Citibank closed my account for no reason!

[realist]

So I just got this letter of death. I don't carry a balance, and I hadn't used the citi card in 4 months (last time I traveled). So I really shouldn't be surprised. I am ticked off because I'm house hunting and that card would have held the appliances I'll need.

I read several posts where the card holder tried to get the card converted to another type, but they were directed to apply from scratch. I'm not willing to do that before I've closed on a mortgage. Is there any advantage to calling in and having the account closed immediately (at my request) vs letting citi do it (at the lender's request)?

Message Edited by realist on 01-26-2010 08:21 AM

[Anonymous]

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@realist wrote:

So I just got this letter of death.

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Dang!  What reasons did they give you in your letter?

(Best wishes on your house hunting!  Hey - maybe you'll find a lovely home WITH lovely appliances.....)

[realist]

Reason: Citi is discontinuing this "type" of cc.

FYI, it was originally a Macy's store card that was converted to a higher limit MasterCard. It had a regular 'high' APR. Then last spring/summer I got a notice that they were changing the terms and Citi was offering 0% for purchases over $299 for 6 months (or something like that). Then in the fall I received another notice that the promotion was being extended for a few months. In both cases it hasn't been relevant as I don't need it yet.

A lovely house with appliances. Talk about unicorns.

[Anonymous]

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realist wrote: A lovely house with appliances. Talk about unicorns.

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  Very appropriate coming from a realist! 

[FocusOnFICO]

In response to a number of posters who pointed out the "too many...", it depends.......

Many of us went on app sprees last year and added 10+ accounts to our profiles and have not experienced account closures like this.  In fact, Citi just increased my credit limit again last night.  I have about 15 open lines, 22 accounts showing on my accounts list (open/closed), and my scores are a couple of months from 800 territory.  Some play tight-to-the-vest with the good credit guidelines, others no-so-much.

If you are done with Citi, I would recommend replacing them with another card/line to make up for the lost credit line to help your util and flexibility.

[armywifey85]

That's exactly why  I do business with credit unions and USAA. They are trying to do everything they can before the new credit card rules take place in Feb. I've decided I'm not going to do business with any of those banks that took bailout money. My NFCU visa works just as good if not better than that citi branded visa. You see noone cares which card you swipe with its how they treat you as a customer and I place a higher value on how they treat their customers than which brand of visa I carry. I just laugh when people talk about those rewards they get I don't care about those rewards they just make me have to claim more to the IRS. Any reward over 25 and you gotta report it.

Message Edited by armywifey85 on 01-26-2010 10:48 AM

[haulingthescoreup]

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realist wrote:

...Is there any advantage to calling in and having the account closed immediately (at my request) vs letting citi do it (at the lender's request)?

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It doesn't affect your FICO scores. And in this day and age, I honestly don't think that future lenders will blink at a "closed by grantor" notation on an account with clean history and $0 balance. I have one like this, and no one has ever questioned it. If they do, you can just say that they discontinued the card.

You can always call in and request. Some banks comply, some don't.

There has been such carnage in CC land, much having little or nothing to do with the consumer, that I'd say that a lot of the people reviewing your reports have at least one of these themselves.

[haulingthescoreup]

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armywifey85 wrote:

... I don't care about those rewards they just make me have to claim more to the IRS. Any reward over 25 and you gotta report it.

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No, you don't.

Not yet, anyway.



edit: dang html...

Message Edited by haulingthescoreup on 01-26-2010 11:12 AM

[realist]

Interesting FocusOnFICO. I have a friend with 2 Citi cards 20+ year history. Never has the issues I do.

Me, I haven't applied for credit in more than two years. My scores are in the 780s. I am concerned about the hit to my util even though I'll still have 3  other major card choices (and a couple store cards). I will to apply for a new card once the mortgage process is done preferably with cash back.

[FocusOnFICO]

Realist--a valid concern.  If you do the pay-ahead-of-the-statement strategy for all but one card, you should be fine.  Getting a cash-back card after your mortgage is finished sounds excellent.