visa cards. As people rebuild, it's a good idea to apply for a decent bank card, whether secured or unsecured, from a reputable bank standpoint or a well-known credit union. Don’t apply to predatory lenders that charge you all kinds of crazy fees like maintenance fees, monthly fees, and installation fees. These lenders will simply set up an account for you with a low limit of $300, and after all fees have been taken for deduction, you may end up with $150 in available credit. Start smartly rebuilding the foundation of your credit profile, after all, it's a critical choice for your credit future.
  15. Just stay away from store cards, some are identified as consumer finance accounts, and the content of consumer finance accounts on the bureau report reflects negative factors for creditors' decision on approving your credit application.
  16. I've lived in the Bay Area for decades, and Wells Fargo is my bank for daily business. As others have said, they have branches all over the place for convenience, so it's the main bank that people go to to do business with rival Bank of America. Before the fraudulent accounts surfaced and dealt a devastating blow to Wells Fargo's reputation, Wells Fargo had a long history and a strong reputation for goodwill, with substantial consolidated assets, and was positioned to continue to thrive in the future. However, greed has caught up with them, undermining their ability to grow further and compete with JPMorgan Chase and Bank of America. sad! I had the same experience that @cashnocredit's Wells Fargo account service, and they didn't do anything unfair to me. As others have said, this must be an issue related to the individual bank. Imagine Wells Fargo with so many branches in a big city.
  17. You did the right thing by paying the bill to the repairman and paying PayPal/Synch. Based on your description of the inept service provided by the people Samsung sent you, if Samsung personnel can't resolve it, you might later consider calling a Samsung executive's office or taking the entire issue to a small claims court for litigation. If it were me, I would put the whole disaster behind me, never buy any Samsung appliances in the future, and regard it as bad luck that resulted in losing money.
  18. Here is more info from Anonymous author... On December 31, 2022. Here are a partial of Capital One financial disclosure... Period-end loans held for investment in the quarter increased $8.4 billion, or 3 percent, to $312.3 billion. Credit Card period-end loans increased $10.8 billion, or 9 percent, to $137.7 billion. Domestic Card period-end loans increased $10.3 billion, or 8 percent, to $131.6 billion. Total net revenue increased 13% to $34.3 billion. Total non-interest expense increased 16 percent to $19.2 billion: 40 percent increase in marketing. 11 percent increase in operating expenses. Pre-provision earnings (1) increased 9 percent to $15.1 billion. Provision for credit losses increased $7.8 billion to $5.8 billion. Capital One is the most public in disclosing their use of ABS to generate credit limits to generate spending to generate profit, I'll focus on them, but they are not that much different from other banks. While Capital One does get money deposited into their CDs, savings accounts, and other cash investments, most of their credit line liquidity is provided by their ABS groups. As a particular disclosure example, if Capital One issues and requests up to $500 million in investments, in fact, it isn't Capital One that's requesting this money, it's a totally separate company called the Capital One Multi-Asset Execution Trust, a trust that operates to protect investors from Capital One going bankrupt. Some investors call this trust "COMET." One thing to note is that this $500 million trust ABS is for "Class A". Capital One as a lender actually has 4 different trusts for 4 different groups of credit. Class A has a security rating of AAA, meaning the best rating and the least likely to default. In this write-up, the type of borrower that is invested in is: As of Feb. 15, 2017, the consumer segment consisted of $24.3 billion of receivables with the following characteristics: An average principal balance of $1,663. An average credit limit of $8,712. A utilization rate of 19.43%. A weighted average age of 152 months. 100.00% are from accounts older than 60 months. None are from accounts equal to or less than 24 months old. 50.56% have FICO scores of 720 or higher; and 8.79% made minimum payments, and 21.26% made full payments. This is just one portion of the Class A ABS -- the other portion listed below this part is for business credit, which has similar statistics but is much smaller in size ($3 billion versus $24 billion for consumer Class A credit).
