@Anonymous wrote:
CLD?
if If "high utilization" is reason to have an account closed, what is the point of a credit limit? If they are going to just clone an account in good standing, then they should stop charging intrest, or at least have some penalty on their end, for chastizing a customer with a good record. This is BS, and it has to stop. I can't afford to pay it off for a while, i'm now unemployed, and making minimum payments. but they are stil making interest off of me, so why close it? how can this be legal?
Really sorry to hear about the close. But be sure to pay as agreed so that this continues to be a good TL on your CR. Payment history will still be a factor after close and the TL will continue for another 10 years. This will lay the groundwork later for another good card.
Yes, what they did is legal. I think you actually outlined the reason. You are unemployed and making minimum payments. The CCC does not want you to run balances back up. So they either CLD (balance chase) or close to prevent the balance from doing anything but going down.
And while they don't "know" you are unemployed, they are getting signals that you might have financial issues: 1) account balances 2) payment amounts (minimum) 3) other open accounts (type, issuer, CL) as well as other reasons. They may also be looking at past derogs if you have any.
CCC's (prime) only want to do business with those who make frequent use of the card, but do not carry high balances and make 5x or more the minimum payment. This pattern "demonstrates" financial ability to pay and discretionary income, which is what they want. They don't like accounts which are on the edge paying minimums.
Message Edited by txjohn on 07-16-2009 08:41 AM
