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Well, given the fun times I had with high balances on many credit cards leading into the credit crisis, and the years I've spent paying them down with CLD from every lender except CapOne on the same $10k limit, 10.9% APR, and thus the stability I've experienced with CapOne, I would say that, yes, a surprise $50k open amount on your credit report (I'm presuming it did report on your CR) may have given them pause on one of their SP.
But that's just me speculating.
@brinyu,
That is the redflag and your answer right there... When I read your other thread, I thought those Amex cards were yours. I think if the question had been framed well, the advise given wouldn't have caused your account to be closed.
So based on your experience, I'll still get the utilization from this card since they still keep the CL?
For the PIF recommendations, I understand that it looks cleaner . . . but at that point, won't having ZERO active cc's of my own lower my scores since I'll have nothing to calculate utilization from? Just thinking out loud.
Thanks for the heads up, but I'm not worry about why they closed it. I don't think I'll ever really 100% know.
I'm just trying to figure out what to do with this closed account as far as PIF vs paying installments (if that helps utilization) until we close on the house on March 13th.
That and the chances that utilization on the AU cards will be factored in to credit check right before closing.
I recently closed out my secured credit card with Capital One and what they did with the final balance that was on the card when I closed it was they just removed it from my deposit. So it seems when you get your check from Captial one it's going to be for 2701 instead of the 3000 and its going to pay your account in full. You won't have a choice in paying it.
@Anonymous wrote:So based on your experience, I'll still get the utilization from this card since they still keep the CL?
For the PIF recommendations, I understand that it looks cleaner . . . but at that point, won't having ZERO active cc's of my own lower my scores since I'll have nothing to calculate utilization from? Just thinking out loud.
@Anonymous wrote:
I think you need to call cap one EO tomorrow, explain you situation and get that account back open.
After the mortgage, app for amex to backdate your member since date and burn that cap one card.
Always remember what cap one did to you and diversify.
This x1000; you absolutely do not want that card closed while going through the mortgage process - all AU accounts has been known to get you kicked out of a mortgage previously and this is a major change if your credit gets pulled again prior to closing and the fact she's still your fiance (no homemaker exception as was cried about when FICO 8 was released) though I don't *think* it has to be open tradelines for mortgage underwriting, just have to have some personal history; however I just don't know mortgage underwriting well enough to state that with any accuracy.
FICO 04/98 won't kill you for the account being closed like like a FICO 8 score would so that's one advantage to the GSE's quaintness regarding scoring models, but say you're sorry, say it again, say it like you mean it, and hope Cap 1 restores the account. If you can't, ugh. I'd probably go and talk to the LO right after going through the CSR / EO two step with Cap 1, I wouldn't want them to be surprised by that mid-process if your credit gets pulled again which is routine during the mortgage process.
And go get 3 cards of your own after you close on the house .
Pardon me whilst I cap on cap1. This is ridiculous what they did. CLD a secured card at 9% util? The whole point of secured card is there is NO RISK to them at all. So, this just goes to fortify the thoughts I have about cap1: "I never have, I never will". cap1 is a trash card. Who pulls all 3 bureaus when you app? Who closes a secured card? Who makes such ridiculous commercials? Even if I was rebuilding, I'd rather use a CU or anything other than cap1.
--rant over--
Besides that, I'd pay that balance in full, and demand my deposit back immediately (prepare to wait a month, though). The day after your mortgage closing, go on an app spree for about 3-4 prime cards, try amex, discover, barclays, etc. if your FICOs and history will support it. Best of luck.
@Anonymous wrote:I found out today that my Capital One Secured Credit card was closed by the lender, no explanation other than they say I'm 'high risk' (which is strange considering I've got perfect payments AND it's MY $3000 deposit securing the credit line)
It's not just your account with them that matters but the rest of your credit as well.
@NRB525 wrote:No they don't.
Every one of my closed cards maintained the original CL for a substantial time, whether I closed it or the CCC closed it.
There isn't a one-size-fits-all answer for this. Closed accounts can report differently and it's certainly possible for a closed revolver with a balance to report as maxed.
@Anonymous wrote:
What's with issuers closing accounts lately?
Always consider the source. myFICO posts aren't necessarily indicative of larger trends with the general market. With any discussion forum the users don't form a representative sample. myFICO has a lot of builders and rebuilders as well as those looking to push their credit, rewards, etc. All of these subgroups can be seen as more risky though it really depends on the specifics of each situation.
@vikingred wrote:Pardon me whilst I cap on cap1. This is ridiculous what they did. CLD a secured card at 9% util?
As always, correlation != causality. Again, it's not just a matter of just the one account. The OP''s entire credit picture is taken into consideration. Without knowing all of the specifics it's impossible to say if the decision was ridiculous or not.
@Revelate wrote:FICO 04/98 won't kill you for the account being closed like like a FICO 8 score would
Just trying to understand what this means! When does FICO 08 punish a card closing more? Is it because OP has no open accounts that are his?