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Senior Contributor
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Registered: ‎02-23-2011
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Issuers leaving $500 CL when cancelling card?

Just curious, anyone know the rationale behind carriers leaving $500 on a closed card and/or consolidating credit lines?

Super Contributor
Posts: 9,674
Registered: ‎01-28-2010
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Re: Issuers leaving $500 CL when cancelling card?


Open123 wrote:

Just curious, anyone know the rationale behind carriers leaving $500 on a closed card and/or consolidating credit lines?


Are you saying that your account shows a $500CL after it has been paid in full and closed ?   FICO scoring will ignore the CL if the account is closed & paid.

 

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Senior Contributor
Posts: 4,694
Registered: ‎02-23-2011
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Re: Issuers leaving $500 CL when cancelling card?

For instance, I cancelled a Chase airline card, but wanted to consolidate the credit line into my CSP.  They easily accomodated, but the original card is closed with a CL of $500.  

 

Same thing with Barclay's.  Closed a card, and moved a CL to another one.  Closed card is closed, but shows a CL of $500.

 

I was just curious to the rationale behind leaving $500.  Just in case I forget to cancel a recurring charge?

Valued Contributor
Posts: 2,982
Registered: ‎02-09-2012
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Re: Issuers leaving $500 CL when cancelling card?

Seems to me they are trying to screw you for future MR's

5/2012: 560 credit scores across the board and $500 secured CC
12/2014: 750+ scores across the board and $80k in revolving credit

Get those baddies removed!!!
Established Contributor
Posts: 766
Registered: ‎01-16-2012
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Re: Issuers leaving $500 CL when cancelling card?

bizarre. same thing happened to me with chase. tried to transfer 5k from southwest to csp then close. they would only transfer 4500, told me that it was because computer gave me a Max credit limit of 9500. but seeing your post, now I'm curious if something else is going on.
In wallet: Ink Plus 10k, AMEX TE 25k. In bag: CSP 16k, USAA WMC 15k, Hyatt 13k, United MPE 12k, AMEX HHonors 3k. In SD: Cap 1 QS 5k, Discover IT 7k. FICO 08 says my EQ is now 844, was 510 in 2010.
Senior Contributor
Posts: 4,694
Registered: ‎02-23-2011
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Re: Issuers leaving $500 CL when cancelling card?

Could be to have a card on file to ensure a card isn't churned for sign up bonuses in the future?

 

 

Senior Contributor
Posts: 3,067
Registered: ‎11-02-2009
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Re: Issuers leaving $500 CL when cancelling card?

There was a thread a while back that said they have to process the CLD and transfer before closure and that they can only CLD to minimum allowed for the card. That is 500 for a lot of cards. I can't remember if this is what a CSR told someone or if it was what the poster surmised.

Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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