NASA fcu credit card closed without warning

[Anonymous]

Focus on getting your APR's reduced with every card you have. With your balance every point reduction will help you. Pay off the cards with the highest APR's first, and keep paying as much as you can every month on your cards.

[AverageJoesCredit]

Best of luck OP! Sorry it happened to you but hopefully things will get better.

[Vegas4Play]

I am sorry to hear this happened to you OP....I wish u the best in getting things under control. I would not advise taking out a loan, even if it is to pay off cards. As luck would have it ... with the algor. they have set up a large payment of payoff could look like you are rearing up tp charge to the hills and bust out as they call it, which could bring more bad news your way.

Why is it that everytime something happens by way of AA or In over head, or high utilization the fist thing said is oh get more credit to cover it. This method does not work for everyone. (especially those who spend more than they make, or have 100x more credit than income and spend it all, shopping because they can)  And I am not aiming this at the OP at all - I know nothing of them.

Sometime what we need to suggest is gettig MORE INCOME to eliminate debt instead of more credit to mask it. Sometimes some perople may need to take a second or third job, get a income producing hobby or maybe they don't need to spend so much just because it is availlable.

One thing BK taught me is NEED and WANT. I always wanted the newst LV and Gucci bags, shoes, boots...terribly high kitchen appliances and gadgets, did I need them no ( hard to break old habits when you fininacial situation changes) But now if i want it and I can't pay it off next month or two I don't get it.

Yes we all know things happen in life but not everyone is capibale of doing what the majority here do. Use,Pay in full, repeat,  and to continually suggest they get more credit to mask ( util. padding ) does not work for everyone.

Some people just need to generate more cash flow plain and simple.

Again not directed at OP JMO

[ttleigh]

I think adding income is the best option IF you can.
1) from your post it sounds like you can afford all your payments but you haven't mentioned your income yet so I am just assuming you can afford it. It also sounds like you went through a temporary period of needing to use all the cards and are getting back on track?
2) I would call every creditor and ask for a credit line increase as well as an apr reduction. Try soft pull increases only.
3) if you have luck getting APR decreases use extra money to pay off the high utility cards that are open.
4) who do you bank with? Talk to them about getting a loan/line of credit/credit card to cover as much of the closed account. My credit union is always willing to raise my limit to cover a balance transfer.
5) I agree with the person who said focus on the cards that are open. There's nothing you can do about the closed card and your balance is so high it's going to be hurting for a while. If/when the other companies see the closed account they will review your account with them so it would be good to show strong payments to them.
6) try to get a soft pull store card that gives out high balances. adding a card as a last resort to temporarily help overall util might be enough
7) I went through what it sounds like your going through (less dollars but percentages were the same) I would take action fast before your credit score drops lower. I did all the stuff above and as things improved I transferred the closed account balance to other cards. I did it in small chunks. Every time I had a card under 50% util I would transfer as much as I could (but keep the card under 50%) I went through about 6 months of cruddy credit but made it through with no one else closing an account or reducing my limit. I went from low 600s high util about a year ago to now I have about 25% util and credit scores at or above 700
Hope something in my post helps

[Anonymous]

Adding income isn't a possibility at the moment. Only working parent, and my job has high demands on time/resources. I can afford my payments, and I'm throwing whatever extra I can through the snowball method on undebt.it. Less than 2 years to pay every single thing off, less than a year to get everything back into decent utlization percentages.

I wasn't using the credit until February when a bathroom renovation turned into a nightmare and involved hiring, firing and than hiring a new company to start over, while we fought the first contractor in court. That renovation nightmare resulted in finding a plumbing problem that was turning our home into a biohazard and also had to be promptly, and expensively fixed. Then came the attorney we had to hire because the contractor turned out to be absolutely off his mind. March through now has been the only time these cards have had high, sustained balances/reporting.

Lines of credit or increases are off the table. I bank with Chase, and they're already stingy. I don't want to spook anyone. No one else is giving out increases save for my Target card which thankfully made up for the drop in the Discover credit line. (Odd timing, but I'm not looking a gift horse in the mouth.) I don't qualify for soft-pulls as my credit is frozen on all three bureaus thanks to identity theft.

NASA reported today, however they've not zero-ed out the credit limit in reporting, so it's still showing at 78% utilization rather than 100%. I hope it stays that way. 

[Anonymous]

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@Anonymous wrote:

NASA reported today, however they've not zero-ed out the credit limit in reporting, so it's still showing at 78% utilization rather than 100%. I hope it stays that way. 

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That's great. I hope it stays that way too.  Sorry this is happening to you, especially when you are trying so hard to do the best thing.

[Anonymous]

Thanks. No one to blame but myself.

After playing around with the tables on undebt.it, I may go with snowball rather than the avalanche method. While it won't save in interest so much, it will allow the other cards to see movement and save me from possible CLDs.

