I lost my wallet yesterday and I am starting the process of reporting the CCs that were in there as lost/stolen. Does anyone have any experience with this in regards to how this affects the credit reporting? I know the typical procedure is that they close the account and reopen a new one. Does this result in multiple accounts reporting (i.e. does the original account continue to report as "closed" as well as a new account reporting)? Do I maintain my history, or do the the reopened accounts appear to be "new accounts"?
My other fear, of course, is how many of the CCCs will close my current account, but then not reopen a new one since my FICO is lower now than when I got the cards. I have been late on ANY of my current credit cards and I have had some of them for 6 or 7 years, but I still have a feeling that at least some of them will refuse to open a new account for me. I don't have any new derogatories (in fact, I probably have fewer derogs now than I did when I opened any of my cards), but my UTL is high, so my score is in the low-to-mid 600s. This happend with my Cabelas card a while ago. They called me to say there was a suspected fraudulent purchase for less than $2.00 in a coffee shop in some other country. They said they would close my account and open one with a new number. I later called back to check on the status and they said they had closed my account but were unable to open a new one because I no longer met their scoring requirements. I don't think there ever even was any sign of fraud--I think they were just looking for a reason to close my account.
When someone made unauthorized charges in Matress One XD with my Discover Card, I called and my account was shut down inmediately, the charges removed and issued another acc number the same day (lady didn´t give it over the phone obviously). My account was opened on March 2011 and the fraudulent transactions were made on May 2012. The number changed but my account kept reporting since 3/2011 as if nothing had happened.
In other news,
When my dad´s Bofa card was used to made fraudulent charges in WinnDixie (lol?), they closed his account and opened a new one. Same reward points, account history, everything was intact. No changes in the CRA whatsoever. The charges were dropped and another number was issued to him.
As for the Cabelas card getting closed abruptly over suspected fraudulent charges, I have no idea.
Did they HP you? Maybe a soft and saw your credit report is not as healthy now as it was when you opened the account and decided not to take the risk?
Def not a company one would want to have a business with.