Credit Cards

[gomab2k4]

I received a letter today stating the following: 

"Washington Mutual (WaMu) has decided to discontinue the Secured MasterCard credit card program. As you may be aware, WaMu is now part of JPMorgan Chase.

As a result, both your Secured MasterCard credit card account and your Secured Card Savings Account will be closed, effective January 12th, 2009.

The money in your Secured Card Savings Account will be used to pay the amount you owe on your secured credit card account. We will send you a check for any remaining money in your Secured Card Savings Account. If there is not enough money in your Secured Card Savings Account to pay the amount you owe, you must pay us any remaining debt on your credit card account under the terms of your Account Agreement.

If you have paid an annual fee for your account and your current year has not expired, we will credit your account as reimbursement for the unused portion of your account year.

If you have any questions, please feel free to call WaMu Customer Service at 1-800-356-0011.

Thank you for you business. We have truly appreciated the opportunity to serve your credit needs.

Sincerely,

WaMu Customer Service"

Needless to say, I am ticked off about this. I am seriously thinking about closing all of my other WaMu accounts. I worked hard at keeping a low balance and paying my bill on time. I have had it for twelve months and was hoping that my card would graduate...not fail!!! Anyhow, now I must look for another secured credit card that is pretty easy to get. Any suggestions?

[woopah]

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gomab2k4 wrote:

Needless to say, I am ticked off about this. I am seriously thinking about closing all of my other WaMu accounts. I worked hard at keeping a low balance and paying my bill on time. I have had it for twelve months and was hoping that my card would graduate...not fail!!! Anyhow, now I must look for another secured credit card that is pretty easy to get. Any suggestions?

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Have you thought about a BoA secured card?  I don't know how easy it is to get, but if you've had your WaMu card for 12 months, then I would guess that your credit has improved so that if you weren't able to get one 12 months ago, maybe you can now.

[soonerORlater750]

We'll see what others think, but... I would seriously consider calling and closing the account myself NOW to get the "account closed by customer" tag, rather than letting THEM close it on the 12th and risk getting the "closed by credit grantor" notation.  I don't know that one way or the other actually affects your FICO, but the former sure reads better than the latter!  We'll see what the more knowledgable people think.

[marty56]

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soonerORlater750 wrote:

We'll see what others think, but... I would seriously consider calling and closing the account myself NOW to get the "account closed by customer" tag, rather than letting THEM close it on the 12th and risk getting the "closed by credit grantor" notation.  I don't know that one way or the other actually affects your FICO, but the former sure reads better than the latter!  We'll see what the more knowledgable people think.

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IMHO I  would not close the account.  if they are going to do that, then let them.  I had most of my CC accounts closed by the grantor and that has not affected my ability to get credit after DMP.  Also if you are going for a mortgage and they ask about it (MR) , just tell them the truth.

[Zar]

You could try calling them and ask if they can convert your card into another (non secured) card.

Zar

[woopah]

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soonerORlater750 wrote:

We'll see what others think, but... I would seriously consider calling and closing the account myself NOW to get the "account closed by customer" tag, rather than letting THEM close it on the 12th and risk getting the "closed by credit grantor" notation.  I don't know that one way or the other actually affects your FICO, but the former sure reads better than the latter!  We'll see what the more knowledgable people think.

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I've had a CC and an LOC closed by GEMB for inactivity.  When I asked how it would affect me because it says closed be credit grantor, I was told it doesn't affect your FICO in any way.  I was also told that when applying for a mortgage an underwriter may ask why it was closed, but that as well really shouldn't affect the loan, unless you lie.

[gomab2k4]

Actually, I got a Bank of America card the same month as the WaMu card, and it graduated this month. I may have to look at National City or US Bank now...I was denied by Wells Fargo and Citi last year. However, my PFico has gone from 481 to 622. Hell, I amy even apply for a unsecured credit card. Whatcha think?

[CreditDrama85]

why did wells fargo and citi say they denied you? i would go with Us Bank; National City has no set guidelines for graduating the card and they have some outrageous hidden fees and rude customer service.

Message Edited by CreditDrama85 on 01-01-2009 10:00 PM

[Not_the_Point]

So glad I closed that card a few weeks ago. I'd rather it say on my credit report that the closure was initiated by the consumer than by the institution.

[haulingthescoreup]

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woopah wrote:

I've had a CC and an LOC closed by GEMB for inactivity.  When I asked how it would affect me because it says closed be credit grantor, I was told it doesn't affect your FICO in any way.  I was also told that when applying for a mortgage an underwriter may ask why it was closed, but that as well really shouldn't affect the loan, unless you lie.

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I'd say that with all the turmoil in the banking industry, and American Express's adventures on the evening news, no intelligent lender is going to blink at a "closed by issuer" notation these days, as long as other things look good on the report.

Your average mortgage officer has probably gone through this himself/ herself anyway!

And you're correct, "closed by grantor" vs "closed by consumer" does not affect your FICO score.