I don't know if this has happened to anyone else but I MUST vent/request suggestions on what to do next.
I opened a B of A Emerging CC in 5/2008. At that point my credit score was about 610 or so... I had 2 Settled Charge offs with Cap 1 (one settled in Feb 08 and one in Dec 06). These had been reporting on my credit report and B of A gave me the Emerging card with a $500 CL. I have paid that card in full each month, never been late, over the limit NOTHING. I went to the grocery store last night and my card was declined. I called bofa this morning and they said they closed my account due to the 2 settlements from Capital One in JUNE 2008.
I pulled my credit report and my account was UPDATED in June 2008, but the settlement took place in the times listed above. I am VERY confused about this because I just don't know who I need to contact. I spoke to Cap1, and they are sending me letters to show the dates they have filed with the CB's, B of A won't listen to me anymore and I just don't know what to do!
I don't even really want the card anymore, I have other cards with MUCH higher limits that I prefer to use, but I don't like it saying that it was closed by creditor. Anyone know how much that will negatively effect my credit score?
Thanks for letting me Vent... Anyone else have this issue?
It makes me feel better that it doesn't have much of an effect, but it just makes me soooo angry that they are canceling my card over something that was there when I opened it, and because I have been an IDEAL customer since. Not to mention the fact that I haven't had a late payment in almost 3 years...
This was an emerging card, given to those who want to rebuild their credit, how do you rebuild when they take it away from you?
I have thusly decided I am closing ALL of my accounts with B of A (Checking and Savings) and moving them to another bank...
Anyone else interested, I did start a facebook group called I hate Bank of America if you want to join... :-)
I can imagine your frustration at the grocery store. I have recently learned that changes furnishers (anyone reporting to bureaus, typically lenders) do not immediately update information with the bureaus as it changes - they wait until their standard reporting days, which varies from furnisher to furnisher.
However, even if BoA were aware of your charge-offs with CapOne, the economic climate was very different in May last year. Every bank in the country is currently in a risk-analysis mode. Even though you consistently paid your BoA card on time, a lender will take a credit score into account more than ever before. Did you also keep you balance below 10% ($50 in this case) with the BoA card at all times? This impacts 30% of your credit score. Your previous charge-offs with CapOne, although settled, impacts 35% of your score (Payment History). My best guess it that BoA's have tightened up their belt and placed you in an at risk category.
Perhaps it is of little consolation to you, but a huge percentage of CC holder have had their credit facility reduced on account of the current economic climate.
Finally, the words 'account closed by credit grantor' does not negatively impact your credit score. It is neutral.
If you want to improve your score, try to pay down your balances and keep your revolving debt to below 10% of each of your credit lines. Debt to Credit Ratio cannot be underestimated when it come to impacting your credit score. Wait about three months (remember, the updating is not instantaneous), and take a look at your score again.
Be cautious if you want to open a new account with BoA (or any lender) when matters improve. A new hard inquiry will hurt your score, so only apply for credit where it is truly warranted.
I had something similar happen. I have a few revolving accounts, all of which i was approved for while i had an open, unpaid chargeoff from verizon wireless in sept 2003. i decided to pay chargeoff in december 08. verizon then updated the tradeline as "paid in full" and changed the chargeoff date to december 08. this caused one of my creditors to change terms on me because of negative info found on my credit report ("recent chargeoff" ie updated verizon chargeoff to dec 08).
getting verizon to change this date has been challenging. i would call capital one's backdoor number, speak to an account review specialist (they are the ones that answer the phone when you dial zero) and tell them you want them to report the correct date of charge-off. fax them copies of your letters/statements, this always helps. dont assume they'll agree youre right just because they have the same info on their screen.