Mandatory Travel Charge Card Credit Worthiness Assessment

» Posted by on Sep 19, 2013 in Payment Methods | 0 comments

As part of Improving the Management of Government Charge Card Programs, OMB Circular A-123, Appendix B, Chapter 6, requires that agencies perform a credit worthiness evaluation of all new travel card applicants prior to issuing a card.

The current travel charge card vendor for my agency obtains the credit scores on all new applicants.  The new applicant must have a FICO credit score of 660 or greater to receive an “unrestricted” status; a score of less than 660 will result in the issuance of a “restricted” card.  At no point does the bank provide the agency with the credit score of the applicant.

The bank will process the applications of individuals who receive the status of unrestricted and issue a travel charge card with the established standard authorized cycle transaction limit and ATM advance daily limit.

Individuals who receive the restricted status will be issued a card with the established restricted authorized cycle transaction limit.  This is less than the unrestricted amount.  If a new cardholder who has been issued a restricted card requests information concerning the restriction, they will be advised to contact the credit bureaus for issues relating to the status of their credit history.  This is not an agency or bank responsibility.

New applicants who have no credit history or refuse to authorize the bank to obtain the credit score may receive a restricted card after an alternative credit worthiness assessment is completed.   My agency has developed a process to accomplish this when necessary.

The bank started the new process for my agency on February 5, 2007.  Individuals who were cardholders at the time the mandate was implemented were not affected.  New travel charge card applicants are subject to the mandate.

The contents of this message are mine personally and do not reflect any position of the Government or my agency.




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