Citi Closed All My Accounts

[longtimelurker]

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@ForumPheen wrote:

Sorry to hear this.

I'm musing now. Although these banks offer co branded cards and store cards, what they are saying is,'we want you to NOT get 3 store cards, but just this 1 revolver to use at those 3 stores.'  

Then what, exactly, is the true meaning of them backing any store card, if they will shut me down for getting 3?  I'm just trying to be a savvy shopper by utlizing the incentive(s) that come with applying for said store cards. 

Capricious.

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I think that is over-analysing.   They said, and most banks have similar rules, "seeking a lot of credit in a short amount of time is a big risk factor",  where "lot", "short" and "big" depend on the bank, income, credit history etc.

[Imperfectfuture]

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@chalupaman wrote:

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@kdm31091 wrote:

So in essence they closed you down because you had too many accounts with them? That's what I'm gathering. But then why approve you? They could have just declined you for the newer ones, instead of approving you and then closing EVERYTHING down

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Exactly. And these were their store cards too. Yeesh. 

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I think we will be seeing more of this.  Citi's earnings yesterday disappointed by 87% (I believe).  Don't remember the details.  However, since the financial crumble, banks ARE more regulated, especially credit products.  If citi doesn't have the assets to cover their aggressive recent card marketing and approvals (double cash), then they have to do this.  But then they need a reason to give (though essentially they can go bust and close anyway).  It may not be you.  The earnings came out yesterday, and with BOA, everyone forgot about oil, another market tumble while folks freaked out, took their marbles to bonds.  I bet BOA tightens up the reigns too (though they seem to have less credit exposure).

[yfan]

The thing is, I don't begrudge banks risk analysis, but I do wonder to what degree new accounts pose an actual additional risk of default as opposed to a risk of the banks losing business. When you get new cards, especially with other lenders, Citi may be correctly guessing that some of that swipe fee they used to collect from your purchases will now go to a competitor. So they take punitive measures to discourage the behavior rather than simple risk assessment. I mean, the fact that you are being approved for good cards is actually indicative of better credit, not worse.

[Imperfectfuture]

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@kdm31091 wrote:

I think the general message is we all could stand to wait longer in between apps. Since I just a couple new accounts (well actually I got more like 4 but only kept 2) in November/December, I won't be getting anything new in 2015. Have to let things age. As much as credit is a hobby for many of us it is also not a game and we can't go crazy with it.

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Yep, 4 new accounts since December for me (one installment loan), and the new accounts, age of accounts listed on the Chase approval, caused me to project next October for apping (quicksilver and Amex one year by then, CU over 2 years, oldest account almost 9 years).  Just let these guys breathe, take advantage of Amex 0%, and show some CCC Luv.

[taxi818]

Sorry to hear that popa.72 . youve really been going for a while. yes. time to slow down and join me in the garden. you will be able to get out in about 6 months. lol. really. i think the best is to stop reading what they are doing at myfico. they can tempt anyone.

[Anonymous]

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@taxi818 wrote:

Sorry to hear that popa.72 . youve really been going for a while. yes. time to slow down and join me in the garden. you will be able to get out in about 6 months. lol. really. i think the best is to stop reading what they are doing at myfico. they can tempt anyone.

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I wouldn't go that far!

But gardening will help.

[chalupaman]

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@taxi818 wrote:

Sorry to hear that popa.72 . youve really been going for a while. yes. time to slow down and join me in the garden. you will be able to get out in about 6 months. lol. really. i think the best is to stop reading what they are doing at myfico. they can tempt anyone.

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Well I do have school to focus on anyway. I'm doing a 16 credit semester so I guess it would do me some good to possibly start reading this site a bit less. 

[vikingred]

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@chalupaman wrote:

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@red259 wrote:

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@chalupaman wrote:

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@red259 wrote:

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@longtimelurker wrote:

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@chalupaman wrote:

I wonder how having my very first credit card closed will affect things. It has been in great standing the entire time before it got closed and thankfully, PRG and HHonors cards should be backated to last year. I'm really reminded as to why I do business with different lenders and like having alternatives available there. If one issuer decides to do something like this to me, I have plenty of other options to use. Maybe with all the freed up credit, I might even be able to get some stuff happening on some other cards. Who knows.

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Personally I would go VERY easy for the next few weeks, and not pursue any CLIs (and certainly no new apps).   Other banks might have the same view of Citi when they view the CR, and you don't want more new activity to show.

