YOU’D BE SURPRISED–WE SURE WERE: Hats off to blogger Rapid Travel Chai, who just did 13 credit card applications and posted the results: 11 approved, 2 pending. To us, the remarkable thing is not that he did 13 apps, but that he did five from a single issuer, Barclays. The results? 4 approved, 1 pending. And another interesting fact: the credit line granted went up with each additional approval both for him and for a friend who also did five applications.
If his file gets looked at by a human, there’s a nontrivial chance one or more of his cards will be closed. But the key word there is if. Large banks are set up so that you can apply for a card, make your payments, and even get a credit line increase without a single human laying eyes on any of your information. Therein lies the source of our fun: any system has loopholes and any system can be hacked… and that is what Rapid Travel Chai has just demonstrated.
WHY YOU NEED TO READ THIS BLOG: An interesting article in Psychology Today on how too much data can impair your decision-making. Here’s the key excerpt:
Their experiment was simple. Participants were divided into two groups. Group 1 read the following:
Imagine that you are a loan officer at a bank reviewing the mortgage application of a recent college graduate with a stable, well-paying job and a solid credit history. The applicant seems qualified, but during the routine credit check you discover that for the last three months the applicant has not paid a $5,000 debt to his charge card account.