Three month 'rule' (credit criteria)

[Plutonus]

Hi all

Just wondering if anyone knows a bit more about the three month rule for credit criteria (or supposed rule)? I got a shiny new AMEX three months ago now interested in the Citibank Signature. It seems to be stated in many places if you apply for more credit within three months of your last application it is an automatic decline.

I tried to ask this question to Citibank's call centre but their usual service prevailed and not even sure if they knew what I was asking...

 

[cove]

You are allowed to call three times to get extra and different answers.

 

[yohy?!]

there is no such rule, each provider has different approval criteria based on your credit file.

 

[Deewhy]

Each company is dfifferent. All I know is if you have a citi card you need to wait 9 mths for another app

 

[greenfrog86]

It isn't a firm rule where you hold cards from other institutions - there are often rules within an organisation however as mentioned above.

One scenario where applications with other companies will affect your desired outcome is where you have applied for multiple products in a short period as this indicates you are desperate for credit (and therefore unattractive to them).

If you got a card three months ago you should be fine if you meet Citibank's credit criteria. I'm assuming when you got the Amex you just applied for that and didn't apply for a whole bunch of cards at the same time?

 

[Daggs01]

The three month rule is a company specific policy where any application inside that period is considered a duplicate application and cancelled.

The problem is whether or not the credit check is done first or not

Sent from my GT-I9300T using AustFreqFly

 

[Plutonus]

Thanks everyone!

If you got a card three months ago you should be fine if you meet Citibank's credit criteria. I'm assuming when you got the Amex you just applied for that and didn't apply for a whole bunch of cards at the same time?

Yeah only one card. In past six months I've applied for credit twice, in January and April.

 

[Ken1]

I applied for a Citibusiness Gold Visa card on Tuesday and faxed through my driver's licence and last two tax assessments on Wednesday. Yesterday I received a call from Citibank verifying some info and soon after I received an email from Citibank saying that my "recent application for a Citibank CITIBUSINESS has been conditionally approved". A few minutes later my Accountant sent me an email saying he had just received a call verifying the financial info I gave them.

Later that afternoon I checked my application status on the Citibank website and it showed that my application has been declined. I called them and was told they don't discuss reasons but suggested that I get a copy of my credit history from Veda.

I am self employed and have run my own business since 1979 and have lived at the same address since 1983. I pay my credit card bills in full each month and am never late with repayments so I was really surprised when it was rejected.

I have been with American Express since 1983 and over the years have upgraded to different cards, the most recent being in November last year when I changed from the Qantas Ultimate card to the Platinum Charge and Platinum Reserve cards, which were approved without any problems. I have also had an ANZ Platinum Visa card for many years and have been offered a free upgrade to include an Amex card on the account but have never taken it up since I've had a real Amex.

However with the upcoming Rewards points changes to Amex due to start in October I decided a few weeks ago to ask ANZ to add an Amex to my account and also to apply for the Citibank card for the 1.25 QFF points per dollar. When I spoke to ANZ they oofered my a $2000 increase in my credit limit, which I didn't ask for but I accepted. I never go anywhere near the credit limit so didn't need it but accepted it anyhow.

My Credit file shows the Citibank application on 10 July and ANZ on 26 June so I'm guessing this is the reason it was rejected. The ANZ one must have been either for the credit limit increase or the request for adding the Amex to the same account. Previous to that it shows two Amex applications in November 2011 which is when I applied for the Platinum Charge and Platinum Reserve cards. The only other applications showing were both from Amex in 2009 and 2008, which is probably about the time I got the Qantas Ultimate card. There are no Overdue Accounts outstanding, finalised or Arrears brought up to date or anything else negative on the report.

I'm thinking it may be worth faxing to Citibank a letter stating that I've seen my credit file after advice I received from one of their staff members and explain that the ANZ enquiry is not for a new card but for an existing card I've had for many years, and I declared the new current credit limit for that account on the Citibank application. I didn't include the Amex credit limit since it said to exclude limits for cards you intend to cancel. I'm just thinking about whether bother writing to them or just forget it.