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+1 yes, more credit apps is not the way to go. Hopefully the next time someone decides to go on a major spree the will see this thread and think twice. It just sucks to have your accounts closed.

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It makes me wish that I hadn't made that mistake last April to do that stupid app spree. It just made things much more of a pain later on and if I could do anything now, it would have been to not ever go on that one in the first place.

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How many apps did you make?

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It was back when I had just started to read the forum so I wasn't knowledgeable about all these issues then.

Here's what I remember applying for. This was all in April of 2013.

Discover It for Students (first real instant approval)

Wells Fargo College Cash Back

Fingerhut (biggest mistake here)

My first Sync Bank accounts like Walmart, Amazon, Paypal SC, Chevron, and Old Navy

Target RED card (also a huge mistake ugh)

That was it in a nutshell. 

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Dude that's not a "spree".  This is a spree.  This thread has me worried though.  Especially Amex.  They are SPing me 2 x month. 

[Anonymous]

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@vikingred wrote:

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@chalupaman wrote:

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@red259 wrote:

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@chalupaman wrote:

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@red259 wrote:

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@longtimelurker wrote:

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@chalupaman wrote:

I wonder how having my very first credit card closed will affect things. It has been in great standing the entire time before it got closed and thankfully, PRG and HHonors cards should be backated to last year. I'm really reminded as to why I do business with different lenders and like having alternatives available there. If one issuer decides to do something like this to me, I have plenty of other options to use. Maybe with all the freed up credit, I might even be able to get some stuff happening on some other cards. Who knows.

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Personally I would go VERY easy for the next few weeks, and not pursue any CLIs (and certainly no new apps).   Other banks might have the same view of Citi when they view the CR, and you don't want more new activity to show.

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+1 yes, more credit apps is not the way to go. Hopefully the next time someone decides to go on a major spree the will see this thread and think twice. It just sucks to have your accounts closed.

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It makes me wish that I hadn't made that mistake last April to do that stupid app spree. It just made things much more of a pain later on and if I could do anything now, it would have been to not ever go on that one in the first place.

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How many apps did you make?

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It was back when I had just started to read the forum so I wasn't knowledgeable about all these issues then.

Here's what I remember applying for. This was all in April of 2013.

Discover It for Students (first real instant approval)

Wells Fargo College Cash Back

Fingerhut (biggest mistake here)

My first Sync Bank accounts like Walmart, Amazon, Paypal SC, Chevron, and Old Navy

Target RED card (also a huge mistake ugh)

That was it in a nutshell. 

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Dude that's not a "spree".  This is a spree.  This thread has me worried though.  Especially Amex.  They are SPing me 2 x month. 

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They SP me 2x/mo as well. I had a similarly large app-o-rama over a span of 4 months.

[Imperfectfuture]

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@red259 wrote:

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@chalupaman wrote:

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@red259 wrote:

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@chalupaman wrote:

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@red259 wrote:

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@longtimelurker wrote:

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@chalupaman wrote:

I wonder how having my very first credit card closed will affect things. It has been in great standing the entire time before it got closed and thankfully, PRG and HHonors cards should be backated to last year. I'm really reminded as to why I do business with different lenders and like having alternatives available there. If one issuer decides to do something like this to me, I have plenty of other options to use. Maybe with all the freed up credit, I might even be able to get some stuff happening on some other cards. Who knows.

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Personally I would go VERY easy for the next few weeks, and not pursue any CLIs (and certainly no new apps).   Other banks might have the same view of Citi when they view the CR, and you don't want more new activity to show.

---

+1 yes, more credit apps is not the way to go. Hopefully the next time someone decides to go on a major spree the will see this thread and think twice. It just sucks to have your accounts closed.

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It makes me wish that I hadn't made that mistake last April to do that stupid app spree. It just made things much more of a pain later on and if I could do anything now, it would have been to not ever go on that one in the first place.

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How many apps did you make?

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It was back when I had just started to read the forum so I wasn't knowledgeable about all these issues then.

Here's what I remember applying for. This was all in April of 2013.

Discover It for Students (first real instant approval)

Wells Fargo College Cash Back

Fingerhut (biggest mistake here)

My first Sync Bank accounts like Walmart, Amazon, Paypal SC, Chevron, and Old Navy

Target RED card (also a huge mistake ugh)

That was it in a nutshell. 

Did you have more apps since then? April 2013 is quite awhile ago. Heck my first active card is from May 2013.

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Me too. Really need to hang back.