Reply
Super Contributor
enharu
Posts: 6,889
Registered: ‎02-27-2013
0

Re: ORCHARD CLOSED MY ACCOUNT BECAUSE OF AQUISITION BY CAP1

I would recommend you check out other cards. If you are still interested in cap one cards, you certainly can qualify for most of them easily citing prior relationship? I am not too sure about how cap one works. However, if you are bothered enough to, write in to capital one EO and see if it helps
JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Senior Contributor
Wolf3
Posts: 3,198
Registered: ‎01-24-2010
0

Re: ORCHARD CLOSED MY ACCOUNT BECAUSE OF AQUISITION BY CAP1

DiamondStar

 

Your credit score will drop because you will have no open major bank card.   The closed account will not hurt you in any other way. 

 

This is a good example of why you should have more than 1 major card.   IMO, 3 is the minimum.  

 

IMO, it is best to run most all of your expenses through CC to build your credit history.   It is safer for you than using a debit card.  The banks will make more money and want to keep you as a customer.    

 

 

Member
SuperStar3000
Posts: 18
Registered: ‎03-26-2013
0

Re: ORCHARD CLOSED MY ACCOUNT BECAUSE OF AQUISITION BY CAP1

I was aware that CapOne acquired my Orchard Bank CC account (just like they took over my ING Savings account - but that's another issue).

 

But I was unaware that they would actually be closing accounts. It seems to me that a bank would want to retain an existing customer base, even if it means converting them to new cards and sending out "change of terms" notices.

 

My Orchard CC was (issued about a year ago), with a $300 limit and a present balance of $87 (always paid-in-full and on time). 

I know I am not one of their most profitable customers, but I have heard nothing from them.  It's such a petty account, so it doesn't really matter if they decide to close it.

 

My only concern is: How would such a closed account appear on the credit report, and how would it's appearance be interpreted by future creditors?

 

 

Senior Contributor
Wolf3
Posts: 3,198
Registered: ‎01-24-2010
0

Re: ORCHARD CLOSED MY ACCOUNT BECAUSE OF AQUISITION BY CAP1


SuperStar3000 wrote:

I was aware that CapOne acquired my Orchard Bank CC account (just like they took over my ING Savings account - but that's another issue).

 

But I was unaware that they would actually be closing accounts. It seems to me that a bank would want to retain an existing customer base, even if it means converting them to new cards and sending out "change of terms" notices.

 

My Orchard CC was (issued about a year ago), with a $300 limit and a present balance of $87 (always paid-in-full and on time). 

I know I am not one of their most profitable customers, but I have heard nothing from them.  It's such a petty account, so it doesn't really matter if they decide to close it.

 

My only concern is: How would such a closed account appear on the credit report, and how would it's appearance be interpreted by future creditors?

 

 


It would just say closed by grantor.   Closing accounts by grantor or creditor is a common thing and is not considered a negative.   

Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

Re: ORCHARD CLOSED MY ACCOUNT BECAUSE OF AQUISITION BY CAP1

But it does look better in a lenders eyes if you closed the account. Closed by grantor CAN be negative. People who start debt management plans with CCCs have the "account closed by grantor" as well on their credit reports. So when you apply, you may have to explain what that means. And if it is a decision made without your presence, the lender may speculate what that means.

Other reasons for "account closed by grantor" are from an Adverse Action or Financial Review taken on by the lender.

So there are a few negative reasons for this, so you may have to explain why it occurred. BUT, if you have a couple of revolving trade lines, the lender may assume it was closed because you got new accounts with better terms. If you have just that closed account with no other active positive credit history, the lenders might think it was closed due to something adverse. And you just have to explain your side to the story.

So I agree that you need to apply for another card soon before the closed status reports to your credit report. And if denied, RECON!
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+