04-15-2010 08:39 AM
Wow, do I feel stupid (and abused, insulted, etc...). Wish I had thought to come here to read some of the posts (eg, http://ficoforums.myfico.com/t5/Credit-Cards/Chase
In mid-2008, I transferred a large sum (less than $20k) to a new B of A card with a 1-yr 0% intro interest rate. Rate reset in mid-2009; I managed to pay off the balance in early 2010. Card has sat unused for at least 2 months with a 0 balance ($18k limit). Today I called to inquire about transferring a balance to see if they would deal with me; instead, the credit advisor asked several questions as if I were applying for a new account (yearly income, etc), and put me on hold. Came back and informed me that the account was closed and if I wanted I could fax proof of income to her and they would consider re-openning the account. I was/am absolutely stunned. When I asked her when the account had been closed, she informed me that she just closed it as a part of this credit review. Reason given was high utilization on other cards, overall debt and "minimum payments" on the B of A account (what I suppose this means is that I paid the minimum amount due while the card was at 0%).
I could really care less about doing business with B of A (especially after this); however, to lose a large account obviously effects my card utilization percentage. I worked very hard to get my total card utilization level below 50%, and now the cancellation of this account puts it back up over 70%. Not to mention that I feel the whole encounter was completely deceptive.
I have not called back yet, and have not faxed proof of income to B of A yet. I am feeling pretty stupid already for not letting sleeping dogs lie and just leaving the account sitting there, but that apparently is no longer an option. I'm trying to educate myself by reading posts & articles here, but would appreciate any advice on what to do regarding B of A. My knee-jerk reaction is to call back and see if they will let me close the account myself (I did not realize during the call that it would appear on my credit report as "closed by issuer," as described in the above-linked thread, as opposed to "closed by consumer"), but is this the wisest course? I don't really need the credit - I'm in a better place now than before so I don't use cards & am trying to pay off debt as fast as I can - but I am angry about the negative impact this seems like it will have on my credit rating (less credit available, higher card utilization & having a card cancelled). On the other hand, my initial reaction is that re-applying for the account is foolish as I don't intend to use the credit, unless it is to move a balance from a higher rate to a lower rate. Thanks in advance.
04-15-2010 08:53 AM
That's messed up! If you reapply, would it be a hard inquiry to try & reopen the account? As far as to reopen/not open the account, its a personal decision. Are you planning on a major purchase in the future (i.e., home or car) If no, I wouldn't worry about it. I know most of us on this thread tend to obsess over our FICO score. But if you don't necessarily need a higher FICO score for a major purchase, I would just let the account stay closed and work towards paying off my debt & work on getting that utilization lower and consequently increasing your FICO score over time anyway. Keep us posted on your decision.
But your BofA experience is precisely why I was afraid to xfer a balance to my AMEX, in fear it would generate an account review.
04-15-2010 09:01 AM
If you do not need any credit now, then it does not matter that your score dropped a bit due to utilization. You will still have a positive account on your reports for 10 years. Closed by issuer does not matter much. Forget about Chase, unless you will have a need for it.
These days, you should make sure the other cards you want to keep, get used regularly.