How do you "burn" a card?

[icyhot]

I see people always saying how they've "burned" with a bank? What exactly does that mean and how do you do it? I can only use but so many context clues lol

[Anonymous]

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@icyhot wrote:
I see people always saying how they've "burned" with a bank? What exactly does that mean and how do you do it? I can only use but so many context clues lol

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Don't pay them and the account goes into collections and its eventually charged off.

[Anonymous]

It means they did not pay back the money they spent on their cards. Charge off, Bankruptcy etc.

[CreditMagic7]

Basically run a balance that was never paid i guess. Also included them in a bankruptcy?

Dunno but don't want it happening here. Takes too long for some to get back in again.

[icyhot]

Oh ok. I was thinking it was any kind of adverse action

[Anonymous]

Owe them money on an account and not pay, whether through a BK or just non payment that goes to charge off or collections. Often a reason a bank will not give you future credit, even if your profile is clean years down the road. Some banks remember these kinds of things for a very long time, well past the time any negatives on your credit report fall off. Sometimes even if the debt is eventually repaid it can cause a given bank to be very cautious with extending credit even if others have no issues.

[Anonymous]

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@icyhot wrote:
Oh ok. I was thinking it was any kind of adverse action

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Adverse action usually refers to a lender doing something negative with your current accounts, reducing credit lines or closing the account completely for example.