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Bank of America closed my card - Questions

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Anonymous
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Bank of America closed my card - Questions

Bank of America closed my credit card account because I recently got 60 days behind between January and March. I have since made two payments within a month totaling $900, bringing the balance to $4400. I took a hit on my credit score by the account being closed and still having a $4400 balance with a $0 limit. I have sent a goodwill letter to them asking forgiveness to see if they will lift the negative marks on my credit report, and just spoke with a representative over the phone about reopening the account. She took my salary info and personal info and said I should hear from them within 5-10 days on their decision to "reopen" the account.

 

My payment history has been perfect other than this one time and I've had the account since 8/10. I hope BoAM is willing to reopen the account and let me continue using it and paying $500 a month on it. If they don't reopen the account, should I just let it go into collections and charge it off?! What's the difference? I'm still sort of screwed with my debt to credit ratio now, right?

Message 1 of 10
9 REPLIES 9
drkaje
Senior Contributor

Re: Bank of America closed my card - Questions

I definitely wouldn't let it go to collections.


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Message 2 of 10
llecs
Moderator Emeritus

Re: Bank of America closed my card - Questions


@Anonymous wrote:

Bank of America closed my credit card account because I recently got 60 days behind between January and March. I have since made two payments within a month totaling $900, bringing the balance to $4400. I took a hit on my credit score by the account being closed and still having a $4400 balance with a $0 limit. I have sent a goodwill letter to them asking forgiveness to see if they will lift the negative marks on my credit report, and just spoke with a representative over the phone about reopening the account. She took my salary info and personal info and said I should hear from them within 5-10 days on their decision to "reopen" the account.

 

My payment history has been perfect other than this one time and I've had the account since 8/10. I hope BoAM is willing to reopen the account and let me continue using it and paying $500 a month on it. If they don't reopen the account, should I just let it go into collections and charge it off?! What's the difference? I'm still sort of screwed with my debt to credit ratio now, right?



You might want to double check your reported CL on your CRs. Even if a credit card company closes your account, the reported CL shouldn't go to $0. I had BofA close one of mine and the CL still reported with a balance showing. Per FICO scoring, it is still scored as if it were open. Now if it indeed does show $0 in the CL field, then FICO will totally ignore the balance and CL for util purposes.

 

If they don't reopen it, don't cut off your arm if you have a scrape on your finger. Pay it off ASAP, otherwise you'll see 60, 90, 120+ day lates, added interest, and eventually they'll charge it off. At some point a collection agency will report on it and your score will drop even more and they can decide to sue if they wanted to knocking your score back for years and years.

Message 3 of 10
Anonymous
Not applicable

Re: Bank of America closed my card - Questions

Hi bleuplaya, and welcome to the myFICO Forums! Smiley Happy

 

I'm sorry to hear about your account closure-- that is an unfortunate result of getting behind in your payments. Banks are not nearly flexible or forgiving on that front. And, even more unfortunately, BoA is not at all likely to reopen that account for you.


@Anonymous wrote:

My payment history has been perfect other than this one time and I've had the account since 8/10. I hope BoAM is willing to reopen the account and let me continue using it and paying $500 a month on it. If they don't reopen the account, should I just let it go into collections and charge it off?! What's the difference? I'm still sort of screwed with my debt to credit ratio now, right?


NO! No, no, no, no, nooooooooooooo! Please, whatever you do, DO NOT stop paying. Do not go to collections. Do NOT, under any circumstance, let that account get charged-off. PLEASE! It is your credit, and your financial future that you'll be hurting... badly.

 

So, you've recent 30 and 60 day lates... those are hurting you bad, and BoA is not good with goodwilling (keep trying though!). You need positive payment history to eventually dilute the bad. Even closed, KEEP PAYING-- chargeoffs, collection accounts, and public records from being sue hurt more, and are costly. Pay it off as quickly as you can, and if at all possible, don't get any more lates.

Message 4 of 10
Anonymous
Not applicable

Re: Bank of America closed my card - Questions

Thanks for all the replies. I've had a mortgage with BoAM for 7 1/2 years, perfect payments, three auto loans in the past with perfect payments, two of which were joint accounts with my now ex-wife. My current vehicle is financed through my credit union with perfect payment history. According to my Experian report, I have 24 accounts in good standing and 6 in negative. The negatives are basically 5 other accounts that have had one 30 or 60 day ding in the past 4-6 years each. NO chargeoffs, collections, etc But when I went to co-sign for a vehicle with my girlfriend to help her, my Equifax score showed a 598. **bleep**?! I figured it could at least be a 650-670! I'll pay the card off with BoAM, but it's just frustrating that my credit score tanked that low since I checked it last year.

Message 5 of 10
adavis425
Established Contributor

Re: Bank of America closed my card - Questions


@drkaje wrote:

I definitely wouldn't let it go to collections.


+1

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Message 6 of 10
JaysonT
Regular Contributor

Re: Bank of America closed my card - Questions


@Anonymous wrote:

Thanks for all the replies. I've had a mortgage with BoAM for 7 1/2 years, perfect payments, three auto loans in the past with perfect payments, two of which were joint accounts with my now ex-wife. My current vehicle is financed through my credit union with perfect payment history. According to my Experian report, I have 24 accounts in good standing and 6 in negative. The negatives are basically 5 other accounts that have had one 30 or 60 day ding in the past 4-6 years each. NO chargeoffs, collections, etc But when I went to co-sign for a vehicle with my girlfriend to help her, my Equifax score showed a 598. **bleep**?! I figured it could at least be a 650-670! I'll pay the card off with BoAM, but it's just frustrating that my credit score tanked that low since I checked it last year.


As a new visitor to the site, I definitely recommend spending a great deal of time reading and understand why you have a 598 score.  This site will help you understand the reason for the 598, help you work toward 650-670 (and beyond) and most definitely help you with why your thought in your first post would definitely not be the way to go.  Spend the time and soon enough you will be grateful you did.

Message 7 of 10
marty56
Super Contributor

Re: Bank of America closed my card - Questions

Keep paying the BofA account.  When were your most recent lates?  Also high util can be a real score killer so you need to check that as well.  You also need to see what is on your TU and EQ reports and I would also consider a good CMS that checks all 3 CRs.  I can recommend True Credit for that and MyFICO Score Watch to monitor your EQ report as you build your credit back up.

 

Did the cosign go through?  if not count yourself lucky.Smiley Wink

1/25/2021: FICO 850 EQ 848 TU 847 EX
Message 8 of 10
LS2982
Mega Contributor

Re: Bank of America closed my card - Questions


@drkaje wrote:

I definitely wouldn't let it go to collections.


Big +1




EQ FICO 548 3/3/16
Message 9 of 10
Anonymous
Not applicable

Re: Bank of America closed my card - Questions


@LS2982 wrote:

@drkaje wrote:

I definitely wouldn't let it go to collections.


Big +1


+1

 

Pay it off, and don't neglect the other accounts. Further - and this is just some anonymous, friendly advice -  seriously take a look at the spending habits that got you to this point. A few years of on-times will go pretty far if you want to start another round of GW efforts.

Message 10 of 10
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