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Getting CCs closed by issuer

New Member

Getting CCs closed by issuer

I am running into an issue with Citi where i am expecting them to shut down all my cards.

Basically I believe it has to do w purchasing of VR at CVS.

I would pay off the balance due before the close of each statement. My cc would show 0 as my current balance..

 

Regardless

would getting my cards closed by Citi be viewed more negatively by lenders than if i were to close them myself?

i do need to refiance my mortgage in the short term thus am trying to minimize the impact.

Message 1 of 60
59 REPLIES
Super Contributor

Re: Getting CCs closed by issuer

Tradelines which are 'closed by issuer' won't be scored any differently by FICO and shouldn't be viewed negatively by creditors. However there could be an impact to your FiCO score if your revolving utilization increases as a result of losing the CLs associated with these cards.
March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 2 of 60
Blogger

Re: Getting CCs closed by issuer


pizzadude wrote:
Tradelines which are 'closed by issuer' won't be scored any differently by FICO and shouldn't be viewed negatively by creditors. However there could be an impact to your FiCO score if your revolving utilization increases as a result of losing the CLs associated with these cards.

Thanks for your helpful response, pizzadude. I was concerned about whether that would be an issue in a manual review. Are you sure that the cause of account closing doesn't matter at all? 

Message 3 of 60
Moderator Emerita

Re: Getting CCs closed by issuer

Cc's can also be closed due to inactivity. However, I agree with the others during a manual review chances of them looking at it favorably - slim.

Good luck
Message 4 of 60
Mega Contributor

Re: Getting CCs closed by issuer


kaiotes1 wrote:

I am running into an issue with Citi where i am expecting them to shut down all my cards.

Basically I believe it has to do w purchasing of VR at CVS.

I would pay off the balance due before the close of each statement. My cc would show 0 as my current balance..

 

Regardless

would getting my cards closed by Citi be viewed more negatively by lenders than if i were to close them myself?

i do need to refiance my mortgage in the short term thus am trying to minimize the impact.


Welcome to the forums!!!

 

Like others have asked how many VR's have you purchased?




EQ FICO 548 3/3/16
Message 5 of 60
New Member

Re: Getting CCs closed by issuer

I had a 200k typ.balance via 5 typ.promo. there is a thread on flyertalk on the issue. I can link.it once I am on a computer later today
Message 6 of 60
New Member

Re: Getting CCs closed by issuer

Message 7 of 60
Super Contributor

Re: Getting CCs closed by issuer

Like others said, it will look unfavorable during a manual review. The lenders might raise some questions as to why your account got closed.

It might affect your mortgage, since all mortgage loans are manually reviewed. No one knows for sure how much it will affect you however. If your overall CR is spotless, they might not care as much. If you have other blemishes or something out of the norm (such as high inquiries), then this will affect you more.
JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Message 8 of 60
Mega Contributor

Re: Getting CCs closed by issuer


kaiotes1 wrote:

http://www.flyertalk.com/forum/credit-card-programs/1465023-citi-cards-closed-perk-abuse.html

 

is the issue at hand


And as discussed there, doesn't really seem to a minimum to get AA, once you are noticed.  Now to be noticed, you might need any of a high balance, calling to redeem a check etc etc, so we don't know, just that closing activity has really ramped up in that last few days.

 

Citi is also changing the way it does things (well, back to it's original way): up till this week they first froze the TY account and a few weeks later closed the cards, giving you time to decide what to do.  Now, they close the cards first (potentially giving you time to redeem some points, but that isn't clear).

 

My concern, if you think you are about to be hit, is not closed by issue/closed by consumer, but more, can an early closing prevent them a) closing other cards not involved, and more importantly, prevent being put on a black list.

 

But again, we don't know if that works, they may review accounts after closing...

Message 9 of 60
Mega Contributor

Re: Getting CCs closed by issuer


enharu wrote:
Like others said, it will look unfavorable during a manual review. The lenders might raise some questions as to why your account got closed.

It might affect your mortgage, since all mortgage loans are manually reviewed. No one knows for sure how much it will affect you however. If your overall CR is spotless, they might not care as much. If you have other blemishes or something out of the norm (such as high inquiries), then this will affect you more.

In some cases 10 Citi accounts are getting closed, I think THAT will be very noticeble on manual review!

 

I think the OP needs a good explanation if Citi closes first, it is for a difference of interpretation on the rewards process, nothing another  lender needs to be concerned about such as late payment, etc.  Whether that is believed is another issue of course.

Message 10 of 60