"Approved But Scratching My Head!"

Hooters MasterCard Review
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Written by: jgrooms on 2008-08-13

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jgrooms's review: Hi I am new to this website and I love it totally! Here is why I am approved but confused all at the same time. I applied online and was instantly approved, I figured that was a good thing. I call today and the lady on the phone says I was approved they are sending in the mail and I have no Annual Fee. I assume that is great. Then she says the limit is $500 and the interest is 21.8%! What is going on here? I have had credit for three years with multiple accounts, an auto loan, different mix of credit cards and my FICO score for TU is 697. I have no lates and NO BK ever. I have a B of A Visa Plat with $7500 limit. Discover with $3000 limit, a Chase amazon.com with $2000 limit. I also have At&t Universal Platinum with $2800 limit. I have a USAA Mastercard with $5000 limit. Disney Chase card with $4000 limit, I also have a Capital One with $2000 limit, and finally one additional Discover More Platinum $5000 limit. All cards no balance exept the USAA with less then 50% utiliz, and the BOA at 30% utiliz. I don't need the card or anything as I do not need to rebuild but I heard cool things about the mag and want to make my wife jelous, but I am just jaw dropped as to why this is now my lowest credit limit card. I thought they would try to match your highest? Help me what do I do?

12 Comments

Comment 1 by wildrage2
Well... on 2008-08-13

Based on your other reviews, you have opened multiple accounts in the immidiate past, and you probably also have some recent inquiries.

Your credit score isn't the only factor the companies look at when making a decision. I can assure you that if you continue to open up accounts, you will eventually get flat-out denied due to too many new accounts, regardless of if you have a 697 or 797 FICO.
Comment 2 by thomas1
HOOTERS on 2008-08-13

I have seen this many times as well. There is such a thing as having "too much credit". Some banks look at all the open multiple accounts, available lines, etc. Depending on their lending guidelines, they may see the possible risk of default if you decided to run them all up to the limit. I know this doesn't sound fair, but banks lend in order to protect themselves also, even with a good FICO score of 697.

Also, a three year history is good, but even that, a lot of banks like to see longer, somewhere around 7 years. It shows a more stable age of accounts. Also, multiple inquiries in a short period of time could flag that you are shopping for credit that you don't need.

Congrats on your new card, and it may be worth a call to Merrick Bank to find out why the limit is so low and ask for reconsideration thru their credit dept, but I have a feeling it is one of the above reasons.

Let us know how it goes
Comment 3 by thomas1
Hooters on 2008-08-13

I just saw your other approvals for other cards after reading this one. I'll lay odds that it is because of the shopping for other cards is why they only gave you a $500 limit.
Comment 4 by shark6
Congrats...I Think on 2008-08-13

Jgrooms, lol, u are wrong for wanting to make your wife jealous. It seems like Karma got the best of you :)

I believe the problem is that Hooters, IMO, is not a premier or first tier card. I see it more of a card for folks with average credit thus the lower limits.

I would not activate the card but instead call the number on the back of the card or search for a backdoor # on this site or creditboards dot com credit forum site and call, state your case which you wrote above and ask for a CLI upon activation.

Another great card to check out is Chase Freedom Visa-I would think with your scores that you would at least get $2k or more.

Keep us posted.

$500 does seem like a toy limit for your Ficos which are great.
Comment 5 by wildrage2
Cl on 2008-08-13

Hooters has given people on the board CL's upwards of $8,000... Which isn't super high, but decent.

I had a 599 Fico when I applied and got a CL of $600.

Also, just to warn you, CLI's at activation brings another hard inquiry.

Merrick is a subprime bank, much like Capital One. They are a very good subprime bank, that also has prime accounts.
Comment 6 by hjm331
Merrick Bank on 2008-08-13

Merrick Bank issues sub-prime cards with high interest rates. That's just how the company works and there's no changing it.
Comment 7 by shark6
Update on 2008-08-13

Note: Regarding my advice re CLI at activation, please research or request that it is only done by using a SOFT pull and not a hard pull. If you have just got the card, they may be able to still do a soft pull.

$8k limit is high for Hooters. Is that an exception because most o fhte limits around here seem to be below $1k.
Comment 8 by thomas1
HOOTERS on 2008-08-13

I think porgy 1000 got a 9500$ limit from Hooters. That's the highest limit I have seen from them on the subprime side.

Hjm is right, the are generally subprime, but offer other accounts, but rates are sooo ridiculous.
Comment 9 by wildrage2
CLs on 2008-08-13

From what I've read, their initial CL's are higher than all of the other subprime banks, including Capital one. One person got an Orchard account with a $300 CL, a Capital One with $750, and a Hooters with a $2000. From what I've been reading on here, they give the most highest CLs of the SUBPRIME banks.

That being said, they are a subprime bank. Don't expect to get the $25k CL's that Citi or Chase may give out - ain't gonna happen with Hooters.
Comment 10 by jgrooms
For The Record. on 2008-08-13

I only applied for the AT&T Universal and the Discover card. I already had the amazon.com card for over three years now. I only applied for two cards and got both of those cards. I did not inquire about any other cards so basically you can throw that idea out the window because that is not the reason. Thanks for all of your comments, simply put I DON'T need the card so I will simply close the account if they refuse to help out. I will just keep my big banks and say the heck with these loosers. Makes me mad I am a hard working person when it comes to keeping track of my credit history and never mess up, and they hand out $8000 limits to people with BK and baddies on their report with 500 scores like money is going out of style but refuse to work with me. The heck with them if they choose not to help!
Comment 11 by meya
Wow on 2008-08-13

With the cards you currently posses, I would just let them go. The cl will cause your scores to drop once you charge over 35%. I understand that you don't need the card, you just want it for other reasons but I was wondering why did they only give you $500 when they are known for trying to match your highest credit limit on other cards...! I say let them go.
Comment 12 by thomas1
HOOTERS on 2008-08-18

I agree with Meya, let em go. I seriously doubt that they are going to help you out that much or at all. They are stingy as all get out.

The only sad thing is that you now have the inquiry no matter what you decide to do. But, I think its the high lines that you have with other lenders that made this subprime issuer nervous to start out with. Although they do usually try to match your highest limit.

Banks are acting really weird these days, lending guidelines are being changed due to factors in the economy etc. Money is tightening up, and so is credit policy.
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