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Old Aug 3, 19, 6:48 pm
FlyerTalk Evangelist
Join Date: Jul 2003
Location: Florida
Posts: 27,524
Originally Posted by josephstern View Post
I think his/her point is, if this were very valuable info, the CRAs would work with the banks to capture it and enhance their models.

BTW, on this subject, I've cycled my CL about 3x this month on a Hyatt card and, despite my last payment clearing, they won't free up my credit. I assume it'll happen when the statement cuts (or they're about to cut me). All payments have been pulls from the same bank (only bank) that has been attached for years.
Originally Posted by Lobachevsky View Post
Exactly. And that's how some banks limit CL cycling on credit cards--they don't free up the credit limits for a while after payments post. For some cards I have, the first payment in a month frees up the CL immediately, while subsequent payments are held for a week or so, even though the payments are from the same source.
Cannot believe in these days and age there are still people, even those seemingly have been in the game for years, still think the FICO is a be all end all tool, as well as the data reported.

Banks risk assessment models are far more inclusive than just the CRA reports. There are many many factors involved, plus different cards have different models.

On top of that, cycling a $5000 CL probably causes less red flags than cycling a $15,000 CL for the same 3x. Common sense would tell you why.

Banks do care about cycling CL because essentially you are using A Lot More of the initial CL the banks are willing to extend to you based on the credit profile as a result of the info you put on your application. The bank initially approved you only 10K CL based on the info from the application. When you are cycling it 3x, that means the bank essentially let you use 3x of the initial CL, way above that its risk assessment model would have accepted it when approving your application. You still dont think this would not raise some red flag if you do this frequent enough?

Different banks also have different tolerances on cycling CLs - some are extremely sensitive some are not so much. It also depends on which card you cycle the CL - the banks are far more sensitive on cards earning its own currency - that means MR, UR, TYP, as well as A+ or Venture's "miles", or the CB equivalent. Banks are more tolerant to the cobrand cards that earn partner's currency - in this case Hyatt pts. You would catch a lot more attention should you cycle your Ink or Freedom 3x than on the Hyatt/BonVoy/United...

The above is an unscientific conclusion over the years from reading DPs posted publicly or DPs getting privately.
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