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Established Member
Posts: 16
Registered: ‎05-12-2009
0

Hooters credit card closed by credit grantor

Hi,

 

I have a few questions. I just reveiced a Letter from Hooters that they closed my Credit Card because i opened to many accounts in the last 6 Months ( which isn't true and i called the 1800 number and they said when the account is closed they can't do anything ). I have no late payments,never went over the Limit so i am really surprised about it.

How will this effect my Credit and Credit Score? I still have a balance on the Credit Card. They send me a Letter with the minimum Payment. Will my Credit be okay if i still make the minimum payment or should i negotiate a settlement for the amount that i still owe?What would happen if i pay late one Month? ( are they still reporting a 30 day late on the credit report ?) .

I'm so confused this has never happened to me before and trying to build my Credit. Any Advice is highly appreciated. Thank you

Senior Contributor
Posts: 4,268
Registered: ‎05-01-2008
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Re: Hooters credit card closed by credit grantor


tammy343 wrote:

Hi,

 

I have a few questions. I just reveiced a Letter from Hooters that they closed my Credit Card because i opened to many accounts in the last 6 Months ( which isn't true and i called the 1800 number and they said when the account is closed they can't do anything ). I have no late payments,never went over the Limit so i am really surprised about it.

 

How will this effect my Credit and Credit Score? I still have a balance on the Credit Card.IIRC...you still have the CL and amt owed figured in your overall util% until it's PIF.

They send me a Letter with the minimum Payment.Pay the min or more!

Will my Credit be okay if i still make the minimum payment or should i negotiate a settlement for the amount that i still owe? Negotiating will kill your credit...do not do it!!!

What would happen if i pay late one Month? ( are they still reporting a 30 day late on the credit report ?) . You will get a brand new shiny 30 day late reporting.  This will also kill your credit.

 

I'm so confused this has never happened to me before and trying to build my Credit. Any Advice is highly appreciated. Thank you


Pay it off & never shop there again. Period.  They obviously don't care about a good customer.  This TL will report in a positive light for the next 10 yrs (give or take) Sometimes they remain longer, other times they disappear sooner, but not often.



Starting Score: 02/2015 TU 709 - EQ 676 - EX 729
Current Score: 02/2015 TU 709 - EQ 676 - EX 729
Goal Score: 850

Bury me in the garden...last app 12.19.14

Senior Contributor
Posts: 4,923
Registered: ‎04-19-2009
0

Re: Hooters credit card closed by credit grantor


tammy343 wrote:

Hi,

 

I have a few questions. I just reveiced a Letter from Hooters that they closed my Credit Card because i opened to many accounts in the last 6 Months ( which isn't true and i called the 1800 number and they said when the account is closed they can't do anything ). I have no late payments,never went over the Limit so i am really surprised about it.

How will this effect my Credit and Credit Score? I still have a balance on the Credit Card. They send me a Letter with the minimum Payment. Will my Credit be okay if i still make the minimum payment or should i negotiate a settlement for the amount that i still owe?What would happen if i pay late one Month? ( are they still reporting a 30 day late on the credit report ?) .

I'm so confused this has never happened to me before and trying to build my Credit. Any Advice is highly appreciated. Thank you


If they closed your CC account and cited a false reason as the cause I would:

 

1) File a complaint with the Office of the Comptroller of the Currency:

     http://www.helpwithmybank.gov/, and

 

2) The Better Business Bureau.

Established Member
Posts: 16
Registered: ‎05-12-2009
0

Re: Hooters credit card closed by credit grantor

Thank you both for your answers. I will pay more than the minimum Payment ( I wish i could pay it off in full today ) .In about 4 Months it will be paid in full though and i'm done with Hooters.I will never apply for a Hooters Credit Card again. I'm glad it doesn't affect my Credit Score in a negative way.

Thanks again for the Advice. 

Senior Contributor
Posts: 4,214
Registered: ‎09-12-2008
0

Re: Hooters credit card closed by credit grantor


creditwherecreditisdue wrote:

tammy343 wrote:

Hi,

 

I have a few questions. I just reveiced a Letter from Hooters that they closed my Credit Card because i opened to many accounts in the last 6 Months ( which isn't true and i called the 1800 number and they said when the account is closed they can't do anything ). I have no late payments,never went over the Limit so i am really surprised about it.

How will this effect my Credit and Credit Score? I still have a balance on the Credit Card. They send me a Letter with the minimum Payment. Will my Credit be okay if i still make the minimum payment or should i negotiate a settlement for the amount that i still owe?What would happen if i pay late one Month? ( are they still reporting a 30 day late on the credit report ?) .

I'm so confused this has never happened to me before and trying to build my Credit. Any Advice is highly appreciated. Thank you


If they closed your CC account and cited a false reason as the cause I would:

 

1) File a complaint with the Office of the Comptroller of the Currency:

     http://www.helpwithmybank.gov/, and

 

2) The Better Business Bureau.