[fedxboy]

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@Anonymous wrote:
None of them are good.
Cap1- balance 17k, limit 20.5
Delta amx- balance 500, limit 2k
NASA- 11k, limit was 15k
Amx ED- balance 3k, limit 4 (BT and soon to have large payment)
Discover- 5.5, limit reduced to 6.1
Chase freedom- 900, limit is 1.5k
Barclay- 2, limit is 2.5 (also about to see a large payment)
Lowe's- 5.5, limit is 17k
Amazon- 2, limit is 6k
Boa- fluctuates btw 600 to 1200, limit is 2k

I've been focusing on paying down cap1, discover and nasa first but given how they've treated me, I'll probably focus elsewhere.

Definitely don't want to do a loan. I'll take my lumps but dammit, I really hate that I didn't get any warning or at least the chance to work with them to pay it off and then close it.

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Are you really that shocked that NASA didn't give you any warning???  It actually looks like you're struggling to maintain what you have, considering your balances are as high as they are, in relation to your limits.  With your current scores as you stated,  There is nothing to sugarcoat here.  Good luck!!!  I certainly wouldn't count on any additional loans to pay down anything.    Lumps given as kindly as I could give.

[takeshi74]

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@Anonymous wrote:

my revolving did get high due to a home renovation disaster that I'm still paying off

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That should be warning.  Revolving Utilization isn't just a scoring factor.  It's a risk factor with significant impact.

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@Anonymous wrote:

What do I do about the remaining balance? It's too large to just pay off right away. I'm worried other creditors will follow their lead. (Discover already reduced my credit line by 800 bucks after I'd paid off a grand to them.)  

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There is a chance of that -- especially if the closed revolver reports as maxed.

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@Anonymous wrote:

That card was a BT and purchases with a utilization near 80% after the BT. I'd been religiously paying it early and as much as I could. Discover reduced me after I used their BT offer and then Target doubled my credit limit in the same month. I'm so confused and really bummed. I was working really hard to pay everything down after this stupid home repair nightmare and I feel like I'm being penalized for it. 

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80% is extremely high.  90% is considered maxed.  You're not being penalized for attempting to pay down your revolving debt.  You're being penalized for the spike in reolving utilization and there may be other factors with your credit profile playing a part in this as well.

It is a very difficult situation but all you can do is decrease your revolving utilization as quickly as possible.  If there are other issues with your credit profile then work on addressing them as well.  I know this is easier said than done but work on building a liquid reserve and don't rely solely on credit for emergencies.  While short term high revolving utilization generally isn't an issue, prolonged high revolving utilization can lead to adverse action.  If a credit profile isn't strong enough then even short term utilization spikes can cause creditors to take adverse action.

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@Anonymous wrote:
What kills me is I've been good! No new inquiries, working on balances as I can and no new derogatory reports. 100% on time payment history. One tax lien (paid in 2012) and one paid collection (portfolio) from July last year. Nothing else. Discover hasn't even reported yet.

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While the no new inquiries (though they typically have a small impact) and no new derogs is good the high revolving utilization is not and it has a significant impact.

The lien and the collection are not helping you either -- those would be the other items in your profile that I was guessing about earlier in my reply.  Those also tend to have a significant impact.  Paying tends to have little to no benefit.  You really want to aim for removal of such derogs when possible.

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@Anonymous wrote:
Cap1- balance 17k, limit 20.5
Delta amx- balance 500, limit 2k
NASA- 11k, limit was 15k
Amx ED- balance 3k, limit 4 (BT and soon to have large payment)
Discover- 5.5, limit reduced to 6.1
Chase freedom- 900, limit is 1.5k
Barclay- 2, limit is 2.5 (also about to see a large payment)
Lowe's- 5.5, limit is 17k
Amazon- 2, limit is 6k
Boa- fluctuates btw 600 to 1200, limit is 2k

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Calculate revolving utilization on each.  Get them all down as quickly as possible.  I.e. get them all under 90%.  Get them all under 75%.  At 50% then consider switching to a strategy based on APR or balance, if desired.

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@Anonymous wrote:
I've been focusing on paying down cap1, discover and nasa first but given how they've treated me, I'll probably focus elsewhere.

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Do not attempt to take "revenge" on NASA.  You're likely to just harm yourself.  Treat it like any other account as I've stated above.  If you leave it maxed or high it can impact your other accounts.  It is never just about the one account itself that you hold with your creditor.  Creditors routinely review your reports to see what's going on with your credit profile.  Your credit profile always matters.  Don't leave the NASA account behind -- especially if it reports as maxed due to closure.

There are plenty of warning signs in your posts that I've replied to.  Definitely read up to understand why these are red flags to creditors and why having that information on your reports would be of concern to them.

[Anonymous]

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@Vegas4Play wrote:

One thing BK taught me is NEED and WANT. I always wanted the newst LV and Gucci bags, shoes, boots...terribly high kitchen appliances and gadgets, did I need them no ( hard to break old habits when you fininacial situation changes) But now if i want it and I can't pay it off next month or two I don't get it.

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All of this! We might be twins....except I'm not into Gucci. But as for LV, Coach and kitchen appliances....YES!