I think the most likely outcome if this becomes too much of a problem for the industry would be to report how long someone has been an AU on an account rather than how old the account is. I believe this is already how American Express reports which is why American Express accounts are not useful for tradeline sales.
Yep. On the AU's credit report, the "open" date is the date they were added as AU. So it's aged 0 at first, which makes Amex not helpful to boost AU's average age. I too wouldn't be surprised to see other cards go this way, and no longer be useful. Hopefully not though. ;)
Sure there are some hardcore churners out there who do massive amounts of MS. I wouldn't be surprised by that. If you go "balls to the walls" on opportunities likes this, you are more likely to draw attention to yourself and get blacklisted. I still churn using MS, but not very often. I doubt my level of churning sends up any red flags. I am keeping my level of piggybacking the same way.
I'll do a bit more with cards I don't care to get shut down, when they come of age. If USAA decides to blacklist me, oh well. There are plenty of local banks and insurance companies that will gladly take my money. I highly doubt it will come to that, but if it does, no biggie.
Yep, this is the attitude I have.
If they cancel, oh well. That's something you have to be okay with if you sell TLs.
Luckily, cancellations are rare. If you do a bunch of TLs all the time, they'll happen. Eventually, likely years down the road, if you're steadily doing some, they'll likely happen. If you occasionally get a sale every few months? I'd be very surprised, as long as the AU is vetted and a real person, not fraud (i.e. other companies that don't very the same can get you shut down after a single add, if there's a problem with it).
I would not consider hardcore MS 'more tame' - MS is directly taking cash out of their pockets. This is more indirect,if at all negative for the cc issuer.
Agreed, which is why I think you're much more likely to get a card shut down, but not blacklisted. AFAIK, no one's been blacklisted anywhere, except Chase (why I don't currently use them--I have 500k+ UR points I'd rather not potentially lose). Otherwise I'd consider using Chase.
Speaking of Chase...
Two of my cards were Chase cards, so that probably makes it less likely that those would get picked.
He pretty much told me don't bother with my two Chase cards.
Here's the thing with Chase cards:
They're a pain in the rear for AU companies. That's why old company doesn't take them at all, and it's only worth using if they're really good cards (really old and/or really high limits) for the new company.
To get them to report correctly, the AU needs to buy a TL slot on the Chase and on another card by the same person (so you can't only enroll a Chase). So that's more expensive, so automatically rarer that you'll see that sale. Even then, it may not report.
So here's the strategy with Chase cards:
Transfer all your credit (leaving a few hundred bucks) onto one Chase "super" card--the one with the oldest limit.
So say you have 3 Chase cards with limits of $18k, 22k, and 7k. If the 7k is the oldest, transfer 17k and 21k of credit to it, making it a 45k card (and the others 1k and 1k) with a long credit history.
That's more likely to get sales than other dinky ones, which likely won't.
I mean, if you have a single 20k+ Chase (and another card enrolled), it doesn't HURT to enroll it, I just wouldn't expect to see many sales on it.
Having only one Chase enrolled also decreases your risk they shut you down.
Whereas if those were Barclays, I'd probably transfer credit from the youngest to the two oldest to get two of them over 20k (one of them being the original 7k card, since that was the oldest, keep the newest one at 1k), and then work on bumping the limits on all 3 so I could transfer credit around to get all three enrolled, two at > 20k, one at > 10k.
Hope that helps, for those of you wondering about Chase!
It's nice that they're still taking them, but sales will still be slow (but luckily if you do get a Chase sale, it comes with one on another card). :)