I am conducting a credit card audit. The CU credit card program is risk based on credit score. When a member request for a limit increase, usually a new application is completed and a new credit report is pulled.
The process in place is that the interest rate used for the approved increase limit is the same interest rate as originally approved may it be a year ago or longer and not current interest rate with the new credit score. No policy or procedures are in place for this process.
It does have it some benefits to a member where the interest is lower and not according to deceased in credit score which would have increased their interest rate and vise versa for higher interest rate when it could have been lowered.
Does any use this same process? I am considering that a new credit obligation has been approved and the interest rate should be based on new credit report pulled.