 

[greenfrog86]

I applied for a Citibusiness Gold Visa card on Tuesday and faxed through my driver's licence and last two tax assessments on Wednesday. Yesterday I received a call from Citibank verifying some info and soon after I received an email from Citibank saying that my "recent application for a Citibank CITIBUSINESS has been conditionally approved". A few minutes later my Accountant sent me an email saying he had just received a call verifying the financial info I gave them.

Later that afternoon I checked my application status on the Citibank website and it showed that my application has been declined. I called them and was told they don't discuss reasons but suggested that I get a copy of my credit history from Veda.

I am self employed and have run my own business since 1979 and have lived at the same address since 1983. I pay my credit card bills in full each month and am never late with repayments so I was really surprised when it was rejected.

I have been with American Express since 1983 and over the years have upgraded to different cards, the most recent being in November last year when I changed from the Qantas Ultimate card to the Platinum Charge and Platinum Reserve cards, which were approved without any problems. I have also had an ANZ Platinum Visa card for many years and have been offered a free upgrade to include an Amex card on the account but have never taken it up since I've had a real Amex.

However with the upcoming Rewards points changes to Amex due to start in October I decided a few weeks ago to ask ANZ to add an Amex to my account and also to apply for the Citibank card for the 1.25 QFF points per dollar. When I spoke to ANZ they oofered my a $2000 increase in my credit limit, which I didn't ask for but I accepted. I never go anywhere near the credit limit so didn't need it but accepted it anyhow.

My Credit file shows the Citibank application on 10 July and ANZ on 26 June so I'm guessing this is the reason it was rejected. The ANZ one must have been either for the credit limit increase or the request for adding the Amex to the same account. Previous to that it shows two Amex applications in November 2011 which is when I applied for the Platinum Charge and Platinum Reserve cards. The only other applications showing were both from Amex in 2009 and 2008, which is probably about the time I got the Qantas Ultimate card. There are no Overdue Accounts outstanding, finalised or Arrears brought up to date or anything else negative on the report.

I'm thinking it may be worth faxing to Citibank a letter stating that I've seen my credit file after advice I received from one of their staff members and explain that the ANZ enquiry is not for a new card but for an existing card I've had for many years, and I declared the new current credit limit for that account on the Citibank application. I didn't include the Amex credit limit since it said to exclude limits for cards you intend to cancel.

I'd appreciate any advice on whether I should do this now or wait a while, perhaps until 3 months have passed.

What a frustrating experience...

Firstly, the ANZ enquiry would have been for the limit increase. Adding an Amex is a product feature and in no way changes your credit account with them.

I wouldn't think that this single enquiry would cause Citi to decline your application.

It seems odd that they would go through the process of verifying everything, only to decline you... I don't think this has anything at all to do with your credit file, it is more likely to be an example of robotic processing by Citi.

The suggestion from the staff member is just a scripted response as Citi has been known to get a lot of applications from people with lower incomes or bad credit - the low interest intro rates etc attract these kind of applications.

It is unfortunate that they won't discuss further, however might be worth asking if there is any further detail you can provide to make them comfortable with the application if you point out to them your good credit history and that you meet the income requirements for the card etc...

 

[Ken1]

What a frustrating experience...

It is unfortunate that they won't discuss further, however might be worth asking if there is any further detail you can provide to make them comfortable with the application if you point out to them your good credit history and that you meet the income requirements for the card etc...

Thanks for your reply greenfrog86,

Yes it has been very frustrating. The guy from Citibank who phoned me on Thursday said he was checking a few things and it would then be passed up to the next level so that's obviously where it was declined.

Do you think it would be worth calling in to the Citibank branch in George Street in Sydney to see if there is anyone who handles credit card enquiries there and perhaps show them some ANZ and American Express statements to show bills are being paid in full each month and also ask what else I would need to provide to show them I am not a credit risk to them, or would it be better to just fax a letter setting out these things to the fax number that I used to send the other documents for the application?

 

[cove]

Tried for two increases but only got one so don't ever think it is you. Retail credit cards are out THERE if you get my drift.
My biggest gripe with Citi is they appear to discriminate against the fairer sex but that is not a fight that is worth having when mostly the cards work when you want them to work. I have been working mine harder than most it seems so if you do not have a great credit limit then just work on your BPay limit per day so you can quickly pay for charges on your account and keep running.