 

Too many accounts is defined by the CCC.  Too many could be any number....there is no legal definition required. 

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
Frequently Requested Threads * FICO High Achievers  *  FICO Score Estimator


09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Established Member
Posts: 16
Registered: ‎05-12-2009
0

Re: Hooters credit card closed by credit grantor

They stated in the Letter i open too many new Accounts in the last 6 Months. The only Account i opened was the Hooters Credit Card 5 Months ago that's why i couldn't understand why they closed it. I have never been late or over my Limit. I called them and they wouldn't give me any explanation. They just said once it's closed they won't do a re-consideration and re-open the Account. I was just worried what i means to my Credit because i have been trying to rebuild my Credit for the last  2 Years and 3 Months ( no late Payments or Collections ). I don't need any negative marks on my Credit.
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Community Leader
Epic Contributor
Posts: 28,098
Registered: ‎04-01-2007
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Re: Hooters credit card closed by credit grantor

"Closed by lender" does nothing to your FICO scores. As far as what other lenders might think, after the credit carnage of the last 18 months there are many people with this on their reports. I have one from a long time ago (store card that I only used for the initial purchase deal), and no one has ever questioned it.

The only way it could hurt you is if you carry balances and/or allow balances to post on your credit reports. Losing the CL from the Hooters card might raise your util. If this happens, the solution is to keep paying down the balances.

I don't think you have anything to worry about. As for the reason given, it appears that Hooters has borrowed the TV Wheel of Fortune and gives it a spin to come up with closure reasons. It would certainly be odd if they were carping about you opening the account with them!
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Senior Contributor
Posts: 4,923
Registered: ‎04-19-2009
0

Re: Hooters credit card closed by credit grantor


txjohn wrote:

creditwherecreditisdue wrote:

tammy343 wrote:

Hi,

 

I have a few questions. I just reveiced a Letter from Hooters that they closed my Credit Card because i opened to many accounts in the last 6 Months ( which isn't true and i called the 1800 number and they said when the account is closed they can't do anything ). I have no late payments,never went over the Limit so i am really surprised about it.

How will this effect my Credit and Credit Score? I still have a balance on the Credit Card. They send me a Letter with the minimum Payment. Will my Credit be okay if i still make the minimum payment or should i negotiate a settlement for the amount that i still owe?What would happen if i pay late one Month? ( are they still reporting a 30 day late on the credit report ?) .

I'm so confused this has never happened to me before and trying to build my Credit. Any Advice is highly appreciated. Thank you


If they closed your CC account and cited a false reason as the cause I would:

 

1) File a complaint with the Office of the Comptroller of the Currency:

     http://www.helpwithmybank.gov/, and

 

2) The Better Business Bureau.


 

Too many accounts is defined by the CCC.  Too many could be any number....there is no legal definition required. 

txjohn -

 

The reason cited is demonstrably false. If they did that to me I would be taking exactly the steps I outlined above. Some individuals took these steps when Chase closed their accounts (as I recommended to them at that time) and some of them actually got their accounts reopened.

Super Contributor
Posts: 5,759
Registered: ‎01-28-2008
0

Re: Hooters credit card closed by credit grantor


creditwherecreditisdue wrote:

txjohn wrote:

creditwherecreditisdue wrote:

tammy343 wrote:

Hi,

 

I have a few questions. I just reveiced a Letter from Hooters that they closed my Credit Card because i opened to many accounts in the last 6 Months ( which isn't true and i called the 1800 number and they said when the account is closed they can't do anything ). I have no late payments,never went over the Limit so i am really surprised about it.

How will this effect my Credit and Credit Score? I still have a balance on the Credit Card. They send me a Letter with the minimum Payment. Will my Credit be okay if i still make the minimum payment or should i negotiate a settlement for the amount that i still owe?What would happen if i pay late one Month? ( are they still reporting a 30 day late on the credit report ?) .

I'm so confused this has never happened to me before and trying to build my Credit. Any Advice is highly appreciated. Thank you


If they closed your CC account and cited a false reason as the cause I would:

 

1) File a complaint with the Office of the Comptroller of the Currency:

     http://www.helpwithmybank.gov/, and

 

2) The Better Business Bureau.


 

Too many accounts is defined by the CCC.  Too many could be any number....there is no legal definition required. 

txjohn -

 

The reason cited is demonstrably false. If they did that to me I would be taking exactly the steps I outlined above. Some individuals took these steps when Chase closed their accounts (as I recommended to them at that time) and some of them actually got their accounts reopened.


In this credit age, it's not worth the time or effort getting the statement 'closed by creditor' fixed.  It's really become meaningless now.  

Senior Contributor
Posts: 4,923
Registered: ‎04-19-2009
0

Re: Hooters credit card closed by credit grantor

I am not talking about "Closed by Grantor". I am talking about "Closed by Bogusly Cited Reason" which should not be tolerated and should be fought!
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