  19. FICO 850 is the maximum score and most people will lose a portion of their AAOA points and not have an active installment account. So while your payments are flawless, and your utilization is less than 3%. These two categories can only give you a maximum score of 75% out of 850 points. The other 25% is mixed in with the account duration history, making up 15% of the remaining percentage of the score. If you don't have derogatory and low utilization usage, that might just help your FICO score to a very good max of about 740 to 760, but you'd need a long history to overcome the bucket you're currently in. Because you can gauge that 25% of the FICO score is equivalent to 212.5 points, a significant portion of the FICO score pie.
  20. I guess PenFed took away the personal line of credit. Basically, people were using credit cards at ATMs to get cash, and the personal line of credit was for utilization padding fill use, so, PenFed axed it away. Customers are not being warned about the personal line of credit closings. It just annihilates from their account home page, gone forever! In the past, I have held several AmEx PLOCs issued by Ameriprise for AmEx investment clients, as well as a PLOC from MBNA America. Most major banks now offer business lines of credit instead of PLOCs. They used to have PLOCs available to apply for on their website, but like Wells Fargo and Bank of America, have removed them. Mid-sized banks like US Bank and BMO still have PLOCs, however, it seems that you need to call a banker to apply for it, instead of the availability apply now on the web page like before. That has changed. Some banks are even more strict about the qualification of having a checking account as a prerequisite precondition to applying to the PLOCs.
  21. Ally offers Car Finance, online banking, mortgage loans, and stockbroker services. They are an electronic trading platform and its revenue increased by $8.206 billion in (2021) operating income of 2,342,000,000 (2022) Net income of $1.714 billion (2022) Total assets increased to $191.826 billion (2022) Total equity of $12.859 billion (2022) Number of employees 11,600 (2022) This bank is financially larger than FNBO Bank, and they originally spun out of the now-defunct GMAC a decade ago, so, they're new and few people know much about them. Their 2% cashback on all purchases is very enticing to apply for, but the high APR of 20.99% to 28.99% variable rates plus the balance transfer fee of 4% or $5 is very unattractive. Ally Unlimited Cash Back Mastercard® for Nurses and Educators
  22. I was dumbfounded when PenFed told me that every statement they sent me would be charged in dollars, an automated electronic statement that gave you no choice. Plus, the crazy website they ghostly run every day has everyone complaining. The only good thing about PenFed is that their credit card is like a line of credit and can be used as a cash advance at any time, with no fees, and the credit limit is 100% usable as a cash limit.
  23. I remember when Mendy and Konrad were posting very actively on CB, the FICO score I obtained was 800. It was very different from now. I only had 5 opened cards in my possession then and a few cards that were closed decades old. The oldest account was opened in 1994. Now that the account from 94 is gone and every one of those closed accounts is beyond the scope of the reporting, it has aged off. As @shifter mentioned about subtracting points from somewhere, both categories, Mixed Installment Accounts and Average Age of Accounts Plus Oldest Accounts lost between 50 and 70 points.
  24. Well, you're the first person I know who has a $12,000 Fifth Third card. Keep two things in mind, Six years ago banks were not as harsh and strict as they are now with holding on to their purse while you rebuild from bankruptcy and admitting that you will not ruin your credit profile is the dichotomy versus defaulting or late payments That, plus being approved for your higher credit limit will allow Fifth Third to get more swipes than other cards you have, like those primitive Toy Limit cards for people who are rebuilding their credit.
  25. Sorry to hear about the credit limit reduction, A 60% credit limit cut is pretty significant. If it were me, the mercury or quicksilver card would either tend to stay closed or live in the drawer to eat dust with my socks. Since you use your Citi card every month, the algorithm has a conscience and allows you to maintain a sufficient credit limit, giving you leeway. People with a collection of dozens of credit cards need to keep an eye on cards that they are not currently actively engaged with, and if a potential unused card is closed without any foresight, pull it out and swipe some purchases before it's too late.
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