05-12-2010 08:19 AM
Need some help here. Just got a letter from Citi stating that my account will be closed as I dont fall under the new Citi bank credit standard.
Not sure what that means, I have had the card since 2002, never late or missed a payment.
Although I have a high balance on my citi and two other cards and my current FICO is at 700.
I did call Citi and they said nothing can be done and the card will be closed.
Also once Citi closes my account how will that effect my other two cards will they jump to close those accounts as well?
Do I have any recourse.
05-12-2010 12:40 PM
I did ask for manager and was told that the account will be closed.
Any idea how much will that impact my score?
I can't say exactly how much it will hurt you but it probably will since it is being closed with a balance still due. That balance will still factor into your utilization plus you are losing the credit limit. May I ask what the utilization is now and what it will be after the credit limit on the Citi card is gone?
From a BK years ago to:
9/09 EX pulled by lender 802
3/10 EQ- 800
4/10 TU -772
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05-12-2010 12:59 PM - edited 05-12-2010 01:02 PM
Sorry about citi. They've done that to others, so don't feel alone. Evidently, your high balances are making them nervous. High balances on accounts are pretty notorious for instigating AA (adverse actions) from creditors - so this isn't unique to citi.
Tell us what your utilization is on all your cards, and we might be able to help you feel your way around a little bit.
Edit: I see that you've pulled your report and score here. Let us know what's helping and hurting your score (the 2nd tab on your myfico report). That will help bring the picture into focus, too.
05-13-2010 01:01 PM
Just a reminder:
As long as you have a balance on a closed card, the credit limit will count in your utilization calculation. Once it's paid to 0, then it's gone.
(This IS still the case, yes? I remember Barry explaining it somewhere here.)
05-13-2010 02:44 PM
Wow..no wonder they closed your account. The days using 99% have long been over.
If I may, and since you did not report the total amount compared to your credit limit, nor you’re Annual Percentage Rate, I would be very careful that the interest charged to the current balance does not go over your current credit limit.
Suggest you do the math and if the balance goes over, pay whatever you can to stop any further adverse action.
The best of luck to you
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